EXECUTIVE SUMMARY:
This report is doing analysis on the evaluation of the current position of profitability, liquidity, and revenue. The problems are identified which are affecting the financial statements severely. Results are also shown after implementing the procedures for rectifying the errors. The volume of sales of PepsiCo in the years of 2004 and 2005 are not good, but after 2005 there is an increase in the revenue. PepsiCo has developed latest innovation and concerned with R& D department to meet the challenges of the new demands of the consumer. PepsiCo and testing also concern the health experts is done to develop the flavor which the customer wants. It is recommended that PepsiCo must take immediate steps to promote its healthy and fresh products and restrict the unhealthy products. The cost must also be maintained so the consumer might be attracted towards the products of PepsiCo due to the reasonable price.
LETTER (MEMO) OF TRANSMITTAL:
It is a research report on the Pepsi Company. The main topic of this research is to analyze the reasons of less revenue or wrong position in the market as compared to last years. The problems and their solutions are discussed which if implemented will have a powerful impact on the financial situation and as well as on marketing position of the company. In the year of 2014-2015, there is less revenue generation. The improvements are made after 2015, and the steps which are involved in the improvements are also discussed in this thesis.
The hard thing is to analyze where the issues are occurring and how they can be overcome. The natural thing in this research paper is to state the prevailing position of the company. The interesting thing in this research paper is to analyze the changing after improvements because there is the rapid change in the financial statements after solving the issues.
The instructions are properly followed of this research paper because these are the guidelines for analyzing the company. There are certain factors which are to be followed to maintain the success of the enterprise. The most important aspects are cost minimization and customer satisfaction. But cost minimization must not affect the quality of the products of the company.
INTRODUCTION OF PEPSICO:
This research is about the Pepsi Company which is the most iconic company and recognizing the brands of the consumer across the world. Today, there are three products of the Pepsi Company which are Pepsi, Diet Pepsi, and Pepsi Max and the retail sale of each product is $1 billion annually. This company is providing complimentary food and beverage which is providing more choices for consumers at reasonable costs. Pepsi Co. has 22 brands across the world. In future planning, the goal of the Pepsi Co. is to do enough by setting the high targets which are difficult to achieve, but they are capable of maintaining their brand to higher standards. They are expanding their work since they have launched their company. They have set their goals to achieve in products. They are making efforts to bring 
continuity in refining the food and beverage choices to meet the needs of the customer through development broader product choices. Pepsi Co. also set goals to grow their business and make amendments according to the changing world. They have the planning to make advancements for the rights of the human, promotion of diversity, community development all over the world. Pepsi Co. is working to expand Sustainable Farming Initiative (SFI) for enhancement of practices of environment agriculture. In this research paper, the main emphasis is on the financial statement in which there is the loss from 2014 to 2015, so its reasons will be discussed, and further steps to overcome the problems will also be discussed. The problem is defined in this research paper, and the solutions are also given for solving the problems. After the implementation of the solutions, their potential results are also discussed. Further recommendations are also given for PepsiCo which can be effective for the profit earning. In starting of this report, the executive summary is also provided in which explanation is given about the PepsiCo.
ESTABLISHMENT AND EXAMPLE OF PROBLEM
The revenue of PepsiCo is decreasing since 2014. There is also the reduction in the operating profit from 2014-2015, but after that, there is an increasing trend. There are many possibilities of the occurrence of loss. PepsiCo is a global company which is selling food beverage in the categories of highly competitive and they depend on continuity of demand for the products. (Rothaermel, 2015) For the generation of maximum profit, the customer satisfaction is required. If there will any change in the preference of consumer and PepsiCo could not meet the changing phenomena then there will be the deduction in demand for the PepsiCo’s products. The success of PepsiCo depends upon the ability to respond the changing trends in the consumer’s choice. The consumers are much possessive about their health and wellness, and they should be, they also notice the quality of products, so it is a big challenge for PepsiCo to develop new products which are preferable by the customer either by reducing sodium, sugar addition or full food. There will be the adverse effect on growth rate of the liquid refreshment, and snacks if there is no development in the current share and emerging markets. (Black, 2015) The change in the category consumption or consumer demographics can become the reason of less demand. There are fluctuations in the business due to increase in the cost, shortages of raw material, disruption of supply. Political instability, unfavorable economic conditions, civil unrest is also the reasons of less revenue in the business. There is the limitation in the PepsiCo business due to the change in a legal and regulatory system which also creates adverse effects in the firm. Due to worst weather conditions or natural disaster, there is an adverse impact on the manufacturing department, transportation, distribution, and sales. The rules, regulation, and laws are failed to implement in the PepsiCo which resulted in improper activities of the employees, late financial information, and many other problems. There is the change in the environment of legal which is limiting the business activities and increasing the cost and decreasing in demand.
STATEMENT OF SOLUTIONS:
(Black, 2015) PepsiCo should build the abilities to develop sweet innovation, improvement in production, packages, and products. Respond must be given to the pressure of prices and competitive products. 
There is need to reduce the cost and improvement in efficiencies. The strategic plans also help if implemented properly for the success in future. The structure must be developed of lowering the cost of running the operations of long-term basis and more efficiently. There must be continuity of implementation of global operations for effective decision making, innovation and brand management. More investments must be made for expanding the business which will assist the execution of plans and provide continuity of leading. If the implementation will not be done according to the planning on the timely manner, then there is the chance of failure to achieve the saving which will increase in cost and less the demand. The new policies must be made to maintain the higher standards for the quality of products. The confidence of the consumer must be attained in product quality, integrity, and safety. High ethical and social environment must be properly maintained for all the operations of the business. As PepsiCo is running its operation globally, so there is need to implement local regulations such as anti-corruption laws, tax laws, and rules and regulations must also be implemented in the manufacturing, distribution and sales department.
Example of Solutions
New ideas can provide the benefit in the business. If the management and staff work together and make brainstorming for writing the ideas which come in the minds of the employees can provide best outcomes. In this type of discussion after getting ideas of all the concerning people, the best ideas can be extracted which become the foundation of the solution. Every company needs brainstorming for getting the input of ideas which provide with the options for the workable solutions. If monitoring is done on a regular basis on the activities of the employees and progress of the department, then the process of solving the problems can easily be taken place. Managers must do evaluations for the comparison of actual and performance and the targeted goals. If there might be any issue, then a particular marketing plan can be implemented to analyze the solutions of the problems. As PepsiCo is getting lower revenue, then there must be the projection for the loss year, and evaluation must be done on the sales to reveal the methods of sales which are to be rectified for the generation the revenue and get back to its profitability track. (Nixon, Mejia, Cheyne, Wilking, Dorfman, & Daynard, 2015).
SOLUTION IMPLEMENTATION:
There are many possibilities of the occurrence of loss. PepsiCo is a global company which is selling food beverage in the categories of highly competitive and they depend on continuity of demand for the products. (Black, 2015) For the generation of maximum profit, the customer satisfaction is required. If there will any change in the preference of consumer and PepsiCo could not meet the changing phenomena then there will be the reduction in demand for the PepsiCo’s products. There is also the implementation of rules and regulations for the regular monitoring of the activities of the employees and financial statements. So that if there is any problem prevailing in the financial statements or there is less income then the actions can be taken on sudden manner in order to rectify the problem as early as possible instead it may prolong till the whole period. The executives and upper management should unite the employees and ask for the solutions of the problems so that they take an interest in the current issues and take the responsibility to solve the errors in an efficient manner. The logic tree-based problem solver is also used by PepsiCo to have detail analysis on the problematic financial positions for taking effective decisions. After making decisions, the solver branches receive responses from consumers and keep working on the strategy until the positive response by customers.
POTENTIAL RESULTS:
After the analysis of problems, PepsiCo has made some policies to come out from the bad situation. It has restricted on the products which are damaged or out of date and asked the storekeepers to remove those products from their shelves and make sure that consumer is getting fresh and quality products. The concentration is given by PepsiCo on the risk factors to maintain the reliability of the business. There is the improvement in the adjusted net profit margin from 2015 to 2016, and the slight increase is also analyzed in the profitability ratios. Committees are arranged by PepsiCo who are responsible for finding the solutions of the prevailing problems. These committees take work from the employees and develop the relationship among the particular department of the company and employees. (Nixon, Mejia, Cheyne, Wilking, Dorfman, & Daynard, 2015).Customer service applications are used by PepsiCo to deal with the complaints to make strategic plan to handle the upset customers. Some tools are used to resolves the problems of the consumers. Service agent allows the customers for the providence of small discount to attract the client for resolving the problems and issues and in these criteria, there is also the management of the cost of extracting the company’s revenue. PepsiCo is much aware of its problems and knows where there is lack, so it is taking adequate measures to maximize the profit and to make position in the market. There are improvements in financial statements recently, and PepsiCo rectifies many issues. Their targeted valued are of the higher standards, and they are working on the problem-solving strategies to satisfy the customer needs and desires. 
The changing is also taken place in manufacturing, designing, and marketing sectors of the PepsiCo according to the consumer behavior and core competencies.
RECOMMENDATIONS:
PepsiCo is maintaining its position very well, but in the period of 2014-2015, there is downsizing in the revenue. The PepsiCo needs to concentrate on its cost minimization, but the quality of the products must be maintained properly. (Rothaermel, 2015) The consumer satisfaction must be considered a critical aspect so that demands of the products also increase. There must be check and balance on the financial reports and employees to analyze the errors and omissions on a regular basis. To get higher position among competitors, there is need to do product development in a unique manner because the people are attracted towards the differentiate products and services.
CONCLUSIONS:
This thesis is based on the financial position of the PepsiCo. It is the company which is giving best products and services to their consumers. But due to some deficiencies, there are problematic conditions in last two years. PepsiCo makes the improvements, and if there will be continuity in improvements, then there will be a rise in the revenue and the demand for the products of Pepsi Company will also have increasing trend. The regular check and balance are also assisting the management of the PepsiCo to make rapid changes for the betterment and to come out from downsizing and generate maximum profit. It is the big brand which is providing its products and services from many years in a successful manner, but for some period there is some critical situation in the company which can be overcome if proper management is hired on all the departments of the Pepsi Company.
REFERENCES
Black, S. (2015). CEOs and Top Leaders: Solutions to Solve Ethical Dilemmas and Decision Making.
Nixon, L., Mejia, P., Cheyne, A., Wilking, C., Dorfman, L., & Daynard, R. (2015). “We’re part of the solution”: evolution of the food and beverage industry’s framing of obesity concerns between 2000 and 2012. Journal Information, 105(11).
Rothaermel, F. T. (2015). Strategic management. New York, NY: McGraw-Hill.
Žulj, D. (2015). Strategic management in technology-based industries: mobile phone industry (Doctoral dissertation, University of Zagreb. Faculty of Economics and Business. Department of Organization and Management.).
