PepsiCo: No Deposit, No Return - Page 6

PepsiCo Base Case

Headquarters: 700 Anderson Hill Road, Purchase, NY 10577

Phone: (914) 253-2000

Business: Beverage and snacks producer. Key divisions: Frito-Lay, Pepsi-Cola, Gatorade/Tropicana, and Quaker Foods.

Chief Technology Officer: Shauna King, President of PepsiCo Business Solutions Group.

Financials: $25.1 billion in revenue in 2002; $3.3 billion net profit.

Challenge: To move from a melange of computer systems maintained by the individual business units, to a central technology strategy with common platforms and shared resources.

BASELINE GOALS

  • Improve gross profits, which have fallen from 58.2% of sales to 54.2% in four years.
  • Revenue growth targets 2002 to 2005: 7% a year, for company as a whole.
  • Grow revenue of Frito-Lay North America, 7% to 8% a year; Pepsi-Cola N.A., 6% to 7%; Gatorade/Tropicana, 6% to 7%; Quaker Foods, 2%.