{ "docId": "019dd923-622b-71dc-a6db-42fab09bc86d", "docSlug": "f306ccfd77a7", "documentTitle": "PepsiCo (PEP)", "authorId": "06_Trian_Partners", "authorName": "Trian Partners", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2013-07-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 15, "pageCount": 59, "prevPage": 14, "nextPage": 16, "slideType": "villain_critique", "function": "name_villain", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a narrative critique style to highlight organizational misalignment.", "elementsJson": [ "headline_text", "bullet_list", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6db-42fab09bc86d/15", "deckHref": "/decks/019dd923-622b-71dc-a6db-42fab09bc86d", "deckJsonHref": "/decks/019dd923-622b-71dc-a6db-42fab09bc86d.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-42fab09bc86d#slide-15", "components": [ { "bbox": null, "kind": "callout", "text": "This continued emphasis on “Power of One” and recent decisions by the corporate leadership could be making it tougher to form the next generation of beverage leaders.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64cf-7128-a328-7cec9dffe758", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.6, "w": 0.9, "x": 0.05, "y": 0.3 }, "kind": "list", "text": "A turnaround of the North American beverage business is never going to happen if soft drinks and snacks are not properly managed for their increasingly different strategic and cultural needs. How is Power of One counterproductive? Just a few days ago PepsiCo announced a new “Power of One – Americas Council...” The council includes 6 legacy snack executives and only 2 native beverage executives. According to PepsiCo, this council is necessary because, “snack and beverage occasions are typically planned together and the products are both purchased and consumed together.” We do not entirely agree with this view and respectfully question how this perspective will help to decommoditize Pepsi’s core beverage brands and reactivate the category’s growth. A great many of the occasions for snacks and soft drinks do not easily match....This continued emphasis on “Power of One” and recent decisions by the corporate leadership could be making it tougher to form the next generation of beverage leaders. There is a risk that bright beverage executives at PepsiCo may be concerned by what we externally see as a subjugation of the beverage unit’s culture and needs to Frito Lay. The unintended message that may be getting sent by the recent management moves and by the snack heavy senior leadership is that any talented individual who wants to rise through the beverage ranks must flow through the food business at some point. There seems to be little room and hope for native and career beverage executives at PepsiCo.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "23235207-b1a3-4565-ab33-a6c11634adf3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.15 }, "kind": "list", "text": "Ten years into “Power of One” has yielded... a dominance of snack minded management in charge of execution. The merchandising benefits of [“Power of One”] will not offset the cultural handicaps that it seems to be imposing on the beverage unit", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5895ba15-9838-492a-a7bb-7c2e1b9bbdf7", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Ten years into “Power of One” has yielded... a dominance of snack minded management in charge of execution. The merchandising benefits of [“Power of One”] will not offset the cultural handicaps that it seems to be imposing on the beverage unit” — Credit Suisse research 10/4/2011", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64cf-7128-a328-80f29fb154c3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.2, "x": 0.13, "y": 0.94 }, "kind": "source-note", "text": "– Credit Suisse research 10/4/2011", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fa7d110a-2eca-49a7-8a39-14e0b6ba1591", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.7, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "“Power of One” Between Beverages / Snacks Has Driven Cultural And Operational Challenges", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4e576b7c-7496-4b27-8065-b287fb2a4df0", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 24, "from": 9, "beatId": "5f1c8311-659e-408e-b09d-737d53cf8664", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Problem", "beatSlug": "problem-agitate-solution-problem-identify-pain", "evidence": "Slides 9-24 present the problem and agitation", "position": 0, "confidence": 0.9, "parentBeatName": "Complication", "parentBeatSlug": "complication" }, { "to": 24, "from": 14, "beatId": "8b96dec3-8730-46bf-aa5a-7ed631f13a45", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "Slides 14-24 agitate the issue", "position": 1, "confidence": 0.9, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [ { "to": 24, "from": 10, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "b1eb7365-1a3c-493c-9c33-bd96a98d3052", "evidence": "The document highlights the costs of underperformance", "position": 1, "objective": "Highlighting the costs of not taking action", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }