Management Question Six 6

Food and beverage company PepsiCo's bestselling products include Pepsi-Cola, Mountain Dew, Lay's potato chips, and Doritos. Some believe that these and products like them contribute to the obesity problem and its negative health effects in the United States. In response, the company offers healthier but somewhat less profitable alternatives such as diet drinks, oatmeal, and juices. To improve its financial performance and stock price, PepsiCo is considering a major international push to develop countries in South America and parts of Asia and Africa where obesity rates are lower than in the United States and the rest of the developed world but are beginning to rise. Its executives must decide whether to continue to sell its existing line of high-margin products in those new countries or focus on introducing the more nutritious offerings.

What are some of the ethical dimensions of this decision? What factors do you think the leaders should consider as they make it?

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