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Pepsico Strategic Management

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PEPSI CO Strategic Management

Key internal and external factor

1. External

- Coke would also like to dominate the cola industries

- Consumer shift to less costly drinks and snacks

- Coke manage to dominate marketing in China by a small margin

- Continuing economics problem

- Cost of sales and management increased as times changed

- Increased in Liability cost ( transportation, tax, raw material )

- Low supplies of fresh and clean water

2. Internal

- Cost of production in varies providence

- Lack of strong personnel in marketing and administration

- Lack of diversities in product offered into the market

- 2 separate bottling company


Strength and weakness

1. Strength

- Diversities of product

- Huge assets around the globe

- Create synergy between product categories

- Having Indra K. Nooyi

- Great marketing and advertisement plan

2. Weakness

- Various company involved

- rely on independence bottling company

- Lack of expert personnel

- Different in management and administration for each branch

Main Strategies to Success

- Bolstering manufacturing and sales in China

- Further increase investment in Japan, India, Europe, Mexico and Latin America

- Retake ownership of its two largest bottlers

- Increase the number of non-carbonated product

- Ventured into a conglomerate diversification business

- Successfully develop a synergy between product categories

- expand its market through market penetration, mergers and acquisition.

- Divide the company into three distinctive group which specialize in a field of interest

- Promote Indra K. Nooyi as CEO and chairman

- Extensive advertising and promotional activities

- Creative marketing and development of catchy slogans

- Developing new products to meet customer satisfaction…...

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