Premium Essay

Pepsico Strategic Management

In: Business and Management

Submitted By headburner
Words 408
Pages 2
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…...

Similar Documents

Premium Essay

Strategic Management and Strategic Competitiveness

...Strategic Management and Strategic Competitiveness Michael A. Clinton Professor Gerald R. Turner Business Administration Capstone- BUS 499 Jul 19, 2012 Science Applications International Corp. (SAIC) is currently one of the fastest growing companies here in the Charleston, SC area for the past few years. SAIC is a FORTUNE 500® scientific, engineering and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The Company's approximately 41,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of approximately $10.6 billion for its fiscal year ended January 31, 2012. (About SAIC 2012) SAIC is rank number 5 on the Top 100 government contractors list of Washington Technology; with $4.1 billion in government contracts revenue and $1.4 billion in civilian contracts revenue and approximately 41,000 employees worldwide. SAIC is the principal defense contractor for Joint Intelligence Operations Capability-Iraq (JIOC-I), a capability that provides military forces with access to critical intelligence while......

Words: 1693 - Pages: 7

Premium Essay

Strategic Management

...business,” a mission statement reveals what an organization wants to be and whom it wants to serve. 4. The next table provides examples of mission statements. Fleetwood Enterprises will lead the recreational vehicle and manufactured housing industries in providing quality products with a passion for customer-driven innovation. We will emphasize training, embrace diversity and provide growth opportunities for our associates and our dealers. We will lead our industry in the application of appropriate technologies. We will operate at the highest levels of ethics and compliance with a focus on exemplary corporate governance. We will deliver value to our shareholders, positive operating results and industry-leading earnings. We aspire to make PepsiCo the world’s premier consumer products company, focused on convenient foods and beverages. We seek to produce healthy financial rewards for investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity. Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet consumer expectations of highest quality; leading technology; competitive pricing; individual and company accountability; best-in-class service and support; flexible customization capability; superior......

Words: 1606 - Pages: 7

Premium Essay

Strategic Management

...Pepsi’s Strategy in the Carbonated Soft Drinks Market Term Project MAN 385 Prof. Preston McAfee Prepared by: Valentin Angelkov Tray Black Angie Green Jerry James Erin Lutz April 30, 2003 Introduction The following paper analyzes how PepsiCo can increase profitability in the carbonated soft drink (CSD) industry. The industry is a tight oligopoly with Pepsi and its chief competitor, Coca Cola, comprising 70% of the total market. 1 Global beverage sales for PepsiCo in 2000 were $7.6 billion; however, sales growth has averaged only three to four percent in mature markets such as North America2. PepsiCo and Coke have expanded into other ready to drink beverages such as bottled water, tea, and juices in order to counter this low growth in the CSD industry; for the purpose of this paper, however, we will focus on how to affect profitability in the CSD industry. In particular, the paper will examine how current actions by PepsiCo regarding differentiation, pricing, cooperation, and complements have affected their profitability in the CSD industry. Furthermore, the paper will give specific recommendations, with an emphasis on cooperation tactics and complements. Industry Overview The industry for carbonated soft drinks is characterized by the following five forces: Threat of New Entrants – Currently, the biggest threat of entry faced by the majors is from private label manufacturers such as Cott Corporation. Private labels now hold an 8.1% share in the CSD market, the......

Words: 3785 - Pages: 16

Premium Essay

Strategic Management and Strategic Competitiveness

...Strategic Management and Strategic Competitiveness Name Professor BUS 499 Business Administration- Capstone Strayer University- Maitland Campus April 13, 2014 Abstract The purpose of the paper is to research and understand how the changes of globalization and technology have impacted the Airline industry. This paper will also apply the industrial organization model and the resource-based model to determine how the Airline industry earn above-average returns. This paper will explain how the Airline industry’s success is through its mission and vision statements with Southwest Airlines as an example. Finally, this paper will evaluate how the importance each category of the stakeholder impacts are to the overall success of the Airline industry. Globalization and Technology In today’s business industry, the globalization process has become an important aspect and fundamental force. The elements that contribute to globalization is the environment, culture, regulation and technology and production. While the advancements globalization has increased greatly, so has the advancements in airline industry with their aircraft (Shevell, 1999). Globalization also provides a great amount of potential profits to nations and their corporations (Button, 2008). Air transportation has evolved into a major industry (Kroo, 1999). The airline industry’s continuously grows and is facilitated through its international......

Words: 1359 - Pages: 6

Premium Essay

Strategic Management and Strategic Competitiveness

...Strategic Management and Strategic Competitiveness Paul Warren Strayer University BUS 499 Dr. Hase November 2, 2014 Assess how globalization and technology changes have impacted the corporation you researched What is Globalization? How does it affect a company? What does it do for a country? What are some major benefits of going global? Who are the recipients of these benefits, if there are any? Let’s get started by answering the first question. “Globalization is the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders” (Hitt, Ireland, Hoskisson, pg. 9. 2013). Starbucks, an American company headquartered in Seattle, Washington is one of the most global companies I know of with more than 20,000 stores in over 50 countries around the world. I have had the opportunity to enjoy the taste of home in at least 5 different countries, which are almost the same as home but more geared to the host country tastes. As you can see, going global allowed for expansion into different markets around the world, which in return lead to countries who supply products to reach those markets as well. For instance, Starbucks by coffee from places such as Africa, Latin America and Asia by doing so this creates jobs in those areas and increases export of goods. These are major benefits from all parties involved. Coffee drinker benefit the most as they...

Words: 1258 - Pages: 6

Free Essay

Strategic Management and Strategic Competitiveness

...Assignment 1: Strategic Management and Strategic Competitiveness BUS 499- Business Administration Capstone Professor Clayton Sinclair III April 17, 2015 Strategic Management and Strategic Competitiveness The company that I researched was The Clorox Company. The company was founded in 1913 and is a part of the household and personal care industry. According to (Forbes List, 2014), they are listed as number 98 on The Forbes list for the most innovative company and number 94 for the world’s most powerful company. They employ 8,400 employees and bring in a total sales of $5.65 billion. Clorox cleaning products consist of Tilex, 409, Pine-Sol, SOS, Clorox bleach, Formula 409, and Green Works. Their household products consist of Glad, Kingsford, Ever Fresh and Scoop Away. Their lifestyle products consist of Brita, Burt’s Bees, Hidden Valley and KC Masterpiece (The Clorox Company , 2014). Assess how globalization and technology changes have impacted the corporation you researched. The Clorox Company manufactures products in more than two dozen countries and markets them in more than 100 countries. Clorox products are available over 100 countries touching households and businesses in almost every region. They have consistently achieved competitive success while others failed to do so. Clorox Company international brands include: Agua Jane, American Heritage, Arco Iris, Arela, Astra, Bluebell, Bon Bril, Brimax, Clorinda, Emperatriz, Gumption, Handy Andy, La Negrita,......

Words: 1942 - Pages: 8

Premium Essay

Strategic Management

...PepsiCo 2005 Case Analysis June 17, 2009 I.                Definition of the Issue The PepsiCo-2005 case study has several issues revolving  it. It has the internal issue that PepsiCo has not been able to consistently meet its growth goal of 15+ percent annual increase in earnings for the last 10 years. Its external issues consist of its products as reaching maturity stage industry wise and its divisions, except Frito-Lay North America (FLNA), fail to rank highest in its respective market segments. Division wise, the company holds a large share of each respective market, but over-all the company sustains a flat growth rate and fails to meet its growth goal. In respect to this, it can be seen that the real issue in this case is the need of a strategy to sustain a compound annual growth rate (CAGR) in earnings per share of 15 percent per year. This paper aims to develop a three-year strategic plan for PEPSICO that can best ensure this growth through this decade. II.               Objectives The paper’s objectives include designing of alternatives that may aid its development for a sound strategy in response to the issue through a quantitative analysis. The paper would also include an analysis of each alternative. From the generated alternatives, the paper would focus on one that would seem to best apply to the given circumstances. The paper also includes a potential problem analysis to aid in strengthening the strategy’s defenses and enables the company to predict and......

Words: 1829 - Pages: 8

Premium Essay

Strategic Management

...Chapter 8 Strategic Management True/False Questions THE IMPORTANCE OF STRATEGIC MANAGEMENT 1. Strategic management is the set of managerial decisions and actions that determines the short-term performance of an organization. (False; moderate; p. 208) 2. “Strategic model” is a term that is often used in conjunction with strategic management and strategies. (False; easy; p. 209) 3. The most fundamental questions about strategy address why firms, facing the same environmental conditions, have varying levels of performance. (True; easy; p. 209) THE STRATEGIC MANAGEMENT PROCESS 4. The first step in the strategic management process is analyzing the external environment. (False; difficult; p. 210) 5. Within an industry, an environment can present opportunities to one organization and pose threats to another. (True; moderate; p. 212) 6. Evaluating an organization’s intangible assets is part of doing an internal analysis in the strategic management process. (True; easy; p. 212) 7. Activities that an organization does well or resources that it has available are called capabilities. (False; easy; p. 212) 8. Exceptional or unique organizational resources are known as core capabilities. (False; moderate; p. 212) 9. A strong organizational culture may act as a significant barrier to accepting any changes in organizational strategies. (False; easy; p. 213) 10. SWOT analysis includes an analysis of an organization’s......

Words: 7708 - Pages: 31

Premium Essay

Strategic Management & Strategic Competitiveness

... Latrice Smith BUS 499 Week 2 Assignment 1: Strategic Management & Strategic Competitiveness Dr. Machuca 7/13/2014 Globalization is a concept that can be positive as well as negative as it refers to companies around the world and the effects it has on the global economy. Globalization can be referred to as a global movement that is integrating economic, financial, trade, and communications. Globalization will continue to be a force around the world because the global economy is continuing to be more dependent on each other. Even though globalization has been going on for centuries, there has been a new wave of policy and technological developments that have increased relations between trade and investment, and has led to a newer phase of global economic development ("What is globalization | Globalization101", n.d.). A positive outlook on globalization is the fact that there has been a reduction in the prices of goods and services throughout the world. It is reported that the volume of world trade has increased by 20 times, and the foreign investment between 1997 and 1999 has doubled from $468 billion to $827 billion ("What is globalization | Globalization101", n.d.). The negative aspect of globalization can be seen as a downfall for some companies that have not been keeping up with the demands of globalization and contributing to the some economies that are not the most stable because of unemployment and companies closing. Some can also argue that......

Words: 1527 - Pages: 7

Premium Essay

Strategic Management

...INTRODUCTION TO STRATEGIC MANAGENT 1.0 Introduction This chapter introduces the concept of strategic management and provides an overview of strategic management. This chapter is divided into six sections. The first section explains the evolution of the strategic management concept. This is followed by the second section on definition of strategic management. The third section describes the context in which strategic management takes place. This is followed by the fourth section which covers the scope of strategic management. The fifth section shows some of the benefits of strategic management for organizations. Finally the sixth section describes the process of strategic management. Upon the completion of this chapter you should be able to: 1. understand the concept of strategic management 2. know the brief history of the strategic management concept 3. understand the definition of strategic management 4. know the context in which strategic management occurs 5. comprehend the scope of strategic management 6. describe the benefit of strategic management 7. know the strategic management process 1.1 Introduction to the Strategic Management Concept Strategic management is a concept that originated from the military field. The concept of strategic management was first applied in ancient battles. The period around 500 B.C. saw numerous battles that took place Greece and China. The early written record on strategic management can be traced back during this......

Words: 4525 - Pages: 19

Premium Essay

Pepsico Strategic Human Resources Management- Final Report

...United States and Canada; this is a huge market. By adding a nominal cost for the gaming separately from the monthly payment for movie content, no extra pressure will be placed on those who do not need the product. Netflix needs to specifically target those aged 18-50, moderate to heavy game players, and non-gender specific since men and women are equally playing games (Entertainment Software Association, 2013). Netflix has an excellent marketing campaign already in place, making it easy to start putting the word out on the new service offering. Buyers, consumers, and influencing factors. The organizational buyers at Netflix are a part of a multi-person activity, with input on purchasing decisions coming from different departments and management levels (Thakur, 2011). Netflix’s organizational buying decisions are completed after careful consideration and are conducted before the purchases are completed. Netflix receives estimates on potential purchases and conducts an analysis to determine what organizations provide the best value to the company. The consumers of the Netflix video game rentals will include customers already using the Netflix DVD-by-mail service. If marketed effectively, new customers will be brought onboard as well. Many factors influence the purchasing decisions of an organization and consumers. The current political environment can have an influence on purchasing decisions because consumers need to feel comfortable about the economy before......

Words: 6587 - Pages: 27

Premium Essay

Strategic Management

...Success The Basic Framework for Strategy Analysis A Brief History of Business Strategy Strategy Today How Is Strategy Made? The Strategy Process Strategic Management of Not-For-Profit Organizations 3 8 10 13 19 21 Part 2: THE TOOLS OF STRATEGY ANALYSIS 2 2.1 2.2 2.3 2.4 3 3.1 3.2 3.3 3.4 3.5 3.6 4 4.1 4.2 4.3 5 5.1 5.2 5.3 5.4 6 6.1 6.2 6.3 Goals, Values, and Performance Strategy as a Quest for Value Putting Performance Analysis into Practice Beyond Profit: Values and Corporate Social Responsibility Beyond Profit: Strategy and Real Options Industry Analysis: The Fundamentals From Environmental Analysis to Industry Analysis Analyzing Industry Attractiveness Applying Industry Analysis to Forecasting Industry Profitability Using Industry Analysis to Develop Strategy Defining Industries: Where to Draw the Boundaries From Industry Attractiveness to Competitive Advantage: Identifying Key Success Factors Further Topics in Industry and Competitive Analysis Extending the Five Forces Framework Dynamic Competition: Hypercompetition, Game Theory, and Competitor Analysis Segmentation and Strategic Groups Analyzing Resources and Capabilities The Role of Resources and Capabilities in Strategy Formulation Identifying Resources and Capabilities Appraising Resources and Capabilities Developing Strategy Implications Organization Structure and Management Systems: The Fundamentals of Strategy Implementation From Strategy to Execution Organizational Design: The Fundamentals of......

Words: 357444 - Pages: 1430

Premium Essay

Strategic Management and Strategic Competitiveness

...Assignment 1: Strategic Management and Strategic Competitiveness Student’s name: Professor’s name: Course title: BUS 499 (Business Admin and Capstone) Date: Introduction When we talk about the largest coffeehouse company, the first thing that comes to your mind is Starbucks. Starbucks Corporation was launched in 1971, it corporation is based in Seattle, Washington and has more than 16,000 outlets all over the world. Starbucks always believe that serving the best coffee is there aim, there coffee beans are grown under highest quality standards and sourced using ethical practices. Starbucks s not only limited to selling coffee but also sells verity of products, viz. coffee (more than 30 blends and single origin premium coffees), handcrafted beverages (Frappuccino, smoothies, Tazo tea, fresh brewed coffee), Merchandise (coffee and tea brewing equipment, mugs and accessories, packaged goods, music, books and gifts), Fresh Food (Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups) and Consumer Products (coffee and tea, ready to drink products and ice-creams). They also carry other brands under their trademark Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, La Boulange and Torrefazione Italia Coffee (Starbucks, 2012). Impact of Globalization and Technology The corporation I researched was Starbucks. Starbucks is a worldwide corporation that operates in around 62 countries around the world. Just like every other corporation......

Words: 1942 - Pages: 8

Premium Essay

Strategic Management

... SIXTH EDITION STRATEGIC MANAGEMENT IN ACTION Mary Coulter Missouri State University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Stephanie Wall Senior Acquisitions Editor: April Cole Editorial Project Manager: Claudia Fernandes Director of Marketing: Maggie Moylan Senior Marketing Manager: Nikki Ayana Jones Marketing Assistant: Gianna Sandri Senior Managing Editor: Judy Leale Production Project Manager: Kelly Warsak Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Senior Art Director: Kenny Beck Text Designer: LCI Design Cover Designer: LCI Design Cover Art: Svetoslav Iliev/Shutterstock.com Permission Specialist: Brooks Hill-Whilton Media Project Manager, Production: Lisa Rinaldi Senior Media Project Manager, Editorial: Denise Vaughn Full-Service Project Management and Composition: Integra Printer/Binder: RRD/Willard Cover Printer: Lehigh-Phoenix Color Text Font: 10/12, Times LT Std Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright © 2013, 2010, 2008 Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All......

Words: 154599 - Pages: 619

Free Essay

Pepsico Strategic Case

...Strategic Case Analysis – PepsicC Part I Strategic Direction Vision: PepsiCo's responsibility is to continually improve all aspects of the world in which they operate - environment, social, economic - creating a better tomorrow than today." PepsiCo’s vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. Mission: Is to be the world's premier consumer product company focused on convenient foods and beverages. PepsiCo seek to produce financial rewards to investors as they provide opportunities for growth and enrichment to employees, business partners and the communities in which they operate. Objectives Short range: • Product innovation- new products lauch such as: Gatorade G2, Tiger Woods signature sports drinks,Quarker Simple Harvest multigrain hot cereal. Goal is to address consumer health and wellness. • Power of One retailer alliance strategy- continue to help boost pepsiCo’s volume and identify new product formulations desired by consumers. • International expansion- increase sales in markets outside North America. New organizational structure to address low relative profitability of its international operations and to produce faster growth international markets. • Consider restructuring its lineup of snack and beverage business to improve overall profitability and reverse the downturn in its stock......

Words: 263 - Pages: 2