Jean-Marie Le Corre 3 année – Promo 10 IBS – Case Preparation ème Pepsico’s Restaurants

Pepsico is company that originated within the soft drink business with the famous Pepsi. The name PepsiCo appeared in 1965 when the Donald Kendall, former CEO of the company merged the soft drink company with Frito-Lay, a snack food company. Later many others businesses were added, mostly through external growth (PFS was added as a way reduce costs), among which are Pizza Hut, Taco Bell and KFC. A- SWOT Analysis Strengths Diversified yet complementary activities within the food business o Good outlets for distribution of Pepsi fountain sodas Allows more reactivity Highly decentralized organization o Large, while not complete, coverage of the restaurant industry Strong innovative spirit within the company Well segmented restaurant brands Internal movement of manager allows good experience sharing

Weaknesses Strong resistance to higher management control o Makes it difficult to answer some new demand of the market such as single PepsiCo’s contact Independence of businesses makes it difficult to put synergies in place Group operates competitors to its potential customers o Burger king, for example is a potential customer for Pepsi, but a competitor to PespiCo’s restaurants No shared and established strategy within the brand, just based on a good practice agreement Lack of cooperation between brands (The Toilet Paper victory)

Opportunities Drive more synergies between brands Share general headquarters tasks and eliminate duplicate cost within the holding

Jean-Marie Le Corre 3 année – Promo 10 IBS – Case Preparation ème Threat Stop in growth of the market

B- Alternatives 1- Buy Carts of Colorado, manufacturer of mobile food carts and kiosks 2- Buy California Kitchen, restaurant chain in the casual dining segment About Carts of Colorado Advantages: Manufactures