...Roxanne A. Berhay Michelle Anne W.S. Pamaran Kier Luanne T. Sudiacal PEPSI GROWS POTATOES Case Analysis I. Problem Statement: -What should Pepsi do to ensure the supply of quality of potatoes in the production of its chips given its growing demand? II. Objectives The main objective is to make the company less susceptible to supply fluctuations given the growing demand of potatoes in the market. In order to achieve this goal, the company must also look into some other objectives: a. Pepsi must explore ways to ensure a supply that can meet the growing demand of potatoes for the production of its chips, b. Pepsi must effectively and efficiently maximize its limited resources (growing a potato farm, and involving local farmers) III. Areas of Consideration In this case study, there are certain factors that need to be considered. First, the Chinese government had banned the import of potatoes and potato seeds so they cannot rely on the same suppliers they had in the US. Second, the potatoes bought at the local market were of poor quality and did not meet Lay’s standard. Third, as a US company, PepsiCo does not have a good knowledge about Chinese culture and natural environment in China thus brought about the need to employ local workers. Chinese farmers were reluctant to invest and become Pepsi’s supplier because hold-up risk is high due to thin market for high quality potatoes in China. By having a potato farm and a potato processing plant, PepsiCo could...
Words: 986 - Pages: 4
...products can be found in nearly 200 countries around the globe. The company has 22 brands that each generates more than $1 billion each in annual retail sales. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, and food service and vending (PepsiCo, 2012). A SWOT analysis of a company is an important piece for an investor to determining if it is possible invests in a company and have a viable return of this inversion. This analysis will help to understand if the company is achieving its goals and objectives. Another important point would be identifying the company stakeholder and how the needs of those stakeholders are meet. SWOT Analysis Conducting a SWOT analysis of PepsiCo will determine the current status and strength for a potential investor. A SWOT analysis is a planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats ((Nickels, McHugh, & McHugh, 2010). Strengths PepsiCo has 22 brands that each has revenue of more than $1 billion in annual retail sales. Pepsi is the world’s second largest beverage and food company based on net revenue Bobby, S. (2012, June 27). PepsiCo is a multinational Corporation, offering manufacturing, distribution and marketing of soft-drinks, beverages...
Words: 1675 - Pages: 7
... I was surprised to notice that just because the company may do good on the current ratio or earnings ratios that does not necessarily mean that they are financially stable. A person cannot look at one or even a few ratios to determine if a company is financially sound. Many ratios have are pulled to determine the financial stability of the company. I used a variety of ratios to use for analysis. I pulled a Current Ratio, Acid Ratio, Debt Ratio, Return on Sales, Return on Equity, Inventory Ratio, Cash Conversion Cycle and Net Income Per Share on the companies of Pepsi Co, Coca Cola, Dr. Pepper Snapple Group and Mondelez International. Because the company I had selected to analyze was PepsiCo, I know that I needed to diversify the companies I selected between food and beverage because the company covers both markets. Coca Cola is the top beverage distributor in the world, Pepsi Co is second and Dr. Pepper Snapple Group is the third. Mondelez International is a food company that is a recent spin-off from Kraft Foods. It has some familiar name brands of Nabisco, Oreo, Trident gum, and Cadbury chocolates to name a few and is one of PepsiCo’s major competitors in the snack market. What surprised me is that the Coca Cola Company looked good when it came to current, acid test, debt, and return on sales ratios. They struggled with their Cash Conversion Cycle with cost of goods sold per day and the amount of time it takes them to pay back...
Words: 1794 - Pages: 8
...7 Economic 7 Social 7 Technological 7 Legal 8 Environmental 8 Appendix 2 9 SWOT ANALYSIS 9 STRENGHTS 9 WEAKNESSES 10 OPPORTUNITIES 10 THREATS 11 References 13 Bibliography 13 Introduction This report provides an analysis and an evaluation on PepsiCo and how they apply the concepts of marketing and there customer segmentation models. This analysis includes Market segmentation, market targeting, Market positioning. PepsiCo International PepsiCo is a world leader in the convenient snacks, beverages and also the foods. The company has revenues of more than $39 billion and has over 185,000 employees. The company consists of PepsiCo Americas Foods, PepsiCo Americas Beverages, and PepsiCo International. Besides owning the Pepsi brands the company owns many brands such as Walkers Crisps, Tropicana, Gatorade, Mountain Dew and Quaker Oats. The company’s products are really highly recognised as well as recognised across the world. The company has attained a position of being the leader in soft drink bottling, the world’s largest snack chip producer and also the worlds largest franchised and company operated restaurant system. PepsiCo Mission Statement “Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and...
Words: 5038 - Pages: 21
...First Research Best Practices First Research is the leading provider of industry intelligence tools that help sales and marketing teams perform faster and smarter, opening doors and closing more deals. Without adding hours to your work-day, you can infuse sales calls, business meetings, presentations, and outreach The number one complaint about sales representatives that we hear from executives is, “they don’t know my business.” efforts with up-to-date industry information that demonstrates a thorough understanding of your prospects’ challenges and opportunities. We do the heavy lifting for you by analyzing hundreds of sources to create insightful and easy-to-digest industry information that can be consumed very quickly. You are better able to understand a potential or existing client’s business issues, without the time-consuming and expensive research process. The following is a sample of a First Research Industry Report with additional notes explaining the report’s contents and how you can use this valuable information. Report size varies by industry. FIRST RESEARCH - HOOVER’S INC., A D&B COMPANY www.firstresearch.com © 2013 Hoover’s, Inc. All Rights Reserved. 1 INDUSTRY PROFILE Snack Foods Manufacturing 12.3.2012 NAICS CODES: 31191 SIC CODES: 2068, 2096 The Industry Overview is an excellent way to ensure you make the right first impression, with minimal time invested. USE IT TO: . Quickly grasp how an industry operates. Adapt your sales process...
Words: 7090 - Pages: 29
...First Research Best Practices First Research is the leading provider of industry intelligence tools that help sales and marketing teams perform faster and smarter, opening doors and closing more deals. Without adding hours to your work-day, you can infuse sales calls, business meetings, presentations, and outreach The number one complaint about sales representatives that we hear from executives is, “they don’t know my business.” efforts with up-to-date industry information that demonstrates a thorough understanding of your prospects’ challenges and opportunities. We do the heavy lifting for you by analyzing hundreds of sources to create insightful and easy-to-digest industry information that can be consumed very quickly. You are better able to understand a potential or existing client’s business issues, without the time-consuming and expensive research process. The following is a sample of a First Research Industry Report with additional notes explaining the report’s contents and how you can use this valuable information. Report size varies by industry. FIRST RESEARCH - HOOVER’S INC., A D&B COMPANY www.firstresearch.com © 2013 Hoover’s, Inc. All Rights Reserved. 1 INDUSTRY PROFILE Snack Foods Manufacturing 12.3.2012 NAICS CODES: 31191 SIC CODES: 2068, 2096 The Industry Overview is an excellent way to ensure you make the right first impression, with minimal time invested. USE IT TO: . Quickly grasp how an industry operates. Adapt your sales process...
Words: 7090 - Pages: 29
...BA 304 Marketing Management Individual Assignment “Colonel comes to Japan” KFC case study Presented Colonel Comes to Japan This case study we going to talk about how and when KFC come to japan? KFC (Kentucky Fried Chicken) is the biggest company that everyone know as a fast food restaurant that serve a quality fried chicken around the world but some people don’t know how KFC come to be famous in in the world including Japan. KFC (Kentucky Fried Chicken) was founded by Colonel Harland Sanders, and the first "Kentucky Fried Chicken" franchise opened in Salt Lake City, Utah in 1952. KFC was one of the first fast-food chains to expand internationally, opening outlets in England, Mexico and Jamaica by the mid-1960s. Throughout the 1970s and 80s. The chain continued to expand overseas. A series of documentary programs examining the American business community with concentration on the attempt by American fast food chain Kentucky Fried Chicken to gain a foothold in the protected Japanese market. Focusing on the daily duties of Loy Weston, chair of Kentucky Fried Chicken in Japan, the program examines the cultural differences, which had to be overcome for the American poultry powerhouse to open and maintain over 300 restaurants in Japan in eleven years. Highlights include the following: footage of many life-size statues of "Colonel Harlan Sanders" -- the chicken chain's apocryphal antebellum progenitor - on the back of a flatbed truck being hauled to various franchise...
Words: 3003 - Pages: 13
...Pepsi nuts over new nut snack Chaitali Chakravarty, ET TEAM Nov 21, 2001, 10.02pm IST enthused by the profits that fritolay has generated, parent pepsi, is adding more to its snackfood subsidiary. the company is set to roll out a new nut-based snack, nutyumz, nationally. also, plans are afoot to eventually drop lehar from the lehar kurkure brand. sources said that lehar kurkure has been earning a substantial amount for fritolay (it accounts for more than one-third of its total turnover) and it is about time to market it under the kurkure brand alone. sources said that nutyumz will be launched in different flavours. the brand has been innovated for the indian market alone. besides india, mexico is the only other market where pepsi is selling nut-based snacks under a different brand name. in india, nutyumz will be manufactured in the company-owned plant in pune. the fritolay spokesperson confirmed the launch of new brand. sources said pepsi is gung-ho about fritolay as the subsidiary has been making some money, it ended the year 2000 with a rs 4 crore profit, up from rs 3.04 crore earned in the year ending 1999. pepsi's idea is to create new categories to suit indian tastes and pump up the profit figures by at least rs 2 crore by the end of 2002. sources said that after pepsi acquired uncle chipps, it got within its fold an entire constituency. lays and uncle chipps together earn the maximum (around 50 per cent) for fritolay, while cheetos and lehar namkeen are still on the...
Words: 18723 - Pages: 75
...Thompson−Strickland: Strategic Management: Concepts and Cases, 13th Edition 23. PepsiCo’s Acquisition of Quaker Oats Case © The McGraw−Hill Companies, 2002 1 case 23 PepsiCo’s Acquisition of Quaker Oats John E. Gamble University of South Alabama In 2001, PepsiCo was the world’s fifth-largest food and beverage company, with such brands as Lay’s, Tostitos, Mountain Dew, Pepsi, Doritos, Aquafina, and Lipton contributing to revenues of approximately $26 billion. PepsiCo’s revenues had reached $31 billion in 1996, but a new corporate strategy embarked upon in 1997 slimmed the company’s portfolio from a collection of fast-food restaurants, snack foods, and beverages to a sharply focused lineup of convenience foods and beverages. Between 1997 and 1999, CEO Roger Enrico spun off Kentucky Fried Chicken (KFC), Taco Bell, and Pizza Hut as one independent, publicly traded company; created a stand-alone softdrink bottling business through an initial public offering; and entered additional snack and beverage categories with the acquisitions of Cracker Jack and Tropicana. Enrico’s focus on convenience foods and beverages placed PepsiCo in food and beverage categories that grew at twice the 2 percent industry growth rate and gave it a 2-to-1 market share lead over its nearest competitor in the convenience food and beverage industry. Roger Enrico and Quaker Oats Company’s CEO, Robert Morrison, jointly announced on December 4, 2000, that PepsiCo would acquire Quaker Oats...
Words: 15973 - Pages: 64
...For the exclusive use of M. Alshahri, 2015. W14536 TACO BELL: A MEXICAN-INSPIRED RESTAURANT IN INDIA Lubna Nafees, Ashok Bajpai, Akshay Kumar, Anoop Chand, Maryne Ann James, Bonney Luke Thomas, Jayakrishnan B. Nair, Kunal Hazari and Garima Konda wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-10-29 With four outlets of Taco Bell opened in Bangalore by December 2013, Niren Chaudhary, managing director of Yum! Restaurants India, felt eager to expand its market offerings. He pulled out the morning newspaper and impatiently ruffled through the pages until he reached the business section. He paused briefly, folded the paper and leaned forward to read better. Focusing his attention...
Words: 6383 - Pages: 26
...laundry? Who gets the extra dessert at dinner? Who gets to choose what TV show to watch? In short, the household must allocate its scarce resources among its various members, taking into account each member’s abilities, efforts, and desires. Like a household, a society faces many decisions. A society must decide what jobs will be done and who will do them. It needs some people to grow food, other people to make clothing, and still others to design computer software. Once society has allocated people (as well as land, buildings, and machines) to various jobs, 3 Consider why trade among people or nations can be good for everyone Discuss why markets are a good, but not per fect, way to allocate resources Learn what determines some trends in the overall economy 1 TLFeBOOK 2 4 Ten Principles of Economics PA R T O N E INTRODUCTION scarcity the limited nature of society’s resources economics the study of how society manages its scarce resources it must also allocate the output of goods and services that they produce. It must decide who will eat caviar and who will eat potatoes. It must decide who will drive a Porsche and who will take the bus. The management of...
Words: 235775 - Pages: 944
...0 1 3 0 3 2009 Annual Report WHAT IS At PepsiCo, Performance with Purpose means delivering sustainable growth by investing in a healthier future for people and our planet. As a global food and beverage company with brands that stand for quality and are respected household names—Quaker Oats, Tropicana, Gatorade, Lay’s and Pepsi-Cola, to name a few—we will continue to build a portfolio of enjoyable and wholesome foods and beverages, find innovative ways to reduce the use of energy, water and packaging, and provide a great workplace for our associates. Additionally, we will respect, support and invest in the local communities where we operate, by hiring local people, creating products designed for local tastes and partnering with local farmers, governments and community groups. Because a healthier future for all people and our planet means a more successful future for PepsiCo. This is our promise. PerFormance To all our investors… It’s a promise to strive to deliver superior, sustainable financial performance.* Our GOals and COmmitments toP line: • Grow international revenues at two times real global GdP growth rate. • Grow savory snack and liquid refreshment beverage market share in the top 20 markets. • Sustain or improve brand equity scores for Pepsico’s 19 billion-dollar brands in top 10 markets. • rank among the top two suppliers in customer (retail partner) surveys where third-party measures exist. bottom line: • continue to expand division operating...
Words: 53842 - Pages: 216
... 1. Identify the three main steps of the planning process and the relationship between planning and strategy. (LO1) 2. Describe the different levels and types of planning and how they lead to competitive advantage. (LO2) 3. Differentiate between the main types of business-level strategy and explain how they lead to competitive advantage. (LO3) 4. Differentiate between the main types of corporate-level strategies and explain how they are used to strengthen a company’s business-level strategy and competitive advantage. (LO4) MANAGERMENT SNAPSHOT: Different Ways to Compete in the Soft Drink Business To compete in the soft drink industry, both Pepsi and Coke decided to build global brands by manufacturing soft-drink concentrate and selling it in a syrup form to bottlers throughout the world. Pepsi and Coke charge a premium price for the syrup and invest part of the proceeds into advertising to build and maintain brand awareness. The bottlers, who are responsible for producing and distributing the cola, must sign an exclusive agreement that prohibits them from distributing competing brands. Gerald Pencer, CEO of Cott Corporation, used a different strategy to achieve success in this intensely competitive market. His company manufactured and bottled a low cost cola and sold it directly to major...
Words: 7810 - Pages: 32
...Harchekar nishaharchekar@way2wealth.com Sectors - FMCG, Pharma, Entertainment WAY2WEALTH Securities Pvt. Ltd., 15/A Chander Mukhi, Nariman Point, Mumbai - 400 021. Tel: +91 22 4019 2900 email: research@way2wealth.com website: www.way2wealth.com Indian Processed Food Industry Sector Coverage Opportunities Galore Executive Summary The size of global processed food industry is estimated to be valued around US $3.6 trillion and accounts for three-fourth of the global food sales. Despite its large size, only 6% of processed foods are traded across borders compared to 16% of major bulk agricultural commodities. Indian food-processing industry is miniscule in comparison and is estimated to be US $40 billion and is likely to grow at over 10%, on the basis of an expected GDP growth rate of 8-8.5% p.a. R uchi Soya FY09(E) CMP (Rs) Marketcap (Rs crores) PE (x) Mktcap/sales (x) EV/EBITDA (x) RoCE (%) RoNW (%) 86 1570 6.8 0.1 5.3 16.8 15.0 L akshmi Energy & Foods FY09(E) CMP (Rs) Marketcap (Rs crores) PE (x) Mktcap/sales (x) EV/EBITDA (x) RoCE (%) RoNW (%) 200 1200 7.2 0.9 4.4 29.3 35.5 With enormous scope for value addition, increase...
Words: 12382 - Pages: 50
...Global Marketing, 6e (Keegan/Green) Chapter 1 Introduction to Global Marketing 1) A management team that fails to understand the importance of global marketing risks losing its domestic business to competitors with lower costs, more experience, and better products. Answer: TRUE Diff: 1 Page Ref: 4 AACSB: Reflective Thinking 2) As Wal-Mart expands into Guatemala and Central American countries, it is implementing a market development strategy. Answer: TRUE Diff: 1 Page Ref: 4 AACSB: Reflective Thinking 3) Global marketing may take the form of diversification strategy in which a company creates new products or services for the domestic market. Answer: FALSE Diff: 2 Page Ref: 4 AACSB: Reflective Thinking 4) The perceived value equation can be represented as Value = Price/Benefits. Answer: FALSE Diff: 2 Page Ref: 5 AACSB: Analytic Skills 5) Recently the auto industry is shifting its attention to emerging markets such as India and Africa. Answer: TRUE Diff: 1 Page Ref: 5 AACSB: Reflective Thinking 6) Globalization is presenting significant marketing opportunities for professional sports organizations such as the National Football League and Major League Soccer. Answer: TRUE Diff: 1 Page Ref: 6 AACSB: Reflective Thinking 7) If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered as a lack of strategic focus and missed opportunity. Answer: FALSE Diff: 2 Page Ref: 7 AACSB:...
Words: 5306 - Pages: 22
