...PepsiCo analysis: Internal and External Analysis of the Company Suheir Shalabi Missouri Baptist University PepsiCo analysis: Internal and External Analysis of the Company PepsiCo. What people think of it? Do they think it is only beverage drinks’ company? Do they really know that PepsiCo go beyond beverage drinks to add in cookies, chips and may other snacks? Being advanced in more than beverage drinks can explain PepsiCo strategies. According to their web-site, PepsiCo strategies are, Expand the global leadership position of our snacks business. Ensure sustainable, profitable growth in global beverages, unleash the power of "Power of One", rapidly expand our "Good-for-You" portfolio, continue to deliver on our environmental sustainability goals and commitments, cherish our associates and develop the leadership to sustain our growth. (PepsiCo, 2015) In addition to their strategies, PepsiCo develop their mission statement to match out their strategies in order to be able to gain success. As their web-site cited, their mission statement is: 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 enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. (PepsiCo, 2015). Most people agree that PepsiCo have competitive...
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...the strategy implemented by PepsiCo to exploit rapidly growing markets opportunities by acquiring the organisations Tropicana, Gatorade and Quaker. The case study will highlight that it was imperative for the PepsiCo organisation to embark on a radical restructuring strategy to optimise their return on investments. The paper will discuss the rationale behind the critical restructuring .The benefits of the acquisitions and restructuring strategy will be discussed and motivated in detail. The strong existing competitive resources that PepsiCo and the new acquired brands in the North America region possess will be emphasised. The modifications to PepsiCo structure in 2001 and 2004 will be scrutinised to motivate and justify the decisions of the PepsiCo leadership. In addition the case study will evaluate the execution of the radical change and the tasks that should be performed by key resources. The emotional impact on employees due to the radical transformation and the key role employees should perform will be described. The focus of the paper will be on the function; the leadership of PepsiCo must perform and the potential roles the employees of PepsiCo could execute. Ultimately, the case study will discuss the complex relationship between structure and strategy. The paper will establish that PepsiCo had to regular acclimatise their strategy and structure to accomplish their organisational goals. Introduction Over a three year period from 1998-2001, PepsiCo made...
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...FINAL PAPER PEPSICO CASE STUDY ANALYSIS LECTURER: Sisdjiatmo K. Widhaningrat Composed by Chalinee Kunkaweeprad (1206323306) Karisma Maharani Anisakusuma (0906490790) Prasya Aninditya (0906532540) Shafa Tasya Kamila (1006663096) UNIVERSITAS INDONESIA DEPOK 2012 1 STATEMENT OF AUTHORSHIP “Kami yang bertandatangan di bawah ini menyatakan bahwa makalah/tugas terlampir adalah murni hasil pekerjaan kami sendiri. Tidak ada pekerjaan orang lain yang kami gunakan tanpa menyebutkan sumbernya. Materi ini tidak/belum pernah disajikan/digunakan sebagai bahan untuk makalah/tugas pada mata ajaran lain kecuali kami menyatakan dengan jelas bahwa kami menyatakan dengan jelas menggunakannya. Kami memahami bahwa tugas yang kami kumpulkan ini dapat diperbanyak dan/atau dikomunikasikan untuk tujuan mendeteksi adanya plagiarisme.” Nama : Chalinee Kunkaweeprad Nama : Kharisma Maharani A. NPM 1206323306 NPM 0906490790 : Tanda Tangan : : Tanda Tangan : Nama : Prasya Aninditya Nama : Shafa Tasya Kamila NPM 0906532540 NPM 1006663096 : Tanda Tangan : : Tanda Tangan : 2 EXECUTIVE SUMMARY This report provides an analysis and evaluation of the Marketing Strategy of PepsiCo. Methods of analysis include the internal and external analysis of the company. The research draws attention to the competition PepsiCo in the Cola and Snacks industry. With its main competitors...
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...Valuation and Assessment for the PepsiCo Part1. Macro economic factors and Industry Analysis In recent year, PepsiCo was in the extraordinary complicated economic environment. Economic environment can have a significant impact on PepsiCo. The economic factors such as Gross Domestic Product (GDP), interest rates, high inflation rate and commodity price may affect the PepsiCo current and future performance in large extend. First, the increase of GDP affects the sales of PepsiCo. Pepsi is the world second largest food and beverage business, which sold products in more than 200 countries. In America, the GDP presents a slowly but stable increasing trend, the GDP growth rates were affected, and also influenced the sales of Pepsi America. According to the table 1, it can be seen that the core net revenue has increased 14 percent between 2010 and 2011. In addition, it was estimated that approximately 47 percent net revenue comes from outside the United States. Although most developing countries were suffered from global financial crisis, the GDP growth rates still keep a robust trend. For example, in China, the GDP growth was around 9.5 percent during 2010 to 2012. Therefore, PepsiCo in 2010, the revenue outside the America increased approximately 30 percent, which considerable above the global real GDP growth rate. Secondly, the increase of inflation will affect the profits of PepsiCo. The whole world’s inflation rates have increased in recent year and will continually rise...
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...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 anticipate...
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...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 anticipate...
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...pushes all strategies to be the number one in the market and try to win more consumers and achieve their goals. The main competitors in these industries are Coca-Cola Company, PepsiCo, Inc., and Dr. Pepper Snapple Group. Coca-Cola is the largest beverage company in this market and provides the most market share that PepsiCo, Inc. PepsiCo is the second leading company, and Dr. Pepper Snapple Group is the third leading company in soft drink beverage industry. This paper presents three main competitors and focuses on competitive strategies, market strategies, and overall strength of the companies. Also, it discusses a recommendation to improve the Coca-Cola Company’s competitive position. Company Summaries Coca-Cola Company. The Coca-Cola Company is the largest beverage company in the world. The Coca-Cola Company is the leader in the market of nonalcoholic beverages and owns market shares than 500 beverage brands, including sparkling drinks, juice drinks, ready to drink, teas, coffees, and energy drinks, such as vitamin water and Powerade. The Coca-Cola Company also owns the leading brands of the diet and light beverage market, such as Diet Coke and the top five soft drinks: Fanta and Sprite. Moreover, the company is the world’s largest beverage distribution system; they control manufacturing, distributors, wholesalers, and retailers. The company reaches consumers in more than 200 countries (Datamonitor, 2013). PepsiCo, Inc. PepsiCo, Inc. is the...
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....................................................8 5. SWOT analysis...........................................................................10 6. target market, Segmentation, Positioning...............................12 7. Strategy........................................................................................12 8. Objectives.....................................................................................13 9. Marketing Mix.............................................................................14 10. Budget.........................................................................................15 11. Peer Assessments .......................................................................19 1. Executive summary PepsiCo is one of the main players in the beverage markets. The Canadian drinks market exists 16.3% of carbonated soft drinks, PepsiCo is in this market the biggest in Canada, but they want more, even though PepsiCo had a market share of 45.3% in 2011, they feel the competition of Coca Cola (44.2% market share). PepsiCo is underperforming in comparison to its main competitor Coca Cola in the urban markets, like Toronto and Vancouver. PepsiCo started a marketing campaign in 2012 by reintroducing the Ultimate Taste Challenge (UTC), in which they focus especially on the Millennials between 16 and 25 years of age. Those Millennials get the change to do a blind test in comparing...
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...Coke and Pepsi Learn to Compete in India BRIEF SUMMARY OF CASE: This is a detailed and comprehensive case describing the market entry of two global consumer product companies, PepsiCo and Coca-Cola Corporation into a Big Emerging Market (BEM), India. It traces the history of the challenges encountered by these two companies in the developing country environment of India from the late 1980s to the present time. Emphasis is placed on lessons learned by the two companies as they adjust to competing in an unfamiliar and rapidly-changing environment. Key themes include: - The effects of the changing political scene resulting in the imposition of a non-standard domestication policy on foreign direct investors. - The need for foreign companies to adapt their marketing and competitive strategies to suit conditions in the Indian marketplace. - And the role of ‘globalization’ policies across the marketing mix variables, but particularly in the case of promotional strategies. Answers to Questions: Q1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company? A1. The political environment of India has had a very significant impact in the...
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...International Finance Paper FIN/419 International Finance Paper Pepsico is one of the truly global organizations in the world with presence in many countries and offering products which are not only unique but carry a great brand value . Since Pepsi Co works in a global environment therefore its strategy is also global and focuses on achieving the strategic objectives of the firm with great greater emphasis on creating a unique set of strategies which are as applicable as they are in one country . Pepsico universally acknowledged as one of the world’s most successful companies of consumer products. Enormous awards have gone in the worlds. In 2009, Pepsico is ranked 175 in the Fortune’s. 18 brands out of its series boast an annual sales volume of over 1 billion USD, including Pepsi-Cola, Mountain Dew, Gatorade, Lay’s, Diet Pepsi, Tropicana, Doritos, Lipton Teas, Quaker Cereals, Cheetos, 7-UP, Ruffles, Aquafina, Mirinda, Tostitos, Sierra Mist, Walkers, Fritos. In addition, PepsiCo entered new markets including Japan and Eastern Europe. However, the company also had its share of crucial missteps – principal of which was entering into the fast food industry. With the purchase of Pizza Hut, Kentucky Fried Chicken and Taco Bell, PepsiCo was well on its way to building a proverbial three-legged stool. The CEO at the time, Wayne Callaway, believed that this new structure would bring the company success and referred to the three legs of the stool as being snack foods, soft drinks...
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...Coca-Cola and PepsiCo. Currently, both companies are business competitors and they highly regard their customer’s base loyalty. To familiarize ourselves with these two successful companies, we have to focus on their differences. Coca-Cola was founded in 1886, nowadays is available in more than 200 countries being the most popular beverage with its 94% worldwide recognition and being world’s third valuable brand. Its headquarters are in Atlanta Georgia and they employ nearly 30,000 individuals around the world. PepsiCo was created in 1893 in North Carolina and is sweeter than coke. PepsiCo is one of the World’s top consumer products company with one of the best valuable trademarks, also available in more than 200 countries worldwide. Coca-Cola and PepsiCo control nearly 40% of the entire beverage market but based on Interbrand’s best global brand 2011, Coca-Cola is world’s third most valuable brand; however PepsiCo is number 25 in the list (Saeidinia M., 2010). Moreover, competitors are catching up. The Coca-Cola company main rival is PepsiCo, being the second in the soft drink industry. Coca cola global products are 100% soft drinks and beverage, while PepsiCo global is both 48% snacks and 52% beverage corporation. PepsiCo contains more sugar and caffeine than Coca-Cola; each can of Pepsi contain approximately 8 teaspoons of sugar so if consumer’s need sugar and energy, PepsiCo appropriate better fit. According to studies, in December 2005, PepsiCo surpassed Coca-Cola...
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...Vice President of Operations, Part 1 1. Evaluate key elements of the selected production or service organization’s operational efficiency with its operational strategy. Determine three (3) tasks that do not align with the operational strategy. Determine the weaknesses that are evident in each task. PepsiCo, Inc. operates as a food and beverage company worldwide. Through its operations, authorized bottlers, contract manufacturers and other partners, the company makes, markets, sells, and distributes various foods and beverages, serving customers and consumers in approximately 200 countries and territories. The company also owns Frito-Lay company and Quaker Oats. It has bottling and distribution facilities in Asia, North and South Americas, Africa, Europe, and the Caribbean (PepsiCo 2012). PepsiCo’s supply chain management is based on the just-in-time process which allows timely replenishment of their ingredients for processing and bottling (PepsiCo 2012). PepsiCo does not own or operate the bottling and production facilities it relies on, especially in Asia, Africa and Latin America. Recently, due to strong competition in North America, the company made a strategic decision to focus its growth projection on the international market (PepsiCo 2011). This subjects its transportation and supply chain management system at risk to disruption resulting in an adverse impact on its business and financial operations. Some potential risks are: natural disasters (earthquakes...
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...I. Case Title: PepsiCo 2005 Case Analysis Our Mission “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 enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.’ Our Vision "PepsiCo's responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today." “Our 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.” Performance with Purpose “At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society – delivering what we call Performance with Purpose. “ “Our approach to superior financial performance is straightforward – drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.” PepsiCo: Products * Pepsi-Cola * Pepsi, Mountain Dew, Mug Root Beer, Sierra Mist, Slice, Aquafina, SOBE, Lipton… * Gatorade * Gatorade Thirst Quencher, Propel Fitness Water, Tiger Woods...
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...Juan Galvan University of Phoenix 5/30/10 PepsiCo, Inc. and The Coca Cola Company have both been around for an exceptionally long time. Both PepsiCo, Inc. and The Coca Cola Company have become common house hold names through out the world today. PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's most significant and valuable trademarks. PepsiCo, Inc. division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. The overall mission is to increase the value of their shareholder's investment. The company has done this through sales growth, cost controls and wise investment of resources. PepsiCo, Inc. believes their commercial success depends upon offering quality and value to their consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to their investors while adhering to the highest standards of integrity (www.fundinguniverse.com). The Coca Cola Company is another one of the other world's top consumer product companies with many of the world's most significant and valuable trademarks. The Coca-Cola Company is the world's number one maker of soft drinks, selling 1.3 billion beverages served every day (www.fundinguniverse.com). The Coca-Cola Companies red and white trademark is best-known brand symbol in the...
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...Coca Cola and PepsiCo, Inc are both universally recognized companies. Introducing these companies is not a necessity as everybody in the world knows about them and their products. These companies have been producing soft drinks, drinking water and flavored waters for centuries and have been competing in the same market for ages. We have come to know about this rivalry as “Cola War” which has its own celebrated history. In this market, there are many players, some are regional companies and some are multinational companies but main competitor of PepsiCo, Inc is Coca Cola and vice versa. The operations of the companies are beyond the national boundaries. Coca Cola and PepsiCo, Inc targets all income segments of customers in the entire world as their products are attractive and likeable. Both companies produce parallel products and services (Coca Cola Company, 2009). It is a known factor that when a company goes beyond the national boundaries, the distribution channel and production becomes main concern. Both companies own manufacturing plant in most of the countries around the globe. Coca Cola and PepsiCo, Inc adopts follow up strategies. It means when Coca Cola launches new product and a new promotion strategy, PepsiCo, Inc follows its fierce competitor Coca Cola with its own version or vice-versa. The distribution channels of these two companies are divided into three stages and there is no franchise system in companies (PepsiCo Inc, 2009). As we discussed, both companies are...
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