...Value Alignment paper James Lee, Rekima Malvo, Brent Davis, Ruby Afamasaga BUS/475 February 24, 2014 William Stevenson Value alignment is the idea of making sure that everyone in the organization from senior management down to hourly employees is operating on the same page. Because different people have different values it can create weaknesses in an organization by damaging group dynamics and creating unhealthy conflicts which can escalate over time (Green, 2006). PepsiCo is a company that is committed to delivering sustained growth through empowered people, acting responsibly, and building trust among its employees and customers. This paper will take PepsiCo and analyze the origin and subsequent evolution of personal and workplace values. It will explain how individual values drive actions and behaviors and analyze the degree of alignment between Pepsi’s stated values and its actual plans and actions. Finally, we will analyze the degree of alignment between personal and organizational values as reflected by PepsiCo’s plans and actions. Personal and Workplace Values Our personal values derive from our experiences, personal aspirations, culture, society, and some values are learned and passed down through the generations. Our values, in a sense, drive our actions which result in if and how we accomplish things. Values are important for not only individuals, but organizations as well. Organizational values should be directly connected with personal values. Organizations...
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...Anita Bennefield MAN6721-12 Course Project Introduction: Strategic Management for PepsiCo and Quaker Oats, determine the present strategy: unrelated diversification, scope domestic or global for each division, what move have been made recently to add new business, rationale underlying recent divestures, the nature of any efforts to capture strategic fits and create competitive advantage based on economies of scope and other resource. Present Strategy Roger Enrico the CEO of PepsiCo (1996-2001) got involved in restricting PepsiCo’s business portfolio. Company had three business segments restaurants, beverages and snack foods. He found number of problems at PepsiCo. Company fall behind, Coca-Cola, the competitor by a growing margin in both domestic and international markets. The restaurant business declining and profit margin were slim. To get the company by on track Enrico developed a restricting strategy, which is: Related Diversification: The restaurants limited investment in the company’s snack food and beverage business and severely impaired the corporation’s overall operating and profit margin. The fact restaurant which included Pizza Hut, KFC, and Taco Bell were eliminated from the company’s portfolio of business and the three main restaurants were spun off as an independent publicly traded company, the divestitures was completed with a creation of Tricon Global Restaurants. Focusing on related diversification and spun off business unit which were unrelated to...
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...previous ranking of 70. DiversityInc magazines ranked the organization as number 12 on the magazine’s top 50 companies for diversity in 2011 [ (The Coca-Cola Company) ]. The Coca-Cola Company has been the dominant leader in the global soft-drink industry through the 20th century [ (The Coca-Cola Company) ]. The Coca-Cola Company has been influenced by different economic trends, such as lower disposable consumer income and the importance of conservation. In a recession, consumers will often reduce their spending on non-essential items such as carbonated beverages so that their disposable income can be used to cover the essential household expenses. Carbonated beverages have been viewed as non-essential items because they lack any nutritional value. Coca-Cola has positioned the company to sustain this economic trend by offering products focused on a nutritional aspect such as flavored waters and reduced sodium sports drinks. Consumers can validate their spending on these items because they are healthy and “good for them”. Coca-Cola has addressed the importance of conservation by reducing the size of the bottle. The reduction in size using less raw materials; therefore less is contributed to the buildup of waste. This reduction also lowers costs because of less material matter being used. Reduction in the expense of material is a helpful way to control cost. As the cost of raw material continues to increase, Coca-Cola uses the reduction of material as a way to control expense and...
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...engage training participants in real work with live strategic issues. This delivers a “triple hit” benefit wherein training can achieve development goals; increase participant grasp of and commitment to company strategic goals; and actually produce innovative ideas, solutions and strategies to meet the needs of the business. Since the publishing of Adelsberg and Trolley’s influential 1999 book Running Training Like A Business, which made the case that training departments must evolve from an HR function to a business orientation, it appears that little has changed. In a 2011 update to their original research they concluded that: • Training remains tactical • “Keys” to be strategic are obvious, but the challenge is using those keys to unlock value •...
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...CASE 21 PepsiCo’s Diversification Strategy in 2014 John E. Gamble Texas A&M University–Corpus Christi P epsiCo was the world’s largest snack and beverage company, with 2013 net revenues of approximately $66.4 billion. The company’s portfolio of businesses in 2014 included Frito-Lay salty snacks, Quaker Chewy granola bars, Pepsi soft-drink products, Tropicana orange juice, Lipton Brisk tea, Gatorade, Propel, SoBe, Quaker Oatmeal, Cap’n Crunch, Aquafina, Rice-A-Roni, Aunt Jemima pancake mix, and many other regularly consumed products. The company viewed the lineup as highly complementary since most of its products could be consumed together. For example, Tropicana orange juice might be consumed during breakfast with Quaker Oatmeal, and Doritos and a Mountain Dew might be part of someone’s lunch. In 2014, PepsiCo’s business lineup included 22 $1 billion global brands. The company’s top managers were focused on sustaining the impressive performance through strategies keyed to product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. Newly introduced products such as Mountain Dew KickStart, Tostitos Cantina tortilla chips, Quaker Real Medleys, Starbucks Refreshers, and Gatorade Energy Chews accounted for 15 to 20 percent of all new growth in recent years. New product innovations that addressed consumer health and wellness concerns were important contributors to the company’s growth, with...
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... © 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. The move would combine PepsiCo’s 13 brands (with retail sales of more than $1 billion each) with Quaker’s market-leading Gatorade...
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...CRACKER JACK An analysis of potential brand acquisition by Diversified Products Corporation John Bry Sonja Gessling Phil Mark Sara Meinke Jordan Schulz Som Thamma Cindy Tsai Cohort C ‐ Team 4 CURRENT SITUATION ANALYSIS: Cracker Jack (CJ) is a classic American caramel-coated popcorn and peanut snack that was acquired by Frito-Lay (FL) in 1997.1,2 Sales peaked in 1998 to $100M but soon sank back to $30M per year and has remained at that level since.3 Several factors are attributed to this sales slump. FL incorporated CJ into its existing distribution model that utilizes Direct Store Delivery and packaged CJ in Mylar bags (as opposed to the classic boxes).They also shelved CJ with other Frito-Lay salty snack products such as Lays Potato Chips, despite 98% of consumers rating CJ as a sweet snack and not a salty one. 4 Although priced lower than the leading caramel corn brands, CJ still appears expensive when merchandised next to inexpensive potato chips. Consequently CJ has numerous misalignments and a comparatively low profit margin (8.2% compared to snack average of 20.5%).5,6 The low price point combined with rising commodity prices has forced FL to substantially cut the quality of the prizes found inside each box to control costs, angering long time consumers.7 CJ, having stagnant sales for the past ten years, has not received the support required for brand revitalization, instead relying on steady baseball stadium sales to survive.8 Overall...
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...Starting from my most recent job. I was Senior Finance Analyst in Pepsi Foods Canada that is $2.5billion dollar business where I was personally responsible for providing strategic financial support to business leaders for both Frito and Quaker businesses. My strong technical skills and collaborative work approach supported the business to achieve $2million incremental profit in 2012 and that was highly appreciated by PepsiCo Controller. Before Pepsi Canada, I worked as Financial Analyst in CIBC that broaden my horizon and helped me gain confidence to adjust quickly in new business environment with difference dynamics. Before CIBC, I worked as Manager Financial Analyst with Pepsi International from 2010 to 2012 where I was responsible for providing business advice and financial counsel to the VP Sales and BU Controller. 11 staffs were reporting to me. I got two PepsiCo Annual excellence award for my outstanding contribution in growing business by 10%. The Pepsi market share touched 60% during that time. From 2007 to 2010, I worked as Risk Assessment Manager in PepsiCo International. It was a billion dollar business. I was responsible to support business owners in managing business risks and controls. I trained and influence different functional teams while leading the implementation of PepsiCo’s Global control standards project. I was honored with Annual excellence award for working collaboratively with Chicago team on Global Control standards and getting 130 staffs on board in...
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...COCA-COLA CO THE, SWOT ANALYSIS, IN SOFT DRINKS (WORLD) March 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Carbonates 169.5 billion litres Fruit/ Vegetable Juice 62 billion litres Sports and Bottled Sports and Energy Drinks Water Energy Drinks 205.1 billion15 billion litres 16.2 billion litres Concentrateslitres 43 billion litres Concentrates 43.7 billion litres RTD Tea 30.1 billion litres RTD Coffee 4.5 billion litres The Coca-Cola Company slightly underperformed the world’s soft drinks market amid the recession in Western Europe...
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...COCA-COLA CO THE, SWOT ANALYSIS, IN SOFT DRINKS (WORLD) March 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Fruit/ Sports and Carbonates Bottled SportsWater and Vegetable Energy Drinks 169.5 billion Energy Drinks Juice 205.1 billion15 billion litres litres litres 16.2 billion 62 billion litres Concentrateslitres 43 billion litres Concentrates RTD Tea RTD Coffee 43.7 billion 30.1 billion 4.5 billion litres litres litres Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible...
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...SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Carbonates 169.5 billion litres Fruit/ Vegetable Juice 62 billion litres Sports and Bottled Sports and Energy Drinks Water Energy Drinks 205.1 billion15 billion litres 16.2 billion litres Concentrateslitres 43 billion litres Concentrates 43.7 billion litres RTD Tea 30.1 billion litres RTD Coffee 4.5 billion litres The Coca-Cola Company slightly underperformed the world’s soft drinks market amid the recession in Western Europe and slow economic recovery in the US. It is actively expanding in low...
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...Problems and Opportunities It is important to understand the primary problem being addressed throughout this case study: Whether or not a profitable market opportunity exists for a new energy beverage brand to be produced, marketed and distributed by the Dr. Pepper Snapple Group. In order to effectively answer the above question, there are a number of secondary questions that need to be answered to get the full picture. They are as follows: Who would the target market be? What would be the full product line and how would it be positioned within the market place? What marketing channels would be used? How would it be advertised and promoted? What would be the RSP and within which margins can it operate to remain profitable? Before answering these questions, it is important to highlight some of the external challenges that would face the company were they to go ahead and introduce a new energy drink. Firstly, there has been significant price erosion within the energy drink market, with energy drink prices declining by 30% between the years 2001 and 2006. This has been attributed to larger package sizes, the introduction of multi-packs, and the increasing availability in supermarkets, which operate with lower retail gross margins. Secondly, the market has also experienced product proliferation due to line extensions, new packaging and sizes, and market segmentation. Thirdly, DPSG needs to be aware of the changing attitudes of the consumer. The consumer is becoming more and...
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...combination of cow's milk, flour and sugar. It soon started diversifying its products with the launch of all sorts of chocolate, milk and coffee products as well as drink/juices and tapping into the wellness area with the acquisition of l'oreal. A company that has been in continues mutation, adapting to the necessity of difficult times and being quicker than others to launch new products on the market. With the boom or organic food industries even Nestle jumped on the bandwagon and started acquiring smaller organic firms and releasing a huge array of so called healthy foods. As you are well aware their brand is one of the most recognized in the world because they are creating value for different communities, for their partners and obviously for their consumers. Or as they call it, they are creating shared value. Below a graph taken from their websites that enlists their strategy: . Industry analysis: Demographic Trends Cultural Influences *Ageing population that can afford higher costs *Increased consumption of healthier food and is more aware of health issues. *More concern about the environment and *Younger population more prone to diversify their the supply chain diets and meals and switch to healthier food Technological developments Political-Legal Pressures *new technologies allow better more cost effective *New laws for food processing procedures and higher quantities *Growing awareness of food safety *Related higher costs for small...
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...A Framework for Strategic Innovation A Framework for Strategic Innovation Blending strategy and creative exploration to discover future business opportunities ______________________________ by Derrick Palmer & Soren Kaplan Managing Principals, InnovationPoint LLC © InnovationPoint LLC www.innovation-point.com Page 1 A Framework for Strategic Innovation Authors Soren Kaplan is the author of Leapfrogging and a Managing Principal at InnovationPoint, where he works with organizations including Visa, Colgate-Palmolive, Medtronic, Disney, Philips, PepsiCo, and numerous other global firms. Soren previously led the internal strategy and innovation group at Hewlett-Packard (HP) during the roaring 1990’s in Silicon Valley and was a co-founder of iCohere, one of the first web collaboration platforms for online learning and communities of practice. He is an Adjunct Professor within the Imagineering Academy at NHTV Breda University of Applied Sciences in The Netherlands. He holds Master’s and Ph.D. degrees in Organizational Psychology and resides in the San Francisco Bay Area with his wife, two daughters, and hypo-allergenic cat. Learn more about his book Leapfrogging by visiting www.leapfrogging.com. Derrick Palmer consults on strategic innovation with global, Fortune 1000 and medium-sized businesses. His areas of focus include corporate strategy, consumer-inspired new product innovation, designing best-in-class innovation processes, and...
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...Dr Pepper Snapple Group: Fighting to Prosper In a Highly Competitive Market June 2011 Written by Joseph S. Harrison under the direction of Jeffrey S. Harrison at the Robins School of Business, University of Richmond. Copyright © Jeffrey S. Harrison. This case was written for the purpose of classroom discussion. It is not to be duplicated or cited in any form without the copyright holder’s express permission. For permission to reproduce or cite this case, contact Jeffrey S. Harrison (RCNcases@richmond.edu). In your message, state your name, affiliation and the intended use of the case. Permission for classroom use will be granted free of charge. Other cases are available at: http://robins.richmond.edu/centers/center-‐for-‐active-‐business-‐education/research/case-‐network.html Larry Young, President and CEO of Dr Pepper Snapple Group, Inc. (DPS) seemed to be on a roll. Named 2010 Beverage Executive of the Year by Beverage Industry Magazine, he led the company through three very difficult...
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