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Strategic Management- Pepsi -Bassix

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Submitted By norgrenm
Words 1986
Pages 8
Strategic Management
23 April 2012

Case 3: Pepsi and BASIX

* What were the expectations of each partner; namely, Pepsi, BASIX and the farmers? From the other partners?
The partnership of Pepsi and BASIX created implications that far extended their agreement, both improving the relationship and cooperation between Pepsi and BASIX as well as working to improve the lives of the farmers. All parties that were affected beforehand had thoughts and impressions that fueled their expectations and outlooks of the proposed partnership. Pepsi Company was very focused on gaining a long standing relationship that could serve as a platform for future growth, by abiding by the local laws, and working to establish a network of local suppliers in order to meet the demand created by selling their products. Their expectations were that if they were involved in establishing a buyback program in conjunction with BASIX, that their buy back rate would be greater than average and that it would ensure a steady supply without the possibility of bottlenecks. BASIX on the other hand really focuses on the social implications and micro financing of projects in poor areas, and they believed that by entering in this agreement they would be both expanding their scope of potential clients as well as improving the relationship with both partners, the local farmers by improving wages and their overall education, as well as Pepsi Company by meeting the demand of production they require by working hands on with the farmers, working towards their mission and passion as a company. The farmers are the last group because they are the focus of the partnership, their education as well as steady supply due to education is vital to both paying back the micro loans as well as meeting production demands for Pepsi. They had an expectation that the entire process was going to be costly, and something

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