Frito-Lay's products underwent reformulations to improve their health credentials, and packaging was changed to allow smaller portion sizes.What value-chain match-ups do you see? Pepsico also expanded into isotonic beverages, salty and sweet snacks, flavored grains, chilled juices, RTD tea and coffee, hot and RTE cereals, bottled water, and other breakfast foods. Grand Strategy Selection Matrix Narrative summary of model analysis results PepsiCo has considerable strengths as a company, which it can maximize to enable further growth. It can also engage in concentric diversification to continue to add new, complementary businesses to the company's portfolio. Threats Decline in Carbonated Drink Sales — Soft drink sales are projected to decline by as much as 2. In addition the company plans on major capital initiatives in Brazil and Mexico. World class advertising. What other strategic actions should be pursued by corporate level management? My assessment of the competitive strength of PepsiCos business units is demonstrated in Table 2. The case is important for a strong company like PepsiCo deals with several showing the related diversification challenges, to name few, low international profit strategy. Page 7 6.
In a strike in India shut down production for nearly an entire month. Pepsicos corporate strategy is to attain growth and long-term value through new product innovation, related diversification, and strategic alliances and acquisitions. There are many opportunities for PepsiCo in this environment, and the company is well poised to take advantage of them.
You are on page 1of 36 Search inside document Case Analysis Purpose To analyze how the PepsiCos diversification strategy has maximized the shareholders value. Potential Negative Impact of Government Regulations — It is anticipated that government initiatives related to environmental, health and safety may have the potential to negatively impact PepsiCo.
It seems as though, for the most part, PepsiCo has pursued a strategy of acquiring businesses that have certain elements in common in terms of production, distribution, and marketing. For example, manufacturing, marketing, and distribution of food products may be altered as a result of state, federal or local dictates.
And in everything they do, they strive for honesty, fairness and integrity.
Only few MNCs have large market share. Has restructuring their major product portfolio and acquired many companies since Are the companys cost structure and customer value proposition competitive?While the International business has the worst result among the business segment. Page 2 2. Bottled water sales may also come under pressure due to increasing environmental concerns. Relationship with distribution allies Develop Power of One Retailer Alliance Strategy, collaborate with retailers to increase consumers purchase more than one product of PepsiCo. The two best indicators of how well a companys strategy is working are : 1. What value-chain match-ups do you see? The aggressive diversification strategy is a major strength of PepsiCo. In the US, the best strategy to compete with Coca-Cola in this market segment is to engage in vertical integration in order to realize economies of scope and also to build on the company's famously strong relationship with retailers. My assessment of the long-term attractiveness of PepsiCos different units is demonstrated in Table 1.
Of the many concerns they have about the consumer and clients, little is said about the way employees are treated and what expectations and responsibilities are towards them.