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Transcript

By:

Karen Galván

Andrea González

Mabel Medrano

Iván Padilla

Jacobo Peralta

“What are PepsiCo’s strategies and how far will those strategies get them?”

  • Organizational Structure
  • Core Competences
  • VRIO
  • Competitive Advantages
  • Strengths
  • Weaknesses

Main Market Trends

Opportunities

Threats

Porter’s Five Forces

PEPSICO

Conclusion

Internal Analysis

  • Increased net revenue on the Frito-Lay North America
  • high-single-digit goal in the Latin America Foods division
  • 1% net income loss in Europe
  • double-digit loss, 10%, was seen in PepsiCo Asia
  • PepsiCo is still showing potential growth
  • PepsiCo Americas Foods
  • PepsiCo Americas Beverages
  • PepsiCo Europe
  • PepsiCo Asia, Middle East & Africa

• Market Research

• Strategic Acquisitions

• International Expansion

• Efficient Information System

Today´s Strategy

Resources Valuable Rare HTI OP CI

Distribution Yes No No Yes CP

Differentiation Yes Yes Yes Yes CA

Advertising Yes Yes Yes Yes CP

Introduction

  • Brand Recognition
  • Product Differentiation
  • Product Diversity

Strategic Choices

• Product diversity

• Extensive distribution channel

• Corporate Social Responsibility

• Competency in mergers and acquisitions

• Marketing and advertising campaigns

• Complementary product sales

• Low pricing

•Low net profit margin

•Increasing demand for healthy food and beverages

1997

External Analysis

1997 and past

  • Increase advertising and marketing
  • optimization of operating practices and organization
  • high-single-digit increase
  • increase returns to shareholders

Implementation of acquisition and diversification strategies.

PepsiCo focused on snacks and beverages

  • American multinational food and beverage corporation.

  • Four Principal business units operated around the world.

  • Mergers, aquisitions and brand sales.

Health Concern

Ready to Eat Products

Consumer society

  • Diet and low-calories products
  • Non-carbonated drinks

We live in a fast-pacing society, which doesn't always have time to eat properly

Society nowadays has a tendency of consuming products they don't really need.

2008

Expansion through Acquisitions

Health Demands

Bottled water consumption growth

Beverages and snacks market growth

OPPORTUNITIES

Strategic realingement, the addition of a fourth division in order to improve PepsiCo's performance.

Changes in consumer tastes

Decreasing Profit Margin

Increased competition from Snynder´s

Suppliers

Rivalry

LOW

Low but Strong

Substitutes

LOW

Buyers

Entry

Medium

Five Forces

Suggestions

WORKS CITED

  • "SWOT Analysis PepsiCo." Marketing Teacher. N.p.. Web. 2 Dec 2013. <http://www.marketingteacher.com/swot/pepsi-swot.html>.
  • "SWOT analysis of Pepsi." Strategis management insight. N.p., 25 Feb 2013. Web. 2 Dec 2013.
  • Mangin, stephanie. "Organizational Structure." . N.p., 26 Apr 2013. Web. 2 Dec 2013. <http://smangin.blogspot.mx/2013/04/organizational-structure.html>.
  • "PepsiCo Announces Strategic Investments to Drive Growth." PepsiCo. N.p.. Web. 2 Dec 2013. <http://www.pepsico.com/Download/2012_Outlook_Release.pdf>.
  • "Quién es PepsiCo." PepsiCoMexico. N.p.. Web. 2 Dec 2013. <http://www.pepsico.com.mx/Who-is-PepsiCo.html>.
  • "A Brief Pepsi History." Andy´s Pepsiholic Haven. N.p.. Web. 2 Dec 2013. <http://www.sirpepsi.com/pepsi11.htm>.
  • promote “good-for-you” product line, Russian marketing.
  • stronger campaigns on other PepsiCo products.
  • Focus on the needs of the costumer, as much as focusing on attacking competitors.