Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

PepsiCo Case Study

No description
by

Jessica Dickinson

on 26 February 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of PepsiCo Case Study

History
PepsiCo
Questions
1. What is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008.
Focus: sustaining performance.
Product innovation
Close relationships with distributor allies
International expansion
Strategic acquisition

2. What is your assessment of the long-term attractiveness of the industries represented in PepsiCo’s business portfolio?
The continue growth of the company's Frito-Lay brand.
The Strength of the company's beverage deviation
The 'Power of One'
Substitutions
3. What is your assessment of the competitive strength of PepsiCo’s different business units?
5. Does PepsiCo’s portfolio exhibit good strategic fit? What value-chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see?


7. Based on the preceding analysis, what is your overall evaluation of PepsiCo’s business portfolio in 2008? Does the portfolio provide the company’s shareholders with an opportunity for above-average market returns?


8. What strategic actions should Indra Nooyi take to sustain the corporation’s impressive financial and market performance? Should its free cash flows be used to fund additional share repurchase plans, pay higher dividends, make acquisitions, expand internationally, or for other purposes? What other strategic actions should be pursued by corporate level management?
6. Does PepsiCo's portfolio exhibit good resource fit? what are the cash flow characteristics of each of PepsiCo's four segments? Which businesses are the strongest contributors to PepsiCo's free cash flows?
4. What does a 9-cell industry attractiveness.business strength matrix displaying Pepsi Co's business units look like?
Businesses are ranked mid-high level of industry attractiveness.

long run: Pepsi cola sales may suffer due to alternatives such as Aquafina, Teas, juices.
Holds competitive strength in Frito Lay, Gatorade, Aquafina, Pepsi Cola
Due to:brand name recognition, promotion, innovation
The co. does show a good strategic fit.
Matchups: cost sharing benefits among hot fill operations of Tropicana, Dole, SoBe.

Distribution:cost sharing/skill transfer with Gatorade & other beverages.( Aquafina, SoBe)

Sales and Marketing: focus on cross- marketing Frito Lay products with convenience beverages.
PepsiCo is a large corporation
encompasses many brands: Quaker Oats, Aunt Jemima, Lipton, Tropicana, Aquafina, Gatorade, SoBe, Propel, Rice-A-Roni
Have four Main sectors
International
Quaker Oats
North America Beverages
Frito-Lay
The management team is attempting to maintain the high levels of sales and organizational efficiency that they previously enjoyed
Making an effort to go "green"
healthier snack foods
healthier foods in general
Trying to increase international presence
Net Revenue Contribution
International sector: dramatically increasing
Quaker Oats: dramatically decreasing
Frito-Lay: slightly decreasing
North America Beverages: slightly decreasing
Cash Flows
International sector growing the most
Quaker Oats growing the least
Advantages:
reduce promotional costs
increase in sales for both business units
based on differentiation instead of cost leadership
has to highly invest in new flavors, formulas, and packaging to compete
PepsiCo has a flexible distribution network
products are brought to the market through vending distribution networks, direct store delivery, and broker-warehouse.
resources stretched to the limit
Too much diversification causes internal problems
competing products
Cash Flow Growth Rate:
International Sector- 19% between 2006 and 2007
Frito-Lay: 9% between 2006 and 2007
North America Beverages- (1%) between 2006 and 2007
Quaker Oats- (10%) between 2006 and 2007
Strengths: Frito-Lay and PepsiCo International
Weakness- Quaker Oats
PepsiCo profitable as a whole= good returns for invstors
Improve international portion
More research
Cash Flows help grow the company
Let go of Quaker Oats
New ideas= new revenue
Full transcript