Prepared By: Muhammad Yasir

FINAL PROJECT
SUBMITTED TO:
MS. SABA GULZAR

SUBMITTED BY:
KHALID IQBAL (7316)
SARMAD MALIK (...
Prepared By: Muhammad Yasir

Table Of Contents
S.No.

Page No.

1

Introduction

03

2

I.F Evaluation

04

3

E.F Evaluat...
Prepared By: Muhammad Yasir

ACKNOWLEDGEMENT

First of all we would like to thank ALLAH the Almighty who blessed us with t...
Prepared By: Muhammad Yasir

Introduction to PepsiCo
PepsiCo serves 200 countries and is a world leader in providing food ...
Prepared By: Muhammad Yasir

(IF EVALUATION)
STRENGTH

S.No

Weightage Rating

Total
Weightage
Score

01

Brand Image

0.1...
Prepared By: Muhammad Yasir

(EF EVALUATION)
OPPORTUNITIES

S.No

Weightage Rating

Total
Weightage
Score

01

Using Brand...
Prepared By: Muhammad Yasir

(CP MATRIX)
PEPSI

COKE
Rating

Total
Score

0.60

4

0.80 2

0.40

4

0.60

3

0.45 1

0.15
...
Prepared By: Muhammad Yasir

(SWOT Matrix)
Strength

Internal

External

Opportunities
1 Using brand image
diversification...
Prepared By: Muhammad Yasir

SPACE MATRIX
Financial Position

Stability Position

Liquidity

4

Demand Variability

-1

Ca...
Prepared By: Muhammad Yasir

SPACE MATRIX
Prepared By: Muhammad Yasir

Action Plan/Interpretation:
Prepared By: Muhammad Yasir

BCG MATRIX
Divisions of PepsiCo:

1. Frito-Lay North America (FLNA)
2. Foods North America (Q...
Prepared By: Muhammad Yasir

Calculations
Related Market Share
1. 12500/1800
2. 1905/2500
3. 5895/9985
4. 10937/15000
5. 6...
Prepared By: Muhammad Yasir

0.7

0.6

0.5

0.4

Divisions

Quadrant

Strategy

FLNA
QAFNA
LAF
PAB
UKEU
MEEA

Star
Star
Q....
Prepared By: Muhammad Yasir

IE MATRIX
Divisions

IFE

EFE

PROFIT %

SALES %

FLNA
QAFNA
LAF
PAB
UKEU
MEEA

2.1
2.3
2.3
2...
Prepared By: Muhammad Yasir

GRAND STRATEGY
MATRIX
Prepared By: Muhammad Yasir

Interpretation:
Prepared By: Muhammad Yasir

(QSPM)
S
N0.
*

Matrix

1

Forward



2

Backward



3

Horizontal



*

Intensive Strateg...
Prepared By: Muhammad Yasir

QSP Matrix

Alternate 01
Mkt Penetration

Alternate 02
Mkt Development

Strengths:

Weightage...
Prepared By: Muhammad Yasir

Action Plan:
Market Penetration total attractiveness score is 4.10 and alternate 2 is
3.40
Ma...
Prepared By: Muhammad Yasir

DIVISION OF WORK
1. KHALID IQBAL(INTRODUCTION, IFE & EFE)
2. SARMAD MALIK (CPM & SWOT MATRIX)...
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Matrixes analysis of Pepsico (Final project of managerial policy (computerized)

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Matrixes analysis of Pepsico (Final project of managerial policy (computerized)

  1. 1. Prepared By: Muhammad Yasir FINAL PROJECT SUBMITTED TO: MS. SABA GULZAR SUBMITTED BY: KHALID IQBAL (7316) SARMAD MALIK (7320) ZAIN AHMED KHAN (7402) MUHAMMAD YASIR (7317) MUHAMMAD USMAN BASHIR (7318) TOPIC: THE INPUT, MATCHING AND DECISION STAGE OF PEPSICO COURSE: MANAGERIAL POLICY (B5402) DATE OF SUBMISSION: 30 – DEC - 2013
  2. 2. Prepared By: Muhammad Yasir Table Of Contents S.No. Page No. 1 Introduction 03 2 I.F Evaluation 04 3 E.F Evaluation 05 4 SWOT Matrix 06 5 SPACE Matrix 07 6 BCG Matrix 09 7 I.E Matrix 11 8 GRAND STRATEGY Matrix 12 9 QSP Matrix 14
  3. 3. Prepared By: Muhammad Yasir ACKNOWLEDGEMENT First of all we would like to thank ALLAH the Almighty who blessed us with the cognitive abilities and the ability to comprehend, understand and analyze complex things. We would also like to extend our gratitude to our teacher Ms. Saba Gulzar who was a source of inspiration and knowledge throughout this semester and who helped us greatly in understanding the different concepts related to managerial policy. We are also thankful to all our respondents, for sharing their opinions with us. Their valuable input has helped us a lot in giving this Project its present shape.
  4. 4. Prepared By: Muhammad Yasir Introduction to PepsiCo PepsiCo serves 200 countries and is a world leader in providing food and beverage products. Its brands consist of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. Some of PepsiCo's brands are over 100 years old, however the company was only founded in 1965 when Pepsi-Cola merged with FritoLay. PepsiCo then attained Tropicana and Gatorade when they merged with the Quaker Oats Company. The combined retail sales average about $92 billion. The company is focused on being the premier producer in supplying the world with convenient foods. They offer a wide variety a food options as well, including healthy options. PepsiCo stands out as a company because of its sustainable advantage. It includes widely known brands, innovative products, and powerful market skills. The company also tries to benefit the community. To make themselves a sustainable company, they have put a focus on the environment and benefiting society with their business. Recently, PepsiCo released information of their plan to drive sustainable water practices and improve rural water in Africa, China, India, and Brazil. Public Relations people have great opportunities to improve the company's reputation because of the size and financial stability of the company. PepsiCo is extremely well known in the world as a leading source of food and beverage products with immense revenue.
  5. 5. Prepared By: Muhammad Yasir (IF EVALUATION) STRENGTH S.No Weightage Rating Total Weightage Score 01 Brand Image 0.15 4 0.60 02 Strong Advertising 0.10 3 0.30 03 Effective Distribution Channel 0.10 3 0.30 04 Diversified SBU’S 0.05 4 0.20 05 Focused of food Items 0.10 4 0.40 WEAKNESSES 01 Low Productivity 0.05 1 0.05 02 Loss in Beverages 0.10 2 0.20 03 Mkt Share Less than Coke 0.15 2 0.30 04 Huge Expenditure on Advertising 0.10 1 0.10 05 Increase Revenue in Snakes products than Beverages 0.10 2 0.20 Total 1.00 Interpretation: Pepsi has a total wieghtagae score is 2.65 Indicating that firm is in above average performance 2.65
  6. 6. Prepared By: Muhammad Yasir (EF EVALUATION) OPPORTUNITIES S.No Weightage Rating Total Weightage Score 01 Using Brand Image Diversification 0.10 2 0.20 02 Youth Preference For Beverages 0.05 3 0.15 03 Increasing Demand in Juice 0.05 2 0.20 04 Striving for Acquisition & Alliances 0.15 1 0.15 05 Expand Non Cola Business 0.10 1 0.10 THREATS 01 Health Issues 0.15 4 0.60 02 Competitors 0.10 1 0.10 03 Govt Regulation/ Policies 0.05 4 0.20 04 Change in Consumer preference & Taste 0.05 3 0.15 05 Increasing Demand of energy drinks 0.20 2 0.40 Total 1.00 2.50 Interpretation: Pepsi has a total wieghtagae score is 2.5 in EFE. Indicating that firm is in above average.
  7. 7. Prepared By: Muhammad Yasir (CP MATRIX) PEPSI COKE Rating Total Score 0.60 4 0.80 2 0.40 4 0.60 3 0.45 1 0.15 Distribution Channel 0.15 3 0.45 4 0.60 2 0.30 Pricing Strategy 0.10 3 0.30 3 0.30 2 0.20 Competitive 0.05 2 0.10 3 0.15 3 0.15 HRM 0.10 3 0.30 2 0.20 1 0.10 CRM 0.05 3 0.15 4 0.20 2 0.10 Product Portfolio 0.20 2 0.40 3 0.60 1 0.20 Total 1.00 3.35 2.55 Factors Weightage Rating Mkt Share 0.20 3 Cost Reduction 0.15 Total Score PAKOLA 3.05 Rating Interpretation: The result of CPM is among 3 Beverages companies Pepsi, Coke and Pakola is: Pepesi > 3.05 Coke > 3.35 Pakola > 2.55 ALL companies’ total result is above average. Total Score
  8. 8. Prepared By: Muhammad Yasir (SWOT Matrix) Strength Internal External Opportunities 1 Using brand image diversification. 2 Youth preference for beverages. 3 Invest in Russian & China mkts. 4 Expand business in non cola products. 5 Increasing demand in juice. 6 Social status of middle class. Threats 1 Health Issues 2 Competitors 3 Govt Regulation/Policies 4 Change in consumer preference & taste. 5 Declined demand of carbonated drinks. 1 Brand Image 2 Strong Advertising 3 Effective Distribution Channel 4 Diversified SBU’S 5 Focused on Food Items 6 Ownership of Botteler 7 Acquistion & Alliances 8 Strong Financial Position (SO) 1 Strong advertising increases the youth preferences for beverages (s2, o2) 2 Invest in Russia and china mkts was possible because of effective distribution channel.(s3, 03) 3 By taking an advantage of diversification we should have to more diversified in term of brand image (s4, o1) Weaknesses 1 Low productivity 2 Pepsi’s strategies overtaken by coke in Pakistan. 3 Huge Expenditure on Advertising 4 Mkt Share Less than Coke 5 Increase Revenue in Snakes products than Beverages 6 Loss in Beverages (WO) 1 Using more brand/product diversification in division wise it can minimize the expenditure on adv and will increase the product portfolio.(w3,01) 2 Expand more business & introduce more non cola products and should increase the productivity(w1 04) (ST) (WT) 1 Brand image is the strongest way to remove or hide health issues (s1 t1) 2 We have strong financial position & own distribution channel network. We can compete to our competitors easily by taking advantage of strong financial position, (s3.8, t2) 1 Ist we should resolve the health issues as compare to less mkt share we should invest in health department and resolve the issue (w4, t1) 2 Should decrease the huge expenditure on advertising & invest on carbonated drinks to again increase the demand of carbonated drinks. (w3, t5)
  9. 9. Prepared By: Muhammad Yasir SPACE MATRIX Financial Position Stability Position Liquidity 4 Demand Variability -1 Cash Flow 5 Price Range -1 ROI 4 Barriers to entry -1 Earning per share 4 Inflation -1 Average : 4.25 Average: -1 Competitive Position Industry Position Market share -2 Ease of entry 6 Product quality -3 Growth potential 5 Consumer loyaly -3 Financial stability 4 Over suppliers -3 Profit margin 5 Average: -2.75 Average: 5 Y-axis FP+SP = 4.25+ (-1) = 3.25 X-axis CP+IP = -2.75 + 5 = 2.25
  10. 10. Prepared By: Muhammad Yasir SPACE MATRIX
  11. 11. Prepared By: Muhammad Yasir Action Plan/Interpretation:
  12. 12. Prepared By: Muhammad Yasir BCG MATRIX Divisions of PepsiCo: 1. Frito-Lay North America (FLNA) 2. Foods North America (QFNA) 3. Latin American food and snack businesses (LAF) 4. PepsiCo Americas Beverages (PAB) 5. Middle East Asia and Africa (MEAA). 6. United Kingdom & Europe (UKEU) Divisions Current Year sales 2009 Last Year Sales 2008 Competitor Sales Profit RMS IGR Sales % Profit % FLNA 12500 11586 18000 2960 0.6 8 28% 37% QFNA 1905 1860 2500 582 0.7 3 4% LAF 5895 4872 9985 890 0.4 21 13% 11% PAB 10937 11090 15000 2026 0.7 -2 25% 25% MEAA 6435 5492 12000 810 0.5 17 14% 10% UKEU 5600 4575 9000 665 0.6 22 14% 8% TOTAL 43272 66485 7930 7%
  13. 13. Prepared By: Muhammad Yasir Calculations Related Market Share 1. 12500/1800 2. 1905/2500 3. 5895/9985 4. 10937/15000 5. 6435/12000 6. 5600/9000 = = = = = = 0.6 0.7 0.4 0.7 0.5 0.6 Industry Growth Rate 1. 12500 – 11586 *100 = 08 11586 2. 1905 – 1860 *100 = 03 1860 3. 5895 – 4872 * 100 = 21 4872 4. 10937 – 11090 *100 = -2 11090 5. 6435 – 5492 *100 = 17 5492 6. 5600 – 4575 4575 *100 = 22
  14. 14. Prepared By: Muhammad Yasir 0.7 0.6 0.5 0.4 Divisions Quadrant Strategy FLNA QAFNA LAF PAB UKEU MEEA Star Star Q.Mark C.C Star, Q.Mark Star Forward, Horizontal Forward, Backward Mkt Penetration & Development Related Diversification Forward & Mkt, Prdoduct Devel. Forward, Backward Integration
  15. 15. Prepared By: Muhammad Yasir IE MATRIX Divisions IFE EFE PROFIT % SALES % FLNA QAFNA LAF PAB UKEU MEEA 2.1 2.3 2.3 2.5 3.2 3.5 2.2 2.4 2.6 2.8 3.1 3.7 37% 7% 11% 25% 10% 8% 28% 4% 13% 25% 14% 14%
  16. 16. Prepared By: Muhammad Yasir GRAND STRATEGY MATRIX
  17. 17. Prepared By: Muhammad Yasir Interpretation:
  18. 18. Prepared By: Muhammad Yasir (QSPM) S N0. * Matrix 1 Forward  2 Backward  3 Horizontal  * Intensive Strategies 4 Mkr Penetration 5 Mkt Development 6 Product Development * 7 Diversification Strategies Related Diver. 8 Unrelated Diver. * Defensive Strategies 9 Liquidation 10 Divestitutes 10 Rerenchement 11 Joint Venture Strategies Integration Strategies SWOT Matrix  SPACE Matrix BCG Matrix GRANG Matrix  Total 2 1      IE Matrix   2    4  5 3  1  1   1  2 
  19. 19. Prepared By: Muhammad Yasir QSP Matrix Alternate 01 Mkt Penetration Alternate 02 Mkt Development Strengths: Weightage Att. Total Score Att.Score Att. Score Total Att Score Brand Image Strong Advertising Effective Distribution Channel Diversified SBU’S Focused of food Items Weaknesses Low Productivity 0.15 0.10 0.10 0.15 0.05 4 2 1 0 3 0.60 0.20 0.10 0 0.15 3 2 0 0 4 0.45 0.20 0 0 0.20 0.15 4 0.60 3 0.45 Loss in Beverages Mkt Share Less than Coke Huge Expenditure on Advertising Increase Revenue in Snakes products than Beverages 0.15 0.10 0.05 3 0 1 0.45 0 0.05 2 1 0 0.30 0.10 0 0.05 2 0.10 2 0.10 TOTAL WEIGHTAGE Opportunities Using Brand Image Diversification Youth Preference For Beverages Increasing Demand in Juice Striving for Acquisition & Alliances Expand Non Cola Business Threats Health Issues Competitors Govt Regulation/ Policies Change in Consumer preference & Taste Increasing Demand of energy drinks TOTAL 1.00 0.10 4 0.40 3 0.30 0.05 1 0.05 0 0 0.15 0.15 0 4 0 0.60 1 0 0.15 0 0.15 3 0.45 0 0 0.06 0.04 0.15 0.05 2 3 0 1 0.12 0.12 0 0.05 0 0 1 2 0 0 0.15 0.10 0.15 2 0.30 3 0.45 1.00 4.10 3.40
  20. 20. Prepared By: Muhammad Yasir Action Plan: Market Penetration total attractiveness score is 4.10 and alternate 2 is 3.40 Market development and Market Penetration is a strategy that PepsiCo should apply by expanding in countries that not already established. Use forward integration to acquire smaller companies in foreign markets to increase their market share. Product development and related diversification should also be considered while trying to produce and distribute healthier products
  21. 21. Prepared By: Muhammad Yasir DIVISION OF WORK 1. KHALID IQBAL(INTRODUCTION, IFE & EFE) 2. SARMAD MALIK (CPM & SWOT MATRIX) 3. MUHAMMAD YASIR (BCG & IE MATRIX) 4. MUHAMMAD USMAN (SPACE, GRAND MATRIX) 5. ZAIN AHMED KHAN (Q.S.P.MATRIX)

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