This document appears to be a final project submitted by five students to their professor for their Managerial Policy course. It contains an introduction to PepsiCo, various analyses of PepsiCo's internal/external factors including an IF analysis, EF analysis, SWOT matrix, SPACE matrix, BCG matrix, IE matrix, grand strategy matrix, and QSP matrix. The analyses evaluate PepsiCo's divisions and recommend strategies. In summary, the document analyzes PepsiCo's business using multiple strategic frameworks and recommends strategies for its divisions.

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. 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. 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. 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. 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. 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. 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. 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. 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. Prepared By: Muhammad Yasir
SPACE MATRIX

11. Prepared By: Muhammad Yasir
Action Plan/Interpretation:

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. 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. 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. 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. Prepared By: Muhammad Yasir
GRAND STRATEGY
MATRIX

17. Prepared By: Muhammad Yasir
Interpretation:

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. 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. 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. 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)