Strategic planning identifies where the organization wants to be at some point in the future and how it is going to get there. The "strategic" part of this planning process is the continual attention to current changes in the organization and its external environment, and how this affects the future of the organization. Skills in strategic planning are critical to the long-term success of your organization. This form of planning includes:
a) Taking a wide look around at what's going on outside the organization and how it might affect the organization (an environmental scan), and identifying opportunities and threats.
b) Taking a hard look at what's going on inside the organization, including its strengths and weaknesses (perhaps doing a SWOT analysis)
c) Establishing statements of mission, vision and values (some prefer to do that as the first step in planning)
d) Establishing goals to accomplish over the next (usually) three years or so, as a result of what's going on inside and outside the organization
e) Identifying how those goals will be reached (strategies, objectives, responsibilities and timelines)
Strategic planning determines the overall direction and goals of the organization. Consequently, strategic planning influences numerous aspects of the organization, including what:
a) Products and services will be provided by the business and how those products and services will be designed
b) Organizational design and roles will be needed by the organization
c) Performance goals should be established for positions throughout the business
d) Board committees should be developed (in the case of corporations)
e) Resources will be needed to achieve those goals, and consequently, how much money is needed to procure those resources -- ultimately, the goals determine the content of various budgets
Two key points to remember while proceeding through this module are:
1) The planning process is at least as important as the planning document itself
2) The planning process is never "done" -- the planning process is a continuous cycles that's part of the management process itself
Mature food companies need to use aggressive cost reduction, portfolio simplification, and substantially new approaches to growth to deliver competitive returns.
Mature food companies need to use aggressive cost reduction, portfolio simplification, and substantially new approaches to growth to deliver competitive returns.
I tried in this presentation to cover every thing related to SWOT analysis, but of course this presentation without demonstration, examples, individual and group workshops will not be enough to maestro SWOT analysis. To maximize the benefits for all; kindly do not hesitate to send me your comments.
Atef Khayat
dr.atefkhayyat@gmail.com
+966503935414
Margin Performance Report - Exploring how companies can beat market expectationsCaroline Burns
In an environment characterized by uncertainty and global competition, margins are threatened like never before and cost optimization is running out of steam. How does margin relate to performance and how can margin be managed strategically?
Dr. Patrick Reinmoeller
Professor of Strategic Management
Cranfield School of Management
Cranfield University
PESTLE can be rightly called a thorough view on the external environment in which an organization is operating in. On the contrary though, SWOT analysis is the analysis on the internal environment of the company based on its products etc. SWOT tends to be more product/service specific as an individual or an entity conducts this analysis based on that product/service.
SWOT is the acronym for “STRENGTH WEAKNESS OPPORTUNITY THREAT” which outlines the current position of any organisation.
It identifies that whether a company is in a good or bad market position.
SWOT has mainly two steps:
Identifying internal and external factors of the organisation.
Formulating strategies to exploit the opportunities & defending the threats with the help of internal strengths.
A SWOT Analysis is a strategic planning tool that involves the listing a companies Strength , Weaknesses, Opportunities and Threats.
It evaluate the business environment in a detail manner so as to take strategic decisions for the future course of action.
SWOT analysis provides a visual overview that prompts discussion around a company’s situation. It is a bird's-eye view meant to flesh out the viability of a concept or strategy from the inside out.
Nuestro informe Global Risk Landscape 2016 revela que el 87% de los líderes empresariales consideran que
el mundo se ha convertido en un lugar con mayor riesgo. Para la realización de este estudio, que se inició a
comienzos de 2016, BDO ha consultado a 500 altos directivos de las principales empresas de 44 países de
Europa, Oriente Medio, África, Asia y América acerca de lo que consideran que son los mayores riesgos a los que
enfrentan sus empresas en la actualidad y en el futuro.
Para más de la mitad (56 %) de los líderes empresariales encuestados, la mayor amenaza es el aumento
de la competencia, seguida por la desaceleración económica (43%) y la interrupción del negocio (42 %).
La mitigación del riesgo se ha convertido en una cuestión primordial para la mayor parte de las empresas
consultadas, mientras que la creación de valor es visto como el mayor desafío global del futuro.
Presentation of the eighth biennal benchmarking survey conducted by the Federation of European Risk Management Associations (FERMA).
More information on ey.com/FR/Advisory
For my "Point of View" presentation, I decided to focus on SWOT analysis. It is a very important step of the marketing planning process, and I believe everyone should fully understand this topic!
Analysis? SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.
I tried in this presentation to cover every thing related to SWOT analysis, but of course this presentation without demonstration, examples, individual and group workshops will not be enough to maestro SWOT analysis. To maximize the benefits for all; kindly do not hesitate to send me your comments.
Atef Khayat
dr.atefkhayyat@gmail.com
+966503935414
Margin Performance Report - Exploring how companies can beat market expectationsCaroline Burns
In an environment characterized by uncertainty and global competition, margins are threatened like never before and cost optimization is running out of steam. How does margin relate to performance and how can margin be managed strategically?
Dr. Patrick Reinmoeller
Professor of Strategic Management
Cranfield School of Management
Cranfield University
PESTLE can be rightly called a thorough view on the external environment in which an organization is operating in. On the contrary though, SWOT analysis is the analysis on the internal environment of the company based on its products etc. SWOT tends to be more product/service specific as an individual or an entity conducts this analysis based on that product/service.
SWOT is the acronym for “STRENGTH WEAKNESS OPPORTUNITY THREAT” which outlines the current position of any organisation.
It identifies that whether a company is in a good or bad market position.
SWOT has mainly two steps:
Identifying internal and external factors of the organisation.
Formulating strategies to exploit the opportunities & defending the threats with the help of internal strengths.
A SWOT Analysis is a strategic planning tool that involves the listing a companies Strength , Weaknesses, Opportunities and Threats.
It evaluate the business environment in a detail manner so as to take strategic decisions for the future course of action.
SWOT analysis provides a visual overview that prompts discussion around a company’s situation. It is a bird's-eye view meant to flesh out the viability of a concept or strategy from the inside out.
Nuestro informe Global Risk Landscape 2016 revela que el 87% de los líderes empresariales consideran que
el mundo se ha convertido en un lugar con mayor riesgo. Para la realización de este estudio, que se inició a
comienzos de 2016, BDO ha consultado a 500 altos directivos de las principales empresas de 44 países de
Europa, Oriente Medio, África, Asia y América acerca de lo que consideran que son los mayores riesgos a los que
enfrentan sus empresas en la actualidad y en el futuro.
Para más de la mitad (56 %) de los líderes empresariales encuestados, la mayor amenaza es el aumento
de la competencia, seguida por la desaceleración económica (43%) y la interrupción del negocio (42 %).
La mitigación del riesgo se ha convertido en una cuestión primordial para la mayor parte de las empresas
consultadas, mientras que la creación de valor es visto como el mayor desafío global del futuro.
Presentation of the eighth biennal benchmarking survey conducted by the Federation of European Risk Management Associations (FERMA).
More information on ey.com/FR/Advisory
For my "Point of View" presentation, I decided to focus on SWOT analysis. It is a very important step of the marketing planning process, and I believe everyone should fully understand this topic!
Analysis? SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.
SWOT ANALYSIS is the strategic thinking which requires the evaluation of Strength, Weakness, Opportunity & Threats.
It provides information that is helpful in matching the resources of the firm to face the environmental competition.
It creates a logical framework for strategic alternatives and selecting the best one.
It guides the strategist in strategy identification and formulation.
Strength & Weakness are internal analysis of business whereas Opportunity & threat are external environmental analysis.
Strength : It is an inherent capacity of the organization which provides strategic advantage over its competitors.
Weakness: It is an inherent limitation or constraint of the organization which creates disadvantage to the organization.
Opportunity: It is a favorable condition of the environment which enables the business to strengthen its position.
Threat: It is an unfavorable condition of the environment which causes risk or damage to the position of the organization
SWOT Matrix creates a scope for identifying the best fit between firm’s strength with its opportunities.
It also states that how to overcome a weakness and threat.
Matrix is the combination of rows and columns. The SWOT analysis profile consists of combinations of
S-O
WO
S-T
W-T
SWOT ANALYSIS is the strategic thinking which requires the evaluation of Strength, Weakness, Opportunity & Threats.
It provides information that is helpful in matching the resources of the firm to face the environmental competition.
It creates a logical framework for strategic alternatives and selecting the best one.
It guides the strategist in strategy identification and formulation.
Strength & Weakness are internal analysis of business whereas Opportunity & threat are external environmental analysis.
Strength : It is an inherent capacity of the organization which provides strategic advantage over its competitors.
Weakness: It is an inherent limitation or constraint of the organization which creates disadvantage to the organization.
Opportunity: It is a favorable condition of the environment which enables the business to strengthen its position.
Threat: It is an unfavorable condition of the environment which causes risk or damage to the position of the organization
A firm’s strengths are its resources & capabilities that can be used as a basis for developing a competitive advantage.
Examples of strengths:
Patents
Brand names
Good-will
Customer loyalty
Technical-know-how
Strong distribution network
Competent personnel
The absence of certain strengths create weaknesses.
Examples
Lack of patent protection
Weak brand name
Poor reputation among customers
High cost structure
Lack of access to resources
Lack of access to key distributors
Lack of skilled HR
The external environmental analysis reveal certain new opportunities for the growth of the organization.
Examples
Liberal policies and regulations
Unfulfilled customer needs
Adaptive with new technology
Removal of international trade barriers
Changing environment invite threats for business.
Example
New rules and regulations
Change in consumer tastes away from firm’s products
Availability of substitute
Increased barrier
Strong rivalry
SWOT Matrix creates a scope for identifying the best fit between firm’s strength with its opportunities.
It also states that how to overcome a weakness and threat.
Matrix is the combination of rows and columns. The SWOT analysis profile consists of combinations of
S-O
WO
S-T
W-T
In this lesson you learned about the focus areas of determining a company’s strategic position and thereafter communicating its purpose to stakeholders. You learned that a company’s strategic position can be determined using tools such as PESTEL and SWOT analysis.
SWOT AnalysisA situation analysis is often referred to by the ac.docxmabelf3
SWOT Analysis
A situation analysis is often referred to by the acronym SWOT, which stands for strengths, weaknesses, opportunities, and threats.
SWOT Analysis
Essentially, a SWOT analysis is an examination of the internal and external factors that impact the organization and its strategies. The internal factors are strengths and weaknesses; the external factors are opportunities and threats. A SWOT analysis gives an organization a clear picture of the business situation in which it operates and helps it identify which strategies to pursue.
Internal Factors
Strengths and weaknesses include the resources and capabilities within the organization now. Since the company has the most control over internal factors, it can craft strategies and objectives to exploit strengths and address weaknesses. Examples of internal factors include the following:
· financial resources
· technical resources and capabilities
· human resources
· product lines
All of these are controlled by the organization. Competitive positioning can also be a strength or a weakness. While competitors’ strategies and tactics are external to the company, the company’s position relative to the competitors is something that it can control.
External Factors
External factors include opportunities and threats that are outside of the organization. These are factors that the company may be able influence—or at least anticipate—but not fully control. Examples of external factors include the following:
· technology innovations and changes
· competition
· economic trends
· government policies and legislation
· legal judgments
· social trends
While a company can control how it positions itself relative to the competition, it can’t control competitors’ actions or strategies.
Benefits of a SWOT Analysis
Encourages Realistic Planning
Imagine a growing company that is able to attract new customers more easily than the competition because it has a strong reputation and visible leader. These strengths should be considered and exploited in the strategy. Now imagine that the company also has a poor history of delivering on customer commitments. If this weakness is not addressed, it will not only make it difficult to retain customers but also likely damage the reputation of the company and its leader—which would eliminate key strengths. By conducting a situation analysis, the company is more likely to consider both of these factors in its planning.
Improves Ability to Forecast Future Events
What’s the worst thing that could happen to your business? Most organizations can answer this question because they have assessed the environment in which they operate. For instance, perhaps they know of pending legislation that might adversely affect them. Or perhaps they recognize legal risks, or unique challenges from past economic cycles. By considering threats and worst-case scenarios during the planning process, organizations can take steps to avoid them, or minimize the impact if they do they occur.
SWOT A.
SWOT AnalysisWhat is a SWOT AnalysisA .docxssuserf9c51d
SWOT Analysis
What is a SWOT Analysis
A SWOT Analysis or SWOT Matrix is a planning method for exploring the four major aspects of a business venture,
Strengths
Weaknesses
Opportunities
Threats.
This information can be interpreted in numerous ways:
in the form of detailed reports or as a presentation, using SWOT analysis templates.
A SWOT analysis can help explore the critical aspects of an organization’s products, projects and even its reputation and goodwill.
What is a SWOT Analysis, cont.
What makes SWOT particularly powerful is that it can help you uncover opportunities that you are well-placed to exploit.
And by understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares.
In a business context, the SWOT analysis enables organizations to identify both internal and external influences. Outside of business, other organizations have found much use in the method's guiding principles.
When examining the potential for a new business or product, a SWOT analysis can help determine the likely risks and rewards
When to use a SWOT
SWOT is meant to be used during the proposal stage of strategic planning. It acts as a precursor to any sort of company action, which makes it appropriate for the following moments:
Exploring avenues for new initiatives
Making decisions about execution strategies for a new policy
Identifying possible areas for change in a program
Refining and redirecting efforts midplan
The SWOT analysis is an excellent tool for organizing information, presenting solutions, identifying roadblocks and emphasizing opportunities.
SWOT Analysis Matrix – Business/Marketing
Modern SWOT analysis in business and marketing situations is normally structured so that a 2x2 matrix grid can be produced, according to two pairs of dimensions.
Strengths and Weaknesses, are 'mapped' or 'graphed' against Opportunities and Threats.
Strengths and Weaknesses are regarded distinctly as internal factors
Opportunities and Threats are regarded distinctly as external factors.
SWOT MatrixStrengths and WeaknessesThe internal environment - the situation inside the company or organizationFor example, factors relating to products, pricing, costs, profitability, performance, quality, people, skills, adaptability, brands, services, reputation, processes, infrastructure, etc.Factors tend to be in the present Opportunities and ThreatsThe external environment - the situation outside the company or organizationFor example, factors relating to markets, sectors, audience, fashion, seasonality, trends, competition, economics, politics, society, culture, technology, environmental, media, law, etc.Factors tend to be in the future
SWOT MatrixStrengths (Internal)Weaknesses (Internal)Opportunities
(External)Strengths/Opportunities
Obvious natural priorities likely to produce greatest ROI (Return On Investment)
Likely to be quickest and easiest to implement.
Probably justifying imme ...
SWOT analysis is commonly viewed as an instrument for identifying an organization’s Strengths and Weaknesses, two internal attributes, and Opportunities and Threats, two external factors.
Learn how to apply and interpret SWOT analysis for strategic planning. SWOT is a simple yet powerful tool used to analyze the positives and negatives of a business or project, helping to make informed decisions. Learning to use the SWOT matrix will help you in developing strategies to overcome weaknesses using your strengths and opportunities.
This guide is a part of Wisparent's management toolkit series.
SWAT analysis - strengths, weaknesses, opportunities, and threatsacropolisinfotech
A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization, its initiatives, or an industry.
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2. CHARACTERISTICS OF STRATEGIC PLANNING
¡ Top management involvement
¡ Requirement of large amounts of resources
¡ Affect the firm's long-term prosperity
¡ Future-oriented
¡ Multi-functional or multi-business consequences
¡ Non-self-generative decisions
3. WE SHALL LEARN …
SWOT
ANALYSIS
Define S-W-O-T
Identify S-W-O-
T
Listing S-W-O-T
TOWS
MATRIX
Creating TOWS
Matrix
Identify SO, ST,
WO, WT
Chalk
Strategies
STRATEGIC
PLANNING
Short Term /
Long Term
Road Map
Delegate
Responsibilities
Evaluation &
Control
PHILOSOPHY
VISION
MISSION
CORE VALUES
5. SWOT ANALYSIS
¡ SWOT Analysis (also known as SWOT Matrix) is a
organization framework that helps assessing a wide variety
of factors that may have a profound impact on a
organization’s performance.
¡ These factors may either be internal to a company or
external. Furthermore, these factors may either be
favorable/helpful or unfavorable/harmful to a company.
¡ By combining these two dimensions one can draw a 2×2-
matrix consisting of four quadrants: Strengths, Weaknesses,
Opportunities and Threats.
6. STRENGTHS
¡ A company’s strengths are its characteristics that give it an advantage over others (competitors).
¡ Sometimes these strengths are also referred to as unique selling points (USPs), firm-specific advantages (FSAs) or competitive
advantage.
¡ Examples of valuable company resources are patents, a strong brand reputation, a new innovative product, a talented
workforce, historically developed know-how and large financial reserves.
7. STRENGTHS – HOW TO IDENTIFY THEM?
What are we good
at?
What do we do
better than anyone
else?
What is our
competitive
advantage?
What do we do
that no one else
does?
What resources do
we have at our
disposal?
What are our
ecommerce
company’s
advantages?
What advantages
do our employees
have?
What valuable
assets does our
company have?
What do our
customers like
about our
organization?
8. WEAKNESS
¡ These weaknesses are company characteristics that place a company at a disadvantage relative to others. In other words: they
are harmful to a company.
¡ Weaknesses could for example be a lack of patent protection, poor reputation among customers, a small working capital, bad
leadership and an inefficient production process.
¡ Weaknesses are best discovered by having enough feedback loops in place, both internally and externally.
9. WEAKNESS – HOW TO IDENTIFY THEM?
What are we bad
at?
What do our
competitors do
better than us?
What do our
customers
complain about?
What
disadvantages does
our team carry?
What is holding us
back?
Which resources
are we lacking?
What could we
improve?
10. OPPORTUNITIES
¡ Opportunities are the external factors of the SWOT analysis that may affect a company’s performance positively.
¡ To assess the opportunities, a company should look for elements in the environment that could be exploited to its own
advantage.
¡ The best way to assess the external factors is by using PESTEL analysis for the macro-environment.
¡ PESTEL looks at political, economic, social, technological, environmental and legal trends in the macro-environment.
¡ Examples are the increasing purchasing power of customers, governmental subsidies, more favorable international trade
policies, and general lifestyle changes among the population.
11. OPPORTUNITIES – HOW TO IDENTIFY THEM?
What potential
regulation changes
could help our
organization?
Is the market
changing in a
favorable way?
Is the current
economy going to
affect us in a positive
way?
What opportunities
have we not pursued
yet?
What new
opportunities are
becoming available?
Is our cost of goods
going down?
Is there a way for us
to acquire useful
resources that we do
not already have?
12. THREATS
¡ The threats on the other hand are the external factors that could cause trouble for the company in the future.
¡ Similarly, to the opportunities, one could use a PESTEL analysis to assess the elements in the environment that could harm the
organization.
¡ Examples of harmful macro-environmental developments could be an increasing unemployment rate, disruptive technologies,
protests from NGO’s and increasing government corruption levels.
13. THREATS – HOW TO IDENTIFY THEM?
Who are our existing
competitors?
What new entrants to
the market could
threaten our
organization?
Is our market size
declining?
Is the industry changing
in a way that could
negatively impact our
organization?
Is our cost of
goods/services
increasing?
Is a supply we rely on
becoming scarce?
Are regulations
changing in a way that
could harm our
organization?
Are our stakeholders
unreliable?
16. TOWS MATRIX
¡ A SWOT analysis helps assessing a company’s current
internal and external situation but does not provide
concrete strategic actions to take. One way to map out the
strategic options a company has, is by using the so-called
TOWS matrix (or TOWS analysis).
¡ By combining the external environment’s opportunities and
threats with the internal organization’s strengths and
weaknesses, management can come up with four basic
strategies to follow based on the situation it is in
17. IDENTIFY STRATEGIC ALTERNATIVES THAT ADDRESS THE
FOLLOWING ADDITIONAL QUESTIONS:
Strengths and Opportunities (SO) – How can you use your strengths to take advantage of the opportunities?
Strengths and Threats (ST) – How can you take advantage of your strengths to avoid real and potential threats?
Weaknesses and Opportunities (WO) – How can you use your opportunities to overcome the weaknesses you are
experiencing?
Weaknesses and Threats (WT) – How can you minimize your weaknesses and avoid threats?
19. SO SITUATION:
MAXI-MAXI
STRATEGY:
¡ Any company would like to be in a position where it can
maximize both strengths and opportunities.
¡ Such an enterprise can lead from strengths, utilizing its
resources to take advantage of the opportunities the
market is offering.
¡ Companies in these situations could think about
expanding internationally or diversifying their product
portfolio to boost revenues.
20. ST SITUATION:
MAXI-MINI
STRATEGY:
¡ In this case we see a strong company operating in a
hostile environment.
¡ The aim of a Maxi-Mini strategy is to maximize the
strengths of a company while minimizing the threats
through these strengths.
¡ A company with strong financial capabilities and cost-
reducing skills, could lower its prices to drive out
competition.
21. WO SITUATION:
MINI-MAXI
STRATEGY
¡ In this situation the company has more vulnerabilities
(weaknesses), but its environment provides plenty of
opportunities to resolve that.
¡ The Mini-Maxi strategy attempts to minimize the
weaknesses and to maximize the opportunities.
¡ The strategy should include the exploitation of these
opportunities while reducing or correcting weaknesses
within the organization.
¡ Outsourcing activities or acquiring another company with
the right resources could be an option for example.
22. WT SITUATION:
MINI-MINI
STRATEGY
¡ The organization in this case has little development
opportunities.
¡ It operates in a hostile environment and its potential for
change is small.
¡ It does not have significant strengths, which could
withstand threats.
¡ The aim of the Mini-Mini strategy is to minimize both
weaknesses and threats.
¡ Mini-Mini strategy boils down to a pessimistic scenario
such as the liquidation of a company or in an optimistic
situation – to strive for survival by merging with another
organization.
24. PEPSI CO.
Pepsi is among the two leading soda beverages of the brand globally. Its products are sold in more than
200 countries. Some key strengths of the brand are its financial strength, its marketing capabilities, as
well as a large product portfolio. In the recent years, the brand has invested a lot in digitization as well
as expanded its product portfolio to add more nutritious and healthy products like low calorie drinks and
healthy oat meals. Extensive investment in digital technology has helped the brand find faster growth
during the last five years. Apart from product innovation, marketing innovation has also helped the
brand grow internationally.
25. SWOT ANALYSIS – PEPSI CO.
STRENGTHS
S1 - Strong brand image
S2 - Strong financial performance
S3 - Global presence supported by a strong
supply chain and distribution network
S4 - Strong marketing capabilities
S5 - Large and varied product portfolio
WEAKNESSES
W1 - Overdependence on US market
W2 - Reduced Net revenue in Middle East
OPPORTUNITIES
O1 - Technological innovation down the
distribution network
O2 - CSR and water recycling
O3 - Partnerships with related businesses
O4 - Growth through acquisitions
THREATS
T1 - Legal and regulatory threats
T2 - Competitive pressures
T3 - Stronger dollar and fluctuation in
foreign currency exchange rates
26. TOWS ANALYSIS –
PEPSI CO.
STRENGTHS
S1 - Strong brand image
S2 - Strong financial performance
S3 - Global presence supported by a strong supply chain
and distribution network
S4 - Strong marketing capabilities
S5 - Large and varied product portfolio
WEAKNESSES
W1 - Overdependence on US market
W2 - Reduced Net revenue in Middle East
OPPORTUNITIES
O1 - Technological innovation down the distribution
network
O2 - CSR and water recycling
O3 - Partnerships with related businesses
O4 - Growth through acquisitions
THREATS
T1 - Legal and regulatory threats
T2 - Competitive pressures
T3 - Stronger dollar and fluctuation in foreign currency
exchange rates
SO
Using strengths to capitalize on
available opportunities
ST
Use strengths to avoid threats
WO
Overcome weaknesses to
capitalize on opportunities
WT
Reduce weaknesses to avoid
threats
27. SO - STRATEGY
STRENGTHS
S1 - Strong brand image
S2 - Strong financial performance
S3 - Global presence supported by a strong supply chain
and distribution network
S4 - Strong marketing capabilities
S5 - Large and varied product portfolio
OPPORTUNITIES
O1 - Technological innovation down the distribution
network
O2 - CSR and water recycling
O3 - Partnerships with related businesses
O4 - Growth through acquisitions
S1S2S3S4O3 - Pepsi both has a strong image as well as financial strength.
Apart from them it also has stronger marketing capabilities which can help it
grow faster in the Asian nations.
S5O4 - Releasing low-cost options (smaller portion sizes) of its products will
help the brand grow faster internationally and reduce its dependence on the
US markets.
S2S3O3O4 - Finding growth internationally also help it overcome the losses
that time to happen due to currency fluctuations in individual markets.
28. ST - STRATEGY
STRENGTHS
S1 - Strong brand image
S2 - Strong financial performance
S3 - Global presence supported by a strong supply chain
and distribution network
S4 - Strong marketing capabilities
S5 - Large and varied product portfolio
S4S5T2 - To minimize the competitive threat, Pepsi must focus specifically on
marketing of its brand, product innovation and of using its digital capabilities
better. This will reduce the competitive pressure on the brand.
S2S3T2T3 - Forming partnerships with other related businesses as well as
acquiring smaller businesses will minimize the threat from a stronger dollar
and currency conversion rates.
THREATS
T1 - Legal and regulatory threats
T2 - Competitive pressures
T3 - Stronger dollar and fluctuation in foreign currency
exchange rates
29. WO - STRATEGY
W?O? - Innovating the distribution network internationally and investing in
partnerships will also help at reducing the brand’s dependence on the US
market.
W?O? - Partnerships and acquisitions and extending its ecommerce will also
help the brand to grow faster and reduce the losses that happen due to
currency fluctuations.
WEAKNESSES
W1 - Overdependence on US market
W2 - Reduced Net revenue in Middle East
OPPORTUNITIES
O1 - Technological innovation down the distribution
network
O2 - CSR and water recycling
O3 - Partnerships with related businesses
O4 - Growth through acquisitions
30. WO - STRATEGY
W?T? - Reducing its dependence on the US market will also help the brand
overcome some of the competitive threat.
W?T? - Increased international e-commerce presence will help it battle the
losses happening due to economic fluctuations in individual markets. It must
focus on the Asian market which are currently the fastest growing economies
in the world.
WEAKNESSES
W1 - Overdependence on US market
W2 - Reduced Net revenue in Middle East
THREATS
T1 - Legal and regulatory threats
T2 - Competitive pressures
T3 - Stronger dollar and fluctuation in foreign currency
exchange rates
31. MISSION STATEMENT
¡ PepsiCo’s mission statement is to “to provide consumers around the
world with delicious, affordable, convenient and complementary foods
and beverages from wholesome breakfasts to healthy and fun daytime
snacks and beverages to evening treats.” The statement reflects the
company’s determination to have the best impacts on everyone, including
the immediate consumers, through differentiated products. The
statement also links with the continued efforts of PepsiCo to build its
workforce and partners to grow together with the company as well. Based
on this, the following components can be related to this mission
statement:
32. MISSION STATEMENT
1. Improving communities. The first priority of PepsiCo Corporation is on the overall welfare of the
societies across the globe, and the company contributes to this through the conducive environment
it offers for everyone to perform at their level best. Most importantly, PepsiCo takes the protection
of the planet very important as a way of advancing this feature of its mission statement. Over the
years, the company has been recognized for initiating a series of projects that all point towards
its commitment to sustainability especially that of the environment, whose impact in the
communities speaks for itself.
2. Reasonable prices. When PepsiCo talks about putting a smile on everyone, the company alludes to
how much it cares for the pockets of its customers. Pricing is something that greatly impacts the
level of satisfaction of all consumers, considering that they all want the best quality in the market at
the most favorable rates. PepsiCo recognizes this and has taken this up in its marketing mix, and in a
creative manner where it gives all its clients the best prices for every product they get. Sometimes,
the company spices this up with frequent offers on specific brands.
3. Improving health. PepsiCo has remained alive to the demands of the customers, especially in the
nutrition values and other associated aspects. The food and beverage niche is a major influencer of
the health of people around the globe, something that the management at PepsiCo takes very
seriously. To comply with the likes and preferences of the consumers, PepsiCo uses nutritious raw
materials such as grains, vegetables, and fruits throughout the entire manufacturing process to bring
its customers foods and beverages that care about their health. This element of the mission has also
been boosted by the gradual reduction of added sodium, sugars, and saturated fats in compliance
with modern health needs.
33. VISION STATEMENT
¡ PepsiCo’s vision statement is “to deliver top-tier financial performance
over the long term by integrating sustainability into our business
strategy, leaving a positive imprint on society and the environment.”
The statement has the following components:
34. VISION STATEMENT
1. Be a global leader. Although the origins of the company are in the U.S., there
is no doubt PepsiCo has grown into a multinational corporation with several
subsidiaries. All this growth has been propelled by the clarity of purpose in the
company – to offer leadership in the food and beverages at the global level.
With this approach, the company has tremendously influenced the business
landscape in this sector and the markets through its brands and branding, led
by its team of highly experienced experts.
2. Leave a positive impact. PepsiCo Corporation shows how it satisfies this
component in various ways with some of these comprising how it
keeps broadening its product portfolio and accelerating the expansion of
international businesses. There is so much more that speaks to the purpose of
this company such as the influence it has on the farming practices and
economy for the holistic growth of everyone the company interacts with. Such
lengths show how comprehensive and purpose-led PepsiCo is.
35. CORE VALUES
1. PepsiCo’s core values include “sustained growth, empowering people,
trust, and responsibility.” PepsiCo is a company that aspires to be the
best both socially and economically, and therefore, these values show
exactly what the company wants to be. They guide the entire
organization and create a culture that drives the company towards its
vision.