PepsiCo was the world’s largest snack and beverage
company, with 2013 net revenues of approximately $66.4 billion. The company’s portfolio of businesses in 2014 included Frito-Lay salty snacks, Quaker Chewy granola bars, Pepsi
soft-drink products, Tropicana orange juice, Lipton Brisk tea, Gatorade, Propel, SoBe, Quaker Oatmeal, Cap’n Crunch, Aquafina, Rice-A-Roni, Aunt Jemima pancake mix, and many other regularly consumed products. The company viewed the
lineup as highly complementary since most of its products could be consumed together. For example, Tropicana orange juice might be consumed during breakfast with Quaker Oatmeal, and Doritos and a Mountain Dew might be part of someone’s lunch. In 2014, PepsiCo’s business lineup included 22 $1 billion global brands.
PepsiCo’s Diversification Strategy in 2014Tran Thang
PepsiCo’s Diversification Strategy in 2014
This study answer to these 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 2014.
2. What is your assessment of the long-term attractiveness of the industries represented in PepsiCo’s business portfolio?
3. What is your assessment of the competitive strength of PepsiCo’s different business units?
4. What does a 9-cell industry attractiveness/business strength matrix displaying PepsiCo’s business units look like?
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?
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?
7. Based on the preceding analysis, what is your overall evaluation of PepsiCo’s business portfolio in 2014? 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?
Pepsi co diversification strategy case analysisErri Wibowo
This document provides an analysis of PepsiCo's strategic profile and situation. It summarizes PepsiCo's history of acquisitions and diversification since the late 1890s. It then analyzes PepsiCo's strategic profile, including its financial performance, product innovations, relationships with distributors, and international expansion strategy. The document also performs a SWOT analysis and discusses PepsiCo's internal strengths and competitive capabilities. It evaluates how well PepsiCo's strategy has worked and identifies strategic issues that require management attention.
PepsiCo is a Fortune 500 company that manufactures and markets food and beverage products globally. It was founded in 1898 and is headquartered in Purchase, New York. PepsiCo's portfolio includes brands such as Pepsi, Frito-Lay snacks, Gatorade, Quaker foods, and Tropicana. The company has a mission of producing convenient foods and beverages while creating value for shareholders, employees, partners, and communities. It operates through six global divisions and has a presence in over 150 countries worldwide.
PepsiCo Corporation produces a strategic management report that analyzes the company's history, vision, mission, objectives, strategies, products, services, competition, and recommendations. The report is presented to a professor by a group of students and contains an executive summary and sections on SWOT analysis, financial forecasts, competitor profiles, and strategic recommendations and implementation plans.
This document provides an overview of PepsiCo, including its history, mission, business units, objectives, strategies, and financial performance. Some key points:
- PepsiCo was founded in 1890 and is now the 2nd largest beverage company in the world, operating in over 200 countries.
- It has three main business units: PepsiCo Americas Foods, PepsiCo Americas Beverages, and PepsiCo International. Major brands include Frito-Lay, Gatorade, Quaker, and Tropicana.
- The company's mission is to be the world's premier consumer products company focused on convenient foods and beverages, seeking to produce financial rewards for investors while providing
PepsiCo has a long history dating back to the late 1800s. It owns many popular food and beverage brands worldwide. The document discusses PepsiCo's profile, brands, competitors and advertising strategies over time. It focuses on the Pepsi Refresh Project campaign from 2010, an integrated marketing effort that awarded grants for ideas to improve communities. The campaign used social media, celebrities and other digital promotions to engage consumers and highlight funded projects.
PepsiCo is a global food and beverage company with over $27 billion in annual revenues. It operates snack and beverage businesses across the world through brands like Frito-Lay, Pepsi, Gatorade, Tropicana, and Quaker. In India, PepsiCo entered in 1989 and has since grown to be the country's largest food and beverage company. It manufactures and sells beverages like Pepsi, Mountain Dew, 7UP, as well as snacks under brands like Lay's, Kurkure, Cheetos. PepsiCo has built a large distribution network in India with bottling plants and focuses on making its brands widely available through an intensive distribution strategy.
PepsiCo’s Diversification Strategy in 2014Tran Thang
PepsiCo’s Diversification Strategy in 2014
This study answer to these 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 2014.
2. What is your assessment of the long-term attractiveness of the industries represented in PepsiCo’s business portfolio?
3. What is your assessment of the competitive strength of PepsiCo’s different business units?
4. What does a 9-cell industry attractiveness/business strength matrix displaying PepsiCo’s business units look like?
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?
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?
7. Based on the preceding analysis, what is your overall evaluation of PepsiCo’s business portfolio in 2014? 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?
Pepsi co diversification strategy case analysisErri Wibowo
This document provides an analysis of PepsiCo's strategic profile and situation. It summarizes PepsiCo's history of acquisitions and diversification since the late 1890s. It then analyzes PepsiCo's strategic profile, including its financial performance, product innovations, relationships with distributors, and international expansion strategy. The document also performs a SWOT analysis and discusses PepsiCo's internal strengths and competitive capabilities. It evaluates how well PepsiCo's strategy has worked and identifies strategic issues that require management attention.
PepsiCo is a Fortune 500 company that manufactures and markets food and beverage products globally. It was founded in 1898 and is headquartered in Purchase, New York. PepsiCo's portfolio includes brands such as Pepsi, Frito-Lay snacks, Gatorade, Quaker foods, and Tropicana. The company has a mission of producing convenient foods and beverages while creating value for shareholders, employees, partners, and communities. It operates through six global divisions and has a presence in over 150 countries worldwide.
PepsiCo Corporation produces a strategic management report that analyzes the company's history, vision, mission, objectives, strategies, products, services, competition, and recommendations. The report is presented to a professor by a group of students and contains an executive summary and sections on SWOT analysis, financial forecasts, competitor profiles, and strategic recommendations and implementation plans.
This document provides an overview of PepsiCo, including its history, mission, business units, objectives, strategies, and financial performance. Some key points:
- PepsiCo was founded in 1890 and is now the 2nd largest beverage company in the world, operating in over 200 countries.
- It has three main business units: PepsiCo Americas Foods, PepsiCo Americas Beverages, and PepsiCo International. Major brands include Frito-Lay, Gatorade, Quaker, and Tropicana.
- The company's mission is to be the world's premier consumer products company focused on convenient foods and beverages, seeking to produce financial rewards for investors while providing
PepsiCo has a long history dating back to the late 1800s. It owns many popular food and beverage brands worldwide. The document discusses PepsiCo's profile, brands, competitors and advertising strategies over time. It focuses on the Pepsi Refresh Project campaign from 2010, an integrated marketing effort that awarded grants for ideas to improve communities. The campaign used social media, celebrities and other digital promotions to engage consumers and highlight funded projects.
PepsiCo is a global food and beverage company with over $27 billion in annual revenues. It operates snack and beverage businesses across the world through brands like Frito-Lay, Pepsi, Gatorade, Tropicana, and Quaker. In India, PepsiCo entered in 1989 and has since grown to be the country's largest food and beverage company. It manufactures and sells beverages like Pepsi, Mountain Dew, 7UP, as well as snacks under brands like Lay's, Kurkure, Cheetos. PepsiCo has built a large distribution network in India with bottling plants and focuses on making its brands widely available through an intensive distribution strategy.
Pepsi is a global soft drink brand that has been produced since the 1890s. It aims to be the world's best beverage company through providing outstanding quality, service, and value. Pepsi dominates the soft drink market in Pakistan and is considered Pakistan's national drink. A SWOT analysis identified Pepsi's strengths as its established brand name and large market share, while weaknesses include not offering incentives to retailers and only targeting young customers. Opportunities exist in rural market expansion and diversification, while threats include health concerns, competition, and political/economic instability.
Hasan Shameem is the Legal Counsel for Coca-Cola Pakistan & Afghanistan Region. He is responsible for ensuring the company's compliance with local and international laws and policies, and handling any legal claims involving the company in the region. Hasan recently joined Coca-Cola after graduating from the University of Bristol in 2007 with an LLB degree. Prior to this role, he worked as a legal counsel assistant.
Indra Nooyi, as CEO of PepsiCo, made the decision to transform the company's portfolio from "fun-filled" products to healthier "good-for-you" options in response to changing consumer preferences. Nooyi stated that PepsiCo had realized people's eating habits were changing, so the company needed healthier products that also tasted good and were not more expensive. As a result, PepsiCo increased its nutrition portfolio, reduced calories, eliminated trans fats, and launched initiatives to provide nutrition information and reduce obesity. This transformation strategy has proven profitable, with PepsiCo outperforming the S&P 500 and achieving double-digit growth since 2007.
PepsiCo's vision is to continually improve the world by creating a better future. Their mission is to be the world's premier consumer products company focused on convenient foods and beverages, producing value for investors and opportunities for employees, partners, and communities. PepsiCo has a 54% market share in Pakistan's soft drink market due to being a traditional brand. They operate in major Pakistani cities through franchises like Shamim and Co, their largest bottler and distributor. Pepsi is the 28th most valuable global product brand and competes primarily with Coca-Cola in Pakistan.
intro of PepsiCo
Intro of CEO
Mission & Visions
History
Organization Chart
Philosophy
Policies
Current Strategies
Products Details
Competitor & its Analysis
Swot Analysis
We as a CEO
Conclusion
Pepsico Presentation
Pepsico's Analysis
This document summarizes Pepsi's marketing strategy in Pakistan. It discusses Pepsi's introduction and history, product strategy, positioning, pricing, distribution, promotions, competition, target marketing, corporate strategy, product line extensions, challenges and opportunities. Key points include that Pepsi has 53% market share in Pakistan, targets youth and all socioeconomic classes, sponsors cricket, has expanded its product line, and faces threats from health awareness and its main competitor Coca-Cola.
This document provides an introduction and history of PepsiCo from its founding in 1893 to present day. It then outlines the contents of a financial analysis report on PepsiCo, which includes chapters on financial ratio analysis, the DuPont system of analysis, growth rates, beta coefficients, free cash flow, and valuation. The introduction describes PepsiCo's origins as Brad's Drink, its name changes and growth over the early 1900s, bankruptcy in the 1920s, and subsequent ownership changes. The document provides context for the upcoming financial analysis.
PepsiCo is a global food and beverage company formed in 1998 through the merger of Pepsi-Cola and Frito-Lay. It celebrates its 50th anniversary in 2015 under the leadership of CEO Indra Nooyi. The document discusses PepsiCo's strengths in high brand value and product portfolio diversity, as well as weaknesses in depending heavily on Walmart and targeting only younger consumers. Opportunities exist in developing new health-focused products and expanding operations. Main threats are competition, shifting consumer preferences towards healthier options, and changes in tastes. Using the VRIO framework, PepsiCo's competitive advantages are seen to be product differentiation and its extensive distribution channels.
This document provides an overview of PepsiCo, including its history starting in 1890, vision, mission, brand positioning, target market, and competitive advantage. PepsiCo's vision focuses on continually improving the world through environmental, social, and economic programs. Its mission is to produce convenient foods and beverages while rewarding investors and supporting employees and communities. Pepsi's brand positioning targets males and females aged 16-45 as hip, youthful, and forward-thinking. Its competitive advantages include a broad product mix, global production and distribution networks, and revitalized advertising campaigns featuring celebrities.
PepsiCo believes that business performance is connected to its commitment to communities. It aims to continually improve the world through its operations. PepsiCo was founded in 1898 and sells convenient foods and beverages worldwide. It has a large market share in carbonated drinks and snacks. PepsiCo focuses on financial returns, employee growth, and acting with integrity. It uses strategies like acquisitions, R&D investments, and expanding in emerging markets to drive growth.
Ben & Jerry's is an American ice cream company founded in 1978 in Vermont. It manufactures ice cream, frozen yogurt, and sorbet. The document provides details about Ben & Jerry's history, mission, market segmentation, unique selling proposition, marketing mix, SWOT analysis, and plans for launching in India. It summarizes the company's founding in 1978, growth over the decades, acquisition by Unilever in 2000, and current operations in over 20 countries worldwide.
The document discusses the cola wars between Coca-Cola and Pepsi. It provides background on how Pepsi attacked Coke on its home turf in the US after Coke started focusing overseas. It analyzes the strengths, weaknesses, opportunities, and threats of both companies. It also examines the competitive strategies employed by each over the decades, including new product lines, marketing campaigns, pricing strategies, and acquisitions. Both companies have established a duopoly in the soft drink market through aggressive competition and global expansion.
PepsiCo is an American multinational corporation that manufactures and distributes food and beverage products. It was formed in 1965 through the merger of Pepsi-Cola and Frito-Lay. PepsiCo owns major brands including Pepsi, Gatorade, Frito-Lay snacks, and Quaker foods. With over $60 billion in annual revenue, it is one of the largest food and beverage companies in the world.
This document analyzes the cola wars between Coca-Cola and Pepsi using Porter's five forces model. It discusses the industry background and key events in 1886 and 1893. It finds that supplier power and buyer power are low due to commoditized raw materials and franchise agreements weakening bottlers' bargaining power. The threat of substitutes is high given many low-cost alternatives and customer switching costs. New entry threats are low due to high costs but rivalry is strong. The document concludes that the substitutes force is changing most as health concerns reduce carbonated soft drink consumption.
This document provides an overview and analysis of Coca-Cola Company through a SWOT analysis. Some of Coca-Cola's strengths include being the world's leading brand in the beverage industry with strong brand recognition globally. It also has a large scale of operations with products sold in over 200 countries. However, weaknesses include negative publicity from lawsuits and controversies over health issues. The document also provides financial projections for revenue and earnings per share through 2014 and evaluates Coca-Cola's stock valuation using P/E multiples and a discounted cash flow model.
This presentation provides an overview of PepsiCo and its Pakistan operations. It discusses PepsiCo's mission, values, competitors, distribution channels, facilities, inventory management, transportation, sales promotions, and forecasting approach. The key points are:
- PepsiCo's mission is to be the world's premier consumer products company focused on convenient foods and beverages.
- In Pakistan, PepsiCo's operations are managed by Pakistan Beverages, which covers major cities in Sindh province.
- Pakistan Beverages utilizes an intensive distribution network of over 245 trucks to ensure wide availability of PepsiCo products.
- Inventory management involves maintaining adequate stock levels to avoid shortages while accounting for seasonal demands.
PepsiCo is an American multinational corporation that manufactures and markets carbonated and non-carbonated beverages as well as salty, sweet and grain-based snacks. It was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Over the years, PepsiCo has grown significantly through acquisitions of other food and beverage brands such as Tropicana, Gatorade, Quaker Oats, and regional food brands worldwide. PepsiCo is led by CEO Indra Nooyi and operates its beverage, food and snack divisions in over 200 countries worldwide.
This document is a marketing plan report submitted by four students for their Principles of Marketing course. It includes an executive summary, table of contents, and sections on Pepsi's product overview, marketing strategy, market segmentation, and analysis of the marketing environment. The report was submitted to their lecturer, Md. Safayet Mansoor, at Daffodil International University to fulfill an assignment requirement.
Pepsi is a global soft drink brand that has been produced since the 1890s. It aims to be the world's best beverage company through providing outstanding quality, service, and value. Pepsi dominates the soft drink market in Pakistan and is considered Pakistan's national drink. A SWOT analysis identified Pepsi's strengths as its established brand name and large market share, while weaknesses include not offering incentives to retailers and only targeting young customers. Opportunities exist in rural market expansion and diversification, while threats include health concerns, competition, and political/economic instability.
Hasan Shameem is the Legal Counsel for Coca-Cola Pakistan & Afghanistan Region. He is responsible for ensuring the company's compliance with local and international laws and policies, and handling any legal claims involving the company in the region. Hasan recently joined Coca-Cola after graduating from the University of Bristol in 2007 with an LLB degree. Prior to this role, he worked as a legal counsel assistant.
Indra Nooyi, as CEO of PepsiCo, made the decision to transform the company's portfolio from "fun-filled" products to healthier "good-for-you" options in response to changing consumer preferences. Nooyi stated that PepsiCo had realized people's eating habits were changing, so the company needed healthier products that also tasted good and were not more expensive. As a result, PepsiCo increased its nutrition portfolio, reduced calories, eliminated trans fats, and launched initiatives to provide nutrition information and reduce obesity. This transformation strategy has proven profitable, with PepsiCo outperforming the S&P 500 and achieving double-digit growth since 2007.
PepsiCo's vision is to continually improve the world by creating a better future. Their mission is to be the world's premier consumer products company focused on convenient foods and beverages, producing value for investors and opportunities for employees, partners, and communities. PepsiCo has a 54% market share in Pakistan's soft drink market due to being a traditional brand. They operate in major Pakistani cities through franchises like Shamim and Co, their largest bottler and distributor. Pepsi is the 28th most valuable global product brand and competes primarily with Coca-Cola in Pakistan.
intro of PepsiCo
Intro of CEO
Mission & Visions
History
Organization Chart
Philosophy
Policies
Current Strategies
Products Details
Competitor & its Analysis
Swot Analysis
We as a CEO
Conclusion
Pepsico Presentation
Pepsico's Analysis
This document summarizes Pepsi's marketing strategy in Pakistan. It discusses Pepsi's introduction and history, product strategy, positioning, pricing, distribution, promotions, competition, target marketing, corporate strategy, product line extensions, challenges and opportunities. Key points include that Pepsi has 53% market share in Pakistan, targets youth and all socioeconomic classes, sponsors cricket, has expanded its product line, and faces threats from health awareness and its main competitor Coca-Cola.
This document provides an introduction and history of PepsiCo from its founding in 1893 to present day. It then outlines the contents of a financial analysis report on PepsiCo, which includes chapters on financial ratio analysis, the DuPont system of analysis, growth rates, beta coefficients, free cash flow, and valuation. The introduction describes PepsiCo's origins as Brad's Drink, its name changes and growth over the early 1900s, bankruptcy in the 1920s, and subsequent ownership changes. The document provides context for the upcoming financial analysis.
PepsiCo is a global food and beverage company formed in 1998 through the merger of Pepsi-Cola and Frito-Lay. It celebrates its 50th anniversary in 2015 under the leadership of CEO Indra Nooyi. The document discusses PepsiCo's strengths in high brand value and product portfolio diversity, as well as weaknesses in depending heavily on Walmart and targeting only younger consumers. Opportunities exist in developing new health-focused products and expanding operations. Main threats are competition, shifting consumer preferences towards healthier options, and changes in tastes. Using the VRIO framework, PepsiCo's competitive advantages are seen to be product differentiation and its extensive distribution channels.
This document provides an overview of PepsiCo, including its history starting in 1890, vision, mission, brand positioning, target market, and competitive advantage. PepsiCo's vision focuses on continually improving the world through environmental, social, and economic programs. Its mission is to produce convenient foods and beverages while rewarding investors and supporting employees and communities. Pepsi's brand positioning targets males and females aged 16-45 as hip, youthful, and forward-thinking. Its competitive advantages include a broad product mix, global production and distribution networks, and revitalized advertising campaigns featuring celebrities.
PepsiCo believes that business performance is connected to its commitment to communities. It aims to continually improve the world through its operations. PepsiCo was founded in 1898 and sells convenient foods and beverages worldwide. It has a large market share in carbonated drinks and snacks. PepsiCo focuses on financial returns, employee growth, and acting with integrity. It uses strategies like acquisitions, R&D investments, and expanding in emerging markets to drive growth.
Ben & Jerry's is an American ice cream company founded in 1978 in Vermont. It manufactures ice cream, frozen yogurt, and sorbet. The document provides details about Ben & Jerry's history, mission, market segmentation, unique selling proposition, marketing mix, SWOT analysis, and plans for launching in India. It summarizes the company's founding in 1978, growth over the decades, acquisition by Unilever in 2000, and current operations in over 20 countries worldwide.
The document discusses the cola wars between Coca-Cola and Pepsi. It provides background on how Pepsi attacked Coke on its home turf in the US after Coke started focusing overseas. It analyzes the strengths, weaknesses, opportunities, and threats of both companies. It also examines the competitive strategies employed by each over the decades, including new product lines, marketing campaigns, pricing strategies, and acquisitions. Both companies have established a duopoly in the soft drink market through aggressive competition and global expansion.
PepsiCo is an American multinational corporation that manufactures and distributes food and beverage products. It was formed in 1965 through the merger of Pepsi-Cola and Frito-Lay. PepsiCo owns major brands including Pepsi, Gatorade, Frito-Lay snacks, and Quaker foods. With over $60 billion in annual revenue, it is one of the largest food and beverage companies in the world.
This document analyzes the cola wars between Coca-Cola and Pepsi using Porter's five forces model. It discusses the industry background and key events in 1886 and 1893. It finds that supplier power and buyer power are low due to commoditized raw materials and franchise agreements weakening bottlers' bargaining power. The threat of substitutes is high given many low-cost alternatives and customer switching costs. New entry threats are low due to high costs but rivalry is strong. The document concludes that the substitutes force is changing most as health concerns reduce carbonated soft drink consumption.
This document provides an overview and analysis of Coca-Cola Company through a SWOT analysis. Some of Coca-Cola's strengths include being the world's leading brand in the beverage industry with strong brand recognition globally. It also has a large scale of operations with products sold in over 200 countries. However, weaknesses include negative publicity from lawsuits and controversies over health issues. The document also provides financial projections for revenue and earnings per share through 2014 and evaluates Coca-Cola's stock valuation using P/E multiples and a discounted cash flow model.
This presentation provides an overview of PepsiCo and its Pakistan operations. It discusses PepsiCo's mission, values, competitors, distribution channels, facilities, inventory management, transportation, sales promotions, and forecasting approach. The key points are:
- PepsiCo's mission is to be the world's premier consumer products company focused on convenient foods and beverages.
- In Pakistan, PepsiCo's operations are managed by Pakistan Beverages, which covers major cities in Sindh province.
- Pakistan Beverages utilizes an intensive distribution network of over 245 trucks to ensure wide availability of PepsiCo products.
- Inventory management involves maintaining adequate stock levels to avoid shortages while accounting for seasonal demands.
PepsiCo is an American multinational corporation that manufactures and markets carbonated and non-carbonated beverages as well as salty, sweet and grain-based snacks. It was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Over the years, PepsiCo has grown significantly through acquisitions of other food and beverage brands such as Tropicana, Gatorade, Quaker Oats, and regional food brands worldwide. PepsiCo is led by CEO Indra Nooyi and operates its beverage, food and snack divisions in over 200 countries worldwide.
This document is a marketing plan report submitted by four students for their Principles of Marketing course. It includes an executive summary, table of contents, and sections on Pepsi's product overview, marketing strategy, market segmentation, and analysis of the marketing environment. The report was submitted to their lecturer, Md. Safayet Mansoor, at Daffodil International University to fulfill an assignment requirement.
This document provides an overview of Pepsi's business in Pakistan. It begins with an executive summary of Pepsi's revenues, market share, and new product launch of Pepsi Perfect. It then covers Pepsi's company description, market analysis including segmentation, competitors, and SWOT analysis. The document also discusses Pepsi's marketing strategies of product, price, promotion, and placement. It concludes with suggestions to maintain Pepsi's market position through quality, reputation, and continuous new advertising approaches.
PepsiCo is a Fortune 500 company headquartered in New York that manufactures and markets beverages and snacks. Its main product is Pepsi Cola, which sells over 100 billion cans per year. PepsiCo was formed through mergers and acquisitions of brands like Frito-Lay, Quaker Oats, Gatorade, Tropicana, and others. It operates globally with products in nearly 200 countries and regions. Indra Nooyi has been CEO since 2006 and has focused on healthier products and sustainability. PepsiCo is organized into divisions for Americas Foods, Americas Beverages, and International markets.
This document provides an overview of PepsiCo's strategic management perspective. It includes sections on the company profile, product profile, organizational structure, and environmental scanning. Some key points:
- PepsiCo is a global food and beverage corporation based in New York with over $66 billion in revenue and 274,000+ employees worldwide.
- It has four business units that handle operations in different regions.
- PepsiCo's portfolio includes brands like Pepsi, Frito-Lay, Gatorade, Tropicana, and Quaker.
- Environmental scanning examines the company's internal strengths and weaknesses as well as external opportunities and threats in its industry using tools like Porter's 5 Forces and
This document summarizes a joint venture between Mahindra & Renault to produce the Logan sedan in India. Under the agreement, Mahindra would own 51% and Renault 49% of a new entity called Mahindra Renault Ltd. The JV planned to produce 50,000 cars per year at an estimated cost of 125 million euros. However, disagreements over issues like costs, design, marketing and manufacturing led Renault to exit the venture. Mahindra was then able to license the Logan brand from Renault and continue producing the car under the new name "Verito". The summary highlights the lack of transparency, shared responsibility and aligned goals between the partners that ultimately caused the JV to fail.
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Samsung is a South Korean multinational electronics company founded in 1938. It has grown to be a global leader in electronics, with over 285 offices in 67 countries. Samsung has a vision of inspiring the world and creating the future through new technologies, innovative products, and creative solutions. It aims to achieve $400 billion in revenue and become a top five global brand by 2020. Samsung has been successful due to its focus on innovation, quality products, and strong leadership.
This document discusses joint ventures, including their definition, advantages, disadvantages, and key steps in forming one. Some key points:
- A joint venture is a contractual agreement between two or more parties to undertake a specific business venture, sharing profits, losses, resources, and control.
- Advantages include entering new markets, accessing additional resources, and reducing risks. Disadvantages include the challenges of setting up the partnership and potential cultural/management clashes.
- Forming a joint venture involves planning, partner selection, feasibility studies, and legal incorporation. Critical success factors include good communication, shared goals, and dedication to the partnership's long-term success.
I need help with this case study. I was hoping someone could give me.pdfallurafashions98
I need help with this case study. I was hoping someone could give me some insight into this
question.
Question: Identify and define PepsiCos corporate business strategies used in each consumer
business segment in the year 2018.
I know this question requires a lot of reading, so if you are willing to answer, I greatly appreciate
the time you have spent helping me.
epsiCo was the world's largest snack and bever- In addition to focusing on strategies designed to
age company, with 2017 net revenues of approxi- deliver revenue and earnings growth, the
company mately $63.5 billion. The company's portfolio maintained an aggressive share
repurchase and diviof businesses in 2018 included Frito-Lay salty snacks, dend policy, with a
planned $7 billion returned to Quaker Chewy granola bars, Pepsi soft-drink products,
shareholders in 2018 through share repurchases of Tropicana orange juice, Lipton Brisk tea,
Gatorade, $2 billion and dividends of approximately $5 billion. Propel, Bubly, Quaker Oatmeal,
Cap'n Crunch, The company bolstered its cash returns through careAquafina, Rice-A-Roni, Aunt
Jemima pancake mix, fully considered capital expenditures and acquisitions and many other
regularly consumed products. The and a focus on operational excellence. Its Performance
company viewed the lineup as highly complemen- with Purpose plan utilized investments in
manufacturtary since most of its products could be consumed ing automation, a rationalized
global manufacturing together. For example, Tropicana orange juice might plan, and
reengineered distribution systems to drive be consumed during breakfast with Quaker Oatmeal,
efficiency. In addition, the company's Performance Stacy's pita chips and Sabra hummus might
make a with Purpose plan was focused on minimizing the nice snack, and Doritos and a
Mountain Dew might company's impact on the environment by lowering be part of someone's
lunch. In 2018, PepsiCo's busi- energy and water consumption and reducing its use ness lineup
included 22$1 billion global brands. of packaging material, providing a safe and inclusive The
company's top managers were focused on workplace for employees, and supporting and
investsustaining the impressive performance through strat- ing in the local communities in which
it operated. For egies keyed to product innovation, close relationships example, PepsiCo had
expanded access to safe water with distribution allies, international expansion, to nearly 16
million people in water-stressed parts and strategic acquisitions. Newly introduced prod- of the
world between 2006 and 2018. In addition, ucts such as Bubly sparkling water, Mountain Dew
Performance with Purpose planned to reduce average Ice, Doritos Blaze tortilla chips, Sweet
Potato Sun sugars, saturated fat, and sodium in its food and beverChips, LIFEWTR functional
waters, Lemon Lemon age portfolio each year through 2025 and saved more sparkling lemonade,
and the 1893 premium line of than $600 million in operating expenses by 2016 . .
I need help with conducting a 9-cell industry attractiveness and bus.pdfallurafashions98
I need help with conducting a 9-cell industry attractiveness and business strength matrix, and
then I need to explain my findings in detail. epsiCo was the world's largest snack and bever- In
addition to focusing on strategies designed to age company, with 2017 net revenues of approxi-
deliver revenue and earnings growth, the company mately $63.5 billion. The company's portfolio
maintained an aggressive share repurchase and diviof businesses in 2018 included Frito-Lay
salty snacks, dend policy, with a planned $7 billion returned to Quaker Chewy granola bars,
Pepsi soft-drink products, shareholders in 2018 through share repurchases of Tropicana orange
juice, Lipton Brisk tea, Gatorade, $2 billion and dividends of approximately $5 billion. Propel,
Bubly, Quaker Oatmeal, Cap'n Crunch, The company bolstered its cash returns through
careAquafina, Rice-A-Roni, Aunt Jemima pancake mix, fully considered capital expenditures
and acquisitions and many other regularly consumed products. The and a focus on operational
excellence. Its Performance company viewed the lineup as highly complemen- with Purpose
plan utilized investments in manufacturtary since most of its products could be consumed ing
automation, a rationalized global manufacturing together. For example, Tropicana orange juice
might plan, and reengineered distribution systems to drive be consumed during breakfast with
Quaker Oatmeal, efficiency. In addition, the company's Performance Stacy's pita chips and Sabra
hummus might make a with Purpose plan was focused on minimizing the nice snack, and Doritos
and a Mountain Dew might company's impact on the environment by lowering be part of
someone's lunch. In 2018, PepsiCo's busi- energy and water consumption and reducing its use
ness lineup included 22$1 billion global brands. of packaging material, providing a safe and
inclusive The company's top managers were focused on workplace for employees, and
supporting and investsustaining the impressive performance through strat- ing in the local
communities in which it operated. For egies keyed to product innovation, close relationships
example, PepsiCo had expanded access to safe water with distribution allies, international
expansion, to nearly 16 million people in water-stressed parts and strategic acquisitions. Newly
introduced prod- of the world between 2006 and 2018. In addition, ucts such as Bubly sparkling
water, Mountain Dew Performance with Purpose planned to reduce average Ice, Doritos Blaze
tortilla chips, Sweet Potato Sun sugars, saturated fat, and sodium in its food and beverChips,
LIFEWTR functional waters, Lemon Lemon age portfolio each year through 2025 and saved
more sparkling lemonade, and the 1893 premium line of than $600 million in operating expenses
by 2016 . flavored colas accounted for 15 to 20 percent of all Even though the company had
recorded a new growth in recent years. New product innovations number of impressive
achievements over the past that addressed consumer health an.
Please write a detailed assessment of the long-term advantages and d.pdfamarndsons
Please write a detailed assessment of the long-term advantages and disadvantages of the
industries stated in PepsiCos business portfolio. epsiCo was the world's largest snack and bever-
In addition to focusing on strategies designed to age company, with 2017 net revenues of
approxi- deliver revenue and earnings growth, the company mately $63.5 billion. The company's
portfolio maintained an aggressive share repurchase and diviof businesses in 2018 included
Frito-Lay salty snacks, dend policy, with a planned $7 billion returned to Quaker Chewy granola
bars, Pepsi soft-drink products, shareholders in 2018 through share repurchases of Tropicana
orange juice, Lipton Brisk tea, Gatorade, $2 billion and dividends of approximately $5 billion.
Propel, Bubly, Quaker Oatmeal, Cap'n Crunch, The company bolstered its cash returns through
careAquafina, Rice-A-Roni, Aunt Jemima pancake mix, fully considered capital expenditures
and acquisitions and many other regularly consumed products. The and a focus on operational
excellence. Its Performance company viewed the lineup as highly complemen- with Purpose
plan utilized investments in manufacturtary since most of its products could be consumed ing
automation, a rationalized global manufacturing together. For example, Tropicana orange juice
might plan, and reengineered distribution systems to drive be consumed during breakfast with
Quaker Oatmeal, efficiency. In addition, the company's Performance Stacy's pita chips and Sabra
hummus might make a with Purpose plan was focused on minimizing the nice snack, and Doritos
and a Mountain Dew might company's impact on the environment by lowering be part of
someone's lunch. In 2018, PepsiCo's busi- energy and water consumption and reducing its use
ness lineup included 22$1 billion global brands. of packaging material, providing a safe and
inclusive The company's top managers were focused on workplace for employees, and
supporting and investsustaining the impressive performance through strat- ing in the local
communities in which it operated. For egies keyed to product innovation, close relationships
example, PepsiCo had expanded access to safe water with distribution allies, international
expansion, to nearly 16 million people in water-stressed parts and strategic acquisitions. Newly
introduced prod- of the world between 2006 and 2018. In addition, ucts such as Bubly sparkling
water, Mountain Dew Performance with Purpose planned to reduce average Ice, Doritos Blaze
tortilla chips, Sweet Potato Sun sugars, saturated fat, and sodium in its food and beverChips,
LIFEWTR functional waters, Lemon Lemon age portfolio each year through 2025 and saved
more sparkling lemonade, and the 1893 premium line of than $600 million in operating expenses
by 2016 . flavored colas accounted for 15 to 20 percent of all Even though the company had
recorded a new growth in recent years. New product innovations number of impressive
achievements over the past that addressed consumer health and w.
Please write a detailed post responding to this question.Question.pdfamarndsons
Please write a detailed post responding to this question.
Question: Examine if PepsiCo's business portfolio exhibits a good strategic fit. Then identify
visible value-chain match-ups, skills transfer, cost-sharing, or brand-sharing opportunities.
epsiCo was the world's largest snack and bever- In addition to focusing on strategies designed to
age company, with 2017 net revenues of approxi- deliver revenue and earnings growth, the
company mately $63.5 billion. The company's portfolio maintained an aggressive share
repurchase and diviof businesses in 2018 included Frito-Lay salty snacks, dend policy, with a
planned $7 billion returned to Quaker Chewy granola bars, Pepsi soft-drink products,
shareholders in 2018 through share repurchases of Tropicana orange juice, Lipton Brisk tea,
Gatorade, $2 billion and dividends of approximately $5 billion. Propel, Bubly, Quaker Oatmeal,
Cap'n Crunch, The company bolstered its cash returns through careAquafina, Rice-A-Roni, Aunt
Jemima pancake mix, fully considered capital expenditures and acquisitions and many other
regularly consumed products. The and a focus on operational excellence. Its Performance
company viewed the lineup as highly complemen- with Purpose plan utilized investments in
manufacturtary since most of its products could be consumed ing automation, a rationalized
global manufacturing together. For example, Tropicana orange juice might plan, and
reengineered distribution systems to drive be consumed during breakfast with Quaker Oatmeal,
efficiency. In addition, the company's Performance Stacy's pita chips and Sabra hummus might
make a with Purpose plan was focused on minimizing the nice snack, and Doritos and a
Mountain Dew might company's impact on the environment by lowering be part of someone's
lunch. In 2018, PepsiCo's busi- energy and water consumption and reducing its use ness lineup
included 22$1 billion global brands. of packaging material, providing a safe and inclusive The
company's top managers were focused on workplace for employees, and supporting and
investsustaining the impressive performance through strat- ing in the local communities in which
it operated. For egies keyed to product innovation, close relationships example, PepsiCo had
expanded access to safe water with distribution allies, international expansion, to nearly 16
million people in water-stressed parts and strategic acquisitions. Newly introduced prod- of the
world between 2006 and 2018. In addition, ucts such as Bubly sparkling water, Mountain Dew
Performance with Purpose planned to reduce average Ice, Doritos Blaze tortilla chips, Sweet
Potato Sun sugars, saturated fat, and sodium in its food and beverChips, LIFEWTR functional
waters, Lemon Lemon age portfolio each year through 2025 and saved more sparkling lemonade,
and the 1893 premium line of than $600 million in operating expenses by 2016 . flavored colas
accounted for 15 to 20 percent of all Even though the company had recorded a new growth in
recent years..
Case Study on the Charm and Glory of Lay’s Chips by PepsiCo with Specific Ref...VARUN KESAVAN
PepsiCo Inc. is an American multinational food and beverage corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which includes an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001, which added the Gatorade brand to its portfolio.
As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than $1 billion apiece, and the company's products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food and beverage business in the world. Within North America, PepsiCo is the largest food and beverage business by net revenue.
PepsiCo is an American multinational food and beverage corporation headquartered in Purchase, New York. It was formed in 1965 through the merger of Pepsi-Cola Company and Frito-Lay. PepsiCo owns 22 brands that generate over $1 billion in annual retail sales each. It operates in over 200 countries and has annual revenues of $43.3 billion, making it the second largest food and beverage business in the world. PepsiCo's portfolio includes Frito-Lay snacks, Gatorade sports drinks, Quaker foods, and brands in the beverage industry such as Pepsi, Mountain Dew, and Aquafina.
PepsiCo is an American multinational food and beverage corporation headquartered in New York. Formed in 1965 through the merger of Pepsi-Cola and Frito-Lay, PepsiCo's portfolio includes brands such as Pepsi, Mountain Dew, Lay's, Gatorade, Tropicana, Quaker Foods, and Doritos. PepsiCo expanded further through acquisitions of Tropicana Products in 1998 and the Quaker Oats Company in 2001. Indra Nooyi currently serves as PepsiCo's Chairperson and CEO.
PepsiCo is a world leader in convenient foods and beverages with annual revenues of $27 billion and over 143,000 employees. It consists of Frito-Lay North America for snacks and PepsiCo Beverages and Foods for beverages and foods including Pepsi, Gatorade, and Tropicana. PepsiCo brands are available in nearly 200 countries. It was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay and has since acquired other brands like Tropicana and Quaker Oats. The company has a large portfolio of beverage and snack brands worldwide.
The Company· PepsiCo, Inc. is the result of the merging of Pepsi.docxcherry686017
The Company
· PepsiCo, Inc. is the result of the merging of Pepsi Cola and Frito Lay. Pepsi Cola was established in New Bern, NC by Caleb Bradham in the late 1800s. Frito Lay is the result of the merger between the Frito Company, and the Lay Company around 1960. Today, the company reports sales of $510 million, and employs approximately 20.000 people. The company’s major product line consists of: Pepsi Cola, Diet Pepsi, Mountain Dew, Frito corn chips, Lays potato chips, Cheetos, Ruffles, and Rold Gold pretzels.
Company Global Operations
· PepsiCo Americas Foods, which includes Frito-Lay North America (FLNA), Quaker Foods North America (QFNA) and all of our Latin American food and snack businesses (LAF)
· PepsiCo Americas Beverages (PAB), which includes all of our North American and Latin American beverage businesses
· PepsiCo Europe (Europe), which includes all beverage, food and snack businesses in Europe and South Africa
· PepsiCo Asia, Middle East and Africa (AMEA), which includes all beverage, food and snack
· businesses in AMEA, excluding South Africa
Company History & Growth
· 1966 – Introduction of Doritos brand tortilla chips Pepsi enters Japan and Eastern Europe
· 1970 – PepsiCo moves headquarters to Purchase, NY Frito Lay begins expansion initiative Pepsi introduces lightweight, recyclable plastic bottles, and the first two-liter bottle.
· 1973 – Frito Lay International is established, and begins marketing snack foods worldwide
· 1974 – Pepsi Cola is the first American product produced, marketed, and sold in the former Soviet Union
· 1977 – PepsiCo purchases Pizza Hut, Inc.
· 1978 – PepsiCo purchases Taco Bell
· 1981 – Nutritional information is added to Frito Lay snack food packaging’
· 1982 – PepsiCo introduces caffeine-free colas Pepsi Cola moves into China
· 1984 – Pepsi Cola makes history by teaming up with Michael Jackson for The Choice of a New Generation campaign
· 1985 – PepsiCo is the largest beverage industry, and has products in over 150 countries
· 1986 – PepsiCo purchases KFC
· 1989 – PepsiCo is ranked in the top 25 of the Fortune 500 company rankings
· 1994 – PepsiCo and Starbucks form the North American Coffee Partnership
· 1997 – Aquafina bottled water is introduced
· 1998 – PepsiCo purchases Tropicana products from Seagram Company, Ltd. Pepsi Cola celebrates 100 years
· 2000 PepsiCo own majority stock in South Beach Beverage Company (SoBe)
· 2001 – PepsiCo merges with Quaker Oats
· 2007 – PepsiCo introduces: Performance with Purpose
Strengths
· PepsiCo employees are motivated, and highly engaged in the organization
· Sustained improvements in employee commitment, and satisfaction
· Continued focus on discipline to drive results in the short term
· Continued investments to build capabilities and advantages for the long term
· Attractive partner for retailer who look to Pepsico to drive a significant share of their growth
· A broad portfolio, which is a strong competitive advantage in the food service i ...
TAX MEMOTo FromSubjectDateI. Purpose the purpose.docxssuserf9c51d
TAX MEMO:
To:
From:
Subject:
Date:
I. Purpose: the purpose of this memo is to brief…..
II. Facts: Who is the petitioner?:
Who is defendant?:
And relevant information. Explain what happen in the case
III. Issues: Is …. taxable? (List all the tax issues)
IV. Conclusion: Yes, it is taxable (Only list answer to Issues, no explanation needed)
V. Analysis: Why and how? (Explanations needed )
PepsiCo: Is diversification a choice?
Mohamed Ezz, MD, DM (UMUC)
PepsiCo (PEP)
www.pepsico.com
Overview
PepsiCo, a world leader in beverages, food, and snacks with net revenues of more than $ 65 billion, has a product portfolio of 22 of the most iconic brands in the industry; each of which has annual retail sales of more than one billions dollars. PepsiCo is the world’s # 2 carbonated beverage maker. The company’s brand portfolio includes (PepsiCo, 2016):
A. Beverages: Pepsi, 7-Up, Mountain Dew, Sierra Mist, Mirinda, Gatorade, Tropicana, Lipton, and Aquafina.
B. Snacks: Doritos, Frito-Lay, Tostitos, Ruffles, Cheetos, Fritos, Brisk, and Walkers,
C. Foods: Quaker Oates and Rice-A-Roni.
PepsiCo: History & Background (Hoovers, 2016)
Pepsi was invented in 1898 by pharmacist Caleb Bradham in New Bern, North Carolina. He named his new drink Pepsi-Cola and marketed it as a cure for indigestion and dyspepsia. Bradham followed Coca-Cola’s bottling franchise model and by World War I 300 bottlers had signed up. Following the war, Bradham started stockpiling sugar to safeguard against rising prices; however, in 1920 sugar prices plunged, leading to his bankruptcy in 1923.
After changing ownership for some time, Loft Candy bought the company in 1931. During the Depression (1939), the company doubled the size of its bottles to 12 ounces without raising its price, which helped improve its fortune. In 1939 Pepsi introduced the first radio jingle in the world. In 1941, Loft Candy merged with its Pepsi subsidiary to create the Pepsi Cola Company.
The company acquired Mountain Dew in 1964 and Frito Lay in 1965, and changed its name to PepsiCo. In 1972 PepsiCo began distributing Stolichnaya vodka in the States in return for being the only Western firm allowed to bottle soft drinks in the Soviet Union. PepsiCo bought Pizza Hut (1977), Taco Bell (1978), and KFC (1986) and became a formidable force in the fast food industry. In the period from 1991 - 1996 PepsiCo aggressively expanded its international bottling operations; however, it was no match Coca-Cola's well-oiled international distribution machine. The Company then focused its attention to the organization of its international network.
In 1997, PepsiCo spun off its $10 billion fast-food unit (currently Yum! Brands), which better positioned to sell its soft drinks at other restaurants. Also in 1997 PepsiCo bought Smith snacks and Borden's Cracker Jack snack from United Biscuits. In 1998, PepsiCo bought Seagram's Tropicana juices, the main competitor to Coca Cola’s minute Maid for $3.3 billion. In 1999, the c ...
This document provides an overview of PepsiCo, including its history, brands, products, and business segments globally. Some key points:
- PepsiCo was formed in 1965 through the merger of Pepsi-Cola Company and Frito-Lay and has since expanded its portfolio through acquisitions.
- It has a portfolio of popular food and beverage brands that generate over $1 billion each in annual sales, including Pepsi, Lay's, Gatorade, and Quaker Foods.
- PepsiCo operates globally and has business segments for beverages, snacks, and food across North America, Europe, Russia, Middle East, Africa, and Asia.
- It offers a
PepsiCo is an American multinational food and beverage corporation headquartered in Purchase, New York. It was formed in 1965 through the merger of Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded its portfolio through acquisitions and mergers to include brands such as Tropicana, Gatorade, and Quaker Oats. As of 2013, PepsiCo employed approximately 274,000 people worldwide and generated over $43 billion in annual net revenues, making it the second largest food and beverage company in the world.
PepsiCo is an American multinational food and beverage corporation headquartered in Purchase, New York. It was formed in 1965 through the merger of Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded its portfolio through acquisitions and mergers to include brands such as Tropicana, Gatorade, and Quaker Oats. As of 2013, PepsiCo employed approximately 274,000 people worldwide and generated over $43 billion in annual net revenues, making it the second largest food and beverage company in the world.
PepsiCo is an American multinational food and beverage corporation headquartered in New York. It produces beverages, snacks, and other products that are enjoyed over 1 billion times daily worldwide. PepsiCo has interests in manufacturing, marketing, and distributing grain-based snack foods, beverages, and other products. It operates various business divisions globally and has seen continued financial growth and expansion through acquisitions over the decades.
PepsiCo is an American multinational corporation that manufactures and markets beverages and snacks. It owns popular brands like Pepsi, Frito-Lay, Gatorade, Quaker, and Tropicana. PepsiCo was formed through mergers and acquisitions of Pepsi-Cola and Frito-Lay companies. It operates globally with products available in nearly 200 countries and has significant operations in markets like the US, Mexico, China, India, and the UK. Indra Nooyi has been the CEO since 2006 and has focused on healthier products and sustainability.
PepsiCo is one of the most successful consumer product companies in the world. It was founded by Caleb Bradham and consists of divisions like Frito-Lay, Pepsi-Cola, and Tropicana products. PepsiCo has a long history of acquisitions and spin-offs of brands. It is currently led by a board including Indra Nooyi as CEO. PepsiCo competes with Coca-Cola in the beverage market, with each company targeting different customer segments through variations in their marketing strategies.
Pepsi Co is one of the largest food and beverage companies in the world. Some key details:
- Headquarters is in Purchase, New York and trades on the NYSE.
- Founded in 1898 by Caleb Bradham and incorporated in 1919, growing significantly over the decades through mergers and acquisitions.
- Current CEO is Indra Nooyi, ranked among the most powerful women in the world.
- Major brands include Pepsi, Mountain Dew, Diet Pepsi, Frito-Lay snacks, Tropicana juices, Quaker foods, and Gatorade sports drinks.
- Has a large global presence with products sold in over 160 countries worldwide.
This document provides information about PepsiCo, including:
- PepsiCo is an American multinational food and beverage corporation headquartered in New York.
- It was formed in 1965 through the merger of Pepsi-Cola Company and Frito-Lay. It has since expanded its brand portfolio through acquisitions.
- PepsiCo engages in corporate social responsibility initiatives focused on water replenishment, sustainable agriculture, and community partnerships.
Undertook a Business Research project in the second year of my undergraduate degree on the topic- Comparative Analysis between Pepsi and Coca Cola on the basis of various physical and chemical aspects.
1. PepsiCo is a global food and beverage company formed through the merger of Pepsi-Cola and Frito-Lay in 1965. Originally starting as Pepsi Cola in 1898, PepsiCo has grown to generate over $92 billion in annual sales and operate in over 200 countries.
2. In 2006, PepsiCo achieved 5.5% overall growth, $36 billion in revenue, and a 26% return on investment, outperforming industry averages. It maintains strong market positions across beverages, snacks, and convenient foods.
3. PepsiCo appeals to younger consumers through sponsorships of music, entertainment, and sports. It also focuses on ethics and social responsibility through recycling programs
Similar to PepsiCo’s Diversification Strategy in 2014 (Case) (20)
Chapter 21 Demand Management and LogisticsTran Thang
The Key to Supply Chain Management
The SCM Triangle
Supply Management
Demand Management
Logistics Management
Evolution to Strategic SCM
Strategic Demand Management
Demand Management Defined
The Bullwhip Effect
Evolution of Strategic Demand
Forecasting Demand
Planning with Time Fences
Implications for Supply Management
Strategic Logistics Management
Logistics Defined
Logistics Role in Supply Chain Management
Chapter 20 Production and Inventory ControlTran Thang
The Fundamentals of Production Planning
Modern Production Planning Systems
Aggregate Planning and Master Scheduling
Material Requirements Planning
Capacity Requirements Planning
Evolution of MRP and MRP II Systems
Impact on Purchasing and Supply
Just-In-Time Production Planning
The Functions of Inventories
Definition of Inventories
Inventory Analysis
Costs Associated with Inventories
Carrying Costs
Acquisition Costs
Economic Order Quantity
Types of Inventory Control Systems
Cyclical or Fixed Order Interval System
The Just-In-Time (JIT) Approach
Material Requirements Planning (MRP) System
Order Point or Fixed Order Quantity System
Chapter 19 Ethics and Social ResponsibilitiesTran Thang
Ethics Defined
Ethics in the Supply Management Context
Professional Purchasing and Supply Management Ethics
Principles and Standards of Purchasing and supply Management Practice
Management Responsibilities
Written Standards
Ethics Training and Education
Departmental Environment
Miscellaneous Factors
Dealing with Gray Areas
The Four Way Test
Social Responsibilities
Chapter 18 Contract and Relationship ManagementTran Thang
Need For Better Contract Management
Pre-award Conference
Monitoring And Controlling Project Progress
Gantt Charts
CPM And PERT
Closed Loop MRP Systems
Monitoring And Controlling Total Supplier Performance
Supplier Performance Evaluation
Motivation
Punishment
Rewards
Assistance
Training
Quality Audits And Procurement System Reviews
Problem Solving
Collaboration
Managing The Relationship
Chapter 17 Contract Formation and Legal IssuesTran Thang
Litigation Prevention
Dispute Resolution
Negotiation
Mediation
Litigation
Arbitration
Courts
Development of Commercial Law
Basic Legal Considerations
The Purchase Contract
Letters of Intent
Special Legal Considerations
Inspection Rights
Rights of Rejection
Title and Risk of Loss
Warranties
Evergreen Contracts
Order Cancellation and Breach of Contract
Liquidated Damages Provision
Special Considerations (cont’d)
JIT Contracts
Honest Mistakes
Patent Infringement
Restraint of Trade Laws
International Considerations
Contracts for the International Sale of Goods
Foreign Corrupt Practices Act
Objectives of Negotiation
Quality
Fair and Reasonable Price
On-time Performance
Control
Cooperation
Supplier Relationship Management
When to Negotiate
Supply Management’s Role in Negotiation
The Supply Management Professional Acting Alone
The Supply Management Professional as the Negotiating Team Leader
The Negotiation Process
Preparation
Establishing Objectives
Identify the Desired Type of Relationship
Three Powerful Preparation Activities
Face-to-Face Discussions
Fact Finding
Recess
Narrowing the Differences
Hard Bargaining
Techniques
Universally Applicable Techniques
Transactional Techniques
Collaborative and Alliance Negotiating Techniques
The Debriefing: An Incredible Learning Opportunity
Documentation
Online Negotiation
Negotiating for Price
Price Analysis Negotiation
Cost Analysis Negotiation
Characteristics of a Successful Negotiator
General Economic Considerations
Conditions Of Competition
Variable-Margin Pricing
Product Differentiation
Six Categories Of Cost
Regulation by Competition
Price Analysis
Competitive Price Proposals
Regulated, Catalog, and Market Prices
Internet/e-Procurement
Historical Prices
Independent Cost Estimates
Cost Analysis
Cost Analysis Defined
Capabilities of Management
Efficiency of Labor
Amount and Quality of Subcontracting
Plant Capacity
Sources of Cost Data
Potential Suppliers
Supply Partners
Cost Models
Direct Costs
Direct Labor
Direct Materials
Tooling Costs
Learning Curves
Cumulative Curve and the Unit Curve
Target Cost Estimation
Indirect Costs
Engineering Overhead
Materials Overhead
Manufacturing Overhead
General And Administrative
Selling
Recovering Indirect Costs
Activity-Based Costing
Target Costing
Profit
Total cost of ownership is a philosophy for really understanding all supply chain related costs of doing business with a particular supplier for a particular good or service (Lisa Ellam, May 1999)
Three Components of Total Cost
Acquisition Costs
Ownerships Costs
Post-Ownership Costs
Purchase Price: But One Component of Cost
TCO, Net Present Value Analysis (NPV), and Estimated Costs
The Importance of Total Cost of Ownership in Supply Management
Service Providers
Retail
Manufacturing
Outsourcing: A Growth Industry
Strategic Issues
Core Competencies
Supplier Dominance
The Creation of Strategic Vulnerabilities
The Dangers of Vertical Integration
Horizontal Integration
New Product Development and Outsourcing
Lean Manufacturing
Tactical Decisions
Factors Influencing Make-or-Buy Decisions
Cost Considerations
Time
Capacity
Control of Production and Quality
Business Process Outsourcing
Technology Risk and Maturity
Unreliable Suppliers
Suppliers’ Specialized Knowledge and Research
Small-Volume Requirements
Limited Facilities
Factors Influencing Make-or-Buy Decisions
Cost Considerations
Time
Capacity
Control of Production and Quality
Business Process Outsourcing
Technology Risk and Maturity
Unreliable Suppliers
Suppliers’ Specialized Knowledge and Research
Small-Volume Requirements
Limited Facilities
Factors Continued
Work Force Stability
Multiple-Source Policy
Managerial and Control Considerations
Procurement and Inventory Considerations
Netsourcing
The Volatile Nature of the Make-or-Buy Situation
Dangers of Outsourcing
Administration of Make-or-Buy Activities
Chief Resource Officer
Framework for Outsourcing
Executive Level Involvement
Hidden Opportunities
The Statement of Work
Four Formats for Statements of Work
Planning the Statement of Work
Writing the Statement of Work
Artificial Intelligence
Tips on Writing an Effective S.O.W.
Selecting Service Contractors
Tips from a Professional
The Ideal Services Supplier
Pricing Service Contracts
Professional Services
Technical Services
Operating Services
Third Party Contracts
So, Your Services Contract is About to Expire
Contract Administration
Services Purchases and the Internet
Construction Services
Conventional Method
Design and Build, Agreed Price Method
Design and Build, Cost-Reimbursable Method
Building Team
The Owner as a Contractor
Construction Purchasing Entails Unique Problems
Performance Contracting
The Nuances of Capital Equipment Procurement
Nonrecurring Purchases
Nature and Size of Expenditure
Building the Foundation
Identify the Need for a Procurement
Project Management
Selection of an Equipment Sourcing Team
Build and Train the Team
Identify Objectives and Estimate Cost
Identifying Objectives
Used Equipment
Spares
Estimating Acquisition Costs and TCO
Develop Specifications and Initiate Sourcing, Pricing & TCO
Analysis
Develop Specifications
Sourcing
Develop Updated Acquisition Cost and TCO Estimates
Updated Cost Estimates
Meet Budget and TCO Objectives
Top Management Approval
Negotiation
Leased Equipment
Types of Leases
Factors Favoring Leasing
Factors Weighing Against Leasing
To Lease or to Buy?
Initiate Lease or Contract
Post Award Activities
Chapter 6 Purchasing Descriptions and SpecificationsTran Thang
Specifications and Standardization
Purposes of Specifications
Collaborative Development
Categories of Specifications
Simple Specifications
Complex Specifications
Combination of Methods
Development of Specifications
Organizational Approaches
Supply Management Research
Writing Specifications
Common Problems
Standardization
History of Standardization
Types and Sources of Standardization
Benefits of Standardization
Simplification
Developing a Standardization Program
Standards Team
Importance of Supply Management
Materials Catalog
Electronic Materials Catalog
The Design Process
The Investigation or Concept Formation Phase
The Development Phase
The Production Phase
Value Engineering Vis-à-vis Value Analysis
Engineering Change Management
How to Expand Supply Management's Contributions
Design or Project Teams
Materials Engineers
Co‑location
Buyers Supply Management Professionals Who Interface Successfully with Engineers
A Transformation in Relationships
Types of Buyer-Supplier Relationships
Transactional Relationships
Collaborative and Alliance Relationships
Collaborative Relationships
Supply Alliances
The Supplier's Perspective
Developing and Managing Collaborative and Alliance Relationships
Purchasing Place within the Organization
Where is Purchasing on the Organizational Chart? How it affects their performance.
Tactical vs. Strategic Responsibilities
Where is the focus?
Centralized vs. Decentralized
Who has the authority to make the buy decisions?
A Materials Management Structure
Use of Cross-functional Teams
Chapter 1 The Progression to Professional Supply ManagementTran Thang
Purchasing, Supply Management, and Supply Chain Management Defined
Increasing Importance of Purchased Materials.
Supply Management’s Impact on the Bottom Line
Increased Sales
Faster to Market or Time-Based Competition
Supply Management and Return on Investment
The Progression to Proactive Supply Management
A management thinking to solving material outsourcing problemsTran Thang
The passage discusses the history and current state of the U.S. healthcare system. It notes that healthcare costs have been rising faster than inflation for decades, putting strain on the system. While the Affordable Care Act aimed to address issues of access and costs, high medical expenses and insurance premiums remain a challenge for many Americans.
Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.pptHenry Hollis
The History of NZ 1870-1900.
Making of a Nation.
From the NZ Wars to Liberals,
Richard Seddon, George Grey,
Social Laboratory, New Zealand,
Confiscations, Kotahitanga, Kingitanga, Parliament, Suffrage, Repudiation, Economic Change, Agriculture, Gold Mining, Timber, Flax, Sheep, Dairying,
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
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2. CASE 21 PepsiCo’s Diversification Strategy in 2014 C-307
COMPANY HISTORY
PepsiCo, Inc., was established in 1965 when Pepsi-
Cola and Frito-Lay shareholders agreed to a merger
between the salty-snack icon and soft-drink giant.
The new company was founded with annual reve-
nues of $510 million and such well-known brands
as Pepsi-Cola, Mountain Dew, Fritos, Lay’s, Chee-
tos, Ruffles, and Rold Gold. PepsiCo’s roots can
be traced to 1898 when New Bern, North Carolina,
pharmacist Caleb Bradham created the formula
for a carbonated beverage he named Pepsi-Cola.
The company’s salty-snack business began in 1932
when Elmer Doolin, of San Antonio, Texas, began
manufacturing and marketing Fritos corn chips and
Herman Lay started a potato chip distribution busi-
ness in Nashville, Tennessee. In 1961, Doolin and
Lay agreed to a merger between their businesses to
establish the Frito-Lay Company.
During PepsiCo’s first five years as a snack and
beverage company, it introduced new products such
as Doritos and Funyuns, entered markets in Japan
and eastern Europe, and opened, on average, one new
snack-food plant per year. By 1971, PepsiCo had more
than doubled its revenues to reach $1 billion. The
company began to pursue growth through acquisi-
tions outside snacks and beverages as early as 1968,
but its 1977 acquisition of Pizza Hut significantly
shaped the strategic direction of PepsiCo for the next
20 years. The acquisitions of Taco Bell in 1978 and
Kentucky Fried Chicken in 1986 created a business
portfolio described by Wayne Calloway (PepsiCo’s
CEO between 1986 and 1996) as a balanced three-
legged stool. Calloway believed the combination of
snack foods, soft drinks, and fast food offered con-
siderable cost sharing and skill transfer opportuni-
ties, and he routinely shifted managers among the
company’s three divisions as part of the company’s
management development efforts.
PepsiCo strengthened its portfolio of snack
foods and beverages during the 1980s and 1990s
with the acquisitions of Mug Root Beer, 7-Up Inter-
national, Smartfood ready-to-eat popcorn, Walker’s
Crisps (United Kingdom), Smith’s Crisps (United
Kingdom), Mexican cookie company Gamesa, and
Sunchips. Calloway added quick-service restaurants
Hot-n-Now in 1990; California Pizza Kitchens in
1992; and East Side Mario’s, D’Angelo Sandwich
Shops, and Chevy’s Mexican Restaurants in 1993.
The company expanded beyond carbonated bever-
ages through a 1992 agreement with Ocean Spray to
distribute single-serving juices, the introduction of
Lipton ready-to-drink (RTD) teas in 1993, and the
introduction of Aquafina bottled water and Frappuc-
cino ready-to-drink coffees in 1994.
By 1996 it had become clear to PepsiCo man-
agement that the potential strategic-fit benefits
existing between restaurants and PepsiCo’s core
beverage and snack businesses were difficult to cap-
ture. In addition, any synergistic benefits achieved
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Net revenue $66,415 $65,492 $66,504 $57,838 $43,232 $43,251 $39,474 $35,137 $32,562 $29,261
Net income 6,740 6,178 6,443 6,320 5,946 5,142 5,599 5,065 4,078 4,212
Income per
common share—
basic, continuing
operations
$4.37 $3.96 $4.08 $3.97 $3.81 $3.26 $3.38 $3.00 $2.43 $2.45
Cash dividends
declared per
common share
$2.24 $2.13 $2.03 $1.89 $1.78 $1.65 $1.42 $1.16 $1.01 $0.85
Total assets $77,478 74,638 72,882 68,153 39,848 35,994 34,628 29,930 31,727 27,987
Long-term debt 24,333 23,544 20,568 19,999 7,400 7,858 4,203 2,550 2,313 2,397
Source: PepsiCo 10-K reports, various years.
EXHIBIT 1 Financial Summary for PepsiCo, Inc., 2004–2013
(in millions, except per share amounts)
3. C-308 PART 2 Cases in Crafting and Executing Strategy
Saudi Arabian salty-snack market), and the Quaker
Oats Company.
The 2001 Acquisition of Quaker Oats
At $13.9 billion, Quaker Oats was PepsiCo’s larg-
est acquisition and gave it the number-one brand
of oatmeal in the United States, with more than a
60 percent category share; the leading brand of rice
were more than offset by the fast-food industry’s fierce
price competition and low profit margins. In 1997,
CEO Roger Enrico spun off the company’s restaurants
as an independent, publicly traded company to focus
PepsiCo on food and beverages. Soon after the spin-
off of PepsiCo’s fast-food restaurants was completed,
Enrico acquired Cracker Jack, Tropicana, Smith’s
Snackfood Company in Australia, SoBe teas and alter-
native beverages, Tasali Snack Foods (the leader in the
EXHIBIT 2 Monthly Performance of PepsiCo, Inc.’s Stock Price, 2004–July 2014
05 06 07
Year
08 09 10 11 12 13 14
StockPrice($)
45
50
55
60
65
70
75
80
85
90
(a) Trend in PepsiCo, Inc.’s Common Stock Price
Year
PercentChange(1998=0)
05 06 07 08 09 10 11 12 13 14
190
170
160
150
140
130
120
110
10
210
230
220
180
PepsiCo’s
Stock Price
S&P 500
(b) Performance of PepsiCo, Inc.’s Stock Price
versus the S&P 500 Index
4. CASE 21 PepsiCo’s Diversification Strategy in 2014 C-309
cakes and granola snack bars; and other well-known
grocery brands such as Cap’n Crunch, Rice-A-Roni,
and Aunt Jemima. However, Quaker’s most valuable
asset in its arsenal of brands was Gatorade.
Gatorade was developed by University of Flor-
ida researchers in 1965, but it was not marketed
commercially until the formula was sold to Stokely-
Van Camp in 1967. When Quaker Oats acquired the
brand from Stokely-Van Camp in 1983, Gatorade
gradually made a transformation from a regionally
distributed product with annual sales of $90 mil-
lion to a $2 billion powerhouse. Gatorade was able
to increase sales by more than 10 percent annually
during the 1990s, with no new entrant to the sports
beverage category posing a serious threat to the
brand’s dominance. PepsiCo, Coca-Cola, France’s
Danone Group, and Swiss food giant Nestlé all were
attracted to Gatorade because of its commanding
market share and because of the expected growth
in the isotonic sports beverage category. PepsiCo
became the successful bidder for Quaker Oats and
Gatorade with an agreement struck in December
2000, but the merger would not receive U.S. Fed-
eral Trade Commission (FTC) approval until August
2001. The FTC’s primary concern over the merger
was that Gatorade’s inclusion in PepsiCo’s portfo-
lio of snacks and beverages might give the company
too much leverage in negotiations with convenience
stores and ultimately force smaller snack-food and
beverage companies out of convenience store chan-
nels. In its approval of the merger, the FTC stipu-
lated that Gatorade and PepsiCo’s soft drinks could
not be jointly distributed for 10 years.
Acquisitions after 2001
After the completion of the Quaker Oats acquisi-
tion in 2001, the company focused on integration of
Quaker Oats’ food, snack, and beverage brands into
the PepsiCo portfolio. The company made a number
of “tuck-in” acquisitions of small, fast-growing food
and beverage companies in the United States and
internationally to broaden its portfolio of brands.
Tuck-in acquisitions in 2006 included Stacy’s bagel
and pita chips, Izze carbonated beverages, Nether-
lands-based Duyvis nuts, and Star Foods (Poland).
Acquisitions made during 2007 included Naked
Juice fruit beverages, Sandora juices in the Ukraine,
New Zealand’s Bluebird snacks, Penelopa nuts and
seeds in Bulgaria, and Brazilian snack producer
Lucky. The company also entered into a joint ven-
ture with the Strauss Group in 2007 to market
Sabra—the top-selling and fastest-growing brand
of hummus in the United States and Canada. The
company acquired the Russian beverage producer
Lebedyansky in 2008 for $1.8 billion, and in 2010 it
acquired Marbo, a potato chip production operation
in Serbia.
In 2010 and 2011, the company executed its
largest acquisitions since the 2001 acquisition of
Quaker Oats. In 2010, PepsiCo acquired the previ-
ously independent Pepsi Bottling Group and Pep-
siCo Americas for $8.26 billion in cash and PepsiCo
common shares. The acquisition was designed to
better integrate its global distribution system for its
beverage business. In 2011, it acquired Russia’s lead-
ing food and beverage company, Wimm-Bill-Dann
Foods, for $3.8 billion. The combination of acquisi-
tions and the strength of PepsiCo’s core snacks and
beverages business allowed the company’s revenues
to increase from approximately $29 billion in 2004
to more than $66 billion in 2013. Exhibit 3 presents
PepsiCo’s consolidated statements of income for
2011–2013, while the company’s consolidated bal-
ance sheets for 2012–2013 are presented in Exhibit
4. The company’s calculation of free cash flow for
2011–2013 is shown in Exhibit 5.
BUILDING SHAREHOLDER
VALUE IN 2014
Three people had held the position of CEO since the
company began its portfolio restructuring in 1997.
Even though Roger Enrico was the chief architect of
the business lineup as it stood in 2007, his successor,
Steve Reinemund, and Indra Nooyi, the company’s
CEO in 2007, were both critically involved in the
restructuring. Nooyi joined PepsiCo in 1994 and
developed a reputation as a tough negotiator who
engineered the 1997 spin-off of Pepsi’s restaurants,
spearheaded the 1998 acquisition of Tropicana, and
played a critical role in the 1999 IPO of Pepsi’s
bottling operations. After being promoted to chief
financial officer, Nooyi was also highly involved
in the 2001 acquisition of Quaker Oats. Nooyi was
selected as the company’s CEO upon Reinemund’s
retirement in October 2006. Nooyi had emigrated
to the United States in 1978 to attend Yale’s Grad-
uate School of Business, and she worked with the
5. C-310 PART 2 Cases in Crafting and Executing Strategy
develop good-for-you and better-for-you products
would create growth opportunities from the intersec-
tion of business and public interests.
PepsiCo was organized into six business divi-
sions, which all followed the corporation’s general
strategic approach. Frito-Lay North America manu-
factured, marketed, and distributed such snack foods
as Lay’s potato chips, Doritos tortilla chips, Cheetos
cheese snacks, Fritos corn chips, Grandma’s cook-
ies, and Smartfood popcorn. Quaker Foods North
America manufactured and marketed cereals, rice and
pasta dishes, granola bars, and other food items that
were sold in supermarkets. Latin American Foods
manufactured, marketed, and distributed snack
foods and many Quaker-branded cereals and snacks
in Latin America. PepsiCo Americas Beverages
manufactured, marketed, and sold beverage con-
centrates, fountain syrups, and finished goods under
such brands as Pepsi, Gatorade, Aquafina, Tropi-
cana, Lipton, Dole, and SoBe throughout North
and South America. PepsiCo Europe manufactured,
Boston Consulting Group, Motorola, and Asea
Brown Boveri before arriving at PepsiCo in 1994. In
the eight years under Nooyi’s leadership, PepsiCo’s
revenues had increased by nearly 90 percent, and its
share price had grown by 50 percent.
In 2014, PepsiCo’s corporate strategy had diver-
sified the company into salty and sweet snacks, soft
drinks, orange juice, bottled water, ready-to-drink
teas and coffees, purified and functional waters,
isotonic beverages, hot and ready-to-eat breakfast
cereals, grain-based products, and breakfast condi-
ments. Most PepsiCo brands had achieved number-
one or number-two positions in their respective food
and beverage categories through strategies keyed to
product innovation, close relationships with distri-
bution allies, international expansion, and strategic
acquisitions. The company was committed to pro-
ducing the highest-quality products in each category
and was working diligently on product reformu-
lations to make snack foods and beverages less
unhealthy. The company believed that its efforts to
2013 2012 2011
Net revenue $66,415 $65,492 $66,504
Cost of sales 31,243 31,291 31,593
Selling, general, and administrative expenses 25,357 24,970 25,145
Amortization of intangible assets 110 119 133
Operating profit 9,705 9,112 9,633
Interest expense (911) (899) (856)
Interest income and other 97 91 57
Income before income taxes 8,891 8,304 8,834
Provision for income taxes 2,104 2,090 2,372
Net income 6,787 6,214 6,462
Less: Net income attributable to noncontrolling interests 47 36 19
Net income attributable to PepsiCo $ 6,740 $ 6,178 $ 6,443
Net income attributable to PepsiCo per common share:
Basic $4.37 $3.96 $4.08
Diluted $4.32 $3.92 $4.03
Weighted-average common shares outstanding:
Basic 1,541 1,557 1,576
Diluted 1,560 1,575 1,597
Cash dividends declared per common share $2.24 $2.1275 $2.025
Source: PepsiCo, Inc., 10-K report, 2013.
EXHIBIT 3 PepsiCo, Inc.’s Consolidated Statements of Income, 2011–2013
(in millions, except per share data)
6. CASE 21 PepsiCo’s Diversification Strategy in 2014 C-311
2013 2012
Assets
Current assets
Cash and cash equivalents $ 9,375 $ 6,297
Short-term investments 303 322
Accounts and notes receivable, net 6,954 7,041
Inventories 3,409 3,581
Prepaid expenses and other current assets 2,162 1,479
Total current assets 22,203 18,720
Property, plant, and equipment, net 18,575 19,136
Amortizable intangible assets, net 1,638 1,781
Goodwill 16,613 16,971
Other nonamortizable intangible assets 14,401 14,744
Nonamortizable intangible assets 31,014 31,715
Investments in noncontrolled affiliates 1,841 1,633
Other assets 2,207 1,653
Total assets $ 77,478 $74,638
Liabilities and Equity
Current liabilities
Short-term obligations $ 5,306 $ 4,815
Accounts payable and other current liabilities 12,533 11,903
Income taxes payable — 371
Total current liabilities 17,839 17,089
Long-term debt obligations 24,333 23,544
Other liabilities 4,931 6,543
Deferred income taxes 5,986 5,063
Total liabilities 53,089 52,239
Commitments and contingencies
Preferred stock, no par value 41 41
Repurchased preferred stock (171) (164)
PepsiCo common shareholders’ equity
Common stock, par value 12/3¢ per share (authorized 3,600 shares, issued,
net of repurchased common stock at par value: 1,529 and 1,544 shares,
respectively) 25 26
Capital in excess of par value 4,095 4,178
Retained earnings 46,420 43,158
Accumulated other comprehensive loss (5,127) (5,487)
Repurchased common stock, in excess of par value (337 and 322 shares,
respectively) (21,004) (19,458)
Total PepsiCo common shareholders’ equity 24,409 22,417
Noncontrolling interests 110 105
Total equity 24,389 22,399
Total liabilities and equity $ 77,478 $74,638
Source: PepsiCo, Inc., 10-K report, 2013.
EXHIBIT 4 PepsiCo, Inc.’s Consolidated Balance Sheets, 2012–2013
(in millions, except per share data)
7. C-312 PART 2 Cases in Crafting and Executing Strategy
five times greater than runner-up Kellogg’s market
share of 6.9 percent. Convenience foods included
both salty and sweet snacks, such as chips, pretzels,
ready-to-eat popcorn, crackers, dips, snack nuts and
seeds, candy bars, and cookies.
PepsiCo’s Performance with Purpose goals applied
to all of its business units. Frito-Lay North Ameri-
ca’s (FLNA’s) revenues increased by 3 percent dur-
ing 2013, but its net revenue increased by 4 percent
and its operating profit increased by 6 percent. The
division’s management believed that growth in
snack foods remained possible since typical indi-
viduals, on average, consumed snacks 67 times per
month. On average, consumers chose Frito-Lay
snacks only eight times per month. To increase its
share of snack consumption, FLNA was focused on
developing additional better-for-you (BFY) snacks
like Baked Cheetos and Doritos packaged in smaller
portion sizes. Between 2008 and 2013, improving
the performance of the division’s core salty brands
and further developing health and wellness prod-
ucts were key strategic initiatives. The company had
eliminated trans fats from all Lay’s, Fritos, Ruffles,
Cheetos, Tostitos, and Doritos varieties, marketed a
wide variety of gluten-free products, and was look-
ing for further innovations to make its salty snacks
more healthy. The company had introduced Lay’s
Classic Potato Chips cooked in sunflower oil that
retained Lay’s traditional flavor but contained 50%
less saturated fat.
Good-for-you (GFY) snacks, such as Flat Earth
fruit and vegetable snacks, offered an opportunity
for the company to exploit consumers’ desires for
healthier snacks and address a deficiency in most
diets. Americans, on average, consumed only about
50 percent of the U.S. Department of Agriculture’s
recommended daily diet of fruits and vegetables.
Other GFY snacks included Stacy’s Pita Chips,
marketed, and sold snacks and beverages through-
out Europe, while the company’s Asia, Middle East,
and Africa division produced, marketed, and distrib-
uted snack brands and beverages in more than 150
countries in those regions. A full listing of Frito-Lay
snacks, PepsiCo beverages, and Quaker Oats prod-
ucts is presented in Exhibit 6. Select financial infor-
mation for PepsiCo’s six reporting units is presented
in Exhibit 7.
Frito-Lay North America
As of 2014, three key trends that were shaping the
industry were convenience, a growing awareness
of the nutritional content of snack foods, and indul-
gent snacking. A product manager for a regional
snack producer explained, “Many consumers want
to reward themselves with great-tasting, gourmet
flavors and styles. . . . The indulgent theme carries
into seasonings as well. Overall, upscale, restaurant-
influenced flavor trends are emerging to fill con-
sumers’ desires to escape from the norm and taste
snacks from a wider, often global, palate.”1
Most
manufacturers had developed new flavors of salty
snacks such as jalapeno and cheddar tortilla chips
and pepper jack potato chips to attract the interest of
indulgent snackers. Manufacturers had also begun
using healthier oils when processing chips and had
expanded lines of baked and natural salty snacks to
satisfy the demands of health-conscious consumers.
Snacks packaged in smaller bags not only addressed
overeating concerns but also were convenient to
take along on an outing. In 2013 Frito-Lay owned
the top-selling chip brand in each U.S. salty-snack
category and held more than a 2-to-1 lead over the
next-largest snack-food maker in the United States.
Frito-Lay’s 36.6 percent market share of conve-
nience foods sold in the United States was more than
2013 2012 2011
Net cash provided by operating activities $9,688 $8,479 $8,944
Capital spending (2,795) (2,714) (3,339)
Sales of property, plant, and equipment 109 95 84
Free cash flow $ 7,002 $5,860 $5,689
Source: PepsiCo, Inc., 10-K report, 2013.
EXHIBIT 5 Net Cash Provided By PepsiCo’s Operating Activities, 2011–2013
8. CASE 21 PepsiCo’s Diversification Strategy in 2014 C-313
EXHIBIT 6 PepsiCo, Inc.’s Snack, Beverage, and Quaker Oats Brands, 2014
Snack Brands Beverage Brands Quaker Oats Brands
• Lay’s potato chips
• Maui Style potato chips
• Ruffles potato chips
• Doritos tortilla chips
• Tostitos tortilla chips
• Santitas tortilla chips
• Fritos corn chips
• Cheetos cheese-flavored snacks
• Rold Gold pretzels and snack mix
• Funyuns onion-flavored rings
• Go Snacks
• Sunchips multigrain snacks
• Sabritones puffed-wheat snacks
• Cracker Jack candy-coated
popcorn
• Chester’s popcorn
• Grandma’s cookies
• Munchos potato crisps
• Smartfood popcorn
• Baken-ets fried pork skins
• Oberto meat snacks
• Rustler’s meat snacks
• Churrumais fried corn strips
• Frito-Lay nuts
• Frito-Lay, Ruffles, Fritos, and
Tostitos dips and salsas
• Frito-Lay, Doritos, and Cheetos
snack crackers
• Fritos, Tostitos, Ruffles, and
Doritos snack kits
• Grain Waves
• Lay’s Stax potato crisps
• Miss Vickie’s potato chips
• Munchies snack mix
• Stacy’s Pita Chips
• Flat Earth fruit and vegetable
chips
• Red Rock Deli Chips
• Sabra hummus
Outside North America
• Bocabits wheat snacks
• Crujitos corn snacks
• Pepsi-Cola
• Mountain Dew
• Mountain Dew AMP energy drink
• Mug
• Sierra Mist
• Slice
• Lipton Brisk (partnership)
• Lipton Iced Tea (partnership)
• Dole juices and juice drinks
(license)
• FruitWorks juice drinks
• Aquafina purified drinking water
• Frappuccino ready-to-drink coffee
(partnership)
• Starbucks DoubleShot
(partnership)
• SoBe juice drinks, dairy, and teas
• SoBe energy drinks (No Fear and
Adrenaline Rush)
• H2OH!
• Gatorade
• Propel
• Tropicana
• Tropicana Twister
• Tropicana Smoothie
• Izze
• Naked Juice
Outside North America
• Mirinda
• 7UP
• Pepsi
• Kas
• Teem
• Manzanita Sol
• Paso de los Toros
• Fruko
• Evervess
• Yedigun
• Shani
• Fiesta
• D&G (license)
• Mandarin (license)
• Quaker Oatmeal
• Cap’n Crunch cereal
• Life cereal
• Quaker 100% Natural cereal
• Quaker Squares cereal
• Quisp cereal
• King Vitaman cereal
• Quaker Oh’s! cereal
• Mother’s cereal
• Quaker grits
• Quaker Oatmeal-to-Go
• Aunt Jemima mixes & syrups
• Quaker rice cakes
• Quaker rice snacks (Quakes)
• Quaker Chewy granola bars
• Quaker Dipps granola bars
• Rice-A-Roni side dishes
• Pasta Roni side dishes
• Near East side dishes
• Puffed Wheat
• Harvest Crunch cereal
• Quaker baking mixes
• Spudz snacks
• Crisp’ums baked crisps
• Quaker Fruit & Oatmeal bars
• Quaker Fruit & Oatmeal Bites
• Quaker Fruit and Oatmeal
Toastables
• Quaker Soy Crisps
• Quaker Bakeries
Outside North America
• FrescAvena beverage powder
• Toddy chocolate powder
• Toddynho chocolate drink
• Coqueiro canned fish
• Sugar Puffs cereal
• Puffed Wheat
• Cruesli cereal
• Hot Oat Crunch cereal
• Quaker Oatso Simple hot cereal
• Scott’s Porage Oats
(Continued)
9. C-314 PART 2 Cases in Crafting and Executing Strategy
declined between 2011 and 2013. Quaker Oats was
the star product of the division, with a command-
ing share of the North American market for oatmeal
in 2013. Rice-A-Roni also held a number-one mar-
ket share in the rice and pasta side-dish segment
of the consumer food industry. More than one-half
of Quaker Foods’ 2013 revenues was generated by
BFY and GFY products.
Latin American Foods
PepsiCo management believed international markets
offered the company’s greatest opportunity for growth
since per capita consumption of snacks in the United
States averaged 6.6 servings per month while per
capita consumption in other developed countries aver-
aged 4 servings per month and in developing countries
averaged 0.4 serving per month. PepsiCo executives
expected China and Brazil to become the two largest
international markets for snacks. The United Kingdom
Sabra hummus, salsas and dips, and Quaker Chewy
granola bars. In 2013, FLNA manufactured and mar-
keted baked versions of its most popular products,
such as Cheetos, Lay’s potato chips, Ruffles potato
chips, and Tostitos Scoops! tortilla chips.
Quaker Foods North America
Quaker Foods produced, marketed, and distributed
hot and ready-to-eat cereals, pancake mixes and
syrups, and rice and pasta side dishes in the United
States and Canada. The division recorded sales of
approximately $2.6 billion in 2013. The sales vol-
ume of Quaker Foods products decreased by nearly
1 percent annually between 2011 and 2013 with
Quaker Oatmeal, Life cereal, and Cap’n Crunch
cereal volumes competing in mature industries with
weak competitive positions relative to Kellogg’s and
General Mills. Sales of Aunt Jemima syrup and pan-
cake mix and Rice-A-Roni rice and pasta kits also
Snack Brands Beverage Brands Quaker Oats Brands
• Fandangos corn snacks
• Hamka’s snacks
• Niknaks cheese snacks
• Quavers potato snacks
• Sabritas potato chips
• Smiths potato chips
• Walkers potato crisps
• Gamesa cookies
• Doritos Dippas
• Sonric’s sweet snacks
• Wotsits corn snacks
• Red Rock Deli
• Kurkure
• Smiths Sensations
• Cheetos Shots
• Quavers Snacks
• Bluebird Snacks
• Duyvis Nuts
• Müller yogurts
• Lucky snacks
• Penelopa nuts and seeds
• Marbo
• Wimm-Bill-Dann
• Radical Fruit
• Tropicana Touche de Lait
• Alvalle gazpacho fruit juices and
vegetable juices
• Tropicana Season’s Best juices and
juice drinks
• Loóza juices and nectars
• Copella juices
• Frui’Vita juices
• Sandora juices
• Scott’s So Easy Oats
• Quaker bagged cereals
• Quaker Mais Sabor
• Quaker Oats
• Quaker oat flour
• Quaker Meu Mingau
• Quaker cereal bars
• Quaker Oatbran
• Corn goods
• Magico chocolate powder
• Quaker Vitaly Cookies
• 3 Minutos Mixed Cereal
• Quaker Mágica
• Quaker Mágica con Soja
• Quaker pastas
• Quaker Frut
Source: Pepsico.com.
EXHIBIT 6 (Continued)
10. CASE 21 PepsiCo’s Diversification Strategy in 2014 C-315
EXHIBIT 7 Select Financial Data for PepsiCo, Inc.’s Business Segments, 2011–2013
(in millions)
2013 2012 2011
Net revenues
Frito-Lay North America $14,126 $13,574 $13,322
Quaker Foods North America 2,612 2,636 2,656
Latin American Foods 8,350 7,780 7,156
PepsiCo Americas Beverages 21,068 21,408 22,418
Europe 13,752 13,441 13,560
Asia, Middle East, Africa 6,507 6,653 7,392
Total division 66,415 65,492 66,504
Operating profit
Frito-Lay North America $ 3,877 $ 3,646 $ 3,621
Quaker Foods North America 617 695 797
Latin American Foods 1,242 1,059 1,078
PepsiCo Americas Beverages 2,955 2,937 3,273
Europe 1,293 1,330 1,210
Asia, Middle East, Africa 1,174 1,330 1,210
Total division 11,158 10,414 10,866
Capital expenditures
Frito-Lay North America $ 423 $ 365 $ 439
Quaker Foods North America 38 37 43
Latin American Foods 384 436 413
PepsiCo Americas Beverages 716 702 1,006
Europe 550 575 588
Asia, Middle East, Africa 531 510 693
Total division 2,642 2,625 3,182
Total assets
Frito-Lay North America $ 5,308 $ 5,332 $ 5,384
Quaker Foods North America 983 966 1,024
Latin American Foods 4,829 4,993 4,721
PepsiCo Americas Beverages 30,350 30,889 31,142
Europe 18,702 19,218 18,461
Asia, Middle East, Africa 5,754 5,738 6,038
Total division 65,926 67,146 66,770
Depreciation and other amortization
Frito-Lay North America $ 430 $ 445 $ 458
Quaker Foods North America 51 53 54
Latin American Foods 253 248 238
PepsiCo Americas Beverages 863 855 865
Europe 525 522 522
Asia, Middle East, Africa 283 305 350
Total division 2,553 2,570 2,604
(Continued)
11. C-316 PART 2 Cases in Crafting and Executing Strategy
market share. Dr. Pepper Snapple Group was the
third-largest beverage seller in 2013, with a market
share of 8.9 percent. Private-label sellers of bever-
ages collectively held an 8 percent market share in
2013. As with Frito-Lay, PepsiCo’s beverage busi-
ness contributed greatly to the corporation’s overall
profitability and free cash flows.
In 2013, PepsiCo Americas Beverages (PAB)
accounted for 32 percent of the corporation’s total
revenues and 26 percent of its operating profits. The
PAB division’s $1 billion brands included Gatorade,
Tropicana fruit juices, Lipton ready-to-drink tea,
Pepsi, Diet Pepsi, Mountain Dew, Diet Mountain
Dew, Aquafina, Miranda, Sierra Mist, Dole fruit
drinks, Starbucks cold-coffee drinks, and SoBe.
Gatorade was the number-one brand of sports drink
sold worldwide; Tropicana was the number-two
seller of juice and juice drinks globally; and PAB
was the second-largest seller of carbonated soft drinks
worldwide, with a 29 percent market share in 2014.
Market leader Coca-Cola held a 40.5 percent share of
the carbonated soft-drink (CSD) industry in 2014.
Carbonated soft drinks were the most consumed
type of beverage in the United States, with industry
sales of $20.4 billion, but the industry had declined
by 1 to 2 percent annually for nearly a decade. The
overall decline in CSD consumption was a result of
consumers’ interest in healthier food and beverage
choices. In contrast, flavored and enhanced water,
energy drinks, ready-to-drink teas, and bottled water
were growing beverage categories that were cap-
turing a larger share of the stomachs in the United
States and internationally.
PepsiCo’s Carbonated Soft-Drink Business
Among Pepsi’s most successful strategies to sustain
was estimated to be the third-largest international mar-
ket for snacks, while developing markets Mexico and
Russia were expected to be the fourth- and fifth-largest
international markets, respectively.
Developing an understanding of consumer taste
preferences was a key to expanding into interna-
tional markets. Taste preferences for salty snacks
were more similar from country to country than
were preferences for many other food items, and this
allowed PepsiCo to make only modest modifications
to its snacks in most countries. For example, clas-
sic varieties of Lay’s, Doritos, and Cheetos snacks
were sold in Latin America. In addition, consumer
characteristics in the United States that had forced
snack-food makers to adopt better-for-you or good-
for-you snacks applied in most other developed
countries as well.
PepsiCo operated 50 snack-food manufactur-
ing and processing plants and 640 warehouses in
Latin America, with its largest facilities located in
Guarulhos, Brazil; Monterrey, Mexico; Mexico
City, Mexico; and Celaya, Mexico. PepsiCo was
the second-largest seller of snacks and beverages in
Mexico, and its Doritos, Marias Gamesa, Cheetos,
Ruffles, Emperador, Saladitas, Sabritas, and Tosti-
tos brands were popular throughout most of Latin
America. The division’s revenues had grown from
$7.2 billion in 2011 to $8.3 billion in 2013 and
accounted for 12 percent of 2013 total net revenues.
PepsiCo Americas Beverages
PepsiCo was the largest seller of liquid refreshments
in the United States, with a 24 percent share of the
market in 2013. Coca-Cola was the second-largest
nonalcoholic beverage producer, with a 21 percent
2013 2012 2011
Amortization of other intangible assets
Frito-Lay North America $ 7 $ 7 $ 7
Quaker Foods North America — — —
Latin American Foods 8 10 10
PepsiCo Americas Beverages 58 59 65
Europe 32 36 39
Asia, Middle East, Africa 5 7 12
Total division 110 119 133
Source: PepsiCo, Inc., 10-K report, 2013.
EXHIBIT 7 (Continued)
12. CASE 21 PepsiCo’s Diversification Strategy in 2014 C-317
while its operating profit declined from $1,210 to
$1,174 over the same period of time.
Value Chain Alignment between
PepsiCo Brands and Products
PepsiCo’s management team was dedicated to
capturing strategic-fit benefits within the business
lineup throughout the value chain. The company’s
procurement activities were coordinated globally
to achieve the greatest possible economies of scale,
and best practices were routinely transferred among
its more than 200 plants, over 3,500 distribution sys-
tems, and 120,000 service routes around the world.
PepsiCo also shared market research information
with its divisions to better enable each division to
develop new products likely to be hits with consum-
ers, and the company coordinated its Power of One
activities across product lines.
PepsiCo management had a proven ability to
capture strategic fits between the operations of new
acquisitions and its other businesses. The Quaker
Oats integration produced a number of noteworthy
successes, including $160 million in cost savings
resulting from corporatewide procurement of prod-
uct ingredients and packaging materials and an esti-
mated $40 million in cost savings attributed to the
joint distribution of Quaker snacks and Frito-Lay
products. In total, the company estimated that the
synergies among its business units generated approx-
imately $1 billion annually in productivity savings.
PEPSICO’S STRATEGIC
SITUATION IN 2014
For the most part, PepsiCo’s strategies seemed to be
firing on all cylinders in 2014. PepsiCo’s chief man-
agers expected the company’s lineup of snack, bev-
erage, and grocery items to generate operating cash
flows sufficient to reinvest in its core businesses,
provide cash dividends to shareholders, fund a $15
billion share-buyback plan, and pursue acquisitions
that would provide attractive returns. Nevertheless,
the low relative profit margins of PepsiCo’s inter-
national businesses created the need for a continued
examination of its strategy and operations to better
exploit strategic fits between the company’s interna-
tional business units.
The company had developed a new divisional
structure in 2008 to combine its food and beverage
volume and share in soft drinks was its Power of One
strategy, which attempted to achieve the synergistic
benefits of a combined Pepsi-Cola and Frito-Lay
envisioned by shareholders of the two companies in
1965. The Power of One strategy called for super-
markets to place Pepsi and Frito-Lay products side
by side on shelves. The company was also focused
on soft-drink innovation to sustain sales and market
share, including new formulations to lower the calo-
rie content of nondiet drinks.
PepsiCo’s Noncarbonated Beverage Brands
Although carbonated beverages made up the largest
percentage of PAB’s total beverage volume, much
of the division’s growth was attributable to the suc-
cess of its noncarbonated beverages. Aquafina was
the number-one brand of bottled water in the United
States. Gatorade, Tropicana, Aquafina, SoBe, Star-
bucks Frappuccino, Lipton RTD teas, and Propel
were all leading BFY and GFY beverages in the
markets where they were sold.
PepsiCo Europe
All of PepsiCo’s global brands were sold in Europe,
as well as its country- or region-specific brands such
as Domik v Derevne, Chjudo, and Agusha. PespiCo
Europe operated 125 plants and approximately
525 warehouses, distribution centers, and offices in
eastern and western Europe. The company’s acquisi-
tion of Wimm-Bill-Dann Foods, along with sales of
its long-time brands, made it the number-one food and
beverage company in Russia, with a 2-to-1 advantage
over its nearest competitor. It was also the leading
seller of snacks and beverages in the United King-
dom. PepsiCo Europe management believed further
opportunities in other international markets existed,
with opportunities to distribute many of its newest
brands and product formulations throughout Europe.
Asia, Middle East, and Africa
PepsiCo’s business unit operating in Asia, the Mid-
dle East, and Africa manufactured and marketed all
of the company’s global brands and many regional
brands such as Kurkure and Chipsy. PepsiCo oper-
ated 45 plants, 490 distribution centers, warehouses,
and offices located in Egypt, Jordan, and China and
was the number-one brand of beverages and snacks
in India, Egypt, Saudi Arabia, United Arab Emirates,
and China. The division’s revenues had declined
from $7.4 billion in 2011 to $6.5 billion in 2013,
13. C-318 PART 2 Cases in Crafting and Executing Strategy
be required to improve the profitability of Pep-
siCo’s international operations and to help restore
previous revenue and earnings growth rates. Pos-
sible actions might include a reprioritization of
internal uses of cash, new acquisitions, further
efforts to capture strategic fits existing between the
company’s various businesses, or the divestiture of
businesses with poor prospects of future growth
and minimal strategic fit with PepsiCo’s other
businesses.
businesses in Latin America into a common divi-
sion. Also, the company’s international businesses
were reorganized to boost profit margins in Europe
and Asia, the Middle East, and Africa. However,
more than five years after the reorganization, the
performance of the company’s international busi-
nesses continued to lag that of its North American
businesses by a meaningful margin. Some food
and beverage industry analysts had speculated that
additional corporate strategy changes might also
ENDNOTES
1
As quoted in “Snack attack,” Private Label Buyer, August 2006, p. 26.