Academia Barilla

Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must

After exploring the four different models, the market development model is best aligned for them to succeed, more of the same restaurants in new markets. When they realized this was the model that needed to be followed, they altered the way they market and who they market too. First, they market to the Beef-Eaters, those looking for high end prime products. Their primary customers enjoy beef. Second, they have to market to places that are able to have U.S beef imported to them. Third, the average cost for just an entrée is $70, so they need to market to people with high-disposable income (Peter & Donnelly, 2013).

This paper will introduce a product and service which operates in the U.S. with the intent to expand within foreign markets eventually. The service that I chose is a current service in the food service industry that does exist but would benefit from enhancing it; there are market trends for the new service that would definitely satisfy potential customers’ needs and wants once the idea is brought to their attention. The goal is to bring the feel of the city’s fine dining and lounging experience to areas outside the city without having to travel far or spend more. The service is an

2. Unsustainable and unstable world unemployment young adults are not able to find meaning full work so they are going to trade schools but that will just shift the unemployment to an older age group. The problem with figuring out how to base an economy not on growth but rather community prosperity has not come to be. For rapid economic growth the planet cannot sustain.

Teachers taught in the past it was caused by the stock market crash in 1929, causing a decade of poverty, homelessness, and hungry. The true economic reason was a large scale of credit, borrowing, and loans. The great inventions of the earlier years triggered a greedy population of people to have the latest technology. As the new housing where being built in the suburbs, people started filling out more and more credit applications. In this culture, appearance of wealth, new cars also were sold to go along with the new house. Furniture, appliances and consumer electronics were also placed on credit as well.

1. Increase revenue by 16% in 2012 through retail expansion; following increases in revenue of 15%, 16%, and 14% in 2009, 2010, and 2011, respectively (Please see Appendix A).

increased interest rates. Lastly, is the inability to start new businesses, which would benefit the

long stagnation of the living standards of the working and middle classes in their countries.

Q. 1. What were the major factors that led to the recent financial crisis? How did we get here?

The underlying problems that caused the financial crisis of 2008 began building before many economists and policymakers are willing to admit. Since the laissez-faire policies of the Reagan administration in the 1980s, inequality and unemployment heightened. “Between 1976 and 2006 (...) ation-adjusted per capita income increased by 64 percent, for the bottom 90 percent of households it increased only by 10 percent. For the top one percent of households it increased 232 percent,” (Wisman 2013, 932) causing an income gap. Another arsing issue was globalization after World War II. The economy’s structure changed and outdated previous economic policy. Manufacturing jobs were outsourced because labor was cheaper abroad; the US imported more goods than it exported, causing a trade deficit.

...................................................10 Alternative 3 – Review Existing Locations..........................................................................................11 Alternative 4 – Expansion through Franchise Operations.....................................................................11 Alternative 5 – Expand Catering Segment ...........................................................................................12 Recommendations and Action Plans .......................................................................................................12 Recommendations ..............................................................................................................................12 Action Plans .......................................................................................................................................13 Contingency Plan ...................................................................................................................................14 Attachments ...........................................................................................................................................15 Exhibit 1.............................................................................................................................................15 Exhibit 2.............................................................................................................................................16

Food, transport cost, gasoline and home energy are some of the products that increased in cost due to the oil dilemma. Another cause is the reliance on credit as a means of financing one’s life. Many people have increasingly been addicted on credit cards and other credit facilities causing a strain of the financial capabilities of a person. The application of mortgages and loans increased sharply in the past decade and with many people not meeting their monthly payments, interest rates rose up and people were are less able to pay the periodical amounts required of them. The final cause that will be highlighted is the falling dollar value. This has the effect of reducing the purchasing value of many citizens. Many homeowners lost money in the form of inflation due to the increasing devaluation of the dollar. There are many other numerous reasons given for the crisis all of which worked together to escalate the problem all over the country and also to some countries elsewhere in the world.

Short-Term: To build and maintain sales in the current catering market it serves while controlling its sales and marketing overheads

According to the specialists, there are many reasons for this global financial crisis. We try to focus some prime reasons behind this

to penetrate into the dinner market without risking its existing business model for fast food while benefiting