Introduction
As a finance student, I have selected PepsiCo which is an American company and recommend whether that company can acquire a new firm in the democratic country which is India. PepsiCo is an American multinational corporation which has interests in manufacturing, marketing and distributing snacks and beverages, (Wikipedia. 2016). PepsiCo is the second largest company in food and beverage industry in the world and maintaining its trust among their customers, (Wikipedia. 2016). The company distributing their products more than 200 countries, (Wikipedia. 2016). Therefore its annual net revenues is $43.3 billion, (Wikipedia. 2016). PepsiCo has been recognized for performance and leadership, diversity, sustainability and supporting the societies where we live. With this
…show more content…
2017). New entry market should address issues of sales channels, distribution and marketing practises with an Indian partner or agent. Since India is strong in culture, relationships and personal meeting with the agents are very important. Also should ensure that partners are credible and reliable due to diligence. Second corporate strategy is market entry options, (Export, Gov. 2017). Many foreign companies looking for opportunities in India. For entry into Indian market, identify the target market and find good partners. Moreover, foreign business should explore various market options in India include subsidiary relationship and joint ventures with local company. Third corporate strategy is geographic diversity, (Export, Gov. 2017). U.S. companies which is small or medium sized enterprises should consider India’s market on regional level. Additionally, the U.S. Commercial Services offices are in New Delhi, Chennai, Mumbai, Hyderabad, Bangalore and Kolkata provide valuable information and well connected with local business, (Export, Gov. 2017). Agents are to serve various geographic markets in the
Do you get to wear hats in school? There has been a specific dress code for some time now on if students can wear hats and hoods in school. Students should be able to wear their own personal hats and hoods to school because it lets them express their feelings, the barber may mess up their hair, or it's just a complete outfit for some people.
The first recommendation for this firm is to adopt a global policy and try and explore new markets so that market growth and market share can be expanded. In case of a firm entering an international market, it requires to analyze the nature of the market and suitably form its marketing strategies in alignment with its business strategy and decide whether it is more beneficial to adopt a global approach or use a strategy that is customized to suit the needs of the local customers.
That could jeopardize LE position of finding a partner in India, because the company would be exposed to share some of its secrets with them, and as the case states, they wouldn’t mind coping it in the future. Another difficulty the company will face is the two main competitors that are already doing business in India, Ador welding Ltd and ESAD India.
Costco: Alternative Corporate-Level Strategy for International Expansion by Alliance Costco is the largest wholesale operator and fifth largest retailer in the U.S. (Cisco, 2013). The company has established itself within the U.S. retail market while expanding its operations into global markets. The application of an alternative corporate-level strategy is to enable the company to grow in markets that are more competitive and thus provide a challenge to Costco’s expansion. The first task is to identify the most appropriate market for international expansion. Perhaps the two most attractive markets for international expansion are India and China.
Following their strategy in other countries, the company should contract entrepreneurs highly motivated and give them exclusivity in their area and autonomy.
Strategic Alliance is the collaboration of two companies who came together to implement an idea that will benefit both parties (Strategic alliance, 2009). It is crucial that both parties understand what’s really at stake in order to make their partnership successful. In this paper, the writer took the time to analyze a partnership between Subway restaurants and Coca-Cola products. In addition, we will look at the economic benefit for each company. When dealing with businesses there is a potential for ups and downs during the operations process. The author will examine this collaboration between Subway and Coca-Cola while using Porter’s Five Forces framework including a PESTEL (Political, Economic, Social, Technological, Environmental and Legal) analysis of these two companies.
1. What is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008.
The social style and culture affect on international business. One problem why Pepsi cannot rapidly grow in Russia is language and cultural barriers. The culture is traditional. There are not many people who have English knowledge. Moreover, confidential issue should be careful because everyone talks and share information to each other in their society. The other interesting point is that Russians are not get use to western style resulting to difficulty of working in western company. Russian system is flexible and no specific rule in some topics; for example businesses cannot get reference checks for their employments. Because of social factors, Russians are less interest in foreign business even though there are many western companies in Russia, so that it creates the difficult work for HR department when they want to hire efficient labor.
Indians will often take longer than usual to get the U.S. company a contract, certificate, or document which can create a bottleneck (Hume, 2012). The bureaucrats holding up the progress expect a payoff for moving things along faster so having a local player or someone who knows how to weave in and out of bureaucracy in India may make business dealings easier. Hume (2012), suggests doing research beforehand to figure out who the right players are and be diligent. Other cultural nuisances when conducting business in India is their perspective on time. Indians don’t like to be ruled by a calendar or a clock so getting business done in a timely fashion is hard to accomplish. One of the frustrations with doing business in India is that the politicians have a great deal of power. If a person in office is in the process of being replaced and a company had business dealing with the previous person, business dealing will start over at square one with the new
Where PepsiCo. entered into India as a Joint Venture with PAIC and Voltas, there are other numerous ways a company can enter a foreign market. They include, Exporting & Importing, Licensing & Franchising, Contract Manufacturing, Foreign Direct Investment, Equity Purchases, and Strategic Alliances.
The study by Glasberg et al (2014) analyzes the risks healthcare providers experience and the impact cloud computing has in using the new technologies. Focusing on overall risk management, the study takes a holistic approach, where the research focuses both on human and organizational aspects. Using interviews as a form of data collection, the authors categorize risks and assesses impact from 2 perspectives; supply (S) and information systems (IS) as shown in the table 1 below.
I’m an undergraduate student majoring in economy prepared the marketing plan for the purpose of learning and experience.
The case discusses the strategies adopted by the soft drinks and snack foods major PepsiCo to enter India in the late 1980s. To enter the highly regulated Indian economy, the company had to struggle hard to 'sell' itself to the Indian government. PepsiCo promised to work towards uplifting the rural economy of the terrorism affected north Indian state of Punjab by getting involved in agricultural activities. In addition, it made a host of other promises that made its proposal very attractive to the regulatory authorities. The case also discusses the criticisms leveled against the company, in particular, criticism of its failure to honor
“One morning, as Gregor Samsa was waking up from anxious dreams,he discovered that in bed he had been changed into a monstrous verminous bug.” In the first line of the novel, Kafka introduces the topic that is going to be treated throughout the novel... The Metamorphosis. The line is mainly flat that does not remark on the oddness of the
Coca Cola and Pepsi are the brands with the highest brand equities. Both, Coca Cola and Pepsi have gone through the highs and lows of their business to reach that position. Coca Cola’s marketing has been changing over time with more and more products being added every day, while Pepsi has implemented several smart marketing strategies to improve its turnover and profits. So, let’s see what were the marketing strategies implemented by Coca Cola and Pepsi.