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PepsiCo Case Study Analysis Paper
Michael Gillespie
Organizational Policy and Strategy, OML-450, Cohort (835)
Professor Vicky Sons-Eiden
September 15, 2011

PepsiCo Case Study Analysis Paper A case study analysis on PepsiCo’s diversion strategy in 2008 will be addressed in this paper. The elements that will be discussed are the vision and mission of PepsiCo, the background and history of the company, the external and internal forces of PepsiCo’s business environment, PepsiCo’s strategic marketing plan, and a conclusion and recommendations on how the PepsiCo company can improve their business strategy to stay competitive in years to come.
Vision and Mission The vision of PepsiCo is to be a responsible company that supports
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The portfolio also included well-known commercial brands such as, Cap’n Crunch, Aunt Jemima, Rice-A-Roni, and the prize brand Gatorade. After the acquisition of Quaker Oats, PepsiCo continued to expand their international business in 2006 and 2007 by acquiring fast-growing snack and beverage companies to enhance their market share outside of the United States. Naked fruit juice, Izze soda, Bluebird snacks, and Sabra hummus are just a few of the companies that PepsiCo acquired to leverage their international portfolio. In 2007, the total in acquisitions were $1.3 billion, which was considerably more than 2006, which totaled $552 million and 2005, which totaled $1.1 billion. PepsiCo has also increased their revenues across the food and beverage portfolio from $20 billion in 2000 to $39.5 billion in 2007 (Gamble & Thompson, 2001 p. 424). The strategies that PepsiCo has been using in years past have seemed to prove themselves as a strong strategic plan for the company. In 2008 the company felt that the operating cash flows were enough to start to reinvest in the company, give cash dividends to shareholders, and pursue more acquisitions. Because of declining sales in the international markets, PepsiCo identified the need for a re-structure that would better identify strategic fits between the international markets that they compete in. The Latin American beverage business would consolidate with PepsiCo Beverage North America to form PepsiCo Americas Beverage
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