Position Paper: Pepsico’s Restaurants

PepsiCo, Inc., one of American largest food and beverage icon took its name in 1965, when Pepsi-Cola Company merged with Frito-Lay, Inc. As one of the largest food and beverage companies in the world, their mission is to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats. The author was given the task to choose two segments of the general environment that would rank highest in the influence on the corporation and to assess how these segments affect the PepsiCo. Inc., and the industry in which it operates.

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

The reasons for these acquisitions are varied and include taking over poorly performing restaurants to protect the company’s brand name and to preserver the value of the local market. Reacquisitions also take place for strategic cash flow management purposes whereby investing current free cash flows in the reacquisition yields the expectation of replacing franchise royalties with the larger profits from the restaurants themselves. Company almost always pays some premium related to the contractual element of the franchise right that is capitalized as an intangible asset. However, it must be noted that the classification and nature of the intangible asset varies substantially.

Taco Bell Corporation’s Director of Public Relations has in the last few hours received a phone call from the company’s Government Relations Team. The Government Relations Team has learned that a special interest group known as “Friends of the Earth” will be releasing information on Monday September 18, 2000 to the Washington Post. This press release will be implicating the Taco Bell labeled taco shells which are manufactured, distributed, and sold by

This case describes the complexity of PepsiCo's competitive position in the Mexican soft-drink market during the late 1990's. Between 1993 and 1996 PepsiCo and Coca-Cola waged a classic cola war in Latin America. The goal for both companies was to gain market share and by the end of 1996, Coca-Cola had clearly won the Latin America cola war. In 1993 PepsiCo enjoyed a 42% market share in Venezuela thanks to the success of its bottling partner, the Cisneros Group but by the end of 1996, PepsiCo held less than 1% of the Venezuelan cola market. Following PepsiCo's anchor bottler in Mexico, Gemex, the case details the strategies employed by PepsiCo's senior management beginning in 1993 to expand its

A. Introduction: Nowadays, most people -especially kids and youngsters- prefer to eat fast food, such as McDonald, pizza, fried food, and etc. Why it has become so popular? It is tastes better than homemade food?

PepsiCo’s corporate strategy had diversified, in 2008, the company into salty and sweet snacks, soft drinks, orange juice, bottled water, and ready-to-eat drink teas and coffees, purified and functional waters, isotonic beverages, hot and ready-to-eat breakfast cereals, grain-based products, and breakfast condiments. Strategies that kept their brands at the top were tied to new product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. A new element of PepsiCo’s corporate strategy was product reformulations to make snack

This case study determines the critical success factors used by Subway Restaurants Corporation to expand nationally, which the corporation wants to use also to expand internationally. In addition, this paper describes the competition and the prospect success in Asia-Pacific and Latin America. In general, the fast food industry is discovered with respect to the history and future plans of fast food chain Subway international for expanding and accretion in Asia-Pacific and Latin America, containing the four factors that Subway should use to compete and success in those markets. Each proposed country market has unique cultural and religious requirements should be realized by Subway, as well as the consumption patterns, market trends, and the franchise values which determine from the local traditional fast food compared to the viewpoint of Subway’s healthy alternatives and low expansion costs.

PepsiCo Inc. is one of the leading brands in the world's food and beverage industry. It operates globally with a strong customer base and a wide array of products. This paper analyzes the general business environment for this leading food and beverage brand in order to assess what strategies it has been pursuing to operate in this challenging and complex environment. The analysis of internal and external environment has also been done in a view to figure out the biggest strengths, weaknesses, opportunities, and threats for the company. The final section gives an overview of the company's resources, capabilities, core competencies, and value chain which can help it to achieve a competitive advantage in its industry.

Franchisors are increasingly having to be more and more selective in the adoption of franchisees with factors such as economic climate and the potential difficulty with growth playing key factors in the decision making process. It is not simply an ability to grow which creates a successful Franchise and nor is it the desire of any franchisor to adopt every potential franchisee. Franchisors are becoming more and more scrutinising as the global economy declines. There is a general understanding within any franchised

In year 1965, PepsiCo Inc. is founded by Donald M. Kendall and Herman Lay. PepsiCo Inc. was merged by Pepsi-Cola and Frito-Lay in 1965. PepsiCo is an American multination industry that selling food and beverage. PepsiCo Inc. is the second-largest organisation that produces food and beverage in the world.

The spinning off the restaurant divisions, in my opinion, is a success for PepsiCo. Although Yum! Brands has been a quite successful, thriving company with record setting growth and profitability, I would still support the decision today. PepsiCo had too many oars in the water with the beverage business, the snack business (Frito Lay) and the fast food restaurant business. It could not successfully manage all the diversity it had acquired. I commend the management team’s decision (led by, then President/CFO, Indra Nooyi and now Chairman/CEO) (Fox News 2012) to cut a highly potential part of its business off and to implement a strategy to focus on its main products and their distribution. This strategy has proved to be the right move for this organization. Below is a table which illustrates the fluctuations with the stock price from the first acquisition of Pizza Hut through October 31, 2014 (though the stock price posted on 11/3/2014). You can see that the acquisition years (in yellow) show a negative impact on the stock price, with two of the three being significant. You should also note that, in the year of divesture,

The focused Corporation of the subject strategic proposal is PepsiCo Beverages North America. This company was originally founded in 1898 by a North Carolina druggist. PepsiCo Beverages North America (herein referred to as the ‘Company’) sells several brands of consumer beverages in the United States and Canada. The various beverage products span through carbonated soft drinks, juices, readymade teas, isotonic sports drinks, bottled water, and enhanced waters. Several established brands include Diet Pepsi, Mountain Dew, Gatorade, Tropicana products, Aquafina Water, Sierra Mist, Mug, Propel, Sobe, and Dole. Refer to the Competitor Analysis section for in depth product information and listings.

My ultimate task is to ascertain the WACC for PepsiCo using WACC as well as data I have determined in the course of my research. Hence, my deliverable is a concise tale in which I will justify and demonstrate my determination of WACC including the data providing pertinent indication of my data sources and the intrinsic value of PepsiCo. I will recommendation at the end of this investigation the investment opportunities with respect to the results.

• How to minimize the negative feedback/perception of the company’s buy-in from a private company?