This website uses cookies to ensure you have the best experience. Learn more

Pepsico Case Analysis

1060 words - 5 pages

PepsiCo
Problem
PepsiCo’s business strategies were working out very well for them except for in their international operations. The international segment had relatively low profit margins which meant that PepsiCo needed to implement a new organizational structure that would better utilize strategic fits between the company’s international operations. Also, the operating margins and profitability across the different geographic areas and product lines varied a lot for PepsiCo. Gaining some more stability throughout each area and product line would increase the company’s growth and strength within their targeted markets.
Situation Analysis
In 1997 PepsiCo set out to accomplish a major ...view middle of the document...

For example, in Chile Frito-Lay’s brand has 90 percent of the market, but Pepsi products are not doing so well. PepsiCo could run advertisements that allowed you to buy a Frito-Lay product and get a Pepsi product for half price. This way people would be more enticed to try the Pepsi products and eventually buy the beverage more on its own. An advantage of this would be that PepsiCo could continue having great profitability from the more popular product and could improve the profitability of the less popular brand. Consumers who may have chosen a different product if the “pairing” of the two PepsiCo products wasn’t offered will now want buy the products that save them money.
2. The noncarbonated beverage product is a growing market throughout the world. As another alternative, PepsiCo could work harder at promoting and selling these products across more areas in the world. With the world more involved in becoming healthy, consumers are leaning towards beverages that are not carbonated. PepsiCo’s noncarbonated beverage products could provide more places with healthier options to choose from. They haven’t really invested a lot in the bottled water segment in international markets and this could be a quite profitable area for the company, also. Promoting the noncarbonated beverages could gain PepsiCo larger shares of the market and at the same time improve the division’s profits and revenues. A drawback of this alternative is that it may be costly to try and promote and distribute these products into the international areas. For this idea to be successful a lot of time and money must be put in so that the promotions are strategically done and placed in areas that will see the most results.
3. A third option for PepsiCo would be to focus on developing a better understanding of consumer taste preferences. Flavor is an extremely important part of a products selling ability. Consumers don’t want to purchase products that they dislike the taste of and flavor preferences differ from person to person as well as from place to place. PepsiCo is already aware of these factors but they can dig deeper into this in order to better please their customers, especially in the international...

Other Papers Like Pepsico Case Analysis

Marketing Pepsico Essay

5112 words - 21 pages Marketing In The Service Sector FSSM 1001: Services Marketing 1 Nikolas Price 1691 words Table of Contents Introduction 3 PepsiCo International 3 Market segmentation 3 Niche Marketing 3 Bases Of segmentation 4 Target Market 4 Market Positioning 4 Analysis of the Macro and Micro Marketing Environments 5 Macro Marketing Environment (Refer To Appendix 1) 5 Micro Marketing Environment ( Refer to Appendix 2) 5

Pepsico Project Essay

392 words - 2 pages Progress Report 1: PepsiCo Company background PepsiCo is a worldwide known food and beverage company. The ticker symbol for PepsiCo is PEP and stock trades at the New York Stock Exchange. The purpose of the auditor’s report is to provide an opinion assuring that the financial statements are correct and that the company is using them effectively in agreement with the generally accepted accounting principles (GAAP). The auditors provide the

Pepsico Case Study File

870 words - 4 pages The Business Case: PepsiAmericas (PAS) is the world’s second largest manufacturer and distributor of Pepsi beverages, operating in nineteen mostly Midwestern states in the U.S. (69% of sales), central and Eastern Europe (26% of Sales) and the Caribbean (5% of sales). Net sales in 2008 totaled nearly $5 billion or 20% of PepsiCo’s total US beverage sales. In 2009 a recession hit the U.S. economy, but PepsiAmericas was also faced with two

Mini Case Pepsico

800 words - 4 pages What “grade” would you give Ms. Nooyi for her job performance as a strategic leader? What are her strengths and weaknesses? Where would you place Ms. Nooyi on the Level-5 pyramid of strategic leadership and why? I would give Ms. Mooyi a B. The CEO of Pepsico is well informed about the company’s resources and how they are being affected by the external environment. The decisions that she she made to restructure and diversify the company have

Pepsico Value Alignment

1199 words - 5 pages Value Alignment for PepsiCo For organizations to attain a competitive advantage in today’s business environment they are employing a diverse and multicultural workforce. This diversification permits organizations to focus on developing products and services that reach numerous cultures. This diversification also allows various cultural and ethical standards to be integrated into their strategic plans. It is the duty of top level executives

Pepsico Acquires Quaker Oats

2041 words - 9 pages PepsiCo Acquires Quaker Oats The Company PepsiCo is the second largest beverage company in the world. They are internationally known for mostly their snacks and beverages. Being almost one hundred years in the business, they were incorporated in 1919. PepsiCo sells, distributes and markets a large range of these products to more than two hundred territories and countries. They are the top seller of many famous brand names such as Doritos

Pepsico Main Strategy

523 words - 3 pages Innovation within PepsiCo must be nurtured for the company to remain competitive. All employees should be encouraged to collaborate and initiate projects based on available resources. To accomplish this, all employees must have access to current information about inventory, supplies, new products, and research and development. Thus, PepsiCo should implement the PepsiCollab Innovation Portal. PepsiCollab is a virtual destination where the

Case Study Coca Cola and Pepsico

5720 words - 23 pages dance, done by women during the Navratri festival.) The Executive Vice President for PepsiCo India commented: “For the first time, Pepsi has tied up with the Gujarati TV channel, Zee Alpha, to telecast ‘Navratri Utsav’ on all nine nights. [‘Utsav’ means festival.] Then there is the mega offer for the people of Ahmedabad, Baroda, Surat, and Rajkot where every refill of a case of Pepsi 300-ml. bottles will fetch one kilo of Basmati rice free.” These

Final Project Pepsico vs Coca-Cola

3246 words - 13 pages Stephanie Burke XACC/280 September 19, 2010 Sylvia White Shepherd The purpose for this analysis is to compare PepsiCo to Coca-Cola; this is done by providing a summary of financial accounting information. The information to compare a company to another comes from financial statements and then those numbers are broken down into analysis and ratios. Once the ratios are calculated then the investor can decipher is the company is worth

Financial Management: Pepsico and Coca-Cola 2009 Annual Reports

1822 words - 8 pages Financial Management: PepsiCo and Coca-Cola 2009 Annual Reports BUS 500 Instructor: Gary Shelton December 7, 2010 Abstract In this paper I will use the information obtained from the PepsiCo and Coca-Cola 2009 annual reports to determine financial information about these companies. I will answer questions about the companies assets and liabilities, profits, and if they can satisfy stockholders. What conclusions can you make

The Coca-Cola Company And Pepsico Pension Plans

1000 words - 4 pages which could make or break a hiring deal for some perspective employees. Conclusion After completing the comparative analysis between The Coca-Cola Company and PepsiCo, it has been clear to see the similarities and differences in the pension plan and other offered benefits. Being able to view the full disclosure and layout of the annual reports is beneficial to investors, employees, and other interested parties. The

Related Essays

Study Case Analysis Pepsico (In Portuguese)

1626 words - 7 pages dividing net income by EPS listed in case Exhibit 1. The resulting total number of shares was multiplied by cash dividends per share. The total cash dividend figure was then multiplied by revenue contribution for business segment. 4Revenue contribution calculated by dividing business segment revenues by total revenues. Table 4 Operating Profit Margins by Pepsico Business Segment, 2004 - 2007

Pepsico Essay

2020 words - 9 pages rationale for this prediction. Pepsico future financial performances can be predicted based on the analysis of its last three years financial statements. Even though most of Pepsico ratios are lower than the industry average ( except from return on asset) , its ratios’ trend is gradually in the rise. This means that the company could have a bright future. Now let have a look at three financial ratios trend for the past three year .in order to

Pepsico In Mexico Business Analysis

2944 words - 12 pages Pepsico in Mexico Business Analysis 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

Pepsico Research Proposal Essay

3894 words - 16 pages them. Outliers will be removed and the systematic method will ensure the participants are randomly selected for the study. 5 RECOMMENDATIONS Based on the results of the survey, PepsiCo will be able to choose between keep pursuing the current strategy or changing it in order to enhance the perception of its drinks as healthy drinks. In case a change is recommended, the company will also be able to infer from the results of the survey what