Diversification Strategies

DIVERSIFICATION STRATEGIES 1

Diversification Strategies

Tracey Hall

Dr. Wade Ferguson

Contemporary Business - BUS 508

April 29, 2012

DIVERSIFICATION STRATEGIES 2
Compare and contrast two businesses – core business, their size, financials, global presence, use of e-business (marketing, sales, etc.)

Compare and contrast their outcomes (one successful, one unsuccessful).

In 1965, PepsiCo was founded by Donald Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman Lay, Chairman and Chief Executive Officer of Frito-Lay, by merging both companies. Pepsi-Cola was created in the 1890s by Caleb Bradham and since has acquired Frito-Lay (created 1932) and Lay’s potato chips (created in 1938). By 2009, PepsiCo has diversified into snacks, beverages, and other products; Pepsi has owned Pizza Hut, Taco Bell, KFC, Chevys Fresh Mex, California Pizza Kitchen while continuing to merge with businesses like Tropicana Products and Quaker Oats Company. As of 2009, the PepsiCo product mix consistent of 63 percent foods and 37 percent beverages. Nineteen of PepsiCo’s brands exceed $1 billion in sales: Lay’s, 7-Up, Doritos, Lipton Teas, Ruffles, Cheetos and Sierra Mist (Pepsi, 2011). Globally, PepsiCo is committed to “Performance with Purpose”, their conduct embodying the significance of their employees around the world with mission statements in 42 languages.
PepsiCo has divided itself into four major divisions around the world including PepsiCo Americas Beverages, Americas Foods, PepsiCo Europe and PepsiCo Asia, Middle East & Africa providing products in over 200 countries. The company has positioned itself as a food and beverage conglomerate with revenues of more than $60 billion annually while employing over 285,000 employees worldwide (PepsiCo, 2011). Currently, PepsiCo is launching their first global marketing campaign, “Live for Now,” which will catapult the company to the pop-culture forefront. The company is hoping to link the... [continues]

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