1.0 INTRODUCTION PEPSICO.
2.0 STRATEGIC PLAN & FOCUS
3.0 CRITICAL PROBLEM SCENARIO
4.0 SALES GROWTH
6.0 ALTERNATIVE EVALUATION
7.0 STRATEGIC DECISION
8.0 CRITICAL PROBLEM & DECISION ANALYSIS
9.0 STRATEGIC ACTION PLANS TO ADDRESS THE PROBLEM
1.0 INTRODUCTION: PEPSICO.
PepsiCo is a global food and beverage leader with net revenues of more than $65 billion. PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist and quickly became a popular drink with some 300 bottlers by the start of World War I. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. PepsiCo is organized using three strategic business units of PepsiCo Americas Foods, PepsiCo Americas Beverages, and PepsiCo International.
2.0 STRATEGIC PLAN AND FOCUS
Corporate Mission: PEPSICO.
“Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity”. Proposed of Corporate Mission: PepsiCo.
Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages through stores as well as our official website. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.
Corporate Vision: PEPSICO.
"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today." Proposed of Corporate Vision: PepsiCo.
PepsiCo’s, to be a No.1 Food and Beverage Company in the world with offers a wide variety of products from beverages to snacks at low cost and green environment. Strategic Issues Identified for PepsiCo.
a) PepsiCo’s international businesses were much less profitable with lower profit margin than North America operation. b) PepsiCo’s higher management developed a new organizational structure to address this issue. c) Downturn of PepsiCo’s International shares prices.
Major strategic decision for PepsiCo.
a) How to improve overall profitability of PepsiCo’s international business? b) How to reverse the downturn of PepsiCo’s international business stock prices? General Alternatives for PepsiCo.
a) Restructure PepsiCo lineup snack and beverage business with re-organization of PepsiCo’s international business into three main divisions which is PepsiCo Americans Foods division, PepsiCo Americas Beverages division and PepsiCo International Division. b) Corporate Strategy changes:
i. Reprioritization of internal uses of cash.
ii. New acquisitions.
iii. Further efforts to capture strategic fits existing between company various businesses. If above alternatives strategy could help PepsiCo management to improve overall profitability and reverse the downturn in the stock price that began in 2009, PepsiCo should precede with those strategies. If not, PepsiCo should come out with new strategy. 3.0 CRITICAL PROBLEM SCENARIO
Critical Problem| Current...