Preview

Pepsi Case Study

Good Essays
Open Document
Open Document
499 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pepsi Case Study
1. Select a specific company of your choice. Read about this company and its current position. Based on your study, identify some of the important macro environmental opportunities and threats for this company.

Solution: Pepsi Co:
Revenuue- $ 60 Billion
No. of employees:2,85,000approx
Opportunities
* Broadening of Product Base - PepsiCo is seeking to address one of its potential weaknesses; dependency on US markets by acquiring Russia’s leading Juice Company, Lebedyansky, and V Wwater in the United Kingdom. It continues to broaden its product base by introducing TrueNorth Nut Snacks and increasing its Lipton Tea venture with Unilever. These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers. * International Expansion - PepsiCo is in the midst of making a $1, 000 million investment in China, and a $500 million investment in India. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales. In addition the company plans on major capital initiatives in Brazil and Mexico. * Growing Savory Snack and Bottled Water market in US - PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million by 2012. Products such as Aquafina, and Propel are well established products and in a position to ride the upward crest.PepsiCo products such as, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, Fritos corn chips, Ruffles potato chips, Sun Chips multigrain snacks, Rold Gold pretzels, Santitas are also benefiting from a growing savory snack market which is projected to grow as much as 27% by 2013, representing an increase of $28 million.
Threats
* Decline in Carbonated Drink Sales - Soft drink sales are projected to decline by as much as 2.7% by 2012, down $ 63,459 million in value. PepsiCo is in the process of diversification, but is likely to feel the impact of the

You May Also Find These Documents Helpful

  • Better Essays

    Fin/370 Pepsico Essay

    • 1555 Words
    • 7 Pages

    Pepsi like many companies needs to grow to continue to make money. This is a broad statement and works the same for every business operating in any market. Pepsi has recognized this need and has come up with a few initiatives to make this happen. Pepsi decided that the best way to make their company stronger was to build up their current brands and make their distribution practices more streamline and economic. Pepsi has dedicated more than $500 million dollars for this purpose and plans to continue to report positive growth because of this initiative. The plan is to increase the marketing in North America and make the already iconic beverages more of a household name. The thinking behind this is that if the products are in the consumers face, they will be more likely to purchase the products Pepsi offers ensuring positive growth for the shareholders. Although Pepsi has decided to back the most known brands, Pepsi will still continue to bring new snacks and beverages to the market because different factors affect the consumption of the already strong branded products. Because upper level management knows that consumer wants and tastes play a large role in how the public buys snacks, Pepsi has committed to make changes to respond to customer wants and changing tastes in different areas.…

    • 1555 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Globalization is defined as the process of increasing the connectivity and interdependence of the world’s market and businesses. PepsiCo’s global expansion has resulted in maximizing its growth potential while achieving geographic diversity. Although its products and logos are recognized across the globe, due to cultural differences, certain flavors are only available in certain countries. For example, in Russia, Frito Lay makes a red-caviar flavor potato chip; a biscuit with wheat and lentils as the main ingredient is only available in India; and PepsiCo manufactures beverages in China that contain Chinese medicinal herbs.…

    • 1893 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    IFE AND EFE OF PEPSICO

    • 2112 Words
    • 7 Pages

    Moreover, PepsiCo as the biggest part of the market share after Coca-Cola is another strength that the company has. It gives the company a comparative advantage in the…

    • 2112 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    PepsiCo presently has operations in more than 200 countries worldwide, which makes it the third largest food manufacturing company of the world. PepsiCo believes that, being innovative helped them to expand globally, as they develop their businesses and grow their position country by country.…

    • 286 Words
    • 1 Page
    Satisfactory Essays
  • Best Essays

    Having said that, there is still a point where price is not the issue but taste. Some people swear by the taste in this loyal brand market. These two corporations have concentrated on cultivating brand management through applicable advertising, marketing campaigns. According to Bloomberg BusinessWeek, “Coca-Cola remains the best globally recognized brand across all industries for ages, while PepsiCo’s brand ranked number 26 in year 2008.” PepsiCo has been able differentiate itself from competitors by tapping into other markets like chips and healthy alternative foods. While PepsiCo is known for their soda, their expansion is clear in showing there is a need for other things being non-soda. The time for vitality comes with diversification because there are true signs of a shift in consumption. The decrease in soda consumption raises PepsiCo. has positioned it to continue to remain profitable for its shareholders.…

    • 1756 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Pepsi Blue Case Study

    • 1512 Words
    • 7 Pages

    During the 1990s, PepsiCo launched new products and engineered a global re-branding campaign in an effort to grow sales volume; reinvigorate their stagnant brand; and to close the increasingly large sales and market share gap between itself and its primary competitor, Coca-Cola. In 1993, Pepsi jump-started its marketing efforts by adding two brands to its portfolio: Crystal Pepsi and Pepsi Max. Crystal Pepsi, which was initially offered in the United States, failed to earn the company more than 2 percent volume share. Pepsi Max, which was launched in the United Kingdom, proved more successful, but because one of its primary ingredients was an artificial sweetener not yet approved by the Food and Drug Administration, it wasn't brought to market in the United States.…

    • 1512 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Elasticity of Pepsi

    • 1472 Words
    • 6 Pages

    PepsiCo is the second largest food and beverage industry in the world. “PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than $98 billion” (Pepsico, 2008). The company recorded revenues of $39,474 million during the fiscal year of 2007 and $35,137 million during the fiscal year of 2006. This increase in revenue is credited from the strong growth in volume and…

    • 1472 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Coca-Cola, PepsiCo, and other beverage companies were intent on expanding the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in more and more emerging international markets.…

    • 3089 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    It seems that thus far PepsiCo’strategy is a success; however they still have some opportunities…

    • 275 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Capstone on Pepsi

    • 2232 Words
    • 9 Pages

    Capstone Project on PepsiCo 1. Analyze the company’s mission and vision statements against the performance of the organization. Then, evaluate how well the company lives out its mission and vision statement. Provide support from the organization’s performance in your evaluation. PepsiCo mission statement is to be the world 's premier consumer products company focused on convenient foods and beverages. They seek to produce financial rewards to investors as they provide opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate. And in everything they do, they strive for honesty, fairness and integrity. Their vision statement is, "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." Their performance for 2010 lives up to their statements. On a constant currency basis, the net revenue grew 33 percent; core division operating profit rose 23 percent and core earnings per share grew 12 percent. In addition, management operating cash flow reached $6.9 billion, up 23 percent, which excluded certain items; $8 billion was returned to their shareholders through share repurchases/dividends; and they raised the annual dividend by 7 percent. In 2010 they stepped up their investments in brand building, research and development, emerging markets infrastructure and their people. Brand building - they have a total of 19 brands; up from just 11 in 2000. Some of the brands include: Pepsi-Cola brands, Frito-Lay brands, Gatorade brands, Tropicana brands, and Quaker brands. Research and development – they increased investments in sweetener technologies, next-generation processing and packaging and nutrition products. Emerging markets infrastructure - they increased selling and delivery systems by putting more coolers in the market and adding route and distribution capacity ahead of growth in India, China,…

    • 2232 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    • Coca-Cola, PepsiCo, and other beverage companies were intent on expanding the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in more and more emerging international markets.…

    • 1038 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Cola Wars Case Study

    • 2026 Words
    • 9 Pages

    Pepsi is a good business to work for and invest in because it strengths outweighs it weaknesses. And if the company takes advantage of the opportunities it has will keep them as a front runner in the industry. The threats will be a minor aspect to the business success. Having brand name recognition helps to promote the quality of the product and its focus on youth will help continue to build it customer base. Following through on the opportunity to invest in the suggested international markets will eliminate the location weakness of Pepsi and keep the company on track with its pursuit of a young population. A review and…

    • 2026 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Pepsi Co.

    • 1097 Words
    • 5 Pages

    I believe that one of PepsiCo’s biggest competitors is the Coca-Cola company, speaking purely on beverages. Even in my own personal experiences I have found myself having to choose between Pepsi and Coke (for what I deem to be their most popular soft-drinks). But, PepsiCo has various products from foods to beverages and the Coca Cola company only offers beverages. One of the things PepsiCo tells on their website is that they reinvest money back into their own new products and the company also invests in building the brands that the corporation already produces ("Overview" ).…

    • 1097 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Cola Wars

    • 483 Words
    • 2 Pages

    Coca-Cola and Pepsi-Cola have long competed for market share of the world’s beverage market. As the cola wars continued into the twenty-first century, Coke and Pepsi faced new challenges: Could they boost flagging domestic cola sales? Where could they find new revenue streams? Was their era of sustained growth and profitability coming to a close, or was this apparent slowdown just another blip in the course of Coke’s and Pepsi’s enviable performance? The soft drink industry has remained profitable for several reasons. Entry into the market is difficult due to franchise agreements with Bottler’s, limited access to distribution, high brand loyalty, and extensive amount of advertising and marketing spending required. Substitutes have not been close enough to take away significant market share from Coke and Pepsi.…

    • 483 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Case #2

    • 1199 Words
    • 5 Pages

    • Coca-Cola, PepsiCo, and other beverage companies were intent on expanding the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in more and more emerging international markets.…

    • 1199 Words
    • 5 Pages
    Powerful Essays

Related Topics