Pepsi Co Strategic Management

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Background
Established in 1965
PepsiCo created in 1965 through the merger of Pepsi-Cola and Frito-Lay In 1997, publicly traded company to focus PepsiCo on food and beverages. The world’s largest snack and beverage company in 2006 In 2006, PepsiCo has approximately $35billion net revenue

The company is broken into four business divisions:
Frito-lay North America
Frito-Lay North America manufactures, markets, sells and distributes salty and sweet snacks. Products manufactured and sold in North America include Lay’s and Ruffles brand potato chips, Doritos and Tostitos brand tortilla chips, Cheetos brand cheese-flavored snacks, Fritos brand corn chips, a variety of branded dips and salsas and Rold Gold brand pretzels. Low-fat and no-fat versions of several brands are also manufactured and sold in North America. ◦PepsiCo Beverages North America

Pepsi-Cola North America manufactures concentrates of brand Pepsi, Mountain Dew, Mug, Slice, Fruitworks, Sierra Mist and other brands for sale to franchised bottlers. PCNA also sells syrups to national fountain accounts. PCNA markets and promotes its brands. PCNA also manufactures, markets and distributes ready-to-drink tea and coffee products through joint ventures with Lipton and Starbucks and licenses the processing, distribution and sale of Aquafina bottled water. In addition, PCNA manufactures and sells Dole juice drinks for distribution and sale by Pepsi-Cola bottlers. ◦PepsiCo International

Pepsi-Cola International manufactures concentrates of brand Pepsi, 7UP, Mirinda, KAS, Mountain Dew and other brands internationally for sale to franchised bottlers and company-owned bottlers. PCI operates bottling plants and distribution facilities in various international markets for the production, distribution and sale of company-owned and licensed brands. PCI markets and promotes its brands internationally. Principal international markets include Mexico, China, Saudi Arabia, India, Argentina, Thailand, the United Kingdom, Spain, the Philippines and Brazil. ◦Quaker Foods North America

Frito-Lay International manufactures, markets, sells and distributes salty and sweet snacks. Products include Walkers brand snack foods in the United Kingdom, Smith’s brand snack foods in Australia, Sabritas brand snack foods and Alegro and Gamesa brand sweet snacks in Mexico. Many of our U.S. brands have been introduced internationally such as Lay’s and Ruffles brand potato chips, Doritos and Tostitos brand tortilla chips, Fritos brand corn chips and Cheetos brand cheese-flavored snacks. Principal international snack markets include Mexico, the United Kingdom, Brazil, Spain, the Netherlands, Australia and South Africa.

International Channel

Value Chain
PepsiCo’s management team was decided to capturing strategic fit benefits within the business line-up throughout the value chain. Primary activities :
Supply Chain management
oCombined corporate-wide procurement of product ingredients upon the acquisition of Quacker Oats •Producing / Manufacturing
oShare marketed research information to better enable each division to develop new products likely to be hits with consumers, consolidated its purchasing to reduce costs, and manufactured similar products in common facilities whenever possible. oMaximize unutilized resources

Packaging
oCombined corporate-wide procurement of packaging materials upon the acquisition of Quacker Oats •Distribution and retailing
oJoin distribution of Quacker snacks and Frito-Lay to reduce their distribution expenses oPower of One retailer alliance strategy to increase consumers tendency to purchase more than one product offered by PepsiCo during a store visit. •Sales and marketing

oConsolidated sales and marketing functions of similar products to eliminate duplication of effort and to present one face to customers. Support Activities :
Human resource management
oPepsiCo respects individual differences in culture, ethnicity and...
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