November 29th 2011
Table of Contents
External Environment: Industry Analysis (Dess and Lumpkin, 2003; Porter, 1980)10
Five Forces Analysis11
External Environment: Strategic Group (Major Competitors)12
Kraft-Food Company, Inc.13
Evaluation of the Balanced Scoreboard13
Evaluation of RBV14
Problem Statement #117
Problem Statement #218
Problem Statement #318
Alternative Solutions (Strategies)19
Alternative Solution #119
Alternative Solution #220
Alternative Solution #320
APPENDIX A – SWOT ANALYSIS27
Appendix B - GRAND STRATegy MATRIX (David, 2005)28
APPENDIX C - FINANCIAL RATIOS29
APPENDIX D - RESOURCE-BASED VIEW OF THE FIRM31
Appendix e - balanced scorecard32
PEPSICO is an American multination corporation headquartered in Purchase, New York. It is one of the largest corporations in beverages and foods industry all over the globe. They are majoring in manufacturing, marketing and distribution grain-based snacks, as well as carbonated and non-carbonated beverages. The company has 19 product lines and each one generates over $1 billion in annual sales. Some popular subsidiaries are from PepsiCo such as Pepsi, Diet Pepsi, Gatorade, Lay and Tropicana. They employ about 285,000 people and its CEO is Indra Nooyi. This paper focuses on generating an overview of company operation and how the managers control it. Because PepsiCo is a large corporation so we cannot cover all materials in the company. We tried to interpret which are the best values that we can research and how we can deliver to readers a big picture of PepsiCo precisely and coherently. We focus mainly on 2010 fiscal year and also spread on the first decade of twentieth two century. We specify how Pepsi involved in beverages and food industry, how other fierce rivals such as Coca-Cola or Dr. Pepple compete with Pepsi and how PepsiCo control its business to maintain consideration as the largest beverages and food company based on net revenue in North America.
"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." Mission Statement
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. History/ Timeline
1898: Pharmacist Caleb D. Bradham begins selling a cola beverage called Pepsi-Cola. 1905: Bradham begins establishing a network of bottling franchises. 1923: Bradham's company goes bankrupt.
1928: Roy C. Megargel reorganizes the firm as the National Pepsi-Cola Company. 1931: Company again goes bankrupt and is resurrected by the president of Loft Inc., Charles G. Guth. 1933: The size of Pepsi bottles is doubled, increasing sales dramatically. 1936: Pepsi-Cola Company becomes a subsidiary of Loft.
1939: First national radio advertising of the Pepsi brand. 1941: Loft and Pepsi-Cola merge, the new firm using the name Pepsi-Cola Company. 1964: Diet Pepsi debuts; Mountain Dew is acquired from Tip Corporation. 1965: Pepsi-Cola merges with Frito-Lay to form PepsiCo, Inc., with the two predecessors becoming...