Report About Analysis Management Pepsico Vietnam

Topics: Strategic management, Strategic planning, Value chain Pages: 8 (2301 words) Published: April 15, 2013
Strategic management is mainly about drawing a whole ‘road map’ for company’s managers to navigate their business activities and making a ‘game plan’ to play with other partners and rivals. This paper tries to locate several strategies which were actually crafted and executed at PepsiCo to persuade suitable and proficient competences, as well as results from deploying these strategies in real activities.

In 1898, the American pharmacist, Caleb Bradham, invented the formula of carbonated drink which was assigned name as Pepsi-Cola. And the well-known PepsiCo Inc. was founded in 1965 by the combination of Pepsi-Cola and Frito-Lay. (Thompson, Strickland & Gamble 2008, p. C-274)

In general, a strategic vision describes the developing direction and company’s portrait in the future. Therefore, strategic vision is mainly focused on solving the matter of “where we are going”. While a company’s mission usually exposes the business and purpose of company at present. So, a typical mission statement is generally satisfied three questions about “who we are, what we do, and why we are here.” (Thompson et al 2008, pp. 20-24)

Moreover, managers at many companies might use the core values to represent the company’s portrait through numerous conducts such as trusts, attitudes and ethical behaviors. In other words, these core values take the important part of DNA to company. (Thompson et al 2008, pp. 27-28) Besides, company’s activities must be aimed on specific targets through setting the financial objectives and strategic objectives. These objectives will help company to realize the strategic vision into bona fide results. (Thompson et al 2008, p. 31)

According to the information published on Website, the PepsiCo mission was stated as follow: “To be the world's premier consumer products Company focused on convenient foods and beverages. We seek to produce healthy 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.” (PepsiCo 2008)

It easily finds that PepsiCo mission has excellently covered the above discussing matters. In addition, the mission also clearly defined that all company’s efforts are targeted to developing chances for everybody with a guideline of truthfulness.

‘Our commitment is to deliver sustained growth, through empowered people, acting with responsibility and building trust.’ was core value declaring by the PepsiCo managers (PepsiCo 2008). We definitely notice with the PepsiCo statement of value which is reflected the company strategic vision. Once again, the managers cleverly declared PepsiCo core values, as well as pointed out the main characteristics pursuing by company’s personnel.

And for the year 2008, PepsiCo is expecting the steady performance with long-term objectives ‘To achieve business and financial success while leaving a positive imprint on society’ as well as the financial targets such: the growth of 3% to 5% in revenue, less than 10% of goods cost inflation, and earnings per share at least $3.72 (PepsiCo 2008). Therefore, we also see that PepsiCo objectives for 2008 are involved both strategic and financial targets, including the emerging issue of inflation. These measurable outcomes will help PepsiCo simply to monitor and control the company’s performances.

During operation, companies always are influenced by serious of factors from both internal and external environments. Consequently, these movements directly affect on company’s strategies to adapt with frequent changes of working environments (Thompson et al 2008, p. 50). Figure 4.1 illustrates the five-forces model of competition which PepsiCo has confronted with actual facts. Figure 4.1 The Five-Forces Model...
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