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PepsiCo – 2009
Case Notes Prepared by: Dr. Mernoush Banton
Case Author: John & Sherry Ross

A.Case Abstract

Pepsi (www.pepsico.com) is a comprehensive strategic management case that includes the company’s calendar December 31, 2008 financial statements, competitor information and more. The case time setting is the year 2009. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Purchase in the U.S. state of New York, PepsiCo is traded on the New York Stock Exchange under ticker symbol PEP.

B. Vision Statement (Actual)

“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. Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.”

Vision Statement (Proposed)

To become the leading producer and marketer of food and beverage products in the world.

C. Mission Statement (Actual)

“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.”

Mission Statement (Proposed)

To be the world’s (3) premier consumer products company focused on convenient foods and beverages (2). We strive for healthy financial rewards to investors (5) as we provide opportunities for growth and enrichment to our employees (9), business partners, and the communities (8) in which we operate. We have outstanding technological (4) and marketing (7) systems to continually innovate and create differentiated products for our customers (1) worldwide. And in everything we do, we strive for honesty, fairness, and integrity (6). 1. Customer

2. Products or services
3. Markets
4. Technology
5. Concern for survival, profitability, growth
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees

D.External Audit

CPM – Competitive Profile Matrix

|  |PepsiCo |Coca-Cola |Kraft | |Critical Success Factors |Weight |Rating |Weighted Score |Rating |Weighted Score |Rating |Weighted Score | |Market Share |0.1 |3 |0.30 |4 |0.40 |2 |0.20 | |Product Quality |0.09 |2 |0.18 |4 |0.36 |3 |0.27 | |Customer Service |0.02 |2 |0.04 |3 |0.06 |1 |0.02 | |Organizational Structure |0.09 |2 |0.18 |3 |0.27 |4 |0.36 | |Price Competitiveness |0.09 |2 |0.18 |3 |0.27 |1 |0.09 | |Financial Position |0.1 |3 |0.30 |2 |0.20 |1 |0.10 | |Customer Loyalty |0.08 |1 |0.08 |3 |0.24 |2 |0.16 | |Global Expansion |0.12 |3 |0.36 |4 |0.48 |2 |0.24 | |Advertising |0.09 |3 |0.27 |4 |0.36 |1...
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