Pepsico Case Study Questions

Topics: PepsiCo, United States, Strategic management, Indra Nooyi / Pages: 2 (377 words) / Published: Jul 23rd, 2011
What is PepsiCo’s corporate strategy? Power of one which attempted to achieve synergistic benefits of a combined Pepsi-Cola and Frito Lay - this called for placing the two products side-by-side on shelves in the markets.

Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments—PepsiCo Beverages North America, Frito Lay North America, PepsiCo International, and Quaker Foods North America.
Strategy is key to product innovation, close relationships with distribution allies, international expansion and strategic acquisitions. Also product reformulations to make snack foods and beverages less unhealthy. Development of good for you and better for you products which created growth opportunities form the intersection of business and public interest.

What is your assessment of the long-term attractiveness of the industries represented in PepsiCo’s business portfolio?
PepsiCo’s business portfolio seems extensive and expansive enough to allow for a profitable future and growth – soft drinks, fast foods and snack foods are products that will continue to be purchased. Additionally, they continually seek additional acquisitions.

What is your assessment of the competitive strength of PepsiCo’s different business units? Because of their power of one strategy, placing products side by side, they have innovation summits where retailers can share views on eating habits, etc which helps them to develop new products. They partner with others and build lasting relationships for success.

What does a 9-cell industry attractiveness/competitive strength matrix displaying PepsiCo’s business units look like?

Does PepsiCo’s portfolio exhibit good strategic fit? What value-chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see?

Does PepsiCo’s portfolio exhibit good resource fit? What are the cash flow characteristics of each of PepsiCo’s four segments? Which

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