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Case Examination PepsiCo Answers to the concerns

 Case Examination PepsiCo Answers to the queries Essay

Paulo Nazario, Onur Saka and Juliette Clark

International Organization Policies and Strategies, Winter months Quarter 2011 11/29/11

CASE 11: PepsiCo's Diversification Technique in 08

Page one particular

1 . HISTORY

Time Country(s) Involved Key Individuals &

frame MileStones

Titles

1965- Headquarters in

Indra Krishnamurthy

2008

Obtain, New York, Nooyi, Chairman of

USA. Businesses

the Board and CEO

(2006-).

global in range.

Steven Reinemund

(CEO 2001-2006).

Roger Enrico (CEO

1996-2001).

Donald Kendall and

Herman Lay,

Founding fathers.

1965

Merger with Frito-Lay CEO of Pepsi Soda,

and engineer of

PEPSICO

Merger, Jesse

Kendal

1972s

1980s

Variation

outside snacks and

drinks

Acquisition of Pizzas

Hut, Follon Bell, APPLEBEES

1990s

Acquisition of 7UP,

Cup Root Beer,

SunChips,

Intro of

Aquafina - 1993

Wayne Colloway,

CEO (1986-1996)

Company Type & Size

PepsiCo is known as a publicly traded

firm, listed on the NYSE,

NASDAQ, and since a component from the

S& S 500. In 2010 it had 294, 000

personnel worldwide. As of

November 2011, it had a market cap

of $101. 02 billion.

" Potato chips allow you to thirsty; Pepsi

satisfies thirst. " Donald Kendall on

merger.

‘Balanced three calf stool' describes

Wayne Colloway, however , tactical

fit problems occurs

Water in bottles business starts off.

1997

Stock portfolio

Reconstruction

Roger Enrico, CEO

(1996-2001)

Due to several strategic fit concerns,

restaurant businesses have been

content spun off to create Tricon, later on Yum!

Brands.

2001

Purchase of

Quaker Oat

Company, Adding

Gatorade to arsenal

Steven Reinemund

(CEO 2001-2006)

FTC's bans to jointly disperse

Gatorade with Pepsi pertaining to ten years.

08

Re-Organization of

Structure

Indra Krishnamurthy

Nooyi, Chairman of

the Board and CEO

(2006-).

Three division model. Strategic

adjusting.

Page a couple of

2 . QUICK SUMMARY OF CASE SITUATION

Business or Industry Explanation

Particular Firm Situation

The situation concerns the international

In 2008, PepsiCo was the largest snack and

food and beverage market. The

drink company in the world, with a wide-ranging

situation and position of PepsiCo, in

portfolio of businesses and a spotlight on growth

addition to the evolving company

through acquisitions and creativity. However , actually

strategy. The case is important to get

a strong organization like PepsiCo deals with a number of

showing the related diversification

challenges, to mention few, low international income

strategy.

margins, product advancement, supply sequence decisions

and fierce competition.

Page several

3. ORGANIZATIONAL ANALYSIS

Organization Strengths

Organization Weaknesses

• The 'Power of One' retailer alliance

• Family member lack of achievement at

strategy meant close collaboration

internationalizing the Quaker brands.

among PepsiCo's advertising team and

• Worldwide operations a new low

suppliers, helping PepsiCo to understand

earnings, relative to ALL OF US operations.

client needs and reinforcing revenue of • Despite getting back together some ground, both Pepsi and Frito-Lay products.

PepsiCo's share from the US soft

• PepsiCo's management team is

soda market was still considerably

receptive and positive, and willing to

lower than those of its classic rival in the

restructure the corporation to achieve

sector, Coca-Cola.

even more profitability internationally.

• PepsiCo remains highly dependent on the

• The CEO, Indra Nooyi, is from India and

US market to get revenues; profitability of the

retains good ties to her home of

domestic businesses is still much larger

Chennai; she is therefore better able to

than regarding its worldwide units.

be familiar with dynamics from the important • The continuous changes in the industry’s Indian marketplace than an outsider may be.

organizational structure hints at a

• Merchandise innovation is known as a major business

possible interior weakness and instability.

power.

• PepsiCo is responsive to consumer and...

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