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pepsico strategic management

Its global presence is one major strength of the brand. For example, Pepsi entered into a 7-year championship level partnership with the Tampa Bay Lightning and AMALIE Arena. Their products such as Lay’s potato chips and Pepsi soda are not necessarily growing and if anything the market is starting to lean to healthier options. Disadvantages: The customers may already be loyal to the current brand. Invest more in multi-channel advertisement and promotion. Using recycled pack shows Pepsi’s responsibility to society, helping to build a good public image. The results of such research are used to determine future directions of PepsiCo’s products, such as future variants of Pepsi. Disadvantages: The intensive competition will make Pepsi hard to let customers change the habit to buy their products. On the other hand, following the global trend, PepsiCo should emphasize environmentally friendly products and promote the healthy factor of their products. Pepsi should develop a good relationship with the younger generation. Timeline: 1898: Pharmacist Caleb Bradham from New Bern, North Carolina changes the name of his carbonated soft drink from Brad’s Drink to Pepsi-Cola. Press Release: The U.S. The global soda industry is being affected by several factors and various kinds of forces in the 21st century. However, to be global and successful in a highly competitive industry environment requires focus on several things. During the recent years, the brand has innovated its product portfolio further and added more nutritious and healthy products in snacks as well as beverages categories. PepsiCo also uses product-related games to attract web users’ attention. (2016, Dec 11). According to the beverage digest report for 2017, value growth in each category was as follows: and RTD coffees/dairy-based and other (+11.7%). He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907. Logistical supremacy is a major strength for Pepsi. No problem! Strong marketing capabilities – Pepsico is also known for great marketing and its strong marketing capabilities. This strategic decision area has the objective of optimizing quality based on business and consumer expectations. ‘Banner year’ for US spirits sales in 2017. Have an advertising campaign that captures the younger generation and makes them lifelong customers. The company earned US$63.525 billion in 2017, second only to Nestlé S.A. PepsiCo was able to achieve this via strengthening its product portfolio and offering as many different beverages and foods as possible. Ian Cook. Verdaasdonk, P., & Wouters, M. (2001). Advantages: Creating a good public image and adding different products can attract customers with more choices. Other juice and health drink products including local and international brands also compete with the products of Pepsi. Disadvantages: Intensive competition in which the public schools and students may already be loyal to the current brand. This strategic decision area focuses on operations management practices that optimize the supply chain to match demand for materials and intermediary products. The DSD (Direct Store Delivery) system employed by Pepsi’s independent bottlers and distributors delivers, beverages, food and snacks to the retail stores. Disney SWOT analysis 2019 | SWOT Analysis of Disney, Amul SWOT Analysis 2019| SWOT Analysis of Amul. Apart from it there are rules related to labor also which they must follow. The recession saw a decline in the level of employment worldwide and due to that a, The legal factors are affecting the growth of businesses more strongly, Pepsi brings its products to the market primarily through. Should be administered monthly, at the minimum, Departments will establish reasonable, but challenging goals to be met each quarter. Human – Hire 300 more employees to staff new non-carbonated drink product lines. PepsiCo’s brand portfolio is highly diversified. Leading brands of tequila in the United States in 2016, based on volume sales (in 1,000 9 liter cases). Our business strategy and affairs are overseen by our board of directors comprised of one executive director and 12 independent directors. Purchasing online is easy and convenient. Advantages: It is a good way to increase market share in an intensively competitive market. Sponsor either a global sporting event, or any event that is popular among the younger generation, Technical – Invest $8 million on developing new health-conscious product lines i.e. 44 to 1. In case of Pepsi, the brand has recently focused on revising its strategy to suit the fast changing market dynamics. Advantages: New products widen the Pepsi’s market shares and competition with other brands’ snack. Having a life contract with Yum! Employee surveys, suggestion box, and providing incentives or rewards for beneficial or cost-saving ideas from employees, Monthly meetings with upper-level management to ensure that employees have an understanding of Pepsi Co.’s objectives, and also allows for managers to address employee concerns and questions. PepsiCo decided to go against the wise men by putting its eggs in one basket – food and beverages. Advantages: The method of expanding the target market is not only focusing on young customers but also on different age groups. Close 4 plants of which production is lower and the cost is higher in comparison with other plants, and open 3 new plants before 2014 in growing markets where there is growing sales in the last 5 years. Clearly, we missed the mark, and we apologize. The Coca-Cola Company, DPSG, Mondelēz International, Monster Beverage Corporation, Hansen Natural Corporation, National Beverage Corp., Kraft Foods Group, The Kellogg Company, ConAgra Foods., Nestlé S.A., Snyder’s-Lance and other beverage, food and snack companies. Another major capability of Pepsi is its pricing strategy. New competitors entering the global beverage market Some new companies share the beverage market. There are several factors that may try to hinder growth and their nature may vary from market to market. To find faster growth, it has focused on digitisation, commerce and sustainability. PepsiCo’s human resource management addresses this strategic decision area through a combination of global corporate HR practices and divisional HR practices. Business & Management; PepsiCo Inc Strategic Plan; 2. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. PepsiCo has an integrated approach to the 10 strategic decisions of operations management (OM). This can also have a potential negative impact on business and growth of Pepsi. your own paper. Advantages: Increase the sales of drinks in developing countries. They need to improve their responsiveness and future projections to market trends and changes that can therefore allude to different product segments and target markets. 6. Several brands in its portfolio are million dollar brands that generate more than a billion each year in revenue. Products manufactured and sold in North America include Lay’s and Ruffles brand potato chips, Doritos and Tostitos brand tortilla chips, Cheetos brand cheese-flavored snacks, Fritos brand corn chips, a variety of branded dips and salsas and Rold Gold brand pretzels. Multiple goal operations management planning and decision making in a quality control department. Digital Transformation at Walmart: A case study. Get Your Custom Essay on, By clicking “Write my paper”, you agree to our, Topic: Pepsi Strategic Management Case Study, https://graduateway.com/pepsi-strategic-management-case-study/, Get your custom 3. It exploits its dominance to nurture favorable relationships with retailers gaining significant and easily accessible shelf space. ” In 1902, he launched the Pepsi-Cola Company and applied to the U. S. Patent Office for a trademark. Available at: https://www.market, Arizton (2018). (2008). Disadvantages: The returns of the new products are uncertain and maybe not acceptable to the customers. This a major weakness, particularly in the current health-conscious consumer markets. Brand portfolio by world’s largest food and beverage companies, Source: The respective companies’ official websites and financial reports [1][2][3][4][5]. Closing six plants in 2008 In 2008 some $543 million was charged to the net income in conjunction with the “Productivity for Growth” program, which included closing six plants, upgrading the product portfolio, and creating a more streamlined organizational structure.”. 9. All the content of this paper consists of his personal thoughts on Pepsico Case Study Strategic Management and his way of presenting arguments and should be used only as a possible source of ideas and arguments. Low-fat and no-fat versions of several brands are also manufactured and sold in North America. About O.N.E. 11. Its buss spread over several regions worldwide. Sociocultural factors too have kept growing in importance in the 21st century. Unfavorable currency change of dollar, impacting oversea markets PepsiCo has a large amount of oversea transactions. In Berkeley, Soda Tax Is Doing What It's Supposed To Do. While there are two main significant players in the industry including Coca Cola and Pepsi, the competition between the two for market share has always remained very fierce. 05, respectively. PESTEL is an acronym for political, economic, social, technological,environmental and legal. In this way, PepsiCo optimizes response times to fluctuations in demand. Get Your Custom Essay on Pepsico Case Study Strategic Management Just from $13,9/Page, We will write a custom essay sample on Pepsico Case Study Strategic Management specifically for you FOR ONLY $16.38 $13.9/page. Apart from that it is investing in advanced technology in its supply chain and production system. Growth through acquisitions: The brand can also find faster growth by acquiring related brands which could also help it venture into new areas. However, to be global and successful in a highly competitive industry environment requires focus on several things. Marketing is a special focus area because of the growing competition in the soda industry. Effective Supply Chain Management: In the current highly globalized marketplace, businesses operate in different markets across the world to attain cost-efficiency, which can be challenging without an effective supply chain management. His interest and studies in strategic management turned into SM Insight project, the No.1 source on the subject online. Best Global Brand – According to Forbes 2019 ranking, PepsiCo is ranked # 29 most valuable brand with a brand value of $18.8 Billion. If PepsiCo failed to make the contract with the top 20 universities for food supply in 2 years, it should check the advantage of its competitors and do more research and development to provide university higher quality and lower prices to increase its market share. Corporate Strategy: Horizontal Integration. Be the prevailing leader in contracts with sporting arenas and universities. New products can penetrate the market easily Because of the high loyalty of PepsiCo’s customers, the new products, like non-carbonated drinks, can easily be accepted by the target market. Executive Vice President, General Counsel and Corporate Secretary. Available at: http://www.nestle.com/, The Coca-Cola Company (2018). For example, the company operates supply chain hubs for each regional market. Available at: http://www.bakeryandsnacks, Bird, B. For example, PepsiCo has an HR policy and job design process for Frito-Lay, and separate HR policy and job design process for Quaker Foods. Sustain or improve brand equity scores for PepsiCo’s 19 billion-dollar brands in the top 10 markets It is described in PepsiCo 10K 2010. "You must agree to out terms of services and privacy policy", Don't use plagiarized sources. Available at: https://www.pepsico, Starbucks (2018). PepsiCo provides superior services for its customers. In 2017, Pepsico’s net organic revenue grew by higher than 2%. PepsiCo should expand into markets and market segments that they are currently not in, such as Asia, India, and South America, It will expand their market share at the global level and to increase their overall revenue.

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