Pepsi Co Strategic Management Essay Example

brands including Walkers brand snack foods in the United Kingdom Smith's brand snack foods in Australia Sabritas brand snack foods as well as Alegro and Gamesa brand sweet snacks in Mexico.

PepsiCo's management team aims to gain strategic fit benefits across the value chain in global channels by introducing various American snack brands including Lay's, Ruffles, Doritos, Tostitos, Fritos, and Cheetos into international markets such as Mexico, the UK, Brazil, Spain, the Netherlands, Australia and South Africa.

Primary activities:

• Supply Chain management
  • Combined corporate-wide procurement of product ingredients upon the acquisition of Quacker Oats
• Producing / Manufacturing
  • Share marketed research information to better enable each division to develop new products likely to be hits with consumers
  • consolidated its purchasing to reduce costs, and manufactured similar products in common facilities whenever possible
  • Maximize unutilized resources Packaging
  • Combined corporate-wide procurement of packaging materials upon the acquisition of Quacker Oats
• Distribution and retailing
  • Join distribution
    

of Quacker snacks and Frito-Lay to reduce their distribution expenses

Support Activities:

• Human resource management
  • PepsiCo respects individual differences in culture, ethnicity and color.

PepiCo is dedicated to ensuring equal opportunities for both employees and job seekers. They have a corporate initiative for training employees on how to work and manage in an inclusive environment. Additionally, Pepsi has a successful history of advertising their products internationally. If another line of business within PepsiCo wants to advertise in other countries, they can learn from the advertising techniques already implemented by Pepsi and access necessary information about the country. PepiCo's strengths lie in its broad but focused product line and outstanding brand reputation. Their key strategies include product innovation, close relationships with distributors, international expansion, and strategic acquisitions, making them the market leader in their industry.

sales from convenience food and 26% from liquid refreshments. Despite having $15 billion in projected free cash flow from 2007 to 2009, the company has been slow to enter the international bottled water market and relies heavily on Frito-Lay North America for over half of its profits. However, there are opportunities in the noncarbonated beverage market worth $70 billion with high per capita snack consumption and an increase in health-conscious consumers. There are also threats such as FTC's prohibition on bundled beverages contracts with retailers and industry maturity. To boost sales, PepsiCo could use exclusivity agreements more frequently but may face challenges in keeping costs low. They should also become more proactive in responding to market trends and changes while attracting different product segments and target markets within the health food/product marketplace.

If Pepsi Co is able to obtain a significant market share of the healthy eating market, there is potential for generous profits as this demographic continues to grow. To further expand, Pepsi should focus on social benefits in developing nations, similar to Coca Cola's water purification program which introduced their brand in an unfamiliar market. By implementing food products and water purification with this same ideology, Pepsi could significantly increase brand recognition. Additionally, capturing more of the aging population's market share could also be beneficial. Although Pepsi primarily targets younger markets, there is still potential to break into the Baby boomer demographic which represents a sizable market.

PepsiCo ought to broaden its reach by venturing into untapped markets and market segments, which include Asia, India, and South America. This move will not only increase their market share worldwide but also boost their revenue. The

company should also address its employee relations to encourage global advocacy for the brand via word-of-mouth marketing.