Bus 4499 Case

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BUS413 Strategic Management Case 19: PepsiCo's Diversification Strategy in 2008 (page C-346) Please come to class next week (February 7, 2011) with a FORMAL outline considering the following issues related to diversification within PepsiCo. We will have class discussion on these issues and then you will turn in your outline. Total possible points are 20 (based on the completeness and professionalism in your outline). 1. What is PepsiCo's corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008. 2. What is your assessment of the competitive strength of PepsiCo's different business units? 3. What is your assessment of the long-term attractiveness of the industries represented in PepsiCo's business portfolio? 4. Does PepsiCo's portfolio exhibit good resource fit? What are the cash flow characteristics of each of PepsiCo's four segments? Which businesses are the strongest contributors to PepsiCo's free cash flow? 5. 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 to you see? 6. Based on the preceding analysis, what is your overall evaluation of PepsiCo's business portfolio in 2008? Does the portfolio provide the company's shareholders with an opportunity for above-average market returns? 7. What strategic actions should Indra Nooyi take to sustain the corporation's impressive financial and market performance? Should its free cash flows be used to fund additional share repurchase plans, pay higher dividends, make acquisitions, expand internationally, or for other purposes? What other strategic actions should be pursued by corporate level

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