Dr Pepper Snapple Group, Inc 1) How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007? The characteristic of the energy beverage category 2007 is that market was growing slow. Today market is also small and dominant by Red Bull because Red Bull was one of the first energy drinks. Being one of the first in market was huge advantage for Red Bull over competitors. Moreover, in the late 2007 the market was still growing up with variety kinds of energy beverage products.
They can do somehow a better job in making sound investments and control the marketing with their products. I see that there were some challenges from some years especially when PepsiCo and Coco-Cola were at a war to compete each other with their businesses. Coca-Cola and PepsiCo are a few years apart, but both of them are well known and have such popularity with people drinking their sodas. Coca-Cola has been trying to surpass PepsiCo in their annual sales; however, from review, PepsiCo somehow has the highest number in their annual sales than Coca-Cola. PepsiCo has shown the best current ratio and is able to pay off their debts, which Coca-Cola does not have that and is struggling to pay off their debts.
Explain why economies of scale are important to companies such as McDonald’s and GBK. Economies of scale gives big companies access to a larger market by allowing them to operate with greater geographical reach. Often, large firms in industries with high fixed costs can take advantage of savings that smaller firms cannot. Economies of scale characterizes a production process in which an increase in the scale of the firm causes a decrease in the long run average cost per unit. Economies of scale can be enjoyed by any size firm expanding its scale of operation.
Explain. Answer: The strategically relevant components of the global and U.S. beverage industry macro-environment are: Global beverage companies such as Coca Cola and PepsiCo have relied on alternative beverages to sustain in volume growth in mature markets where consumers were reducing their consumption of carbonated soft drinks. Coca-Cola, PepsiCo, and other beverage companies have made various attempts at increasing the size of the market for alternative beverages by extending existing product lines and developing altogether new products internationally. The primary concern of most producers of alternative beverages was how to best improve their competitive standing in the market place. The global beverage industry was projected to grow from $1.58 trillion in 2009 to nearly $1.78 trillion in 2014.
In the case, it was mentioned that the $20 million project generated $66 million worth of media value, despite a drop in sales linked to the increasing health consciousness of consumers which also affects Coca-Cola. However, it was Pepsi Refresh Project’s first year, it would be expected to generate the most buzz and excitement. The second year may or may not generate as much media value. Then again, would measuring “media value” this way be meaningful if it does not increase sales, nor market share? Secondly, as the project was launched in the Pepsi cola drink trademark instead as PepsiCo, it remains to be seen what positive externalities the project has brought along – i.e.
Financial ratios give you a method of putting numbers into comparable values. How could Krispy Kreme have higher profit margin than Starbucks? Their operating profit is much higher than the average limited-service restaurants, but their operating expenses are also much higher than the other comparable companies. Compared to the other quick-service restaurants, Krispy Kreme is much more liquid, but also has a lower inventory turnover. Financial ratios, especially when listed for multiple years in a row, can really expand what you are seeing on the financial statements with just a glance.
But today there is a lot of demand that made the consumer create groups on the Internet demanding to launch the product. Carbonated soft drink commonly known as "Fizzy drink" in UK, accounting more than half of the sales of the soft drink market worth £7.58bn in 2007 and representing 56.1% of the soft drink sector. There has been a decline by3.5% in the market ever since 2003 because of the upcoming trend of water, fresh juice that are healthier than the carbonated drinks. In 2008 UK soft drink market showed a total sales of £8.4 billion, 1% lower than 2007. Also showed a constant growth of minimum 6.6% in the uk soft drink market with coca cola leaving Britvic and red bull in second and third place.
Redesign ‘Rebranding Pepsi Campaign’ 1. Campaign title and time/date of the campaign: “My Pepsi, My Healthy, My Energy” Campaign, March 2012 2. Situation Analysis: PepsiCo faced waning sales due to the worsening US economy, economic slowdown, the global financial crisis, and plunging stock markets. Moreover, the company noticed that the US consumers’ preferences were shifting to cheaper and healthier drinks and that people were cutting down on their spending on beverages. April 28, 2011 (Bloomberg) -- PepsiCo Inc., the world’s largest snack-food maker, reported a 27 percent gain in first-quarter sales, bolstered by purchases in international markets.
This would be more beneficial in the end in conjunction with raising excise taxes for the consumer; because the alcohol producers will forward the taxes on to the consumer, creating yet an even pricier drink for the consumer. 2. Analyze how prescription drugs affect the demand and supply of other products and services in this country. As prescription drugs are formulated, there are many millions of dollars that go into the final chemical
Chapter one analyses Medtronic as a multinational enterprise by addressing”an initial screening of business environment including political environment, economics, culture etc. Medtronic’s competitiveness and abilities is analyzed through a combination of country specific advantages (CSAs) and firm specific advantages (FSAs) and is included in FSA/CSA Matrix and by addressing Porter’s four determinants. In chapter Two in-depth analysis of challenges and issues the company faces as well as risk management plan the company must undertake in a long run for reducing its operational risks. The last chapter is about developing a strategy for the successful operation of Medtronic as an MNE with an overview of IHRM, personal selection, training and development. Recommendations and suggestions for Medtronic on the level of involvement the company should take to increase the likelihood of long term success are included in the conclusion.