PepsiCo. Strategic Initiative Paper Learning Team C FIN/370 April 22, 2013 Tony Moses Strategic and financial planning are some of the most important aspects involved with running a successful organization. The process of strategic planning involves identifying company strategies for success, directions needed, and necessary decisions to be made. Financial planning involves estimating company capital and determining our competition. For this paper, we will discuss the strategic planning at Pepsi-Cola, with the initiative on building and expanding our nutritional business within the organization.
What strategies stand out the most for PepsiCo success? How did the PepsiCo benefit from the Pepsi challenge and was it successful for PepsiCo? How has PepsiCo maintain being the best company in today’s economy? PepsiCo History In 1898 Caleb D. Bradham, hoping to duplicate the recent success of Coca-Cola, creates a sweet cola, carbonated beverage which we now know and love is Pepsi-Cola. The 1902 Pepsi –Cola Company went incorporated.
They have maintained a strong market share that currently rests at 35.2% (Reference 2) for total volume of beer in Canada. One of their key factors to success has been the creative marketing campaign that appeals to, and promotes the Canadian lifestyle. This marketing has helped build their brand positioning within the saturated alcoholic beverage market. Most recently Molson Coors has acquired The Crispin
1) Development of SWOT Strengths: * Global exposure: Procter and Gamble has wide global exposure. Its product are sold in 180 countries through wide-ranging distribution channels including mass merchandisers and grocery stores ; * Powerful collection of well-known brands. * Massive world-wide distribution network. * Diversified product portfolio ; * Strong brand portfolio ; * Impressive and historically successful R&D efforts. * P&G brands have a high recall, high visibility du to excellent marketing and advertising ; * Possesses the size and financial strength to successfully take on large acquisitions and support long-term corporate change.
Many of the brands that the two companies have are intended to be direct competition of each other. The chart below gives a better view: Pepsi | Coke | Pepsi | Coca-Cola | Diet Pepsi / Pepsi Light Pepsi ONE Pepsi Max | Diet Coke / Coca-Cola Light Coca-Cola Zero | Sierra Mist | Sprite | Mountain Dew Kas Izze | Mello Yello Vault Fresca | Tropicana Dole | Minute Maid Fruitopia Simply Orange | Gatorade Propel | Powerade Aquarius Vitamin Water | AMP | Full Throttle NOS, Monster | The chart gives an illustration of how when one company introduces a new sports drink, or a new tea line the other competitor does the same thing as well but with a different name for the product. The way that Pepsi making their stamp in the market is to continue coming out with brands those customers may like and that’s in line with Coke. Pepsi wants to stay ahead and also wants to continue to make and gain revenue from their product. Pepsi wants to expand their growth and to take advantage of potential opportunities, they will be able to do this my expanding their
Although that sounds corny it is nice to know that they think past the concept or making money. PepsiCo’s mission is “to be the world's premier consumer products company focused on convenient foods and beverages.” (http://www.pepsico.com). Although in PepsiCo’s vision statement they mention something about improving the world, they prove that they are all business in their mission statement. Coca-Cola demonstrates that making the world a better place is part of their mission in their mission statement. The Coca-Cola Company offers a wide variety of drinks like: Sprite, Fanta, Dr. Pepper, Minute-Maid, and PowerAde just to name a few.
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. Based on the findings of the BSDA's 2009 UK Soft Drinks Report, Jill Ardagh, Director General of the British Soft Drinks Association said:" Consumers are loyal to the drinks they know and trust but remain open to innovative products and brand extensions which meet their ever-evolving needs". Mountain Dew’s strengths are as follows: being a Part of the most internationally recognized company Pepsi Co. Increases the reputation of the
The Committee believes that our executive compensation programs have met their objectives. PepsiCo has been able to attract and retain the executive talent necessary to support a corporation with a long-term history of strong sales growth and superior shareholder returns. Specific Compensation Programs PepsiCo's executive compensation mix includes a base salary, annual cash bonus awards, and long-term incentive compensation in the form of performance units and stock options. Overall, these programs are intended to be
This portfolio restructuring initiative was geared to acquire powerful and emerging brands which would bolster PepsiCo’s profits and dominance within the market. The company during this period acquired major brands such as Tropicana, Cracker Jack, SoBe teas, Quaker Oats, etc. This restructuring enabled the company to record annual increases in revenues by 7% and net income of 12% for the period 1998 - 2007. This lead the company in 2007 to devise strategies aimed at sustaining and improving this favorable performance and to combat challenges such as low international profit, changing consumer preference, value chain efficiency and fierce competition. SWOT Analysis Strengths 1.)
SWOT is an acronym for Strengths; Weaknesses; Opportunities; and Threats. The Strength and Weaknesses are within the organization; whereas the Opportunities and Threats are beyond the organization in the external environment. Coca cola SWOT Strengths: Coca Cola is the world’s largest beverage company, and it is an extremely recognizable company. Thus, popularity is one of its strengths. To build up its image constantly, Coca cola would like to keep up with social media and technology to engage customers.