Strategic Insights of PepsiCo: SWOT Analysis and Recommendations

STRATEGY THINKING
PEPSICO
[Pick the date]
INSTITUTIONAL AFFILIATION(S)
STUDENT NAME

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SWOT ANALYSIS
Analysing organisation with the help of SWOT analysis has always assisted
management teams in giving strategic insights. Basic purpose behind making SWOT analysis
is to give a deep insight on how the company manages dealings with strategic issues to
sustain in this competitive market. Revealing strategic analysis of PepsiCo Company had
enabled understanding the strategic insights in big organisations. Since the company deals
with large number of people globally; PepsiCo has been able to maintain a diversified
portfolio in food and beverage industry (PepsiCo Inc. Success Story, 2017).
The production and distribution channels of the company have also increased its share prices
with annual growth in 5%. Despite strengths noticed there are few weaknesses also.
Discontinuation of few products in the year 1993 had affected its reputation. Following it was
another incident where few impurities like screws and bullets were found in some of its
products. Its dependency on other environmental factors in its home country, U.S adds to
company’s weakness. Strategic management of internal resources in the company has been
its biggest strength where data relating internal and external resources is being evaluated and
sorted systematically. This strategic insight shows that the company has been able to deal
with its competitors like Coco Cola and Dr Pepper Snapple with much ease and thus reducing
threats from rivalries (Young, 2017). External condition has always provided PepsiCo with
opportunities by getting a globalized recognition and support from the government.
Weakness in this area is that company has not been able to utilize its global reputation
properly as its operations are limited in fewer countries than its competitors. Wherein
PepsiCo’s biggest strength lies in its management system where company is seen making lot
of acquisitions and mergers and thus expanding its operation in a systematic way.