Strategic Management Assignment PepsiCo
Added on 2020-04-15
7 Pages1437 Words547 Views
Leadership Management
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Running head: STRATEGIC MANAGEMENTStrategic ManagementName of the StudentName of the UniversityAuthor Note
1STRATEGIC MANAGEMENT1.The PepsiCo Company was founded by Caleb Bradham in the year of 1898(Pepsico.com. 2018). The company achieves success with the strategy of merger and acquisitionstrategy(Venkataraman, Summers & Venkataraman, 2017). In simple words, the companymerged with Frito-Lay to extend its operations to foodservice business. Accordingly, it alsoacquired Pizza Hut, Taco Bell and KFC all around late 1970’s. It is however trying to become abrand that acquires and extends it business to almost in both the beverages and food industries.By extending in both the industries to broaden its target market and enter into new marketsegmentation with potentiality in growth such as offering drinks with food in KFC will increaseconsumption of Pepsi drinks. It also increased its distributors by merging with otherorganization. The company PepsiCo also focuses on the quality of its product to make itscustomer satisfy, this can be pointed as differentiation strategy.It also invested its lot of capital inthe marketing strategy to attract mass number of customers.2.The PepsiCo started in 1898 by Caleb Bradham from its beginning was flourishing withsuccess and expanding by acquiring its operation in the food, beverages and nutrition industry.The case study elaborates PepsiCo’s modern history where by acquisition and divestments thecompany has emerged out to be one of the successful and main rivals of Coca Cola Company inthe beverage industry. It also devoted its interestin food service business where it merged withKFC, Pizza Hut and Taco Bell. Later it extended its portfolio by concentrating on juice, energydrinks and bottled water brands. The company had its production on a large scale which helped itto integrate its supply chain and its distribution to increase its revenue growth. The company
2STRATEGIC MANAGEMENTfocused towards joint venture by offering beverages and snacks at a time to its consumers.PepsiCo tried to market natural products as such introducing less sugar drinks and non-coladrinks. The company went into partnership with various other companies to enter directly intothe new market. However, the health factor became a challenge for the company as most of theconsumers started avoiding carbonate drinks. In addition, the company did not have a propermarket research before marketing a product which led it to fall many a times in the marketagainst its rival. There was no such one strategy used by the company which led to facedifficulties.3.SWOT analysisStrengthEco-friendly programs: the company is focusing towards producing bottles made ofplastic of plants only and introducing climate friendly vending machines in US.Tie-ups: Hooking up with the concert and music show help PepsiCo to recall its brand inthe mind of its customers. In addition, they also sponsor music awards and events tostand with the brand and create identity distinctly.Clear target audience: PepsiCo clearly targets the youths and the young age groupthrough its ads and events, social media. Successful leadership: under the leadership of CEO IndraNooyi the company progressedand reached to success. She focused on the beverages that fulfilled the needs of thecustomers concern related to health and wellness. Anyhow, PepsiCo had managed to staysecond in the complete soft drinks and the carbonate industry.
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