Strategic Management Research | Pepsi & Coca-Cola
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Added on 2020-02-05
Strategic Management Research | Pepsi & Coca-Cola
Added on 2020-02-05
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TABLE OF CONTENTSINTRODUCTION...............................................................................................................3MAIN BODY.....................................................................................................................3CONCLUSION..................................................................................................................9REFERENCES.................................................................................................................102
INTRODUCTIONStrategic Management includes various types of strategies which are used fordefining the goals and objectives by the top management with determining the internaland external environment in order to gain competitive advantage (Lubin, 2016). Forconducting the present research, food and beverage industry has been chosen. In that,two organizations are selected such as Pepsi and Coca-Cola. These two organizations areidentifiers of food and beverage industry. This report consists of several factors that haveinfluenced the company's image through its strategical decision taken by themanagement. Furthermore, both the organisations have faced strategic issues whichhave affected the company’s competitive position. MAIN BODYStrategic ManagementStrategic management can defined as a tool which is carried by the topmanagement of company to achieve better performance and accomplish their goals aswell as objectives. Strategic management also helps in enhancing the level ofcompetitive advantage which in turn leads to maximize the revenue of business. Itfurther includes a set of decisions which ensure about the future aspects of organizationsand leads to enhance the company's growth and performance (Strategic Management,2016). Top management must have complete knowledge and analysis of the competitivebusiness environment so as to take correct decisions for the company. Top managementshould conduct SWOT Analysis which describes about strengths, weaknesses,opportunities and threats. Through which, managers can make the best possible usage ofstrengths, reduce the organization’s weaknesses, ensure about developing opportunitiesin the business environment and consider threats to overcome the situation (Hill andet.al., 2014).Strategic management is applicable to both the small and large sized organizationsbecause in this competitive world, company should have some strategies which can helpthem to gain competitive advantage. It further plays a significant role in the organizationthrough which decisions are benefited to the organization (Rothaermel, 2015). It helps inmaking strategic decisions, developing business policy, formulating, implementing andevaluating various strategies etc. which help in developing major position in themarketplace as compared to their competitors. Company OverviewCompanies chosen for the present report are Pepsi and Coco -Cola which comeunder the food and beverage industry and both are famous brand for the carbonated soft3
drink. Overview of both the companies are as follows:PepsiPepsi is a carbonated soft drink which is produced and manufactured by thePepsiCo Company. PepsiCo is a multinational food, snack and beverage organizationwhich is concerned mostly about the manufacturing and marketing of products in aneffective manner. Initially, it was introduced as Pepsi– Cola which later changed to Pepsi.The original recipe of the Pepsi included sugar and vanilla (PepsiCo, 2016). The Pepsi isnamed after pepsin that is the digestive enzyme which are contained in the drinks.Effective marketing strategies of Pepsi make their brand to grow in the market and try tocompete with the other soft drink companies in the market. Marketing strategies throughwhich it sells its products include print media in which company uses different slogans,jingles etc. which help in attracting large number of customer base.Pepsi tries to target the youth through which it gains competitive advantage. Itsprice is also reasonable so this helps in influencing all the middle and upper middle classpeople to buy their products (Hitt and et.al., 2012). Segmentation for Pepsi considerspeople who are seeking for a soft drink for regular occasion and parties. Positioningstrategy of Pepsi is very powerful through which it displays its brand as an iconic youthbrand in order to attract large number of customer base and to increase its profitability.Company is also investing money in the sponsorship deals in international cricket teams.Its main strategy is to strengthen the marketing position and their promotional activities(Menon and Yao, 2014). In UK market, it has started to use a new Pepsi logo in cans sothat it differentiates from the US Pepsi can. Company is doing some charitable activitieswhich come under cause added value services through which company is gaining thepublicity as well as it is contributing in CSR activities. Coca – ColaCoca–cola is also a carbonated soft drink which is produced by The Coca–ColaCompany. This drink is often referred as Coke and in earlier times, it intended as patentmedicine which later changed into Coke. The Coca–Cola name was originated from kolanuts which is source of caffeine and coco leaves (The Coca Cola Company, 2016). Therewere many circumstances where many times Coca–Cola has opportunities to purchasethe Pepsi company but the former refuses on each occasion. This company sells theirproducts through retail stores, restaurants and vending machines. Under this name,company is also offering various types of drinks such as Diet Coke, Caffeine–free Coca-Cola, Coca-Cola Zero, Coca- Cola Cherry etc. In UK, company has introduced “share aCoke” campaign on the some Coca- cola bottles to strengthen their marketing strategies(Kapferer, 2012). This company also uses this tool to promote its products and increase4
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