PepsiCo's Strategy: SWOT Analysis and Strategic Thinking Insights

This case study provides a SWOT analysis of PepsiCo, examining the company's strategic thinking and its impact on maintaining a strong position in the competitive food and beverage industry. The analysis highlights PepsiCo's strengths, such as its diversified portfolio, effective distribution channels, and strategic management of internal resources, which have enabled it to compete effectively with rivals like Coca-Cola. Weaknesses include past product recalls and a reliance on environmental factors in the U.S. Opportunities lie in global expansion and government support, while threats include competition and limited global operational reach. The study identifies strategic insights, including portfolio diversification, mergers and acquisitions, and brand promotion, which contribute to PepsiCo's success. Desklib provides students access to similar case studies and solved assignments.

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.

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STRATEGIC INSIGHTS
SWOT analysis have always enabled management to get an insight on the external and
internal factors of the company and by revealing strengths and weakness along with
identifying threats and opportunities in them. The above analysis of PepsiCo shows that the
company has systematic strategic insight which helps company gaining its reputation. Firstly,
the expansion of the company with diversified portfolio shows that the company is trying to
make more customers by offering different products according to their tastes. This step shows
strategic insight of the company as it will not only help in fast development of PepsiCo, but
also form sound consumer relationship (Strategic analysis of Pepsi Co., 2017). Second
strategic insight revealed is that company believes in making constant mergers and
acquisitions. This is also a strategic move since globalisation and expansion to more countries
becomes easy by acquiring and merging with already set up companies. This way company
can reduce its initial set up cost along with making expansion in sorted way. Third strategic
insight of the company shows its brand promotion in different countries. This is again a
strategic insight since PepsiCo getting more popularity with brand promotion will not only
bring more customers but also give tough competition to its rivals. Although there are few
weakness revealed in the analysis where company’s operations are limited, strategic insights
of the company shows that the executives are working exclusively to become top in food and
beverage industry from second position (HirePurpose, 2017).

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References:
HirePurpose. (2017, 01 04). Sr Manager - Strategy & Insights, Transformative Innovation.
Retrieved from https://www.hirepurpose.com/jobs/sr-manager-strategy-and-insights-
transformative-innovation-109552br
PepsiCo Inc. Success Story. (2017). Retrieved from
https://successstory.com/companies/pepsico-inc
Strategic analysis of Pepsi Co. (2017). Retrieved from
https://www.ukessays.com/essays/management/strategic-analysis-of-pepsi-co.php
Young, J. (2017). PepsiCo SWOT Analysis & Recommendations. Retrieved from
http://panmore.com/pepsico-swot-analysis-recommendations