PepsiCo has an integrated approach to the 10 strategic decisions of operations management (OM). Disclaimer: This work has been submitted by a university student. Successfully Navigating The Global Economic Crisis. Maintaining Its Commitment To Sustainable Growth. Pepsi can serve the 90% market but problem is the bottling of the drink. Background ?Established in 1965 PepsiCo created in 1965 through the merger of Pepsi-Cola and Frito-Lay ? In fact, PepsiCo has witnessed a decrease in soft drink sales recently. Broadening Its Diverse Portfolio of Global Products. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on PepsiCo. Coca-Cola, the major competitor of Pepsi has been exiled from the desert kingdom. PepsiCo, a well-greased corporation worth $18.2 Billion, is no stranger to stretching the truth, healthwashing its junk food, and greenwashing its environmental destruction. Free Essays on Strategic Issues Pepsico . The food and beverage industry experiences a variety of threats. Pepsi has won the International Quality Award and Bottlers of the year Award, so the company feels quite optimistic. The international ventures are subject to the Government stability and businesses are subjected to different taxation policies in each consumer country. PepsiCo is a well-recognized beverage brand across the globe. Segmentation is the important strategy which helps the brand in targeting the specific group of customers with differentiated offerings.Pepsi is the mass market product which uses undifferentiated targeting strategies in order to be competitive and increase its sales.In the non-alcoholic beverag… “Our strategy is very clear on this. ¬„;w„_Wíæ#‚àD4Ó ÏuwœúˆŽÈG΍V5¦ñUÎ oˆHä†;à:ŸàÁ=?¸J‚b!0yö§0DˆN¥°é8øËIŸŒ‰2°?_GoPHIبmº˜+\%¢¾±>‹ªd0o3 Specifically, by forming a strategic alliance with Starbucks – a global coffee house chain, PepsiCo has been able to claim its share from increasing energy drink market segment. These figures can also be interpreted as weak PepsiCo presence in these strategic markets, a situation that needs to be addressed by senior level management in a timely and effective manner. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! PepsiCo owns and markets some of the most recognizable global brands, including Pepsi, Tropicana, Gatorade, Mountain Dew, Aquafina, Lay’s, Doritos, Cheetos and many other popular brands. Heavy investmentment in risky innovations may be suggested in order to transfer resources from other brands. The tough competition is carried out through packaging as well as price. Source: Self-generated from Yahoo finance (2013). Along with that, PepsiCo needs to face the problem of immense competition due to innovation. PepsiCo has grown to become a global number one brand, and this is due to its unique marketing methods and strategic planning. PepsiCo has competitive advantage in terms of worldwide distribution & the company is able to produce all its products in the country where they are consumed. Initial tests showed that the high level of automation provided on location allows PepsiCo to service 7.5 times more units an hour than a traditional e-commerce warehouse operation. 1223 words (5 pages) Essay. PEPSICO’S STRATEGIC SITUATION IN 2014 For the most part, PepsiCo’s strategies seemed to be firing on all cylinders in 2014. Possible substitutes that continuously put pressure on Pepsi include tea, coffee, juices, milk, and hot chocolate. PepsiCo, the food and beverage behemoth with $63 billion in annual revenues, is best known for their carbonated soft drinks.But consumers’ … PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which included an acquisition of Tropicana Products in 1998 and the Quaker Oats Company in 2001, which added the Gatorade brand to its portfolio. Reference this. Revenue distribution in international markets. Expanding in International … 2. The organisation has been able to lower its operating cost as a result of which, the financial performance of PepsiCo has been improved. PepsiCo’s values are the reflection of their stand on social and environmental issues, and what the company wants to be known for. Its external issues consist of its products as reaching maturity stage industry… PepsiCo comprises several food and drink brands, many of which have been making the same product for decades. Global strategies of Pepsi. This is not an example of the work produced by our Essay Writing Service. One such case involves the legal battle between Pepsico … The folllowing sample essay on Pepsico Case Study Strategic Management discusses it in detail, offering basic facts and pros and cons associated with it. Such priorities include efforts to protect and advance our business and strategic goals, which are embodied as part PepsiCo's Performance with Purpose mission. It implies that for the company to continue performing excellently in the global market, operation management department must always be alert and committed to realizing the company's goals. Pepsi is subject to the lifestyle changes, so it bases her advertising campaigns in people with special lifestyle. Coca-Cola vs. Pepsi's Business Models: An Overview . Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. Pepsi should use all media vehicles to attract consumers. It becomes trickier when so many of their products are bought overseas. 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