Final%20Group%20Project%20complete[1]

Final%20Group%20Project%20complete[1] - 2010 Pepsi Case...

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2010 Presented by: Denice Arcilla Anne Campbell Valarie Escalon Jennifer Layfield Catherine Myers   12/9/2010 Pepsi Case Study
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Section 1: Summary Pepsi’s history started back in 1898 when a pharmacist, Caleb Bradham, created a carbonated drink he named Pepsi-Cola in New Bern, North Carolina. PepsiCo Inc. was established in 1965 when Pepsi-Cola and Frito-Lay merged the soft drink company with the salty snack leader. In its 112 year history, PepsiCo Inc. has continued to grow, diversify and acquire different companies in the snack, fast food, and fast foods industries. Wayne Calloway, CEO between 1986 and 1996, believed “the combination of snack foods, soft drinks, and fast food offered considerable cost sharing and skills transfer opportunities and he routinely shifted managers between the company’s three divisions as part of the company’s management development efforts” ( pg C-274). This idea seems to have continued in the management styles in the company today. The company has continued to dabble in different industries over the years including more quick services restaurants, non-carbonated beverages, and fast food restaurants. In 2001, PepsiCo acquired Quaker Oats as a final strategic move in a restructuring initiative that began in 1997. Quaker Oats has the number one brand of oatmeal, leading brand of rice cakes and granola snack bars as well as many other well known brands including Rice-A- Roni, Aunt Jemima, and more. Quaker Oats most valuable product was Gatorade. In 2007, the company’s managers were mainly focused on sustaining this remarkable performance the company had seen since the restructuring had begun. New product innovations addressed growing customer focus on health and wellness and these innovations have proved to be the greatest contribution to the company’s growth in recent years. The company also plans to increase these products in markets outside of North America. Looking to the future, the Page 2 of 14
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management of PepsiCo Inc’s focus needs to be on what strategy changes are still needed to continue this phenomenal growth and how to best use its operating cash flow to further build its shareholder value. Section 2: Pepsi Co’s Corporate Strategy PepsiCo’s corporate strategy included the acquisition of a very diversified list of food and beverage companies. PepsiCo obtained the number one and number two positions in many of its diversified markets including salty and sweet snacks, soft drinks, orange juice, bottled water, ready-to-drink teas and coffees, purified and functional waters, isotonic beverages, hot and ready-to-eat breakfast cereals, grain based products, and breakfast condiments They reformulated their snack food and beverages in order to make them better-for-you and good-for-you, taking public interests and merging them into the business. They believed this innovation would create growth opportunities, which it did. Strategic fit benefits in PepsiCo’s value chain were also an important corporate strategy.
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This note was uploaded on 12/09/2010 for the course MAN 240 taught by Professor Johnjack during the Spring '10 term at Pikes Peak.

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Final%20Group%20Project%20complete[1] - 2010 Pepsi Case...

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