strategetic management case analysis of PepsiCo Company
Pepsi Mission and Objectives
Pepsis mission is to be the worlds prime consumer products maker with a focus on conventional foods and beverages. Further, the company seeks to produce financial rewards to its investors and to provide opportunities for growth to its employees, business partners, and the whole community, where it operates. The statement concludes that the company strives to be honest, fair, and uphold integrity in all its undertakings (Hitt, Hoskisson, Ireland, 2013).
Read also: "Academic Book Review: How to Complete It"
Pepsis objectives are to increase its market share, sales volumes, and the value of all its shareholders investments. The company seeks to meet these objectives by investing the resources available to it very wisely, controlling its costs of production and sales, and increasing the levels and values of its sales. It also seeks to offer quality and great value to the consumers of its products; the two things that the company says will determine the commercial success of its venture. Pepsi seeks to offer quality and value to its customers and consumers by offering products that are safe, wholesome, environmentally sound, and economically efficient. In addition, Pepsi seeks to provide equal employment and growth opportunities to all its employees. Finally, the company seeks to provide the highest possible return to its investors, while also adhering to the highest possible standards of integrity (Hitt, Hoskisson, Ireland, 2013).
Business and Cooperate Strategies Recommendations for Pepsi
Making a strategy entails a series of questions, such as how to attract and to keep customers, how to face competition and to increase market share, how to capitalize on the new opportunities for growth, how best to respond to the changes in economic and market conditions, and how to attain the set targets among others. Designing strategies also involves choosing between the strategic alternatives and looking for the opportunities to innovate or to do things in a different way. It is worth noting that making strategies should be a collaborative effort of managers at all levels of the management hierarchy. A corporate strategy establishes a general plan for managing a set of businesses in a diversified, multi-business company. On the other hand, it is primarily concerned with the strengthening a firms market position and building a competitive advantage in a single business or a single business unit of a diversified multi- business corporation. For Pepsi, a corporate strategy would involve coming up with a plan to meet the companys objectives, whereas a business plan would seek to meet the objectives of Pepsis individual products (Sadler, Craig, 2003).
In recognition of Pepsis competitor, Coca Colas, positioning in the market, Pepsi should position itself as a leader in quality, as outlined to provide its customers with the best quality in its objectives. This will ensure that the company wins the market that is conscious of what it consumes, a population, which has been increasing tremendously. In addition, positioning itself in this way will eat up Coca Colas customers, who believe that the soft drink is not healthy and causes obesity.
Another good strategy is focusing on niche markets. This would involve placing each of Pepsis brands into a specific market that would associate with such a product. For instance, the company should position Pepsi cola as a brand for the young and energetic people. This would ensure that the company focuses all its marketing efforts for this brand into associating the brand with the target group. Pepsi cola would, for instance, be involved with activities such as sports and music. In addition to associating it with such energetic activities, the company can associate a feeling with the brand. This strategy has been used to a great effect by Pepsis competitor, Coca Cola. All of Coca Colas individual brands are associated with a feeling. For instance, Sprite soda is associated with quenching thirst, Fanta is associated with fun or feeling good, to list just a few. This strategy would also be very effective to Pepsi, because the company is in the same industry and has a similar range of products.
Additionally, Pepsi should design a corporate strategy that positions and sells the whole company as a brand that can be trusted to fulfill its objectives. This would involve associating the company with major events and occurrences around the world. For instance, in keeping to its promise to protect the environment, the company can sponsor or associate with the global effort to stop such environmental phenomena as global warming. The company can also involve itself into other activities, such as world sports. Such a strategy would ensure that the people, who involve themselves with such events, would also most likely involve themselves with the company. This would increase the companys market share and, in addition, would promote the brand loyalty.
It is worth noting that managing the implementation and execution of a strategy is the most demanding and time-consuming task in the strategic management process. A good implementation would entail the managers making allocations and paying attention that business processes are aligned towards the strategies. In addition, the employees of a firm should be educated and be made to direct to accomplishing the desired outcomes. The task of implementation also necessitates a continuous analysis of the effectiveness and efficiency of the companys internal activities. In addition, the management should always seek for the new technological advances that help the company to improve its business processes (Jeffs, 2008).
A good market position;
Strong array of brands/strong portfolio;
High growth in both revenues and profits.
Business concentration - Pepsi has numerous and diverse brands, which make it almost impossible to concentrate on each business effectively.
Acquisitions and alliances - Pepsi has numerous opportunities to acquire or merge with emerging soft drink brands;
Opportunity for growth in bottled water market - The market for bottled water is growing rapidly in the US;
Growing Hispanic population in the US gives Pepsi an opportunity to expand its market share, especially because this population has a great affinity to consume Pepsi brands.
Slow growth in carbonated beverages;
Higher oil prices leading to the increase in production costs.