Planeamiento Estrategico Tasa

PepsiCo – 2005

Henry Beam: Western Michigan University

Forest David: Francis Marion University

A. Case Abstract

This is a comprehensive strategic management case that includes the company’s financial statements, organization chart, competitor information, and industry trends. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company.

Founded in 1898 and headquartered in Purchase, New York, PepsiCo, Inc., is a global snack and beverage company. It manufactures, markets, and sells carbonated and noncarbonated beverages, as well as various salty, sweet, and grain-based snacks and food products worldwide. Its beverage product suite includes beverage concentrates, fountain syrups, and finished goods under various brands such as Pepsi, Mountain Dew, Gatorade, Tropicana Pure Premium, Sierra Mist, Mug, Tropicana Juice Drinks, Propel, SoBe, Slice, Dole, Tropicana Twister, and Tropicana Season’s Best. PepsiCo also manufactures, markets, and sells ready-to-drink tea and coffee products through joint ventures with Lipton and Starbucks. PepsiCo’s snack product suite includes Lay’s potato chips, Doritos flavored tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, Fritos corn chips, Ruffles potato chips, Rold Gold pretzels, Sunchips multigrain snacks, Munchies snack mix, Grandma’s cookies, Quaker oats corn and rice snacks, and Cracker Jack candy coated popcorn.

PepsiCo licenses the Aquafina water brand to its bottlers and markets this brand. PepsiCo offers cereals, rice, pasta, and other products, including Crunch and Life ready-to-eat cereals, Rice-A-Roni, Pasta Roni, and easy side dishes. The company distributes its products through direct store delivery, broker warehouse, and food service and vending distribution networks to its customers, including franchise bottlers, distributors, and retailers.

B. Vision Statement (proposed)

To become the leading producer and marketer of food and beverage products in the

world.

C. Mission Statement (actual)

To be the world’s premier consumer products company focused on convenient foods and beverages to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, business partners, and the communities in which we operate. And in everything we do, we strive for honesty, fairness, and integrity.

(Proposed)

To be the world’s (3) premier consumer products company focused on convenient foods and beverages (2). We strive for healthy financial rewards to investors (5) as we provide opportunities for growth and enrichment to our employees (9), business partners, and the communities (8) in which we operate. We have outstanding technological (4) and marketing (7) systems to continually innovate and create differentiated products for our customers (1) worldwide. And in everything we do, we strive for honesty, fairness, and integrity (6).

1. Customer

2. Products or services

3. Markets

4. Technology

5. Concern for survival, profitability, growth

6. Philosophy

7. Self-concept

8. Concern for public image

9. Concern for employees

D. External Audit

Opportunities

1. ‘Generation Y’ consumers are known for their Pepsi brand loyalty.

2. Companies such as Cadbury Schweppes can be purchased relatively cheaply.

3. Health-minded public.

4. Reach teenagers through Pepsi Zone in malls and shopping centers.

5. Easier to do business globally now than ever before.

6. Powerful go to market.

7. Different cultures enjoy drinks with less sugar than Americans.

Threats

1. One production facility and four distribution centers affected in Louisiana from Hurricane Katrina.

2. Celebrities’ actions and public behavior.

3. A deteriorating economy.

4. Intense rivalry by new firms entering.

5. Coca-Cola has largest share market.

6. Losing KFC, Pizza Hut, and Taco Bell acquisitions.

7. Anti-American views by the Middle East (Mecca and Zam Zam Colas).

CPM – Competitive Profile Matrix

PepsiCo Coca-Cola Cadbury Schweppes

Critical Success Factors Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score

Market Share

Product Quality

Customer Service

Organizational Structure

Price Competitiveness

Financial Position

Customer Loyalty

Global Expansion

Advertising

Social Responsibility

Quality of management

Size of product line .10

.09

.02

.09

.09

.10

.08

.12

.09

.08

.05

.09 3

3

2

3

3

3

4

4

4

2

3

4 .30

.27

.04

.27

.27

.30

.32

.48

.36

.16

.15

.36 4

4

2

3

3

4

4

4

4

4

4

4 .40

.36

.04

.36

.27

.40

.40

.48

.36

.32

.20

.36 2

3

1

3

3

3

2

2

1

3

2

3 .20

.27

.02

.27

27

.30

.20

.24

.09

.27

.10

.27

Total 1.00 2.71 3.87 2.35

External Factor Evaluation (EFE) Matrix

Critical Success Factors Weight Rating Weighted Score

Opportunities

1. Retaining ‘Generation Y’ consumers. 0.10 3 0.30

2. Companies such as Cadbury Schwappes can be purchased relatively cheaply. 0.06 4 0.24

3. Health-minded public. 0.08 3 0.24

4. Reach teenagers through Pepsi Zone in malls and shopping centers. 0.08 2 0.16

5. Easier to do business globally now than ever before. 0.08 3 0.24

6. Powerful go to market. 0.03 1 0.03

7. Different cultures enjoy drinks with less sugar than Americans. 0.05 3 0.15

Threats

1. One production facility and four distribution centers affected in Louisiana from Hurricane Katrina. 0.04 2 0.08

2. Celebrities’

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