Case Study on Pepsico
Introduction
This project aim is to analyze the diversification strategy of PepsiCo in 2008. PepsiCo is the largest food and beverage business in the world. The benefits of PepsiCo’s diversification strategies are identified. The business strategy is analyzed to determine its efficacy across PepsiCo’s consumer business segments and product portfolio. The value chain match ups are determined and analyzed to ascertain their relevance to the success of PepsiCo’s strategy. The competitive strengths of PepsiCo’s three structural divisions and six reporting segments are assessed and related to relevant theories and strategy tools.
Summary of the case
PepsiCo is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo is a world leader in convenient foods and beverages, with revenues of about $39.5 billion and over 142,000 employees. The company’s portfolio of businesses in 2008 included Frito-Lay salty snacks, Quaker chewy granola bars, Pepsi soft drink products, Tropicana orange juice, Lipton Brisk tea, Gatorade, Propel, SoBe, Quaker Oatmeal, Cap’n Crunch, Aquatint, Rice-A-Roni, Aunt Jemima pan cake mix, and many other regularly consumed products. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was established in 1965 through the merger of Pepsi-Cola and
This project aim is to analyze the diversification strategy of PepsiCo in 2008. PepsiCo is the largest food and beverage business in the world. The benefits of PepsiCo’s diversification strategies are identified. The business strategy is analyzed to determine its efficacy across PepsiCo’s consumer business segments and product portfolio. The value chain match ups are determined and analyzed to ascertain their relevance to the success of PepsiCo’s strategy. The competitive strengths of PepsiCo’s three structural divisions and six reporting segments are assessed and related to relevant theories and strategy tools.
Summary of the case
PepsiCo is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo is a world leader in convenient foods and beverages, with revenues of about $39.5 billion and over 142,000 employees. The company’s portfolio of businesses in 2008 included Frito-Lay salty snacks, Quaker chewy granola bars, Pepsi soft drink products, Tropicana orange juice, Lipton Brisk tea, Gatorade, Propel, SoBe, Quaker Oatmeal, Cap’n Crunch, Aquatint, Rice-A-Roni, Aunt Jemima pan cake mix, and many other regularly consumed products. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was established in 1965 through the merger of Pepsi-Cola and