Pepsico In class discussion

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Mohawk College *

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10193

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Economics

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Jun 26, 2024

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Uploaded by LieutenantKouprey3377

Case: PEPSICO Date: 28-06-2023 Student Name: Manjinder Kaur 1) Main management questions (dilemma to be solved)  The major management question is Whether PepsiCo's new operations, especially the acquisitions of smaller food and beverage companies that are focused on healthier goods, will be able to revive the company's development, which has slowed since 2011.  Due to issues with its overseas business units and reasons including decreased demand for carbonated soft drinks, the company's revenue growth has been declining. 2) Analysis of the situation (Qualitative/Quantitative) Qualitative  PepsiCo offers a qualitatively diverse portfolio of snack and beverage brands, emphasizing product innovation, close ties with distribution partners, and global expansion.  In recent years, the company has grown because of the introduction of new goods that answer consumer concerns about their health and wellness. The Performance with Purpose strategy of PepsiCo also places a strong emphasis on community support, worker safety, and environmental sustainability. Quantitative  The financial summary for PepsiCo between 2013 and 2017 indicates a fluctuating net revenue, operating profit, and net income.  The company's revenue growth has slowed down since 2011, and it now relies on strategic "tuck-in" acquisitions of top brands in the healthier food categories. 3) Alternatives PepsiCo can continue to spend on R&D to introduce new goods that serve health-conscious consumers.  Maintain the focus on new product innovation and acquisitions in healthier food categories.  PepsiCo can come up with plans to deal with the difficulties that its global business units encounter. To increase its footprint and get around growth obstacles, this may entail market-specific efforts, localization of products, or partnerships with regional businesses.  PepsiCo may think about expanding beyond snacks and beverages and exploring new market niches. This can entail diversifying into markets like functional foods, plant-based goods, or other recent food and beverage sector developments.

4) Decision criteria  Assess the alternative solutions' development potential and their capacity to improve PepsiCo's financial performance.  Potential for revenue and profitability growth.  Changing consumer tastes and trends, such as the increased emphasis on healthier products.  Consider PepsiCo's ability to stand out from the competition and have a dominant market position within the selected alternative.  Allocating resources according to feasibility: Consider the resources, skills, and dangers or problems that may be involved in putting the different alternatives into practice. 5) Alternative recommended and why  Concentrating on the development of new products and acquisitions in the healthier food categories.  It is consistent with PepsiCo's recent success in launching new products that address consumer concerns about their health and wellness, which has aided in the company's expansion.  PepsiCo can benefit from the rising demand for such goods and get back on its growth trajectory by making investments in R&D and buying smaller businesses that are devoted to healthier options. 6) Action plan  Research and development: Allocate funds to the development of fresh items that follow consumer trends in health and wellbeing.  This could entail funding innovation hubs, collaborations with academic institutions, and consumer insights research.  Identify and assess possible candidates for strategic acquisitions in the healthy foods and beverages market. Class Note: - I spoke two times in class.

1. PepsiCo is considered one of the leading brands in the food and beverages market all over the world. 2. PepsiCo generated billions of dollars in revenue in 2022 by offering complementary snack options like Doritos, Cheetos, Fritos, and Lays. 3. The story behind the Pepsi logo and colors red, blue, and white is that it shows patriotism to the US Army during the Second World War. 4. Pepsi was initially called Brad’s drink because it was developed by Caleb D. Bradham in 1893 who was a pharmacist. 5. PepsiCo faced a dramatic downfall in its sales because of consumers’ taste preferences as people were shifting towards healthier options instead of carbonated drinks. 6. PepsiCo introduced diversification of products by providing more healthier options to its consumers like Aquafina, Tropicana, Quaker Oats, Gatorade, and bubbly sparkling water. 7. Coca-Cola is considered the biggest rival of PepsiCo. To compete with its rival, Pepsi came up with a revolutionary strategy to test which is better. They started the PepsiCo challenge by inviting people to do a blind test and the results of this test were shocking because most people prefer Pepsi to Coke. 8. Pepsi also used different advertising campaigns to reach its target customers through digital advertising, Tv commercials, and radio channels. 9. The reason why Pepsi is so successful is that it strives for honesty, fairness, and integrity. 10.PepsiCo started a great initiative of “Pepsi+Positive” (PepsiCoPositive). Its vision is to help protect the environment from the damaging effects of producing goods and to reduce water consumption, produce less garbage and use recycling methods to reuse the packaging.

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