Pepsico In class discussion

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School

Mohawk College *

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10193

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Economics

Date

Jun 26, 2024

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docx

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3

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.
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