Task

Case on PepsiCo 2009

Course Name: Strategic Management

Course Code: MBA 689.2

Submitted To:
Mohammad Wahidul Islam

Lecturer

School of Business Administration

East Delta University

Submitted By :

Yeasir Kader

ID: 201001306

Date Of Submission: 20.06.2020

 Internal Analysis
1. Resources:
There are two types of resources. These are:
 Tangible
 Intangible

a) Tangible: In 1965 the PepsiCo company formed. The company distribute their
products over the 200 more countries.
 Financial resources: It works in cooperation by several countries
government. Generate finances capacity could be increase $31.37 billion
rubles from juice artisan of Ukraine..
 Physical resources: In India the PepsiCo get manufacturing plants in
different three location . The PepsiCo has owned 17 plants under the 37
bottling plants.
 Technological resources: This company has best developing technological
resources. It has hydrogen injected truck for delivery flat in Canada.
b) Intangible:
 Human Resources: The company helping their employs with financial or
non-financial activates for challenging task to perform. The company retain
their workers loyal and satisfied to their institution.
 Innovation resources: In 2002 The company innovate beverage food and
division. After the Kraft the PepsiCo has 101 innovation since to then.
 Reputational resources: The company has a good reputation on the beverage
industry. The customer like it because of its taste. The virtue of this goods is
generally high.

2. Capabilities:
The company’s portfolio include 15 brands that each generate $1 billion in annual retail
sales. The company have over the 200 countries 1,37,000 employees. The company
generates $39 billion in revenues from the bottling system and other partners. From the
north America 35% of the revenues come. In worldwide the company has 700
manufacturing facilities. They have 2100 distributions and 7000 routes. It enjoys greater
than 30% market share in many countries. While 61% of PepsiCo’s salty snack revenues
come from North America, Latin America contributes 18% of revenues, Europe/Africa
contributes 17%, and Asia contributes 4%.

3. Distinctive competencies:
The companies most competitor is coca cola. For the create strong position on the market
the company innovate too many products. Such as,
  Pepsi-Cola
 Gatorade
 Quaker
 Frito Lay
 Tropicana.

4. Competitive advantage:
 Global presence: The company distribute their products over the 200
countries. So, they have large networks and suppliers.
 Pricing strategy: It is the most important for the advantage. This price is
most affordable for customer. Affordable price make more revenues and
make more customer over the world.
 Brand Loyalty: PepsiCo is the name of brand which is famous world
over the world because of the customer. Its pricing , packaging and
marketing make customer more loyalty.

External analysis
Porters Five Model:

1. Rivalry Among Existing Opponents :

 Coca cola is the high diversification opponent.
 The market had controlled by few strong companies.
 Now the first opponent is Coca cola and the it’s bargain a wide
extent of beverage goods under its brand.

2. Bargaining Power of Buyers :

 In the market, there are much alternative goods; so, customer has massive difference
of product.
 In the market of beverage is rate sensory for customer, as association fail to charge lofty
value from there are option of product.
 The client be able turn to other goods. in the same market there are many same kind of drink.

3. Threat of Substitute :
 I many kinds of energy drink and soda are in the market there.
 in the same mart much companies provide same goods.
 PepsiCo have more competitors in the mart.
4. Threats of New Entrants :
 In the beverage industry there is already too many various number of company. So, there is
low threats for new entrants.
Big part of the market share of company own by few big multinational company .
 Some company demand to go into this market because of high initial cost.
5. Bargaining Power of Suppliers :
 There are a peck of suppliers attainable in the mart, depend on raw materials.
 As like PepsiCo, any supplier does not try to lose big client.

Analysis of Industry Life Cycle:

1. Growth:
Now a days, PepsiCo company day by day growing up. The company develop on their
too many sector. These are:
 They improve their financial situation. Their net profit in 2008 was $5 billion.
 They develop their quality management system.
 They improve their self-knowledge and motion.
 They updated their technology day by day.
 Increase their customer satisfaction.
 The company produce too many new products for customer.
 Enhance competitive advantage.
 Improve employees training system.

PESTEL Analysis:
6 factors of the PESTAL analysis which apply on the business. The factors are:

• Political
• Economic
• Social
• Technological
• Legal
• Environmental
1. Political Factors:
These elements of PESTAL analysis is effect by the governmental action on companies.
PepsiCo political factors:

 In main economies political durability (benefits)

 Raised two or more government fellowship (benefit)
 Government start versus carbonated drinks (impedance)

2. Economic Factors:
Economic is directly link to the PepsiCo performance. The factors of the economic are:

 Economic durability of mass main markets (benefits)

 Rapid increase of developing economies (benefits)
 The Chinese economy is slowdown. (impedance)

3. Social Factors:
Socio cultural trend followed by many PepsiCo consumer. The socio cultural factors are:

 Health consciousness is higher (impedance & benefits)

 Rising engaged lifestyles (benefits)
 Over biased behavior as regards goods virtue (benefits)

4. Technological Factors:
The technological external factors are given bellow:

 Decent R&D sending in the beverage and food industry (benefits)

 Growing wisdom management methods. (benefits)
 Rising automation in business. (benefits)

5. Environmental factors:
Environmental factors are:

 Lofty navel on business to maintain at a certain rate of level. (benefits)

 Over depth hope and grade on dissipation adjustment. (benefits)
 Climate switch. (impedance & benefits)

6. Legal Factors:

The legal external factors are:

  Rule on GMO ingredients. (benefits)
 Goods and health surely rule. (benefits)
 Medium defeat of regulatory switch. (benefits)

SWOT Analysis
Strengths:
 2nd biggest beverage & food business in the earth depend over net income:
 Second largest food & beverage business in the world based on net revenue:
Different office of soft drinks, juices, , snacks and other chips has qualify Pepsi Co
capture 52% of worldwide sales beverages and 48% of snack worldwide sales.

 worldwide entity: More than two hundred countries the products are sold, and this turn in
annual net income of $43 billion.
 Brand awareness: In the food and beverages industry PepsiCo get founded itself as
a potent sign and via invasive marketing get held a docile client ground.
 Excellent Operational skill and outgiving ability: greatest in category outgiving methods
received in every country, assembly the supreme requirements.

Weakness:
 Big share of carbonated soft drinks have Coca cola company.
 Vassalage on big retailers: Big retailers such as Wal-Mart recoup a big % of Pepsi sales.
 Dependence: PepsiCo, disparate Coca Cola not be worth maximum of the bottling.
 Strong workers union
 Product recall damage the image.

Opportunities:

 Spread of goods lines: PepsiCo be bring in maximum goods. For rise mart share.
 Access into maximum rising states: PepsiCo be able ready money in on the rising
economy in particular rising states by accessing which mart and spread the PepsiCo
supply chain.
 Achieve more bottling companies: Pepsi can achieve bottling companies. For achieve
huge control more bottling.

Threats:

 Non-Carbonated Substitutes (The Mango Season)

 Mature of beverage artistry
 Fake & Imitators Products.
 Rival plan
 Potent opposition With Coca Cola
 Good Operational efficiency and distribution capability: Best in class distribution systems
.

 Global presence: The products are sold in more than two hundred countries, and this
resultsin annual net revenues of forty three billion dollars .
Beneficial Harmful
Internal Strength Weakness
 2nd biggest F&B business.  large opposition with
 Worldwide appearance. coca cola.
 sign image.  Vassalage on big
 Excellent operational skill retailers.
 Potent workers society.
 Image harm involved by
goods recall.
External Opportunities Threats
 Spread of goods lines.  Emulation
 Get into over developing  Hostile economic
country. situation.
 Achieving maximum bottling  Commerce integration
companies.  Change in lawful and
regulatory conditions.
 Harm to fame.