Pepsi Co Strategic Management Essays

Pepsi Co Strategic Management Essays Pepsi Co Strategic Management Paper Pepsi Co Strategic Management Paper Background ?Established in 1965 PepsiCo created in 1965 through the merger of Pepsi-Cola and Frito-Lay ? In 1997, publicly traded company to focus PepsiCo on food and beverages. ?The world’s largest snack and beverage company in 2006 In 2006, PepsiCo has approximately $35billion net revenue ?The company is broken into four business divisions: ?Frito-lay North America Frito-Lay North America manufactures, markets, sells and distributes salty and sweet snacks. Products manufactured and sold in North America include Lay’s and Ruffles brand potato chips, Doritos and Tostitos brand tortilla chips, Cheetos brand cheese-flavored snacks, Fritos brand corn chips, a variety of branded dips and salsas and Rold Gold brand pretzels. Low-fat and no-fat versions of several brands are also manufactured and sold in North America. ?PepsiCo Beverages North America Pepsi-Cola North America manufactures concentrates of brand Pepsi, Mountain Dew, Mug, Slice, Fruitworks, Sierra Mist and other brands for sale to franchised bottlers. PCNA also sells syrups to national fountain accounts. PCNA markets and promotes its brands. PCNA also manufactures, markets and distributes ready-to-drink tea and coffee products through joint ventures with Lipton and Starbucks and licenses the processing, distribution and sale of Aquafina bottled water. In addition, PCNA manufactures and sells Dole juice drinks for distribution and sale by Pepsi-Cola bottlers. ?PepsiCo International Pepsi-Cola International manufactures concentrates of brand Pepsi, 7UP, Mirinda, KAS, Mountain Dew and other brands internationally for sale to franchised bottlers and company-owned bottlers. PCI operates bottling plants and distribution facilities in various international markets for the production, distribution and sale of company-owned and licensed brands. PCI markets and promotes its brands internationally. Principal international markets include Mexico, China, Saudi Arabia, India, Argentina, Thailand, the United Kingdom, Spain, the Philippines and Brazil. ?Quaker Foods North America Frito-Lay International manufactures, markets, sells and distributes salty and sweet snacks. Products include Walkers brand snack foods in the United Kingdom, Smith’s brand snack foods in Australia, Sabritas brand snack foods and Alegro and Gamesa brand sweet snacks in Mexico. Many of our U. S. brands have been introduced internationally such as Lay’s and Ruffles brand potato chips, Doritos and Tostitos brand tortilla chips, Fritos brand corn chips and Cheetos brand cheese-flavored snacks. Principal international snack markets include Mexico, the United Kingdom, Brazil, Spain, the Netherlands, Australia and South Africa. International Channel Value Chain PepsiCo’s management team was decided to capturing strategic fit benefits within the business line-up throughout the value chain. Primary activities : Supply Chain management oCombined corporate-wide procurement of product ingredients upon the acquisition of Quacker Oats Producing / Manufacturing oShare marketed research information to better enable each division to develop new products likely to be hits with consumers, consolidated its purchasing to reduce costs, and manufactured similar products in common facilities whenever possible. oMaximize unutilized resources Packaging oCombined corporate-wide procurement of packaging materials upon the acquisition of Quacker Oats Distribution and retailing oJoin distribution of Quacker snacks and Frito-Lay to reduce their distribution expenses oPower of One retailer alliance strategy to increase consumers tendency to purchase more than one product offered by PepsiCo during a store visit. Sales and marketing oConsolidated sales and mar keting functions of similar products to eliminate duplication of effort and to present one face to customers. Support Activities : Human resource management PepsiCo respects individual differences in culture, ethnicity and color. PepsiCo is committed to equal opportunity for all employees and applicants. oCorporate program for training employees how to work and manage in an inclusive environment Advertising oPepsi already had experiences in advertising their products internationally. If the other line business of PepsiCo wants to do advertising in some countries, they could learn and implement the advertising technique that already implemented by Pepsi and they also already have necessary information about the country. Diversification Strategy Financial Analysis SWOT Analysis Strengths Broader but focused product line and outstanding brand reputation Key strategies: products innovation, close relationships with distribute allies, international expansion, strategic acquisitions Market leader for U. S. convenience food (21%) and liquid refreshments (26%) Capturing strategic fit benefits within the business lineup throughout the value chain Lack of capital constraints (High availability of FCF, projected as $15 billion between 2007-2009) Weaknesses Slow move into international bottled water market Unequally distributed international sales of Quaker Oats Products (75% of international sales was accounted for by just six countries) A large dependency on one business division in generating profits (Over 50 percent of the companys profits come from Frito-Lay North America) Opportunities Promising international foods and beverages markets o$70 billion market for noncarbonated beverages in international mar ket oHigh per capita consumption of snacks The increase of health conscious consumers Threats FTC’s 10-year prohibition on bundled beverages (Gatorade and PepsiCo soft drink products) contracts with retailers The maturity of Food and Beverages industry Conclusion ?Increase the use of exclusivity agreements to boost their sales in key markets. This may make it harder to keep costs low but will ensure added revenues. ?Continue to expand with their â€Å"Human Sustainability†. PepsiCo should become more proactive in the health food/product marketplace rather than being reactive to the market trends. They need to improve their responsiveness and future projections to market trends and changes that can therefore allude to different product segments and target markets. The healthy eating market is a demographic that will continue to grow in the future, and will provide generous profits if Pepsi Co is able to obtain a large market share. ?Expand more into social benefits, especially for those in developing nations. Pepsi’s main competitor Coca Cola has implemented a water purification program for African Villages, which provides a valuable need and at the same time introducing their brand name where it was before unknown. If Pepsi followed this same ideology with food products and water purification it too would significantly increase brand recognition ? Capture more of the aging population’s market share. Pepsi is a company focused on a younger market hoping to repeat the worldwide success of Coca Cola in regards to brand loyalty with the generations born after 1980; however, there is still a large market with the Baby boomer demographic that they could break into. PepsiCo should expand into markets and market segments that they are currently not in, such as Asia, India, and South America, It will expand their market share at the global level and to increase their overall revenue. ?PepsiCo should improve their employee relations. It will create employees all over the world to promote the product both during their work day and in their personal life in order to create â€Å"word of mouth marketing†.

Benefits of Participating in High School Debate

Benefits of Participating in High School Debate In schools across the world, debate teams are valued for training students in public speaking, grace under pressure, and critical thinking. Student debaters have several advantages, whether they choose to join debate teams on campus or if they debate as members of a political club. Debating provides practice in developing sound and logical arguments.Debate gives students an opportunity to practice speaking in front of an audience and thinking on their feet.Students participating in debate show initiative and leadership.The research debaters perform expands their minds and increases their understanding of multiple sides of important issues.Students hone their research skills in preparing for debates. What Is a Debate? Essentially, a debate is an argument with rules. Debating rules vary from one competition to another, and there are several possible debate formats. Debates can involve single-member teams or teams that include several students. In a standard debate, two teams are presented  with a resolution or topic, and each team has a set period of time to prepare an argument. Students typically dont know their debate subjects ahead of time. However, participants are encouraged to read about current events and controversial issues to prepare for debates. This can give teams special strengths in certain topic areas. The goal is to come up with a good argument in a short amount of time. At a debate, one team argues in favor (pro) and the other argues in opposition (con). In some debate formats, each team member speaks, and in others, the team selects one member to speak for the entire team. A judge or a panel of judges assigns points based on the strength of the arguments and the professionalism of the teams. One team is usually declared the winner, and that team advances to a new round. A school team can compete in local, regional, and national tournaments. A typical debate format includes: Teams are advised of the topic and take positions (pro and con).Teams discuss their topics and come up with statements expressing their position.Teams deliver their statements and offer the main points.Teams discuss the oppositions argument and come up with rebuttals.Teams deliver their rebuttals.Teams make their closing statements. Each of these sessions is timed. For instance, teams may have only three minutes to come up with their rebuttal. Interested students without a team at their school can look into starting a debate team or club. Many colleges also offer summer programs that teach debating skills. Lessons Learned Through Debate Knowing how to synthesize information and deliver it to an audience succinctly- even an audience of one- is a skill that benefits people throughout their lives. Debate skills can come in handy when interviewing for jobs, networking for career advancement, conducting meetings, and giving presentations. These soft skills can help in most careers because debate students learn the art of persuasion. Outside of the working world, having good communication skills is useful in activities as ordinary as meeting new people or as special as making a wedding toast in front of a crowd, as debate helps people learn composure and confidence when speaking with others.