MAN 4720-017 AND 4720-018: GLOBAL STRATEGY AND POLICY Prepared for: Professor Harry Schwartz | Applied Concepts Paper | Module D Chapter 6 – Strategy Formulation: Situation Analysis and Business StrategyChapter 7 – Strategy Formulation: Corporate StrategyChapter 8 – Strategy Formulation: Functional strategy and Strategic Choice | | LM ZXXXXXXXX | 10/25/2012 | | Table of Contents Executive Summary 3 Abstracts 4-5 Concepts 6-7 Analysis 8-10 Conclusion 10 Appendices 11-21 References 11 Articles 12-21 Executive Summary The purpose of this paper is to help me to fully understand and expand my knowledge of the concepts four in our textbook. By performing research about recent …show more content…
It also serves about 40 million customers in four continents. 5. PepsiCo and Suntory Agree to Form Strategic Beverage Alliance in Vietnam, by Pepsi Co., Published on October 22, 2012 This article discusses the strategic alliance formed by PepsiCo and Suntory Holdings Limited. This strategic alliance will help PepsiCo increase its business in Vietnam. Although both companies have both experienced success in this country, their strategic alliance will catapult both companies to new heights. PepsiCo will be in charge of marketing its strong products which include Pepsi-Cola, 7-UP, Sting, Mirinda, Tropicana Twister, Lipton and Aquafina. At the same time, Suntory will be in charge of bringing its ability to successfully meet the demands of its Asian customers. These companies have successfully worked in the past in other countries, such as, the United States, Japan, and New Zealand. PepsiCo has been able to grow in the Vietnamese market since entering it in 1994. For Suntory, it is hoping to achieve one of its long-range plans, which is to expand into Vietnam. Concepts 1. Acquisition According to Wheelen and Hunger an acquisition is a growth strategy that occurs when a company absorbs another (usually smaller) company as an operating subsidiary or division of the acquiring corporation. Acquisitions usually take place with companies of different sizes and they can be hostile or friendly. Acquisitions can also be a good way to grow
PepsiCo is a company has history, big market share and abundant assets which are other small companies do not have, so PepsiCo can use this power to do something other companies cannot do, such as continue merge and acquire organisations to expand the range of products. PepsiCo has asset to acquire and as a multinational company, it can sell the product in different countries, use the resource more efficiency.
Pepsi Co. and Coca Cola, both are very well known multinational companies. They are so famous that they perhaps don’t need any introduction since almost everyone knows basic info about these companies and their widely used products. Both of these companies have been dealing in the production of flavored waters, plain drinking water and soft drinks for decades now and have always been each other’s competitors in almost all the mainstream products they have been producing.
"IT'S Coke vs. Pepsi and United Airlines vs. Northwest in the post-embargo battle to win the hearts and wallets of the Vietnamese. These and dozens of other American name brands are sure to be welcomed, both because Vietnam is aching to end its psychological isolation and because American businesses are positioned to sell what the country wants most.
PepsiCo has been and still is one of the main contenders in the alternative drink industry. They have upset the industry by being the largest seller of beverages in the United States. The company
Strategic Alliance is the collaboration of two companies who came together to implement an idea that will benefit both parties (Strategic alliance, 2009). It is crucial that both parties understand what’s really at stake in order to make their partnership successful. In this paper, the writer took the time to analyze a partnership between Subway restaurants and Coca-Cola products. In addition, we will look at the economic benefit for each company. When dealing with businesses there is a potential for ups and downs during the operations process. The author will examine this collaboration between Subway and Coca-Cola while using Porter’s Five Forces framework including a PESTEL (Political, Economic, Social, Technological, Environmental and Legal) analysis of these two companies.
During the 1900s and the beginning of the new millennium India’s government had opened its doors wide open to foreign investors, but the Coca-Cola Corporation and PepsiCo experienced many difficult challenges. Both companies were engulfed with unexpected problems and difficult situations that led to the recognition that India’s market was very different and special knowledge, skills and local expertise was needed to be obtained if the two companies were to succeed. As Ronald McEachern, PepsiCo’s Asia chief, stated, “India is the beverage battlefield”.
When trying to expand ones business it can take a lot of time and effort to grow the company from its core not to mention how much it will cost to accomplish this goal, but there are other ways a business can grow much faster than normal. This faster method is broken up into two different types mergers and acquisitions. A merger is the combining of two or more companies, this decision is usually mutual between both firms, and it works usually by offering the stockholders of one-company securities in the acquiring company in exchange for the surrender of their stock. An acquisition is when a company buys most, if not all, of another company 's ownership stakes so that they assume control of the target company. Acquisitions are often used as
If Pepsi can gain competitive advantage in Pakistan, then why not in the world? Presentation and History:
Business acquisition is one of the most vital tools to expand an existing business effectively. An acquisition takes place when an existing company buys another company which has more or less similar operating activities and ended up controlling it. It is clearly different from merger which is the integration of a business with another and sharing the control of the combined businesses collectively. Mergers and acquisitions (M&As) have long been considered as an one of the most highly appreciated method to achieve the desired growth rate and satisfying the key stakeholders. With rapid
From the 1980s to the 90s PepsiCo had brought on many different brands such has popular Mug Root Beer, and 7-Up. PepsiCo was involved in other countries such has the United Kingdom with Walker’s Crisps, and in Mexico with cookie company Gamesa. Ready to drink teas from Lipton were brought on in 1993 along with other bottled products like Aquafina water in 1994. Their largest acquisition was Quaker Oats in 2001 for $13.9 billion. This acquisition brought many categories such as oatmeal and snack bars, but the brand that made it worth the high cost was Gatorade. In recent years they have bought a leading Russian food and beverage company for $3.8 billion. PepsiCo’s strategy of having a diverse group of brands from snack foods to high in sugar drinks have allowed them to grow with these close relationships.
An acquisition is usually “… part of a company 's growth strategy …” (Investopedia, 2014). An acquisition can either be a friendly or a hostile “take over”. In 2010, I was involved in a friendly acquisition of my employer, Isotek Corporation. When my employer was diagnosed with terminal cancer (sole owner/shareholder), he started the process of selling his business to Isabellenhütte. The sale was completed on January 5, 2010.
Social influences: - Pepsi is subject to the lifestyle changes, because of it bases its advertising campaigns in a concrete kind of people with a special lifestyle, it is for that PepsiCo has to pay a special attention on the lifestyle changes. Around the world Pepsi drinkers are defined, there is a kind of people who drinks Pepsi another kind who drinks Coca-Cola; it is for that they have to pay attention to the social mobility for not losing a possible market. - Taking into account that PepsiCo is trying to introduce itself in underdeveloped markets, they have to be careful with the possible problems with the governments of this countries, and with the problems could rise from PepsiCo act with the people of this countries.
The ongoing ability to maintain a strong brand name is one of the greatest strengths for PepsiCo. The company utilizes the PepsiCo name throughout the world. This allows PepsiCo ease of marketing around the world. PepsiCo has a wide range of products to include Pepsi Cola. Since the brand is accepted across the market the products they provide have assumed the success of the company brand just because of brand association. The popularity of the brand has allowed PepsiCo the ease to enter markets with minimal rejection. PepsiCo has a significant level of brand loyalty in the beverage market and as a result, the company has the ability to attach the success to new brands that they are introducing to the market.
“The best strategy for a given firm is ultimately a unique construction reflecting its particular circumstances.”(Michael Porter). This assignment will focus on fabricating fundamental strategies suitable for a particular industry and a specific organization’s situations, and the different dynamics that managers face when implementing them. Mainly looking into two particular industries namely emerging industries which will be addressed in section a, and Turbulent, high-velocity Industries which will be addressed in section b of the assignment discussing extensively the appropriate strategies firm must adopt to achieve their corporate goals.
A strategic plan for PepsiCo North America is hereby proposed as follows for the geographical region of the national