BUSINESS STRATEGY

Business Strategy

Business Strategy

Introduction

Strategic management is a process that can be used to determine mission, vision, values, goals, objectives, roles and responsibilities, timelines of a company. In this paper we are going to discuss about the strategic management process of Pepsi Company.

Background Information

Since the creation of Pepsi in 1898, Pepsi Company has introduced 13 beverages that wear the Pepsi trademark. Five of Pepsi's brand names: Pepsi, Diet Pepsi, Mountain Dew, 7 UP, and Mirinda, each brings in annual revenue in consumer sales of $1 billion. In 1992, a partnership between Thomas J. Lipton and Pepsi was formed. This partnership produces, markets, and distributes Lipton Brew, Lipton Brisk and Lipton Fountain Ice-Tea. And in 1993, Pepsi Max a low calorie cola was created and introduced only for the international markets. Pepsi Max is now produced in over 40 countries and is the third largest-selling cola brand outside the US.

PepsiCo is continuing to expand and introduce new alternative beverages in the market. There are four alternative beverages that are currently being tested in our market today. Mazagran, a cold sparkling coffee based beverage, Aquafina, bottled water, and a low fat milk shake called Smooth Moos. The latest beverage was launched on May 22, 1996 in Philadelphia. Pepsi-Kona, a new cola, is a combination of the Pepsi flavour and the Kona blend of coffee. PepsiCo's products are recognized and are most respected all around the globe.

PepsiCo has attained a leadership position as being the world leader in soft drink bottling. The corporations increasing success has been based on high standards of performance, marketing strategies, competitiveness, determination, commitment, and the personal and professional integrity of their people, products and business practices. (Restall, 1993, pp.59-67)

Discussion

PepsiCo, Inc. is currently one of the most successful consumer products company in the world with annual revenues exceeding $30 billion and has more than 480,000 employees. PepsiCo, Inc. began as a successor to a company incorporated in 1931, known as Loft Inc. Once known as Pepsi, the company expanded its business and adopted its current name, PepsiCo, after a merger with Frito-Lay in 1965. This merger dramatically increased PepsiCo's market potential and set the foundation for the company's tremendous growth.

Today, Pepsi Company is a major division of PepsiCo's corporate structure. Pepsi Company now produces and markets a wide range of beverages to retail, restaurants and food services in more than 191 countries and territories around the world and brings in annual revenue of $10 billion. There are 200 plants in the US and Canada, as well as, 530 plants throughout the rest of the world, which produces Pepsi's beverages. (Jeannet, 1998, pp.515)

Industry analysis

The Industry analysis based on environment scanning, how a company penetrates the market, market development and international opportunities, all this external environment will affect the company's penetration and growth. Marketers must understand how that environment is changing when assessing the best opportunities for their organization.

Environment Scanning

The marketing environment is made up of a microenvironment and a macro-environment. The microenvironment consists of the actors close to the company that affect ...