STRATEGIC PLAN

Strategic Plan

Strategic Plan

Executive Summary

The company that is selected for the strategic analysis in United Arab Emirates is PepsiCo. PepsiCo has operations globally in different regions all around the world, which are divided into different segments: PepsiCo America Beverages, PepsiCo America Foods, PepsiCo Europe and PepsiCo Asia, Middle East and Africa. The product market that it serves in United Arab Emirates is of the beverage industry. The current operations of PepsiCo in United Arab Emirates include independent or collaborative production, manufacturing and distribution of its products.

The strengths of PepsiCo include its strong brand equity; diverse portfolio of products, strong revenue generation capabilities, powerful operating capacity, excellent advertising, marketing and promotional power, strong growth in the beverage industry. The weaknesses of PepsiCo include focusing its resources on the US market, instead on other global markets, such as that of United Arab Emirates; vulnerability of the company to controversies and legal cases in the market, and brand switching by its customers. The opportunities for PepsiCo include the expansion possibility in different emerging markets, increase its customer base in Unite Arab Emirates by sponsoring major events, increase its spending on the promotion of food and snack items, respond to changing customer preference to health and nutritional products, focus on the local communities, and further increase its portfolio. The threats for PepsiCo include the rising competition from different companies, the rising prices of food, governmental laws and regulations, health and risk campaigns against the company's products, and unstable environment of the country.

The five forces analysis showed that supplier's power was moderate; buyer's power was moderate to high; the competition in the industry is intense; threat of substitute products is weak; and the threat of new entry is moderate. PepsiCo is following the differentiation strategy according to the three generic strategies by Porter. The company is placed in the star quadrant in the growth share matrix. Some of the key stakeholders for the company include suppliers, customers, employees and investors. PepsiCo has to look after their needs and expectations.

Based on the challenges and issues pointed in the SWOT / TOWS analysis and five forces analysis, certain recommendations were drawn for PepsiCo. PepsiCo's strategic plan should focus on the expansion into new and emerging markets. The strategic plans for PepsiCo for the beverage industry of United Arab Emirates should be that the marketing and promotion of its brands must be focused towards local communities. PepsiCo can acquire some of the local companies that are gaining popularity among the locals. Therefore, the strategic plan for PepsiCo should focus on increasing its consumer base into new territories and improving its situation in United Arab Emirates.

Strategic Plan

Introduction

The Company that is selected for the strategic analysis in United Arab Emirates is PepsiCo. PepsiCo is a multinational company, with its headquarters located in United States of America, in New York. It has operations globally in different regions all around the world, which are divided into different segments: PepsiCo America Beverages, PepsiCo America Foods, PepsiCo Europe and PepsiCo Asia, ...