PepsiCo Corporate Strategy, Governance and Ethical Issues in Global Environment

PepsiCo Corporate Strategy, Governance and Ethical Issues in Global Environment

Introduction

Corporate strategies of business groups were once very different from the multinational companies. On the one hand, business groups pursued a strategy to capitalize on business opportunities in protected markets by diversifying into new business related or unrelated to the group's key strengths, complementing these forces by acquiring technology from foreign companies. Furthermore, companies multinational companies have capitalized on business opportunities in world markets through development and use of key strengths of the group in terms of marketing in the major international markets, construction of production facilities to ensure providing many plants located in various countries and technology development products and processes. Until recently, horizontal growth strategies of the national industry groups and vertical growth of multinational companies were complementary. (Katrina,2008)

However, in the new business environment, national industry groups face increasing competition from multinational companies via the escalation of imports and foreign direct investment the country. Consequently, top management of various business groups in Mexico is facing opportunities and challenges by strengthening their corporate strategies in order to restructuring the business portfolio, through various strategies

Some groups have focused on strengthening its core businesses Other groups seek the development and integration of key business Other groups are in an aggressive diversification into new business and related attractions The groups are following a more aggressive global strategy to internationalize undertakings of the group. (Philip & John,2010)

Concentration and Consolidation of Business Base Group Some industrial groups in the country are going out of business in the non-competitive, and focusing on its core businesses to strengthen them through investments that enhance competitiveness of their companies. For example, the Group decided to sell their business VISA Division Tourism, as well as some companies to focus their investments into the business Brewer (Group Proa, including Cuauhtemoc Brewery and Moctezuma Brewery), in which just announced a ambitious investment program for the next 10 years, guiding capacities expand and modernize its operations in the beer business. FEMSA is giving greater priority to the development of its soft drink business, as it represents the main Coca Cola franchise outside the United States, for what has followed an aggressive investment program in Mexico and Latin America.

Some industry groups are making investments amounts to strengthen core businesses group and increase its competitiveness internationally. In the food sector, MoH Group strengthened its position in the business of corn milling through an ambitious investment program aimed at expanding capacity in new plants, Bimbo also announced an aggressive investment program to expand capacity and modernize their plants. In the metal mining sector highlights the Grupo Industrial Minera Mexico, which has been consolidate a strong position in the ore and copper metal through the acquisitions of the Cananea and La Compania Minera Mexicana de Cobre.

In the petrochemical industry, Grupo Desc - Novum strengthened its position in the industry elastomers by acquiring Hules Mexicanos, and the auto industry with the Moresa acquisition. In the commercial sector, Figure ...