Strategic Initiative Paper

Strategic Initiative Planning – Pepsi-Cola

Deangelo Gaska, Sharon Guidry, and Sandra Martin

University of Phoenix

FIN/370 – Finance for Business

Dr. Neruka Okpara, PhD

July 23, 2012

Strategic Initiative Planning

Organizations use strategic planning is determine plans for “where the organization is going, how to get there, and the controls that will tell whether or not it got there” (All About Strategic Planning, n.d. p. 1). Additionally, strategic planning includes making decisions on the distribution of the organizations resources to complete the identified plans. Strategic planning focuses on the entire organization and is centered on the corporation’s “leadership, the organization’s size, and its culture” (All About Strategic Planning, n.d. p. 1). Strategic planning approaches used by organizations include goals and issues based models.

Current Strategic Planning Initiative

Pepsi-Cola initiated a multiyear plan structured to advance the organizations operating potential around the world. The initiative is predicted to “result in an annualized pre-tax savings of $150 to 160 million upon completion” (iStockAnalylst, 2008, p. 1). The objectives of the plan are structured to strengthen the organizations customer service and selling effectiveness, streamline the organization and make the decision process easier, and drive greater cost productivity (iStockAnalylst, 2008). Leadership for the organization has determined that the scope of the initiative will include each of its subdivisions.

Future Strategic Planning Initiative

The goals-based model is most used by Pepsi-Cola. This model begins with a focus on the organization’s mission and vision. Therefore, a strategic plan for Pepsi-Cola would focus on their goal to be “the world’s premier consumer products company focused on convenient foods and beverages” (Pepsico, n.d., p. 1).

A strategic planning initiative for Pepsi-cola to engage would be to launch a line of energy drinks. Many of the...