Pepsico

PepsiCo: Strategic Initiative

Introduction

“PepsiCo is a global food and beverage leader , with 22 brands generating more than $1 billion each in annual retail sales. PepsiCo products are found in nearly 200 countries” (PepsiCo. 2012). Their products include: Pepsi, Frito Lay, Tropicana, Quaker, Gatorade and many others. PepsiCo’s strategic planning initiative is of importance for the financial success of the corporation. We will review several that could help PepsiCo ensure long-term success in new, and existing markets.

Strategic Planning Initiative

Strategic planning reflects on how a firm will make their money in the future. Strategic planning answers three main questions for a firm: “Who are we and what do we do, who are our customers, and who are our competitors and how do we compete” (Titman, Keown, & Martin, 2011). Who is PepsiCo and what do they do? PepsiCo is one of the largest beverage companies and the leading macrosnack business. PepsiCo’s beverage sales increased and three brands crossed the threshold of $1 billion in annual retail sales thus expanding PepsiCo’s portfolio of billion-dollar brands to 22 (PepsiCo, 2012). Their customers are worldwide and continue to grow because many consumers have lifestyles that are on the go and the growing middle class in emerging and developing countries continue to grow expanding sales in beverages and snack items (PepsiCo, 2012). One of PepsiCo’s competitors is Coca-Cola yet one huge advantage is PepsiCo’s macrosnack division of Lay’s and Quaker products.

The 2011 strategic plan for PepsiCo includes “expanding macro-snack portfolios globally, increase sustainability, and profitability of the beverage business worldwide; to build and expand nutrition business, capitalize on snack and beverage consumption, and to ensure prudent and responsible financial management” (PepsiCo, 2012). PepsiCo increased annual sales, revenue, and dividends to stockholders thus increasing the ability to expand efforts in...