Pepsi Restaurants

PEPSI RESTAURANTS

I-What do you think of Pepsi’s acquiring strategy in general?

Pepsi’s corporate strategy is to concentrate their resources on growing beverages, snack foods and fast food restaurants businesses, through internal growth of each divisions and carefully analyzing different companies which are favorable for acquisition, thereby having an edge over its competitors. They want to build a dominant market share in the world as the provider in these 3 broad categories.

II- Your evaluation of the management strategy

The company has a decentralized organization structure which allows quick response to the market and the emphasis the firm placed on entrepreneurial management, Pizza Hut, Taco Bell, and KFC each operated with a great deal of autonomy. Its willingness to move people within and across divisions is also a good practice because it leads to experience sharing which Calloway also stated as “different experiences [made] great managers”.

Also, when we read the case, we can see that Pepsi is able to control and restructure the organizations that it acquires which I think is a competitive advantage for the company. Pepsi’s effort in changing the market positioning of Taco Bell as a fast food retailer by using techniques for reducing the time devoted to operations (kitchen, supply of beef and paper work for administrative purposes) for creating high-quality service is an example. In addition, after acquisition of KFC, they restructured the restaurant styles and implemented a new computer system to provide unity and efficiency in the company’s operations.

III- Should Pepsi Co. acquire COC and CPK? Why?

It would be extremely beneficial for PepsiCo to acquire COC for a number of reasons. Firstly COC having clients ranging from Burger King, Coca-Cola Company, Dunkin’ Donuts, Mrs. Fields, and Disney, this acquisition would enable Pepsi Co to enter a new market and become a supplier to these big companies. Secondly COC has a potential to grow...