Corona

1. Title: “PepsiCo’s Diversification Strategy in 2008: A Case Study.”

2. Abstract:

In 1965, the Pepsi –Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc., the company it is known at present. At the time of its foundation, PepsiCo was incorporated in the state of Delaware and headquarters in Manhattan, New York. The company’s headquarters where relocated to its still current location of purchase, New York in 1970 and in 1986 PepsiCo was reincorporated in the state of North Carolina. PepsiCo was the first company to stamp expiration dates, starting in March 1994.

Between the late 1970’s and the mid 1990’s, PepsiCo expanded via acquisitions of business outside of its core focus of packaged food and beverage brands; however it excited these non-core business lines largely in 1997, selling some, and spinning off others into a new company. PepsiCo sold other brands so it could focus on its primary snack food and beverage lines. Brands formerly owned by PepsiCo include: Pizza Hut, Taco Bell, KFC, Hot n’Now, Cast side Mario’s, D’Angelo Sandwich Shops, Chewys Fresh Mix, California Pizza Kitchen, Stolichnaya, Wilson Sporting Goods, and North American Van Lines.

The divestments concluding in 1997 where followed by multiple large-scale acquisitions, as PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines of foods and beverages. PepsiCo purchased the orange juice company Tropicana products in 1998, and merged with Quaker Oats company in 2001, adding with it the Gatorade sports drink line and other Quaker Oats Brands such as Chewy Granola bars and Aunt Gemima, among others.

In August 2009, PepsiCo made a $7 billion offer to acquire the 2 largest bottlers of its products in North America: Pepsi Bottling Group and Pepsi Americas. In 2010, this acquisition was completed, resulting in the formation of a new wholly owned subsidiary of PepsiCo, Pepsi-Beverages Company. In February 2011, the company made its largest...