Strategic Initiative Assignment

PepsiCo’s Environmental Strategic Initiative

Brandon Scribner, Brian Calhoun I, Emilio Alvarez, Wendy Rodriguez

FIN/370

November 15, 2010

Jim Gausling

PepsiCo’s Environmental Strategic Initiative

PepsiCo and other successful corporations plan all business activities, manufacturing processes, and the introduction of new products using two main management tools, which are strategic planning, and financial planning. These two decision-making processes allow PepsiCo to grow in terms of both innovation, and financial strength, but neither planning process takes place without the other. This means whenever adopting a strategic initiative, or anything relating to purchasing new assets is sought financial planning helps ensure that purchasing those new assets will provide a positive rate of return for the company. One strategic initiative that PepsiCo is currently pursuing is helping the environment through new production processes while protecting shareholder’s wealth by investing in technology that is innovative, cost-effective, and earth friendly. The following will discuss the relationship between strategic and financial planning, how PepsiCo’s strategic initiative may affect finances, and the risks involved when adopting a new plan of action.

Strategic and Financial Planning’s Relationship

Both strategic and financial planning resemble each other more than people think. Strategic planning is viewed as the blueprint of an organizations strategy and direction an organization wants to go in and eventually at the predetermined destination.

An organization will appoint, assigning its employees, capital, and any available resources to execute a strategic plan put into motion and in the end will either make an organization successful or put it out of business.

Financial plan is also a blueprint for an organization but is financial based. A financial plan can include both short-term and long-term goals for an organization. These financial plans...