PEPSICO

Ammara Javaid
Mirza Tabraiz
Ahmad Ali
Waqas Ahsan

 Third Largest in Food & Beverages

Second Largest in Soft Drink Industry
Four Divisions
Unrelated Diversifications
Historical Sales Growth (~16%) for 40 years

COMPARISON
Market Leaders comprising 90% of
Market share
COCACOLA
($ in
Billions)

PEPSICO

CADBURY
SCH.

($ in
Billions)

($ in Billions)

SALES

22.0

29.3

13.0

NET
INCOME

5.0

4.0

1.1

OBJECTIVE
PepsiCo is faced with the challenge of
maintaining its historic revenue growth
rate and increase in shareholder price.

Increase PepsiCo annual sales by

15%+
Improve profitability and hence
shareholder price

INTERNAL FACTOR
ANALYSIS
IFS

Weigh Ratin
t
g

Weighted
Score

Comments

STRENGTHS
S1:Diversified
Product Line
S2:Well-Built
Distribution
Channel

0.20

5.00

1.00

0.10

3.00

0.30

S3:Worldwide
Presence

0.10

3.50

0.35

S4:Ability to
respond to
emerging trends

0.20

5.00

1.00

Diversity a key
factor in PepsiCo's
culture and
performance
Customers have
easy access to
products
Presence in more
than 200
countries
Quick response to
cater China, India,
Eastern Europe,
and Russia

INTERNAL FACTOR
ANALYSIS
IFS

Weight

Rating

Weighted
Score

Comment
s

WEAKNESS
ES

W1: Focus
on US and
Canadian
Market

0.20

4.00

0.80

W2: Focus
S+W
on divisions

0.20
1.00

4.50

0.90
4.35

Largest sale
is contributed
by
International
Sale but
company
focuses more
on said
markets
More
concentration
on each
division
rather than

EXTERNAL FACTOR
ANALYSIS
EFS

Weight

Rating

Weight
ed
Score

Comment
s

OPPORTUNITIES
O1:Increased health
concerns among
consumers
O2:Increased efforts
for recycling
O3:Promising growth
in emerging markets

0.20

3.50

0.70

0.10

2.75

0.28

0.30

5.00

1.50

Health
product
demands
Environment
Friendly and
cost
reduction
New
emerging
markets of
Asia Pacific

EXTERNAL FACTOR
ANALYSIS
EFS

T1:Fierce
Competition

O+T

Weight

0.40

1.00

Rating

5.00

Weighted
Score
2.00

4.48

Comment
s
Intense
competition
from food
companies

STRATEGIC FACTOR
ANALYSIS
SFS

S1: Diversified Product

Line
S4: Ability to respond to
emerging trends

Weig
ht

Ratin Weight
g
ed
Score

Increase market
share
Quick Response
towards market
capture
New emerging
markets of Asia
Pacific
Changing
Consumer
Behavior

0.20

5.00

1.00

0.17

5.00

1.00

0.17

4.50

0.90

0.11

3.50

0.70

0.15

5.00

1.50

New Recognition

0.20

5.00

2.00

Intense
competition from

W2: Focus on divisions

O1: Increased health
concerns among
consumers
O3: Promising growth in
emerging markets
T1: Fierce Competition

Comments

STRATGEY PLAN
Focus on Diversification
Focus on Product Innovation
addressing Health
Acquisition of Cadbury
Schweppes
Integrity and Transparency

Strategic
Goal
Diversifica
tion

Product
Innovation

Acquisitio
n

Integrity &Transparency

THANKYOU