Essay on Pepsi 3years Planning Strategy

2450 Words Oct 3rd, 2012 10 Pages
STRATEGIC PLAN – PepsiCo, 2009

CONTENTS
1.0 INTRODUCTION PEPSICO.
2.0 STRATEGIC PLAN & FOCUS
3.0 CRITICAL PROBLEM SCENARIO
4.0 SALES GROWTH
5.0 COMPETITOR
6.0 ALTERNATIVE EVALUATION
7.0 STRATEGIC DECISION
8.0 CRITICAL PROBLEM & DECISION ANALYSIS
9.0 STRATEGIC ACTION PLANS TO ADDRESS THE PROBLEM
10.0 CONCLUSION
11.0 REFERENCES

1.0 INTRODUCTION: PEPSICO.
PepsiCo is a global food and beverage leader with net revenues of more than $65 billion. PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New
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The factors are included: * Closing six plants. * Upgrading the product portfolio. * Product program. * Creating streamlined organization structure. | Management operating cash flow will increase to $7,579 millions. The increasing amount of cash flows will be reinvesting in its core business. | Increasing trend 2006 to 2007 (Average +9.3 % annually) as shown at Exhibit 5. | Market Shares | PepsiCo’s Carbonated Soft Drink Market Shares.In China Cokes’ has a 47.3% market share in the country’s cola market versus Pepsi’ 44.5 %, according to Euromonitor International.In overall beverage sales, Coke has a 15.3% market share in China versus Pepsi’s 6.2%. | * PepsiCo’s could overtake Cokes’ share market in China over the next three years. * Vast opportunity sales growth in the $70 billion market for noncarbonated beverages in international markets especially in Asia. | * PepsiCo’s total investment over the 2009–2012 periods is $1 billion to bolster manufacturing and its sales force throughout China. * Growth in the carbonated drink market was largest in Asia and Europe as shown at Exhibit 4. * PepsiCo opened a new factory in Shanghai in June 2009 and plans to open another five (5) plants in China over the next two year. | | PepsiCo’s Salty Snack Market Shares. * Today consumers shift to less costly drinks and snacks. * International volume was up to 1 % revenue in

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