Capstone Project 3
Quaker brands. Research and development-they increased investments in sweetener technologies, next generation processing and packaging and nutrition products. Emerging markets infrastructure-they increased selling and delivery systems by putting more coolers in the market and adding route and distribution capacity ahead of growth in India, China, Russia and other countries. People-emphasized leadership development to rotational assignments to experimental learning programs. (PepsiCo, 2011)
Assess how the organizations strategic goals link to the company’s mission and vision. An organization’s strategic goals are major targets or end results that relate to the long-term survival, value and growth of the organization. PepsiCo has set goals in four key areas: performance, human sustainability, environmental sustainability and talent sustainability. 1. Performance-to all their investors, it is a promise to strive to deliver superior, sustainable financial …show more content…
Some of the opportunities PepsiCo could explore include: broadening of product base; international expansion; and growing organic foods market. (PepsiCo, 2011)
Apply the appropriate strategy (low cost, differentiation or niche) that will maximize the organization’s return to shareholders. Provide a detailed rationale for the reason you chose this strategy and state the expected outcome(s). The broad differentiation strategy will maximize the PepsiCo’s organization’s return to shareholders. Differentiation strategies are attractive whenever buyers’ needs and preferences are too diverse to be fully satisfied by a standardized product or by sellers with identical capabilities. I think by choosing this strategy it gives them the ability to offer consumers something different form competitors, allows them to expand their product line with an emphasis on differentiating features, when marketing they can tout differentiating features, and allows them to stress constant innovation to stay ahead of competitors. The expected outcome will be a gain …show more content…
This acquisition will boost PepsiCo’s annual global revenue from nutritious and functional foods to almost $13 billion from approximately $10 billion. I think a focused differentiation strategy would work best. In this situation, they have a narrow market niche where buyer needs and preferences are distinctively different. In regards to the product line, the features and attributes need to be tailored to the tastes and requirements of niche members (i.e. Russian market). They have to be careful not to blur the firm’s image by entering the market by adding other products to widen market appeal. They have to establish themselves with the product consumers are used to so they can build their reputation for other products. (Wimm-Bill-Dann, 2010)
If you were a leader in this organization, determine the appropriate rewards that would best motivate employees toward achieving the desired strategy. Review the financial performance of the company to ensure the rewards are appropriate. Justify your