Over the years Martin and his team has developed an unorthodox way of doing what every company says it wants to do: Erickson is a McKinsey Award-winning author and a widely-respected authority on leadership, the changing workforce, collaboration and innovation, and the nature of work in intelligent organizations.
In it hadglobal in scope. Roger Enrico CEO Donald Kendall and Herman Lay, Founders. Strategic Structure Nooyi, Chairman of realignment. The beverage company in the world, with a broad situation and position of PepsiCo, in portfolio of businesses and a focus on growth addition to the evolving corporate through acquisitions and innovation.
The case is important for a strong company like PepsiCo deals with several showing the related diversification challenges, to name few, low international profit strategy.
PepsiCo Beverages North America: Revenue growth had been strengthened through a broadening of the product line to include not only Pepsi but Gatorade, Tropicana, Lipton tea, and other strategic acquisitions.
This positioned PepsiCo well for future shifts in consumption, as although carbonated beverages still accounted for almost half of all nonalcoholic refreshments sold in the US, the segment was losing ground to apparently healthier options like juices, enhanced water products, and energy drinks.
The fastest growth in beverage volumes occurred in the Middle East, China and Pakistan. Quaker Foods North America: The growth story of the Quaker family of foods in North America was not as strong as the other business divisions, although for the most part volumes increased through this period the exceptions were sales of Aunt Jemima products and Rice-A-Roni and PastaRoni kits, which experienced declines in sales volumes.
InPepsiCo underwent a strategic realignment. It was split into three divisions: All food and snack businesses in North America and Latin America. Page 5 PepsiCo Americas Beverages: All beverage businesses in North America and Latin America.
Overall Organizational Assessment PepsiCo is in a strong position. Its dominance across the beverage and snack food industry worldwide has given the company strong revenues and enviable growth rates which have been supported by a series of strategic acquisitions, allowing the company to keep up with trends in the market, shifts in consumer wants and needs, and to place itself in a position in which it can leverage its sophisticated supply chains and distribution networks globally to foster further growth and to insulate itself from the risks inherent in the global food and beverage business.
Barriers to entry to the food and beverage industry are relatively low. The environment in which it operates can be risky, but PepsiCo does a good job at minimizing this risk by investing in research and development and spreading its interests across many market segments.
There are many opportunities for PepsiCo in this environment, and the company is well poised to take advantage of them. Therefore, PepsiCo should continue to follow a strategy of aggressive diversification, placing it on the borderline between cells 1 and 2.
Over the long term, the carbonated soft drink market may see significant loss of the beverage market share to other refreshments, and Pepsi-Cola is weaker in key markets than its main rival, Coca-Cola. Bottled water sales may also come under pressure due to increasing environmental concerns.
What value-chain match-ups do you see?Five Companies That May Not Survive Past By Jonathan Berr Fiscal Times December 27, Wall Street is a sucker for a good comeback story, and it got plenty of them in In , Mulally was an inductee as a Pathfinder in the Museum of Flight and the Automotive Hall of Fame.
Mulally was named to Google’s board of directors in July , the board of directors of Carbon3D in May , and serves on the board of The Mayo Clinic.
This approach has many names including the nine cell GE Matrix. GE’s nice cell business portfolio matrix and the market attractiveness – business strength matrix.
It was developed at General Electric with the help of McKinsey and Company.5/5(3). when we look at the long history of media darlings, all gift wrapped for us, be they Glen Greenwald, or names like Pilger or Assange, we peek behind the curtain for handlers and may well safely assume they are all “CIA thugs” of one type or another.
Summary of 9-cell matrix While some are above others, all of PepsiCo’s business units are relatively attractive. The reason that these brands are so strong is because of their dedication to R&D, their established brand names, 94%(89).
The 9-cell industry attractiveness/business strength matrix for PepsiCo will show Frito-Lay in the strong industry attractiveness sector and in the high market position sector.
The other PepsiCo companies are in the medium to medium high sector for industry attractiveness and in the strong sector for market position%(33).