The Case in this course is an ongoing exercise, meaning that we will continue to review one company over the course of our four modules. In Module 3, we will be conducting a strategic analysis of Pepsico.
Specifically, the Module 3 Case requires that you identify the primary business strategy employed by Pepsico. You will also be providing a critical, written analysis evaluating that strategy in the context of the strengths, weaknesses, opportunities, and threats you identified in Module 2.
Refer to the required and optional readings related to strategic choices, the theme of Module 3.
In a 6- to 8-page paper, respond to the following:
1. Which of the four generic (Porter) strategies does Pepsico follow, and how do you know?
2. Integrate the strategy you have identified above with the strengths, weaknesses, opportunities, and threats you identified in Module 2 (this exercise should provide you with some specific actions the company should be taking relative to its strengths, weaknesses, opportunities, and threats. These actions are referred to as “strategic choices”). Do Pepsico’s strategic choices align with the firm’s generic strategy? If not, what are the specific points of disconnect? Think critically about this step, as no company achieves perfect alignment of its strengths, weaknesses, opportunities, and threats with its chosen strategy. As the MBA, it is your job to uncover the discrepancies and problems.
3. How can Pepsico leverage its strengths and shore up its weaknesses by altering its strategic choices? How can the company take advantage of environmental opportunities and minimize environmental threats by altering its strategic choices? Be specific.
4. Complete the paper by commenting on how your view of Pepsico’s vision and mission has changed or has been reconfirmed by this process of strategic analysis. Would you make any suggestions to revise the company’s vision, mission, or values statements, or to any of its goals/objectives?
5. Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as Pepsico’s consultant. This is a professional document. Follow the format below:
· Executive summary: This is a synopsis of the main points, conclusions, and recommendations made in the longer report. If you would like a refresher on writing an executive summary, check this website: http://www.csun.edu/~vcecn006/summary.html
· Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.
· Main Body: The “meat” of the paper. Emphasize analysis, not just description. Delineate separate topics or sections with headings.
· Conclusion: Summarize your paper in light of your thesis statement.