MAN 4720-017 AND 4720-018: GLOBAL STRATEGY AND POLICY Prepared for: Professor Harry Schwartz | Applied Concepts Paper | Module D Chapter 6 – Strategy Formulation: Situation Analysis and Business StrategyChapter 7 – Strategy Formulation: Corporate StrategyChapter 8 – Strategy Formulation: Functional strategy and Strategic Choice | | LM ZXXXXXXXX | 10/25/2012 | | Table of Contents Executive Summary 3 Abstracts 4-5 Concepts 6-7 Analysis 8-10 Conclusion 10 Appendices 11-21 References 11 Articles 12-21 Executive Summary The purpose of this paper is to help me to fully understand and expand my knowledge of the concepts four in our textbook. By performing research about recent …show more content…
It also serves about 40 million customers in four continents. 5. PepsiCo and Suntory Agree to Form Strategic Beverage Alliance in Vietnam, by Pepsi Co., Published on October 22, 2012 This article discusses the strategic alliance formed by PepsiCo and Suntory Holdings Limited. This strategic alliance will help PepsiCo increase its business in Vietnam. Although both companies have both experienced success in this country, their strategic alliance will catapult both companies to new heights. PepsiCo will be in charge of marketing its strong products which include Pepsi-Cola, 7-UP, Sting, Mirinda, Tropicana Twister, Lipton and Aquafina. At the same time, Suntory will be in charge of bringing its ability to successfully meet the demands of its Asian customers. These companies have successfully worked in the past in other countries, such as, the United States, Japan, and New Zealand. PepsiCo has been able to grow in the Vietnamese market since entering it in 1994. For Suntory, it is hoping to achieve one of its long-range plans, which is to expand into Vietnam. Concepts 1. Acquisition According to Wheelen and Hunger an acquisition is a growth strategy that occurs when a company absorbs another (usually smaller) company as an operating subsidiary or division of the acquiring corporation. Acquisitions usually take place with companies of different sizes and they can be hostile or friendly. Acquisitions can also be a good way to grow
Pepsi Co. and Coca Cola, both are very well known multinational companies. They are so famous that they perhaps don’t need any introduction since almost everyone knows basic info about these companies and their widely used products. Both of these companies have been dealing in the production of flavored waters, plain drinking water and soft drinks for decades now and have always been each other’s competitors in almost all the mainstream products they have been producing.
Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).
Strategic Alliance is the collaboration of two companies who came together to implement an idea that will benefit both parties (Strategic alliance, 2009). It is crucial that both parties understand what’s really at stake in order to make their partnership successful. In this paper, the writer took the time to analyze a partnership between Subway restaurants and Coca-Cola products. In addition, we will look at the economic benefit for each company. When dealing with businesses there is a potential for ups and downs during the operations process. The author will examine this collaboration between Subway and Coca-Cola while using Porter’s Five Forces framework including a PESTEL (Political, Economic, Social, Technological, Environmental and Legal) analysis of these two companies.
"IT'S Coke vs. Pepsi and United Airlines vs. Northwest in the post-embargo battle to win the hearts and wallets of the Vietnamese. These and dozens of other American name brands are sure to be welcomed, both because Vietnam is aching to end its psychological isolation and because American businesses are positioned to sell what the country wants most.
PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.
According to Slack et al. The corporate strategy or business strategy is the guide lines for the whole corporation’s businesses in relation to its markets, customers, and the competitors (2007). In the same context, the same authors discussed the link between the corporate strategy and
PepsiCo International markets and sells the North American product brands abroad, and in additional markets and sells the Mirinda, Walkers, Sabritas, Gamesa, etc. and several others in multiple countries (over 200). Each of these subsets of brands are developments of unique products tailored to each geographical culture it is marketed to.
An acquisition is usually “… part of a company 's growth strategy …” (Investopedia, 2014). An acquisition can either be a friendly or a hostile “take over”. In 2010, I was involved in a friendly acquisition of my employer, Isotek Corporation. When my employer was diagnosed with terminal cancer (sole owner/shareholder), he started the process of selling his business to Isabellenhütte. The sale was completed on January 5, 2010.
Business acquisition is one of the most vital tools to expand an existing business effectively. An acquisition takes place when an existing company buys another company which has more or less similar operating activities and ended up controlling it. It is clearly different from merger which is the integration of a business with another and sharing the control of the combined businesses collectively. Mergers and acquisitions (M&As) have long been considered as an one of the most highly appreciated method to achieve the desired growth rate and satisfying the key stakeholders. With rapid
The ongoing ability to maintain a strong brand name is one of the greatest strengths for PepsiCo. The company utilizes the PepsiCo name throughout the world. This allows PepsiCo ease of marketing around the world. PepsiCo has a wide range of products to include Pepsi Cola. Since the brand is accepted across the market the products they provide have assumed the success of the company brand just because of brand association. The popularity of the brand has allowed PepsiCo the ease to enter markets with minimal rejection. PepsiCo has a significant level of brand loyalty in the beverage market and as a result, the company has the ability to attach the success to new brands that they are introducing to the market.
PepsiCo is situated in a soft drink industry that is dominated by Coca Cola. By the time it got into the market
When trying to expand ones business it can take a lot of time and effort to grow the company from its core not to mention how much it will cost to accomplish this goal, but there are other ways a business can grow much faster than normal. This faster method is broken up into two different types mergers and acquisitions. A merger is the combining of two or more companies, this decision is usually mutual between both firms, and it works usually by offering the stockholders of one-company securities in the acquiring company in exchange for the surrender of their stock. An acquisition is when a company buys most, if not all, of another company 's ownership stakes so that they assume control of the target company. Acquisitions are often used as
If Pepsi can gain competitive advantage in Pakistan, then why not in the world? Presentation and History:
From the 1980s to the 90s PepsiCo had brought on many different brands such has popular Mug Root Beer, and 7-Up. PepsiCo was involved in other countries such has the United Kingdom with Walker’s Crisps, and in Mexico with cookie company Gamesa. Ready to drink teas from Lipton were brought on in 1993 along with other bottled products like Aquafina water in 1994. Their largest acquisition was Quaker Oats in 2001 for $13.9 billion. This acquisition brought many categories such as oatmeal and snack bars, but the brand that made it worth the high cost was Gatorade. In recent years they have bought a leading Russian food and beverage company for $3.8 billion. PepsiCo’s strategy of having a diverse group of brands from snack foods to high in sugar drinks have allowed them to grow with these close relationships.
Finally in 1996 PepsiCo took the step of moving all its assets out of Burma and sold its 40 % stake but it did not mention whether they will continue to supply its syrup to the bottler based in Burma. Indeed this was a smart and vague move taken by PepsiCo.