how to turn this weaknesses below into strength to a company? Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. One of the reason why the day’s inventory is high compare to its competitors is that PepsiCo is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel. Financial planning is not done properly and efficiently. The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present. The profitability ratio and Net Contribution % of PepsiCo are below the industry average.

how to turn this weaknesses below into strength to a company?

• Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. One of the reason why the day’s inventory is high compare to its competitors is that PepsiCo is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel.
• Financial planning is not done properly and efficiently. The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present.
• The profitability ratio and Net Contribution % of PepsiCo are below the industry average.
• Investment in Research and Development is below the fastest growing players in the industry. Even though PepsiCo is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. It has come across as a mature firm looking forward to bring out products based on tested features in the market.
• Organization structure is only compatible with present business model thus limiting expansion in adjacent product segments.
• Days inventory is high compare to the competitors – making the company raise more capital to invest in the channel. This can impact the long term growth of PepsiCo
• High attrition rate in work force – compare to other organizations in the industry PepsiCo has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.