Stage-3
Strategy Formulation of PepsiCo Incorporated
PepsiCo Incorporated is one of the most giant and most renowned corporations in the food processing industry. They have proven to be one of the most competitive and efficient corporation over the years, which we have verified in details through our strategic analysis. But in order to discuss the strategic formulation of the company we have to understand the aspects it is going to cover of PepsiCo Inc., the formulation basically provides a clear set of recommendations, with supporting justification, that leads us to the mission and objectives of PepsiCo Inc., and it further supplies the strategies that the company has adopted in order to accomplish them.
PepsiCo's corporate strategy is mainly comprised of the four types of initiatives which they considered for their growth which are the following:
In formulation, we are trying to figure out the current objectives and strategies that have lead to the success of the organization. This in turn created "sustainable" competitive advantages, although most competitive advantages are eroded steadily by the efforts of competitors. But, corporate strategy is concerned with broad decisions about the whole organization's scope and direction. Basically, it considers the changes that should be made for growth and the strategies for achieving it. There are basically three components of corporate level strategy:
In details PepsiCo Inc. is most extensively following the growth strategy among the three components of corporate level strategy over the years. They have very skillfully formulated the main strategies of growth strategy which are discusses systematically below:
Currently PAF had another exceptional year with strong net revenue and operating profit growth despite significant commodity inflation, they have been able to sustain consumer momentum with solid innovation and targeted value offerings. Although all of Europe was hit hard by the recession, PepsiCo Europe excelled its peers and delivered solid results through excellent revenue management, tight cost controls and outstanding productivity. AMEA had another year of solid revenue earnings and operating profit driven by strong volume growth across the region, with exceptional growth in their India beverage business. PAB on the other hand has faced considerable category pressures in North America, but is trying to recover by rejuvenating the entire beverage portfolio.
