Pepsico

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1) Which is/are the key issue or issues?

Key Issue

1. How to restructure the organization to better exploit strategic fits in the international market?
2. How can Pepsico increase the international market revenues?
3. How could Pepsico increase its market share outside the United States?

2) Construct a SWOT (give at least 5 items for each one)

Strengths

1. Good brand image.
2. Strong market share in the United States.
3. Responds to consumer concerns about healthy products.
4. Increase revenues and profits.
5. Great ability to capture strategic fits between operations of new acquisitions and other businesses.
6. Power of One retailer alliance strategy helped Pepsico work closer with its retailer and have access to important customer information.

Weaknesses  

1. Increasing inventories.
2. Weak market share in carbonated soft drinks market.
3. Margins profits are very low.
4. Product cannibalization due to a great variety of beverages and snacks.
5. Quaker brands are not as successful as Pepsico’s other brands in the international market.
6. Pepsi International’s return on investments is the least among all segments, which means that profits are relatively low in comparison to their assets investing.

Opportunities

1. Healthy consumer preferences.
2. Growing population in emerging markets.
3. Bottle water consumption expanding.
4. Alliances with other companies.
5. Pursue more acquisition.
6. New technologies for developing its products.

Threats

1. Federal Trade Commission regulations.
2. Government policies.
3. High rivalry among competitors.
4. Buyers bargaining power.
5. Economic crisis.
6. Competitor’s expansion.

3) Provide 3 alternatives with their analysis and comparison

Issue to solve: How can Pepsico increase the international market revenues?

1. Acquire new businesses in different regions.