Pepsi Swot Analysis Essay

 It frees CEO to handle corporate strategy issues

 Takes advantages of economies of local opertions

 Improves functional coordination within target market

 Puts clear profit/loss accountability on shoulders of business-unit managers

Weaknesses

 There exist an ambiguity between what decisions to centralize and what decisions to decentralize

 It may leads to costly duplication of staff functions at corporate and business-unit levels,thus raising administrative overhead costs

OPPORTUNITIES

 Service delivery on-site

 Minimum efficient scale in functions or outsourcing

 Geographical market segments needed

 Low value-to-transport cost ratio

THREATS

 Can results in duplication of staff services at headquarters and district levels,creating cost disadvantages

 Adds another layer of management to run geographical units

 Greater difficulty in maintaining consistent company image/reputation from area when area manger exercise strategic freedom.

ACQUISITION AND DIVERSIFICATION



In addition to the production and sales of several worldwide Pepsi-Cola, Quaker Foods, and Frito-Lay beverage and food product lines (including Pepsi and Doritos), this segment of PepsiCo's business markets regional brands such as Mirinda, Kurkure, and Red Rock Deli, among others.

COMPETITION

 PepsiCo’s major competitor were Coca-Cola Company so they are considered to be primary competitors in the beverage market,and in the year 2005,for the first time PepsiCo has surpassed the Coco-Cola Company in the market value ,since both companies began to compete in 2009.Due to the acquisition,merger and partnerships pursuded by PepsiCo its business has shifted to include a broader product base,includingfoods,snacks,and beverages.

 Kraft Foods are one of the primary cpmpetitors in the snack food market.Other competitors for Soda are

 RC COLA

 COLA TURKA

 KOLA