TABLE OF CONTENTS

1. INTRODUCTION
2. VISION AND MISSION STATEMENTS
3. FIVE FORCES MODEL
4. EXTERNAL
ASSESSMENT
5. VALUE CHAIN
ANALYSIS
6. INTERNAL ASSESSMENT
7. SWOT ANALYSIS
8. INTERNAL/EXTERNAL ANALYSIS
9. SPACE MATRIX
10. BCG MATRIX
i. INTRODUCTION:
Pepsi is one of the most well-known brands in the world toda a!ailable in o!er 160
"o#ntries. $he "ompan has an e%tremel positi!e o#tlook for &ndia. $his refle"ts that
&ndia holds a "entral position in Pepsi's "orporate strate(. &ndia is a ke market for Pepsi
"o) and at the same time the "ompan has added !al#e to &ndian a(ri"#lt#re and ind#str.
Pepsi*o entered &ndia in 1989 and is "on"entratin( in three fo"#s areas - +oft drink
"on"entrate) sna"k foods and !e(etable and food pro"essin(. ,a"ed with the e%istin(
poli" framework at the time) the "ompan entered the &ndian market thro#(h a -oint
!ent#re with .olta/s and P#n-ab 0(ro &nd#stries. 1ith the introd#"tion of the
liberali2ation poli"ies sin"e 1991) Pepsi took "omplete "ontrol of its operations. $he
(o!ernment has appro!ed more than 3+4 400 million worth of in!estments of whi"h
o!er 3+4 330 million ha!e alread flown in. 5ne of Pepsi*o's ke strate(ies was to
de!elop a "ompletel lo"al mana(ement team. Pepsi has 19 "ompan owned fa"tories
while their &ndian bottlin( partners own 21. $he "ompan has set #p 8 6reenfield sites in
ba"kward re(ions of different states. Pepsi*o intends to e%pand its operations and is
plannin( an in!estment of appro%imatel 3+4 150 million in the ne%t two-three ears.
2. VISION AND MISSION STATEMENTS
VISION:
7Pepsi*o's responsibilit is to "ontin#all impro!e all aspe"ts of the world in whi"h we
operate - en!ironment) so"ial) e"onomi" - "reatin( a better tomorrow than toda.
MISSION:
5#r mission is to be the world's premier "ons#mer Prod#"ts *ompan fo"#sed on
"on!enient foods and be!era(es. 1e seek to prod#"e finan"ial rewards to in!estors as we
pro!ide opport#nities for (rowth and enri"hment to o#r emploees) o#r b#siness partners
and the "omm#nities in whi"h we operate. 0nd in e!erthin( we do) we stri!e for
honest) fairness and inte(rit.
Mission stt!"!nt#s $o"%on!nts
1. C&sto"!'s: pro!ide opport#nities for (rowth and enri"hment to the "omm#nities
in whi"h we operate
2. P'o(&$ts o' s!')i$!s: fo"#sed on "on!enient foods and be!era(es
3. M'*!ts: to be the world's premier "ons#mer prod#"ts "ompan
4. T!$+no,o-.:
5. Con$!'n /o' S&')i),0 G'o1t+0 n( P'o/it2i,it.: seek to prod#"e finan"ial
rewards to o#r in!estors
6. P+i,oso%+.: &n e!erthin( we do) we stri!e or honest )fairness) and inte(rit
7. S!,/3Con$!%t:
8. Con$!'n /o' P&2,i$ I"-!: +eek to prod#"e finan"ial rewards to o#r in!estors as
we pro!ide opport#nities for (rowth and enri"hment to o#r emploees) o#r
b#siness partners) and the "omm#nities in whi"h we operate.
9. Con$!'n /o' E"%,o.!!s: pro!ide opport#nities for (rowth and enri"hment to o#r
emploees
3. FIVE FORCES OF PORTERS MODEL
THREATS OF NEW ENTRANCE
8 9ow
8 Pepsi*o is well established and ha!e Pepsi :ottlin( 6ro#p
8 ha!e brand e;#it) loal "#stomers
8 <eed h#(e in!estment for=
8 >?@ fa"ilities) hi(h te"h ma"hiner
8 9ots of market e%perien"e in the same ind#str.
8 6ood distrib#tion "hannel
THREATS OF SUBSTITUTES
8 <ot a (reat deal for Pepsi*o
8 *ons#mers preferen"e is the taste more than the "ost
8 <ot man "arbonated drink ha!in( the same taste as Pepsi-*ollar other than
*o"a-*ollar
8 9oal "#stomers
BARGAINING POWER OF BUYERS
8 <ot so si(nifi"ant e!en tho#(h low swit"hin( "ost
8 Aonetar "ost is not the iss#e
8 *ons#mers preferen"e is the taste
8 *on!enien"e of the !endin( ma"hine
BARGAINING POWER OF SUPPLIER
8 9ow
8 Aan raw material s#pplier like fr#it and other in(redients
8 Pepsi*o partnership with farmers ? "omm#nit (ro#p) ens#rin( ;#alit s#ppl
8 ,or :ottlin( and metal "an) the make #se 40B share of P:6.
8 5nl problem ma rel on bad har!estin( season d#e to "limate "han(e.
.
COMPETITIVE RIVALRY WITHIN COMPANY
8 Pepsi is not no.1 in :e!era(e market. Pepsi still need to "ompete with *o"a-*ola.
8 Pepsi is new in ,ood market. Pepsi need to "ompete to bi( plaers like <estle and
*raf.
4. EXTERNAL ASSESSMENT:
&t is based on thoro#(h re!iew of the C"onomi") @emo(raphi") $e"hnolo(i"al)
Politi"al ? 9e(al) +o"ial ? *#lt#ral ,a"tors.
&ts in"l#de 5pport#nities ? $hreads
4!. E5t!'n, T+'!ts W!i
-+t
Rti
n-
W!i-+t!(
S$o'!
Opportunities
1. &nternational demand for bottled
water has in"reased
0.12 3 0.36
2. 9ar(e "arbonated drink market in
0sia and C#rope
0.09 2 0.18
3. 99B of 0meri"an ho#seholds ha!e
salt sna"ks in their homes
0.03 4 0.12
4. Di(her demand for saltEfat free foods
as well as baked and kettle prod#"ts
0.07 3 0.21
5. 1orldwide "ompetition re;#ires
e%tensi!e ad!ertisin( and promotion
0.03 3 0.09
6. Di(h demand in 3+ for non-
"arbonated be!era(es
0.09 2 0.18
7. *hip Aarket has an ann#al (rowth
rate of 6.35B
0.06 4 0.24
Threats
1. @ownt#rn of e"onom res#lts in
"ons#mer need for less "ostl prod#"ts
0.12 2 0.24
2. Aa-or "ompetitors ha!e 9B hi(her
market share in *hina
0.06 2 0.12
3. *ontamination "an ;#i"kl destro
"ons#mer "onfiden"e
0.03 3 0.09
4. *arbonated drink market has de"lined
4B in the 3+
0.09 4 0.36
5. Aa-or "ompetitor holds lar(est
market share in the 3+
0.07 2 0.14
6. Cn!ironmental "ampai(n a(ainst
plasti" "ontainers of bottled water
0.04 3 0.12
impa"ts sales
7. *ons#mers ha!e had a "han(e in taste 0.1 3 0.3
Tot, 6 7.89
5. VALUE CHAIN ANALYSIS
.al#e *hain 0nalsis des"ribes the a"ti!ities that take pla"e in a b#siness and relates
them to an analsis of the "ompetiti!e stren(th of the b#siness. &nfl#ential work b
Ai"hael Porter s#((ested that the a"ti!ities of a b#siness "o#ld be (ro#ped #nder two
headin(s=
F1G P'i"'. A$ti)iti!s - those that are dire"tl "on"erned with "reatin( and deli!erin( a
prod#"t Fe.(. "omponent assemblGH and
F2G S&%%o't A$ti)iti!s) whi"h whilst the are not dire"tl in!ol!ed in prod#"tion) ma
in"rease effe"ti!eness or effi"ien" Fe.(. h#man reso#r"e mana(ementG. &t is rare for a
b#siness to #ndertake all primar and s#pport a"ti!ities.
P!%siCo Bott,!'s
I :J PCP+&*5=
K <ew be!era(e prod#"t de!elopment
K Aan#fa"t#re of "on"entrate
I :J :5$$9C>+
K Ai%in( to prod#"e be!era(e or sr#p
K *ontaineri2in(
K @istrib#tion to retail o#tlets
6. INTERNAL ASSESSMENT
&t is based on thoro#(h re!iew of the "orporation) prod#"t "ate(or) "ompetition)
"#stomers) identities and e!al#ates the internal stren(ths and weakness of the
"ompanies.
&ts in"l#de +tren(ths ? 1eaknesses
4!. Int!'n, T+'!ts W!i
-+t
Rti
n-
W!i-+t
!(
S$o'!
St'!n-t+s
1. *ontrolled "ost b de"reasin( "ost of
(oods sold
0.03 3 0.09
2. <ew plant #ses 22B less water and 38B
less ener( than other Pepsi fa"tories
0.05 2 0.1
3. C%pandin( into (lobal markets and
in"reasin( international re!en#es
0.11 3 0.33
4. @e!elop new drinks and sna"ks for
"han(in( taste of "ons#mers and health
"on"erns
0.09 4 0.36
5. Pro-e"ts and allian"es aro#nd the world 0.03 2 0.06
6. C%pandin( prod#"ts allows bottlers to
(ain retail shelf spa"e
0.05 4 0.2
7. Aore di!erse than ma-or "ompetitors 0.07 4 0.28
8. +a!or sna"k ind#str leader 0.09 4 0.36
9. 3se all a!ailable media to promote
prod#"t
0.07 3 0.21
W!*n!ss!s
1. &n"rease in "ost 0.1 2 0.2
2. @e"rease in net in"ome 0.12 2 0.24
3. >50 dropped 0.03 1 0.09
4. &n!entor t#rno!er de"rease 0.04 2 0.08
5. 9on( term debt in"reased 0.04 1 0.04
6. *onstantl ha!e to de!elop new
prod#"ts to meet demands
0.08 3 0.24
Tot, 6 7.::
7. SWOT ANALYSIS
+15$ analsis) method) or model is a wa to anal2e "ompetiti!e position of o#r
"ompan. +15$ analsis #ses so-"alled +15$ matri% to assess both internal and
e%ternal aspe"ts of doin( o#r b#siness. $he +15$ framework is a tool for a#ditin( an
or(ani2ation and its en!ironment.
St'!n-t+s O%%o't&niti!s
1.G *ontrolled "ost b de"reasin( "ost of
(oods sold
1.G &nternational demand for bottled
water has in"reased
2.G <ew plant #ses 22B less water and 38B
less ener( than other Pepsi fa"tories
2.G 9ar(e "arbonated drink market in
0sia and C#rope
3.G C%pandin( into (lobal markets and
in"reasin( international re!en#es
3.G 99B of 0meri"an ho#seholds ha!e
salt sna"ks in their homes
4.G @e!elop new drinks and sna"ks for
"han(in( taste of "ons#mers and health
"on"erns
4.G Di(her demand for saltEfat free
foods as well as baked and kettle
prod#"ts
5.G Pro-e"ts and allian"es aro#nd the world 5.G 1orldwide "ompetition re;#ires
e%tensi!e ad!ertisin( and promotion
6.G C%pandin( prod#"ts allows bottlers to
(ain retail shelf spa"e
6.G Di(h demand in 3+ for non-
"arbonated be!era(es
7.G Aore di!erse than ma-or "ompetitors 7.G *hip Aarket has an ann#al (rowth
rate of 6.35B
8.G +a!or sna"k ind#str leader
T+'!ts
9.G 3se all a!ailable media to promote
prod#"t
1.G @ownt#rn of e"onom res#lts in
"ons#mer need for less "ostl prod#"ts
2.G Aa-or "ompetitors ha!e 9B hi(her
market share in *hina
W!*n!ss!s
3.G *ontamination "an ;#i"kl
destro "ons#mer "onfiden"e
1.) Net revenues down
4.G *arbonated drink market has
de"lined 4B in the 3+
2.) Increase in cost
5.G Aa-or "ompetitor holds lar(est
market share in the 3+
3.) Decrease in net income
6.G Cn!ironmental "ampai(n a(ainst
plasti" "ontainers of bottled water
impa"ts sales
4.) Inventory turnover decrease
5.) Long term debt increased
7.G *ons#mers ha!e had a "han(e in
taste
8. INTERNAL/EXTERNAL ANALYSIS
$he &nternal-C%ternal F&CG matri% is another strate(i" mana(ement tool #sed to
anal2e workin( "onditions and strate(i" position of a b#siness. $he Internal External
Matrix or short &C matri% is based on an analsis of internal and e%ternal b#siness fa"tors
whi"h are "ombined into one s#((esti!e model.
9. SPACE MATRIX
$he +trate(i" Position ? 0"tion C!al#ation matri% or short a SPACE matrix is a strate(i"
mana(ement tool that fo"#ses on strate( form#lation espe"iall as related to the
"ompetiti!e position of an or(ani2ation
FINANCIAL POSITION (FP)
Factors Rating
Long-term debt obligation 2
Net income 3
Net revenue
!eturn on investment 2
Inventory turnover 4
"arnings #er s$are 3
TOTALS 20
INDUSTRY POSITION (IP)
Factors Rating
%rowt$ #otential
&ro'it #otential 5
(inancial stability 4
")tent leverage 2
!esource utili*ation 2
"ase o' entry into mar+et ,
TOTALS 26
STABILITY POSITION (SP)
Factors Rating
-ec$nological c$anges -3
&rice range o' com#eting #roducts -2
.arriers to entry -1
/om#etitive #ressure -3
&rice elasticity o' demand -2
TOTALS -
CO!P"T"TI#" POSITION (CP)
Factors Rating
0ar+et s$are -3
&roduct 1uality -2
&roduct li'e cycle -3
/ustomer loyalty -2
-ec$nological +now $ow -3
/ontrol over su##liers2distributors -1
TOTALS -$
C,$&,tions
+P 0!era(e= -11E5L -2.2 &P 0!era(e= 26E6L 4.33
*P 0!era(e= -14E6L -2.33 ,P ,P 0!era(e= 20E6L 3.33
@ire"tional .e"tor *oordinates= M-a%is= 2 .33 N F4.33G L 2.00
J-a%is= -2.2 N F3.33G L 1.13

10. BCG MATRIX
$he :*6 matri% or also "alled :*6 model relates to marketin(. $he :*6 model is a
well-known portfolio mana(ement tool #sed in prod#"t life ""le theor. :*6 matri% is
often #sed to prioriti2e whi"h prod#"ts within "ompan prod#"t mi% (et more f#ndin(
and attention.
Di)isions R!)!n&!
;in Mi,,ions
<
R!)!n&!s
R!,ti)! M'*!t
S+'!
In(&st'.
M'*!t S,!
,rito-9a 12)507 28.9 .90 N.04
O#aker ,oods 1)902 4.3 .85 N.01
9atin 0meri"an ,oods 5)895 13.6 .65 N.15
Pepsi 0meri"an :e!era(es 10)937 25.2 .75 -.15
3P and C#rope 6)435 14.8 .55 N.18
Aiddle Cast) 0fri"a ? 0sia 5)575 12.8 .70 N.20
Tot, =>0796 6?? - -
1.