Pepsi-Cola was created in the late 1890s by a new Bern, n.c. Pharmacist. The company has several internal issues that has not been able to consistently meet its growth goal of 15+ percent annual increase in earnings for the last 10 years. External issues consist of its products as reaching maturity stage industry wise and its divisions, except FritoLay North America (FLNA), fail to rank highest in its respective market segments.
Pepsi-Cola was created in the late 1890s by a new Bern, n.c. Pharmacist. The company has several internal issues that has not been able to consistently meet its growth goal of 15+ percent annual increase in earnings for the last 10 years. External issues consist of its products as reaching maturity stage industry wise and its divisions, except FritoLay North America (FLNA), fail to rank highest in its respective market segments.
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Pepsi-Cola was created in the late 1890s by a new Bern, n.c. Pharmacist. The company has several internal issues that has not been able to consistently meet its growth goal of 15+ percent annual increase in earnings for the last 10 years. External issues consist of its products as reaching maturity stage industry wise and its divisions, except FritoLay North America (FLNA), fail to rank highest in its respective market segments.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPTX, PDF, TXT or read online from Scribd
m Pepsi-Cola was created in the late 1890s by Caleb
Bradham, a New Bern, N.C. pharmacist.
m Caleb Bradham first formulated Pepsi Cola in 1898 in New Bern as a cure for indigestion. m He registered the trademark in 1903 and developed a system of bottling franchises. m Pepsi Cola showed strong signs of growth when Donald Kendall became CEO in 1963. he PepsiCo-2005 case study has several issues revolving it. It has the internal issue that :
PepsiCo has not been able to consistently meet its growth
goal of 15+ percent annual increase in earnings for the last 10 years.
Itsexternal issues consist of its products as reaching
maturity stage industry wise and its divisions, except Frito- Lay North America (FLNA), fail to rank highest in its respective market segments.
Division wise, the company holds a large share of each
respective market, but over-all the company sustains a flat growth rate and fails to meet its growth goal. _
m PepsiCo has several strengths that enabled them
to be the third-largest food and beverage company in the world
m having a well-built distribution channel is also a
great strength, since it is important that your customers have easy access to your product in order for it to turn into sales. m It has the strength to respond quickly o emerging trends and issues such as health and environmental issues and the development of the ³PEPSI Generation´. m PepsiCo were able to penetrate the international market by focusing more on the emerging markets.
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m Lack of focus was the main weakness of PepsiCo.
m Diversified product range made it difficult to concentrate
on all its product unlike its competitor coke which focus on one product line.
m One of the opportunities that can be quickly seen
is the company¶s efforts in penetrating the emerging markets of PepsiCo International (PI). m Pepsi generation theme enable them to attract younger generation and make them life long Pepsi drinker. m hey are opportunities in designing new trends which will help them to appeal to long time drinkers as well as influence new ones hreats
m Competitors like coke are its main threat.
m Health and environmental issues are also
posing as threat to PepsiCo
m Since most of its competitors are single product
line companies Pepsico will have to compete with them head on in order to maintain its market share. After analyzing different issues that were mentioned in the case, it is easy to recognize the main problem/issue of PepsiCo and that issue is its incapacity to reach its growth goal, which is to sustain a compound annual growth rate (CAGR) in earnings per share of 15 percent per year.