Pepsico's 'Focus' Strategy
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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BSTR118 |
Electronic Format: Rs.
400;
Courier (within India):Rs. 25 Extra
ThemesOperational Restructuring |
| Case Length |
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15 Pages |
| Period |
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1996-2004 |
| Organization |
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Pepsico |
| Pub Date |
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2004 |
| Teaching Note |
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Not Available |
| Countries
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USA |
| Industry |
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Consumer Packaging |
Abstract:
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US based PepsiCo conducted a major restructuring exercise in 1997-98 by spinning-off its restaurant and bottling business. The restructuring was aimed at achieving improved focus on the company's core beverage (Pepsi-Cola) and snack food operations (Frito-Lay). By successfully adopting the 'focus' strategy since 1997, PepsiCo has emerged as the second largest consumer packaged goods company (in terms of revenues) in the world. By acquiring leading beverages' company like Tropicana products (July 1998), South Beach Beverage Company (October 2000) and Quaker Oats (December 2000), the company has significantly strengthened its competitive position in the beverages segment. The case examines in-depth the key elements of the focus strategy followed by PepsiCo.
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Issues:
» Generic Strategies, Spin-off, Restructuring
Contents:
Keywords:
PepsiCo, Generic Strategies, Focus Strategy, Porter's Five Forces Model, Spin-off, Restructuring, Acquisition, Strategic Fit, Quaker Oats, Diversification Strategy
Pepsico's 'Focus' Strategy
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