Pepsico's 'Focus' Strategy

Pepsico's 'Focus' Strategy
Case Code: BSTR118
Case Length: 15 Pages
Period: 1996-2004
Pub Date: 2004
Teaching Note: Not Available
Price: Rs.400
Organization: Pepsico
Industry: Consumer Packaging
Countries: USA
Themes: Operational Restructuring
Pepsico's 'Focus' Strategy
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

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.

Issues

The case is structured to achieve the following teaching objectives:

  • Generic Strategies, Spin-off, and Restructuring

Contents

Keywords

PepsiCo, Generic Strategies, Focus Strategy, Porter's Five Forces Model, Spin-off, Restructuring, Acquisition, Strategic Fit, Quaker Oats, Diversification Strategy

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