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 |
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
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Introduction
Background Note
The Restructuring & Acquisition
The Spin-Off
The Aftermath
Pepsico - Gaining Ground
Exhibits
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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