Asiana Airlines Fiasco 13 July 2013

Case Study: Pepsi Company

Author:

Group 2(Arnie, Myladie, Jinky, Elvin, MelJohn,Ma.Angela,Yvonne & Dexter)1CASE STUDY PROBLEMIT Challenge

Failed to hit stated profit target.Companys market value drops to 15%.What else??Retrieved from website (http://fortune.com/2012/02/13/pepsis-ceo-faces-her-biggest-challenge/ )VIEW POINTOn the viewpoint of the Management:

Indra Nooyi, CEO of Pepsi there are no limits to what you can do it isnt about the money, prestige, or power [which constitute success] because net worth can never define self worth. Rather people should work out what fulfils them personally devoting your time, your life, to doing what you love most.

Retrieved from World of CEO (2013) (http://www.worldofceos.com/dossiers/indra-nooyi) TIME FRAMEThe case study is being conducted in 2015.

OBJECTIVESMUST OBJECTIVE (s)

To revisit and re-engineer companys strategy and give emphasize nutritious products.To develop marketing and advertising strategy to attract more customers in buying their products.WANT OBJECTIVE (s)

To implement cost optimization.

AREAS OF CONSIDERATIONStrengths1.) Product diversity2.) Extensive distribution channel3.) Corporate Social Responsibility (CSR) projects4.) Competency in mergers and acquisitions5.) Successful marketing and advertising campaigns6.) Complementary product sales7.) Proactive and progressiveWeaknesses1.) Over-dependence on Wal-Mart2.) Low pricing3.) Questionable practices (using tap water but labeling it as mountain spring water)4.) Much weaker brand awareness and market share in the world beverage market compared to Coca-Cola5.) Too low net profit marginAREAS OF CONSIDERATIONOpportunity1.) Growing beverages and snacks consumption in emerging markets (especially BRIC)2.) Increasing demand for healthy food and beverages3.) Further expansion through acquisitions4.) Bottled water consumption growth5.) Savory snacks consumption growth

Threats1.)Changes in consumer tastes2.) Water scarcity3.) Decreasing gross profit margin4.) Legal requirements to disclose negative information on product labels5.) Strong dollar6.) Increased competition from Snyders

SWOT ANALYSISStrengths1.) Product diversity2.) Extensive distribution channel3.) Corporate Social Responsibility (CSR) projects4.) Competency in mergers and acquisitions5.) Successful marketing and advertising campaigns6.) Complementary product sales7.) Proactive and progressive

Weaknesses1.) Over-dependence on Wal-Mart2.) Low pricing3.) Questionable practices (using tap water but labelling it as mountain spring water)4.) Much weaker brand awareness and market share in the world beverage market compared to Coca-Cola5.) Too low net profit marginOpportunity1.) Growing beverages and snacks consumption in merging markets (especially BRIC)2.) Increasing demand for healthy food and beverages3.) Further expansion through acquisitions4.) Bottled water consumption growth5.) Savory snacks consumption growth1.) Increase M&A through vertical integration with other countries with low labor cost with high ROI (S1O1).2.) Group discussion

1.) Group discussion)Threats1.)Changes in consumer tastes2.) Water scarcity3.) Decreasing gross profit margin4.) Legal requirements to disclose negative information on product labels5.) Strong dollar6.) Increased competition from Snyders

1.) Group discussion1.) Group discussionALTERNATIVE COURSE OF ACTION (ACA)ACA 1: Diversification of products and through forward and vertical integration.

ACA 2: To survey other countries for cheap labor market.

ACA 3: To Strengthen R/D, Marketing strategies and explore networking opportunities PLAN OF ACTIONKey Resource Area Objectives Action to be Taken Persons Involved Time Table Expected Output Human Resource To reduce labor redundancy.

To acquire specializationIncrease awareness on cost optimizationTop to bottom3 6 Months1st Yr- 50%2nd Yr- 50%Marketing Maintain Global Image Creation of additional revenue streamsDevelop a massive advertising and marketing campaignSales & MarketingService Staffs3 6 MonthsSame Production/ Service Enhance Customer Experience

1.) Production (Null)2.) Service Sustainability and Reliability with cost effectiveness.3.) Develop a nutritionally products

Sales & MarketingService Staffs3 6 MonthsSame Information TechnologyIT Consultants1.) Continuous upgrading Maintenance of whole-wide infrastructureCIOIT ConsultantIT Engineer3 6 Months

SameFinance/ Accounting Optimize CostIdentify areas of cost optimizationFrom top to bottom 3 6 MonthsSame FALLBACK POSITIONCONCLUSION:

Group discussionFALLBACK POSITIONRECOMMENDATION:

Group discussionTHANK YOU