SWOT ANALYSIS

GROUP 3 – ACN3

Company Profile

• John Clarkin, a native of Minnesota, USA who came with the American forces at the close of World War II, brought Pepsi-Cola to the Philippines.

• He became president and general manager of Pepsi-Cola Bottling Company of the Philippine Islands Ltd. upon acquiring a franchise to bottle Pepsi in the Philippines on October 16, 1946.

Mission and VisionWe are the beverage company of

choice - preferred by consumers, trade partners, investors and

employees of the Philippines. As such, we continuously delight them by offering quality beverages at best value, for every drinking occasion.

We are a happy team in our workplace as we build a

sustainable and profitable business, providing healthy

financial rewards to our shareholders and opportunities

for growth and enrichment to our business partners, employees and

the communities where we operate.

Culture and Values

A PCPPI employee has the Passion to succeed, Excels in what he

does, Professional in all his dealings, prioritizes Service, and

treasures his Integrity and that of the Company.

Structure

Chief Executive Officer

President

Executive Vice President for National Sales Operations

Executive Vice President & Chief Strategy Officer

Senior Vice President & Chief Financial Officer

Senior Vice President for Manufacturing and Logistics

Senior Vice President for Human Resources, Employee and Industrial Relations, Communications and Legal

Senior Vice President and Senior General Manager for Central Luzon Operations, North Luzon Operations,

Cagayan Valley Operations and Pepsi University

Vice President & Senior GM for Metro Sales Operations, Southern Tagalog Regional Office, Naga

Plant

Vice President & Senior General Manager for Mindanao

Vice President & Senior General Manager for Visayas

Director

Director

Director

Director

Director

Director

PCPPI has a divisional structure model headed by their Chairman of

the Board and CEO Hwang Chung and Partha Chakrabarti as President.

This divisional structure is appropriate to PCPPI management

to find some synergy among divisional activities through the use

of committees and horizontal linkages.

ResourcesPCPPI takes pride in the

establishment of support systems and processes to ensure the

development of its employees through learning and skills

trainings facilitated by qualified and competent teachers and

professionals.

• March 25, 2005 • Provide continuing

education to PCPPI Employees focusing on the key function areas of MAKE-SELL-DELIVER

• Enhance basic day-to-day capability of front-line Employees, especially Sales Employees

• Enhance managerial and leadership abilities of managers and employees with potential

• Instill Company values and Culture in all Employees

• Maintain a pool of certified educators, mentors and trainers from PCPPI, PI and recognized educational establishments and learning centers.

StrategiesPepsi-Cola Products Philippines, Inc. strong

performance was driven by the successful implementation of their strategic moves which include effectively preserving and

defending their market share in carbonated soft drinks lines – cola and non-cola and aggressively tapping the bright growth

prospects of the non-carbonated beverages product lines, using the fast expanding health

and wealth sector as their growth factor.

Source: AC Nielsen as cited by 2TradeAsia, January 2008

According to an industry report, Coca Cola Bottlers Philippines Inc. controls about 48.4% of the market

for carbonated soft drinks in the country, followed by Cosmos Bottlers Corporation with 23.3%, PCPPI with

17.4%, and the remaining 10.9% is shared by the other small players.

SWOT

STRENGTHS

Large market share

Acquisitions and alliances Customer loyalty

Purchasing economies of scale

Worldwide brand recognition

Huge distribution network

Strong market position

Strong brand portfolio

Strong growth in revenues and profits

WEAKNESSE

S

Business concentration

Smaller market share than Coca-cola

Inability to substantially product differentiate

Hard to compete with Coca-cola – strong brand identity and customer loyalty

OPPORTUN I T I

E S

Growing bottled water market

Establishing of new branches in the country

Promoting a cleaner environment

Reducing costs for the company

Generating income for farmers

Growing population in the Philippines

Adapting to market trend

THREATS

Sluggish growth of carbonated beverages

High oil prices

High level of competition with main rival, Pepsi will lose market share if rivals adapt to market trends faster

Strengths• can be described as among the

leading company worldwide• the company holds large market share

and has allied with South Korea’s number one beverage company, the Lotte Chilsung Beverage Corporation

• continuous customer loyalty and strong brand portfolio

• PCPPI continues to increase their distribution network and market location.

Weakness

• the company cannot claim of being in the top most of the beverage company due to their rival Coca-Cola

• Coca-Cola has greater market share worldwide and also has a strong brand identity and same customer loyalty to its market

Opportunities

• plant expansion in different locations of the country

• reducing cost can also be expected thru some ways such as building Biomass Facilities for Renewable Energy

• with the growing population, the company may also be able to extend to other products such as Bottled Water and sees opportunities of making health drinks and be an advantage for them to be a socially responsible producer.

Threats

• there might be a decline or slow increase of demands for carbonated beverages

• continuous oil price hike, this entails an increase in shipping and handling cost.

• if the company will not grab the present opportunities their rivals might be far ahead to them and probably will gain more market share

Alternative Courses of Action• Pepsi should focus on increasing sales

nationally to compete effectively with Coke. They have been beaten badly in some markets, and need to focus more on “un-tapped” areas

• Continue to diversify their beverage selection through acquisitions. • combat the decreased interest in cola• a need to ensure that they can properly manage all of these acquired companies and should divest those that show limited potential

• Develop Imaginative and trendy advertising.

• Make socially aware campaigns.

• Capitalize on their aggressive corporate culture in overseas dealings.

• To combat the weakness of their current international strategies

Alternative Courses of Action

Recommendation

Based on the research, the bestrecommendation is to continue

addressing the opportunities and risks of the global marketplace and

concentrate the resources on growing the business, both through

internal growth and carefully selected acquisitions.

Implementation Plan Prioritize having aggressive promotion

on the market. to obtain more target customers and distribution networksdevelop the advertisements and making it trendier can be a better start

Conduct a study whether having a Renewable Source of energy will help the company in reducing cost.

Create a feasibility study if making new product lines can be profitable for the company.

Focus on how to maximize sales and reduce cost.

Locate more strategic location for distribution.

Implementation Plan

Evaluation and Control

• Conduct a market research whether there is a change in brand patronization of the market.

• The finance department should interpret the financial statements of the company if there is probable increase in profit due to different factors (reduce in cost or increase in sales).

• Each of the location supervisor must observe diligent and accurate reports of their distribution network.

• Make sure that making new product line can be accepted by the market.

• Developing better product and packaging.

Evaluation and Control

Evaluation and Control

Conclusion

The researchers conclude that the Pepsi-ColaProducts Philippines Inc. performs a great job in manufacturing, selling and distributing theirproducts. Although at present, they still cannot out overpower their number one rival, Coca-Cola Co., they foresee in the future that their goal to beat them will be possible. Confident of having greater investments from foreign big investors, the company may be able to increase its production and engaged in other types of products.

Furthermore, the researchers conclude that there are lots of opportunities coming for the company. If the company will focus more on taking actions to use this opportunities, probably the company will have more solutions than having problems.

Conclusion

Lastly, knowing the internal and external environment of the company, the researchers have assessed those factors in which the company should focus more and those which they should attend to as soon as possible. Having a systematic evaluation and controlling will give the company their vision of being in the top among the beverage companies not just nationally but also worldwide.

Conclusion

Thank You!