Strategic dissection of pepsico essay sample

Strategic Dissection of PepsiCo

PepsiCo is a company that was formed by merging Pepsi-Cola and Frito-Lay back in 1965 (Pepsi, 2007). The company is one of the largest and most successful beverage and convenient foods companies in existence. The success can be attributed to good management and their commitment to provide quality products at very reasonable prices.

The strategies of management being used by are classified into three levels: corporate, business and functional strategies. These strategies are based on a number of principles. Some of these principles are to set targets and remain focused so as to ensure success in the market. It is also a principle of the company to act now and not postpone duties (Pepsi, 2007). They also believe in respecting their competitors so as to have a healthy competition in the market.

On the corporate level, PepsiCo believes that if it keeps expanding its coverage area, it will be able to effectively satisfy the needs of consumers, while at the same time increasing its profits (Pepsi, 2007; Sadler, & Craig 2003). The company has opened several branches worldwide, with its main coverage being in the United States of America. For each branch, a management board is put in place, making the general administration much easier. Each management board is given the mandate to make decisions that will bets suit the needs of consumers in the particular region. Again, each branch is treated as a small company within a large company. The result of this strategy is that the company is now enjoying huge domestic success.

Another strategy being used by the company is producing products that satisfy the needs of its clients. This is a business strategy. For instance, the company has a wide range of products ranging from treats for those who love to indulge, low fat products for those on diets, and specially made products for people with conditions such as diabetes and heart conditions. PepsiCo has also improved the nutritional value of its products to match needs of consumers. This again, has enhanced its success in the market, placing it at a better competing position in the market. The company has also adopted a strategy of reintroducing its products into the market by repackaging them, or adding certain features such as nutrients, making them better (Pepsi, 2007; Sadler, & Craig 2003). This is founded on the product life cycle. This always works since many people like trying out something new or something that looks a bit different. The company also tends to sell its products at very fair prices, and ensures that its products are well distributed, even in the most remote of places.

On the functional level, the company has also adopted the strategy of setting goals and targets (Sadler, & Craig 2003). This strategy is based on a number of rules like having a plan on how to perform, being accountable for whatever results, as well as reinforcing the goals that must be achieved and in what time frame. The company lays a lot of emphasis on the actions of each individual because these can affect the company both negatively and positively. More to that, the company treats and handles all its goals and targets with urgency, meaning that they believe in achieving it now.

PepsiCo lays special emphasis on respecting its employees as well as its competitors. This strategy entails treating everybody fairly and with dignity, since everybody is important and has a special role on the general running of the company (Pepsi, 2007; Sadler, & Craig 2003). With respect, then the working environment is conducive since people are able to work and to ensure integrity and justice throughout their operations.


Pepsi. (2007). Strategic Management Analysis of PepsiCo. Retrieved from

scribd. com/doc/19114298/Strategic-Management-Analysis-of-PepsiCo
Sadler Philip & Craig C. James. (2003). Strategic Management. London: Kogan Page Publishers