Essay Exercise 1B

Submitted By bmdjeffries
Words: 535
Pages: 3

Exercise 1B, Step 4
Strengths
1. Well-known worldwide – in over 200 countries (David & David, 2015, p. 24)
2. 22 diversified brands – owning a variety of smaller brands which allows them to offer large product range from beverages to snacks (“Top Global Brands,” n.d.)
3. Second largest carbonated soft drink maker to Coca-Cola (David & David, 2015, p. 24)
4. Largest food and beverage company in North America (David & David, 2015, p. 24)
5. Innovative company – accounted for more than 9% of revenue (“PepsiCo 2014 Annual Report,” 2014, p. 7)
Weaknesses
1. Overdependence on Wal-Mart – 12% of revenues, Wal-Mart is PepsiCo’s largest customer (“PepsiCo 2014 Annual Report,” 2014, p. 6)
2. Overdependence on U.S. Market – 51% of revenues (“PepsiCo 2014 Annual Report,” 2014, p. 12)
3. Product recalls impacting company image – 277 units of Tropicana Kids Orange Juice Drinks were exposed to microbiological contamination (“PepsiCo recalls Tropicana Kids Orange Juice Drink due to microbiological contamination,” 2012)
4. Behind Coca-Cola in the international market in carbonated drinks (“PepsiCo 2014 Annual Report,” 2014, p. 7)
5. Lack in long-term debt ratio at $23.5 billion, whereas competitors are between $2.55 and $14.7 billion (David & David, 2015, p. 31)
Opportunities
1. Deliver $1 billion in productivity saving for next five years (2015-2019) (“PepsiCo 2014 Annual Report,” 2014, p. 8)
2. Six new products released to achieve $100 million each in estimated annual retail sales: Mountain Dew Kickstart, Tostitos Cantina tortilla chips, Starbucks Iced Coffee, Lipton Pure Leaf Tea, Muller Quaker Yogurt, and Gatorade Frost Glacier Cherry (“PepsiCo 2013 Annual Report,” 2013, p. 2)
3. Opening of innovation center in Shanghai, China to fuel new product, packaging and equipment innovation – has already increased revenue by 9% in 2013 (“PepsiCo 2013 Annual Report,” 2013, p. 2)
4. Produce one half of its snacks sold in the U.S. with only natural ingredients (David & David, 2015, p. 31)
5. Expansion of nutritional business from $10 billion to $30 billion by 2020 (“Coke Vs. Pepsi: By The Numbers,” 2014, para. 10)
Threats
1. Growth rates of developing and emerging markets – estimated that middle class with gain an additional 3 billion people…