Management and Organizational Studies 4410A/B Lecture : Pepsi Co. Case fully complete. Ready for class!
Document Summary
For big acquisition initiative (1997-2001), increase revenues, market share. Utilize distribution channels for multiple products through same channels to cut cost. Share skills amongst employees to save money. Three divisions: snack food, soft drink and fast food means cost-sharing and skills transfer opportunities. Want to continue to make acquisition of other companies (small and large because they have the financial abilities to do so) to gain market share in every possible area. Ceo"s- all tough negotiators and will not take no for an answer. Keep customers happy by having products in #1 or #2 spot in their respective category, shift with customers wants by having good-for-you or better-for-you products. Yes, the strategy of acquiring new markets both big and small makes sense as they are trying to gain market share and diversify as much as possible in the snack food, soft drink and restaurant industry. By diversify, they can cross all channels to be more cost efficient.