Management and Organizational Studies 4410A/B Study Guide - Final Guide: Frito-Lay, Switching Barriers, Cash Flow

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: Raymond Leduc

Document Summary

Vision: expand internationally through its power of one strategy. Financial: improve overall profitability and reverse the downturn in its stock price that began in 2008. Generate operating cash flows sufficient to reinvest in its core business. Fund an billion share buyback plan. Pursue acquisitions that would provide active returns. Synergies between divisions (look at value chain) Use power of one to expand internationally brand portfolio . Rivalry within companies: only a few dominant companies, however, competition among them is intense. Power of suppliers: not very strong because their supplies are not rare to find. Substitutes: high there are a lot of substitutes available. Potential new entrants: low because there are well established companies already that dominate the industry. Hard for them to get consumers because of brand loyalty that consumers have with existing companies. Political-legal: companies must list what exactly products are made of (nutrition facts must be stated on packages) Technological: easier ways to advertise to target markets.