Автор: Пользователь скрыл имя, 07 Февраля 2013 в 18:33, курсовая работа
Created in 1965 through the merger of Pepsi-Cola and Frito-Lay, PepsiCo is one of the strongest beverage and convenient food companies in the world. Originally started in 1898, Pepsi Cola became the first branded soft drink in the world. Its brand is available in over 200 countries around the world and generated sales in excess of $92 billion last year. Headquartered in Purchase, New York, PepsiCo is the number two beverage company in the world behind the Coca-Cola Company.
Frito-Lay North America, Quaker Foods North America, Latin America Foods and PepsiCo Americas Beverages divisions are stars. Because they have a high relative market shares position and high-growth industry. Market penetration, market development, and product development, Backward, Forward, Horizontal Integration are applied strategies for this division.
Grand Strategy Matrix
This is also an important matrix of strategy formulation frame work. Grand strategy matrix it is popular tool for formulating alternative strategies. In this matrix all organization divides into four quadrants.
Any organization should be placed in any one of four quadrants. Appropriate strategies for an
Organizations to consider are listed in sequential order of attractiveness in each quadrant of the matrix.
It is based two major dimensions
From Competitive Profile Matrix we can see that between PepsiCo and Coca-Cola high competition, so PepsiCo not inferior to Coca-Cola, that’s have strong competition. And from BCG matrix can be seen high market growth of PepsiCo. Firms located in quadrant 1 of the grand strategy matrix are in an excellent strategic position. PepsiCo. Must focus on current market and appropriate to follow market penetration, market development and products developments are appropriate strategies.
Matrix Analysis
Alternative Strategies |
IE |
SPACE |
BCG |
GRAND |
Count | |
Forward Integration |
+ |
+ |
2 | |||
Backward Integration |
+ |
+ |
2 | |||
Horizontal Integration |
+ |
+ |
2 | |||
Market Penetration |
+ |
+ |
+ |
+ |
4 | |
Market Development |
+ |
+ |
+ |
+ |
3 | |
Product Development |
+ |
+ |
+ |
+ |
4 | |
Related Diversification |
+ |
+ |
2 | |||
Unrelated Diversification |
+ |
+ |
2 | |||
From matrix analysis we can see that Market Penetration and Product Development are presented in all matrixes, so our strategy will be associate by these strategies. And Market development too will be entering in strategies.
The quantitative strategic planning matrix (QSPM)
QSPM matrix |
Strategic alternatives | ||||
Key factors |
Produce Non-carbonated products. |
Acquire small companies in new market and Tie up with restaurants, clubs, show rooms in current market | |||
STRENGTHS |
Weight |
AS |
TAS |
AS |
TAS |
Strong multinational (Brand Equity) |
0. 055 |
3 |
0.65 |
3 |
0.165 |
Strong & Vast Distribution Channels |
0.045 |
3 |
0.18 |
3 |
0.135 |
Lack Of Capital Constraints |
0.035 |
3 |
0.105 |
4 |
0.14 |
Record Market Share |
0.05 |
2 |
0.1 |
4 |
0.2 |
Strong Brand Portfolio |
0.03 |
2 |
0.06 |
3 |
0.09 |
Aggressiveness In The Market (Market Leader) |
0.035 |
3 |
0.105 |
4 |
0.14 |
Brand Promotion & Sponsorship |
0.06 |
2 |
0.12 |
3 |
0.18 |
WEAKNESS |
|||||
Targeting Only Young Customers |
0.045 |
3 |
0.135 |
2 |
0.09 |
Political Franchises |
0.03 |
0 |
0 |
0 |
0 |
Centralized Decision Making |
0.025 |
0 |
0 |
1 |
0.025 |
Decline In Taste |
0.045 |
3 |
0.105 |
2 |
0.09 |
Motivational Factor |
0.025 |
1 |
0.025 |
2 |
0.05 |
Not All Products Bear The Company Name |
0.02 |
1 |
0.02 |
3 |
0.06 |
1.00 |
|||||
OPPORTUNITY |
|||||
New Products Can Easily Penetrate In The Market. |
0.045 |
3 |
0.135 |
3 |
0.135 |
Noncarbonated Drinks Are The Fastest-Growing Industry- |
0.055 |
4 |
0.22 |
3 |
0.165 |
Demand Of Pepsi Is More Than Of Competitor |
0.035 |
2 |
0.07 |
4 |
0.14 |
Changing Social Trends (Fast Foods) |
0.045 |
2 |
0.09 |
4 |
0.18 |
Internet Promotion And Ordering Processes |
0.03 |
2 |
0.06 |
3 |
0.09 |
Tie Up Or Liaison With Major Showrooms & Restaurant |
0.035 |
2 |
0.07 |
3 |
0.105 |
THREATS |
0 |
0 | |||
Non-Carbonated Substitutes |
0.07 |
4 |
0.28 |
2 |
0.14 |
Beverage Industry Is Mature |
0.06 |
3 |
0.18 |
2 |
0.12 |
Fake Products (Imitators) |
0.05 |
1 |
0.05 |
2 |
0.1 |
Competitor's Schemes |
0.025 |
2 |
0.05 |
3 |
0.75 |
Strong Competition With Coco-Cola Company |
0.05 |
2 |
0.1 |
3 |
0.15 |
1.00 |
2.91 |
3.44 | |||
Based on the Matrix’s analysis developed in matching stage, two most appropriate strategies are chosen and decision is made based on total attractiveness scores (weights*ratings). They are “Produce Non-carbonated products.” (Product Development) and “Acquire small companies in new market and Tie up with restaurants, clubs, show rooms in current market” (Market Penetration). Total Attractiveness score for strategy Produce Non-carbonated products is 2.91, whereas total attractiveness score for “Acquire small companies in new market and Tie up with restaurants, clubs, and show rooms in current market” is 3.44. It means that both strategies can be implemented. But the rapid and more effective strategy is “Acquire small companies in new market and Tie up with restaurants, clubs, show rooms in current market” (Market Penetration). Because it has several advantages such as:
Disadvantages:
Strategy 1: Produce Non-carbonated (негазированный) products.
Advantages:
Disadvantages:
Recommended long term objectives:
Recommended Specific Strategies:
Estimated Changes in Income Statement
PERIOD ENDING |
2009 |
2010 |
2011 |
2012-2013 (Projected) |
|
| ||||
Income Statement | ||||
|
| ||||
Operating Revenue (Revenue/Sales) |
43,232,000 |
57,838,000 |
66,504,000 |
76.000.000 |
Total Revenues |
43,232,000 |
57,838,000 |
66,504,000 |
76.000.000 |
Cost of Sales |
18,527,000 |
24,365,000 |
28,989,000 |
32.000.000 |
Cost of Sales with Depreciation |
20,099,000 |
26,575,000 |
31,593,000 |
37.000.000 |
Gross Margin |
24,705,000 |
33,473,000 |
37,515,000 |
44.000.000 |
Gross Operating Profit |
24,705,000 |
33,473,000 |
37,515,000 |
44.000.000 |
Selling, Gen. & Administrative Expense |
15,026,000 |
22,814,000 |
25,145,000 |
30.000.000 |
Operating Income |
8,044,000 |
8,332,000 |
9,633,000 |
11.000.000 |
Operating Income b/f Depreciation (EBITDA) |
9,679,000 |
10,659,000 |
12,370,000 |
14.000.000 |
| ||||
Depreciation |
1,635,000 |
2,327,000 |
2,737,000 |
3.000.000 |
Amortization of Intangibles |
63,000 |
117,000 |
133,000 |
200.000 |
Operating Income After Depreciation |
8,044,000 |
8,332,000 |
9,633,000 |
11.000.000 |
Interest Income |
67,000 |
68,000 |
57,000 |
60.000 |
Earnings from Equity Interest |
365,000 |
735,000 |
* |
|
| ||||
All numbers in thousands | ||||
|
| ||||
Total Income Avail for Interest Expense (EBIT) |
8,476,000 |
9,135,000 |
9,690,000 |
11.060.000 |
Interest Expense |
397,000 |
903,000 |
856,000 |
1.000.000 |
Pre-tax Income (EBT) |
8,079,000 |
8,232,000 |
8,834,000 |
10.060.000 |
Income Taxes |
2,100,000 |
1,894,000 |
2,372,000 |
3.000.000 |
Minority Interest |
33,000 |
18,000 |
19,000 |
20.000 |
Income before Income Taxes |
8,079,000 |
8,232,000 |
8,834,000 |
10.060.000 |
Net Income from Continuing Operations |
5,946,000 |
6,320,000 |
6,443,000 |
7.040.000 |
Net Income from Total Operations |
5,946,000 |
6,320,000 |
6,443,000 |
7.040.000 |
Total Net Income |
5,946,000 |
6,320,000 |
6,443,000 |
7.040.000 |
Normalized Income |
5,946,000 |
6,320,000 |
6,443,000 |
7.040.000 |
Net Income Available for Common |
5,946,000 |
6,320,000 |
6,443,000 |
7.040.000 |
| ||||
Income Statement - Year-to-Date | ||||
Revenues Year-to-Date |
43,232,000 |
57,838,000 |
66,504,000 |
76.000.000 |
Income Year-to-Date fr. Total Ops. |
5,946,000 |
6,320,000 |
6,443,000 |
76.000.000 |
Estimated Changes in Balance Sheet
Period Ending |
2011 |
2010 |
2002-2013 (projected) | |
Assets | ||||
Current Assets | ||||
Cash And Cash Equivalents |
4,067,000 |
5,943,000 |
4,000,000 | |
Short Term Investments |
358,000 |
426,000 |
400,000 | |
Net Receivables |
6,912,000 |
6,323,000 |
7,000,000 | |
Inventory |
3,827,000 |
3,372,000 |
4,000,000 | |
Other Current Assets |
2,277,000 |
1,505,000 |
3,000,000 | |
Total Current Assets |
17,441,000 |
17,569,000 |
18,000,000 | |
Long Term Investments |
1,477,000 |
1,368,000 |
3,000,000 | |
Property Plant and Equipment |
19,698,000 |
19,058,000 |
22,000,000 | |
Goodwill |
16,800,000 |
14,661,000 |
17,000,000 | |
Intangible Assets |
16,445,000 |
13,808,000 |
17,000,000 | |
Accumulated Amortization |
- |
- |
- | |
Other Assets |
1,021,000 |
1,689,000 |
1,500,000 | |
Deferred Long Term Asset Charges |
- |
- |
- | |
Total Assets |
72,882,000 |
68,153,000 |
78,500,000 | |
Liabilities | ||||
Current Liabilities | ||||
Accounts Payable |
11,949,000 |
10,994,000 |
15,000,000 | |
Short/Current Long Term Debt |
6,205,000 |
4,898,000 |
7,000,000 | |
Other Current Liabilities |
- |
- |
- | |
Total Current Liabilities |
18,154,000 |
15,892,000 |
22,000,000 | |
Long Term Debt |
20,568,000 |
19,999,000 |
21,000,000 | |
Other Liabilities |
8,266,000 |
6,729,000 |
8,000,000 | |
Deferred Long Term Liability Charges |
4,995,000 |
4,057,000 |
5,000,000 | |
Minority Interest |
311,000 |
312,000 |
300,000 | |
Negative Goodwill |
- |
- |
- | |
Total Liabilities |
52,294,000 |
46,989,000 |
56,300,000 | |
Stockholders' Equity | ||||
Misc Stocks Options Warrants |
(116,000) |
(109,000) |
(116,000) | |
Redeemable Preferred Stock |
- |
- |
- | |
Preferred Stock |
- |
- |
- | |
Common Stock |
31,000 |
31,000 |
31,000 | |
Retained Earnings |
40,316,000 |
37,090,000 |
42,099,000 | |
Treasury Stock |
(17,875,000) |
(16,745,000) |
(18,000,000) | |
Capital Surplus |
4,461,000 |
4,527,000 |
5,000,000 | |
Other Stockholder Equity |
(6,229,000) |
(3,630,000) |
(6,930,000) | |
Total Stockholder Equity |
20,704,000 |
21,273,000 |
22,200,000 | |
Liabilities and Equity |
78,500,000 | |||
Estimated Changes in Financial Ratios
Finical Ratio 0f Pepsi |
2010 |
2011 |
2012-2013 (projected) |
liquidity ratios |
|||
Current Ratio |
1.11 |
0.96 |
1.2 |
Quick Ratio |
0.8 |
0.62 |
1 |
Cash ratio |
0.4 |
0.24 |
0.4 |
Debt |
|||
Debt to equity |
1.18 |
1.3 |
1.4 |
Debt to capital |
0.54 |
0.57 |
0.6 |
Profitability Ratio |
|||
Gross Profit Margin |
54.05% |
52.49% |
54% |
Net Profit Margin |
10.93% |
9.69% |
10% |
ROE |
8.84 |
9.27 |
10% |
ROA |
31.29 |
29.86 |
32% |
Strategy
Product - many products for different tastes
Price - Affordable for the mass market
Place - Sold in 200 countries throughout the world
People - Spends a lot of money re-investing in staff and in developing relationships with bottling franchiser’s and distributors
Processes - Now concentrating on reconciling the processes through a BPT system
Physical Evidence - prominent placement on shelves within stores, increased profits
Strategy Review and Evaluation
A Strategy Evaluation Assessment Matrix
Have major changes occurred in the firm’s internal strategic position |
Have major changes occurred in the firm’s external strategic position |
Has the firm progressed satisfactorily toward achieving its stated objectives? |
Result |
No Yes Yes Yes Yes No No No |
No Yes Yes No No Yes Yes No |
No No Yes Yes No Yes No Yes |
Take corrective action Take corrective action Take corrective action Take corrective action Take corrective action Take corrective action Take corrective action Continue present strategic course |
Balanced Scorecard
Area of Objectives |
Measure of Target |
Time Expectation |
Primary Responsibility |
Customers |
|||
1. Customer satisfaction |
Costumer Survey Webinars |
Quarterly |
Human Resources |
Representatives |
|||
1. Improve production efficiencv |
Increase in production |
Yearly |
Supply chain Operations |
2. Offer employee trainings |
Employee surveys Production efficiency |
Yearly |
Human Resources |
Community/ Social Responsibility |
|||
1. Eco-Friendly company |
Increase in recyclable bottle В eing involve in more events regarding water contamination |
Yearly |
CEO |
2. Ethical Company |
Number and success of charitable events UNICEF amount of money donated |
Yearly |
CEO |
Operations; Processes |
|||
1. Innovation |
New products Product appearance Acquisition of new brands |
Yearly |
CEO |
2. Brand expansion |
Numbers of new countries entered Number of sales in the International Segment |
Yearly |
CEO |
Financial |
|||
1. Reduce cost of production |
Income Statement |
Yearly |
Chief Financial Officer |
2. Increase profitability |
Increase annual report |
Yearly |
Chief Financial Officer |