Case19 - Pepsicos Diversification Strategy In 2008- week 14 Group 4 KatieQuestion 1 & 2

DawnQuestion 4 & 8 Erica-Question 3 & 5 Amber-Question 6 & 7

ASSIGNMENT QUESTIONS 1. What is PepsiCos corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008. 2. What is your assessment of the long-term attractiveness of the industries represented in PepsiCos business portfolio? 3. What is your assessment of the competitive strength of PepsiCos different business units?

4. What does a 9-cell industry attractiveness/business strength matrix displaying PepsiCos business units look like? 5. Does PepsiCos portfolio exhibit good strategic fit? What value-chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see? 6. Does PepsiCos portfolio exhibit good resource fit? What are the cash flow characteristics of each of PepsiCos four segments? Which businesses are the strongest contributors to PepsiCos free cash flows? 7. Based on the preceding analysis, what is your overall evaluation of PepsiCos business portfolio in 2008? Does the portfolio provide the companys shareholders with an opportunity for above-average market returns? 8. What strategic actions should Indra Nooyi take to sustain the corporations impressive financial and market performance? Should its free cash flows be used to fund additional share repurchase plans, pay higher dividends, make acquisitions, expand internationally, or for other purposes? What other strategic actions should be pursued by corporate level management?

PepsiCo Paper Components 1. Introduction/Background Information-ALL OF US 2. Company Description--AMBER 3. Strategic Focus/PlanKATIE/DAWN 4. Current Situation 2008-(SWOT, Industry, Competition, Company, Customer)--ERICA 5. Business Strategies (Objective, Game Plans)includes questions from Case Study ALL OF USFROM CASE STUDY QUESTIONS 6. Financial Analysis--AMBER 7. Implementation PlanKATIE/DAWN 8. Evaluation indicators/Control SystemsKATIE/DAWN