Question 3: Does PepsiCos portfolio exhibit good strategic fit?

Yes, they had a noteworthy successes with $160 million cost saving from product elements and packing material, $40 million cost saving form joint venture. PepsiCos management team was dedicated to capturing the strategic fit benefits within the business line up throughout the value chain. The PepsiCos procurement activities were coordinated worldwide to reach the utmost possible economies of scale, best practices. They also share marketed research information to better enable each division to develop new product What value-chain match-ups do you see? PepsiCo combine purchasing activities, gain more influence and leverage with suppliers, and realize supply chain economies; share technology, transfer technical skills, combine Research and Development (R&D); combine sales and marketing procedures and activities, use common distribution channels, brand name, and combine after-sale service activities and using crossbusiness collaboration to create new competitive capabilities. What opportunities for skills transfer, cost sharing, or brand sharing do you see? On my opinion and personally I believe that PepsiCo have the all 3 opportunities. For skill transfer:, since PepsiCo include much of business units and divisions, they can have skill transferring within the own corporate and the globe. The best practices were routinely transferred between its 230 plants, 3600 distribution systems, and 120,000 service routes around the world. For cost sharing:, since PepsiCo can capture the strategic fit and resources fit benefits, they also prove to have cost-saving over time. Like, they achieve $160 million in cost-saving resulting

from corporate-wide procurement of product ingredients and packaging material. And for Brand Sharing:, we have to mention one of the most successful strategies was Power of One, they allow PepsiCo to obtain the synergistic benefit of combining Pepsi-Cola and FritoLay. For instance, in Chile, Frito-Lay has over 90% of the market, but Pepsi is in lousy shape but due to Frito-Lay image Pepsi able to get a shelf space.