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PepsiCo Strategy Essay

The company has to develop more products that are in line with local tastes, and continue to work on increasing operating profits. Also, there is a lot of acquisition that has happened, and it needs to evaluate whether any divesting in needed in certain businesses. Now: The company needs to invest in intensive market and consumer research to tap into latest trends across the globe in salted snack and drinks categories. It needs to better understand the finer nuances of local flavors and help these learning’s into making further inroads into various countries.

1-3 Years: The company needs to spend some time doing some serious analysis on the various acquisitions it has and see which ones are in line with strategic strengths and core business functioning. It should also look at how much each of these are giving back ot the system and accordingly look at divestures. The company also needs to formulate a more robust knowledge sharing program and encourage diversity at the workplace in order to get fresher and new innovative insights into product and marketing developments.

3+ Years: The company should keep up the expansion spree and look at newer markets, and newer products. Also, it is important to

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develop a stronger health focused line of products which can work across markets, since this is one concern which will become even more imperative in the coming times. PepsiCo should also look at strategic alliances with super markets and modern retailers across the globe, since they will hold the key to business development in the coming years. McKenzie’s 7 s Strategy:

• Giving great importance to retailers through the Power of One program to ensure that they are partners in the trade • Understanding consumer needs and keeping up with current trends • Aggressive marketing and distribution efforts • Active acquisition policy • Shared resources across business and aligning ways of working across all units of business • Keeping up pipeline for new product developments and variants to cater to rising demand for new and unique offerings. • Use of research to further fine tune product range for local markets

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