Pepsi-Cola: Nutrition or Fun? Case Study Help

Introduction

The Pepsi-Cola is a global brand and is among the most respected companies around the world. The company is currently operating in 200 countries, with 22 different brand under its umbrella, which help it in generating more than $1 billion annual sales.

PepsiCo is also celebrated for its commitment of doing business the right way, integrating the purpose into its business strategy. In 2019, the company adopted a new vision: tobe the Global Leader in Convenient Foods and Beverages by Winning with Purpose.”Wining the purpose is the company’s next step in its agenda, and conveys that it’s believe in its in sustainability will be the higher contributor to its success in the competitive market.

Problem Statement

The strategic management by Indra Nooyi has resulted in share price of the company. In 2014, the company was expecting to reduce the cost by $1.5 billion, but the result was totally out of the company’s expectation. The profits of the company fell by 5%; whereas, the cost of the commodity increased up to $1.5 billion.

Situational Analysis

Question 1: Which two theories/concepts best explain what the CEO’s strategy is, and why?

It is clearly mentioned in the case that the CEO of Pepsi-Cola; Indra Nooyi was the architect of Pepsi-Cola’s new strategy of “Performing with purpose, Doing What’s Right for the Business by Doing What’s Right for People and the Planet.” (Schawbel, 2017)

Nooyi thought that with the concept of Performance with Purpose, Pepsi-Cola needs to work on what right for the business by being sympathetic to the customer’s need. The main focus of the CEO was on Performance with Purpose. To achieve the vision of the company;it needs to be focused on offering healthier products for its growth.They also focused on protecting the environment of the planet and empowering its partners and customers in the products they serve.

The other strategy that she adopted was moving towards diversification. She gave a major shift to the company’s business portfolio and diversified it. Nooyi’s strategy of diversification is directly linked with the company’s vision. The collaboration of the company with the companies operating for the welfare of the people and nature, would help in the achieving the vision of the company. The diversification will also help in increasing its market share, mitigating the risk and enabling the company to have sustainable growth…………………………

 

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