Strategic Initiative Paper
September 26, 2013
Strategic Planning Initiative, Financial Planning
• Who are we and what do we do?
• Who are our customers?
• Who are our competitors and how do we compete” (Titman, Keown, & Martin, 2011, p. 564)?
In the 2012, Annual Report for PepsiCo focused on the strategic plan to migrate their portfolio toward high growth spaces. PepsiCo wants to grow their large household names globally to Russia, China, and India to increase revenue. One product to take the United States known household name of Quaker and launch the oats product in Russia with a local brand named Chudo (PepsiCo, 2012). The oats products generated more revenue in China and India with their strategically placed breakfast cereal bars. The second project was to grow their nutrition line globally with the innovation of the Tropicana products with new premium packaging. The product line introduced Trop 50 in the United Kingdom, which contains less sugar than regular orange juice and has only 50 calories per serving (PepsiCo, 2012). The third project included acquiring the organization of Wimm-Bill-Damn that helped lead to the launch of Muller –Quaker, a new dairy line. The drinkable yogurt was offered in Russia and in the United States. This project is projected to have strong growth in these locations (PepsiCo, 2012). PepsiCo believes China will be the “world’s largest beverage market by 2015” (PepsiCo, 2012). The organization plans to work with their alliance company Tingyi to ensure they keep a competitive advantage in the China market. Tingyi take PepsiCo’s product and deliver the products lines in China through the new local beverage line of PepsiCo-Tingyi beverage system (PepsiCo, 2012).
Initiative’s affects on cost
During that year PepsiCo announced strategic investments to drive growth. They introduced a multi-year productivity program expected to generate $1.5 billion of incremental cost savings by 2014 through...