Reference no: EM132721135

PepsiCo is one of the largest food and beverage companies in the world. It manufactures and sells eighteen brands of beverages and snack foods and generates over $98 billion in retail sales. PepsiCo encompasses the Pepsi Cola, Frito-Lay, Tropicana, Quaker, and Gatorade brands and offers products in over 200 countries. Pepsi successfully adapted its practices and product positioning with the times through its marketing campaigns. The company also pursued a major acquisition strategy as well as an expansion of its product line. In 1964, Pepsi introduced Diet Pepsi in response to the nation's noticeable lifestyle change toward health, along with the Mountain Dew brand. More recently, PepsiCo broke into the bottled water industry with its rollout of Aquafina bottled water in 1997. Yet perhaps its biggest milestone was Pepsi's monumental merger with Frito-Lay Inc. to become PepsiCo Inc., the company it is known as today. Other major PepsiCo acquisitions included Taco Bell and Pizza Hut Inc. (which would later be spun off from the company in 1997), 7Up International in 1986, and Tropicana Products in 1998. Pepsi has also profited through corporate partnerships, such as a joint venture with the Thomas J. Lipton Company in 1991 and a partnership with Starbucks in 1994 to develop coffee drinks.

In 2006 PepsiCo got a new CEO, Indra Nooyi, who began reorganizing PepsiCo to focus on several different initiatives. Under her leadership, PepsiCo's goals included focusing more on countries outside the U.S., developing healthier snacks, having a net-zero impact on the environment, and creating a better working environment. PepsiCo has also begun investing heavily in the countries in which it does business. For example, in 2009 PepsiCo announced it would invest another $1 billion into Russia. PepsiCo consists of four divisions: PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo Europe, and PepsiCo Middle East, Asia, and Africa. These divisions are further split up into different businesses, including Pepsi Beverages, Frito-Lay, Sabritas, SoBe, Tropicana, and more.

PepsiCo has begun a restructuring of its Beverages division to create better integration between its units. Until 2010, PepsiCo's Americas Beverages consisted of one business unit led by Eric Foss. In April, the company decided to purchase and merge its two largest bottling companies, the Pepsi Bottling Group and Pepsi Americas. As a result of this merger, Pepsi now has control over 80 percent of its bottling network. In the restructuring process, PepsiCo's Americas Beverages now consists of two businesses, the Pepsi Beverages Company, including the original Pepsi brands, and PepsiCo Beverages Americas, which includes the Tropicana, Gatorade, and Latin American brands. As part of the restructuring, PepsiCo is also embarking on what it calls the "Power of One" business strategy. Under this strategy, PepsiCo is investigating ways it can bundle or combine its beverages with its food products. The purpose of PepsiCo's recent actions is not only to encourage consumers to purchase its products, but also to appeal to consumers' desires to save money on multiple products. The entire process is one additional way PepsiCo hopes to bounce back.

Gatorade, the official sports drink of the NBA and major league baseball, dates back to 1965. The formula was developed by a group of scientists after a study revealed that players at the University of Florida were losing electrolytes and carbohydrates during games. Gatorade (named after the Florida Gators team) was meant to be a solution to that problem by containing a balanced amount of electrolytes and carbohydrates that would rejuvenate players. Gatorade was a huge success among sports teams, leading to future innovation with products like the Gatorade Nutrition Shake and the Gatorade Bar. In 1983, Quaker Oats Co. acquired Gatorade, which in turn was acquired by PepsiCo in 2001 when PepsiCo bought the Quaker Oats Co. Gatorade has become the third most popular selling drink under PepsiCo (after Pepsi and Mountain Dew).

Q1. Describe the reason for mergers and acquisition, Why PepsiCo need for mergers and acquisition, how the company do that, give examples about the company that PepsiCo mergers it?

Q2. Explain how PepsiCo enter new market and and how it diversification its products?

Q3. Illustrate the "Power of One" business strategy, that PepsiCo applied?

Q4. In your opinion what is the appropriate organizational team of PepsiCo and why?

Q5. Based on your knowledge and what was cover in the "Management of Change" course, describe what is metaphor, and explain the kind of metaphor that suitable for PepsiCo? And describe how PepsiCo achieved successful cultural change