Strategic Planning: Strategy Map

SWOT ANALYSIS PART 1

Colangelo College of Business, Grand Canyon University

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LDR-620: Leading as a General Manager

Professor:

August

SWOT Analysis

For this essay, I will be focusing on Pepsi Company since I have been working there for some years; additionally, I have also be engaged in several types of research related to the company.

Strengths (Internal/Execution)What are the recognized strengths of your identified area?Firstly, Pepsi is an internationally known soft drink company whose brand is available in over two hundred nations globally. Additionally, there is customer loyalty leading to increased sales, example in 2020, the total revenue was seventy billion dollars. Bhasin (2019).What does your identified area do better than other companies?My identified area performs better than other companies due to product variety, where the company recognizes that different customers have different tastes and preferences. Therefore, Pepsi produces several products, including Lays, Cheetos, Walkers, Tostitos, Fungus, Doritos, and Uncle Chips.What unique capabilities or resources do you identified area possess?The two major capabilities within our field include; strong leadership where LaGuardia Ramon (our current CEO) promotes employee royalty to the organization through inclusive decision making, proper compensation, especially after a good performance. Secondly is the excellent supply chain process that helps in ensuring that the company’s products are available globally at competitive prices.What do other companies consider to be your strength?Other companies consider our corporate social responsibility as our main strength. Pepsi management has been encouraging several practices to protect the environment, especially by encouraging the recycling of bottles and using renewable energy. Pepsi has provided over one hundred thousand jobs in over sixty countries by supporting the agricultural chain. Finally, Pepsi in India has developed initiatives to provide water and conserve water catchment areas, improving sustainability. Paracha et al. (2012).Weaknesses (Internal/Execution)What are the recognized weaknesses of your identified area?High competition is the significant weakness where Coca-Cola has been left the company with the inability to have loyal customers and encourage brand switching. Secondly, the company’s products have been branded unhealthy due to high sugar contents and unclear ingredients.What do competitors do better than your identified areas?Firstly Coca-Cola provides relatively cheap products, therefore attracting customers from low-earning households. Secondly is Coca-Cola has introduced an ingredient section and customer education before consumption of its product. Finally, there is the sugar-free healthy Coca-Cola drink, especially for diabetic people.
Opportunities (External/Environment)What areas can be improved at your current position?Potential areas that can be improved include proper customer sensitization, where customers understand the risks and advantages of taking our products. Secondly, Pepsi should look for unexploited markets like Asian and African nations with few soft drink companies. This will reduce competition and increase revenues.What do other companies consider to be your weakness?Some weaknesses that other companies may observe from Pepsi include; failed brands; for example, brands like Crystal Pepsi never performed as anticipated, reducing Pepsi’s competitiveness and brand image. Secondly, for example, the poor brand ambassadors in the 2017 Kenner’s advert that trivialized the black lives matter movement, boycotting Pepsi’s products.What trends or conditions positively impact the company?Changes in technology have positively impacted Pepsi. The company can capitalize on the delivery robots and online ordering systems where products are paid for and delivered to the customer’s preferred location. Secondly is a corporate social responsibility to help in improving the company’s brand image.What opportunities exist for the identified area?It provides healthy options to customers where Pepsi has introduced the ‘diet Pepsi’ that seeks to improve its image based on health implications. Secondly, Pepsi has introduced newer flavors, including a paper boat that tastes like mango, watermelon, etc.Threats (External/Environment)What trends or conditions impact the identified area in a negative way?Increased competition exposes Pepsi Company to other better-performing companies like Dr. Peppers, Coca-Cola, Nestle, Unilever, etc. Secondly is the poor economic performance, especially after covid19; therefore, customers purchase more essential goods. Thirdly customers are becoming more aware of their health; therefore, they consider soft drinks as unhealthy. Štofová & Kopčáková (2020).What is the competition doing that may have an impact on your identified area?Coca-Cola has engaged in advertisements to promote customer sensitization and increased purchases. Secondly, other companies are supporting the developing nations to increase their economic recovery after covid19. Finally, more healthy soft drinks are being produced like sugar-free tastes.Does your identified area have solid financial support?Yes, as noted earlier, Pepsi is a highly profitable company, for example; in 2020, its revenue was about seventy million dollars; therefore, it’s highly profitable.What impact does your weakness have on the threats your identified area faces?The weaknesses have adverse effects and weaken Pepsi’s performance. For example, the deficiency of increased competition and poor economic performance leads to the reduced overall performance of Pepsi Company due to the customer’s inability to recognize or purchase its products.

The strategic goal

The significant opportunity Pepsi has is to increase its customer base through higher loyalty and customer sensitization. Through proper education, customers will understand the potential ingredients used when producing the company’s drinks and potential health risks. Additionally, customer sensitization can be about understanding the potential limits and considerations when selecting their preferred drinks. Paracha et al. (2012).

References

Bhasin, H. (2019). SWOT Analysis of Pepsi – PepsiCo SWOT analysis. Marketing91. From: https://www.marketing91.com/swot-analysis-pepsico/

Paracha, A. M. J., Waqas, M., Khan, A. R., & Ahmad, S. (2012). Consumer Preference Coca Cola versus Pepsi-Cola. Global Journal of Management And Business Research12(12). http://www.journalofbusiness.org/index.php/GJMBR/article/view/746

Štofová, L., & Kopčáková, J. (2020). The Competition Strategy between Coca-Cola vs. Pepsi Company. Calitatea21(179), 40-46. https://search.proquest.com/openview/0848fff31763e682817625ea0fcd3393/1?pq-origsite=gscholar&cbl=1046413

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