· We Can Write Custom Research Papers on Business Strategy for You! Customer-focused business strategies as the name suggest emphasize a close relationship with the customer. This strategy approach focuses on customer value and customer profitability quite the opposite to share satisfaction, or product profitability that is a focus in other strategies Research on Business Strategy and Performance Evaluation in Collaborative Design paper identifies the significant factors that determine a characteristic feature of a business strategy is 1 day ago · Today’s business environment requires competency in managing risk and in selecting a business strategy based on a company’s internal and external analyses. In this task, after reviewing the scenario, you will discuss the market entry risk/reward ratio; analyze the company’s strengths, weaknesses, opportunities, and threats (SWOT); and recommend a business strategy
Business Strategy Research from Harvard Business School
Increasing effects of globalization and the rising international business competition have prompted businessmen, business strategy research paper, organizations and corporations to rethink their global business strategy. International business strategies have become very important in the wake of increasing globalization, as well as, internationalization of established local companies as they attempt to increase their values in the market.
We will write a custom Research Paper on PepsiCo Inc. Corporations are adopting business strategy research paper strategies such as product standardization and differentiation, adaptation, as well as, product diversification to capture both the domestic and the international market, business strategy research paper.
International business strategy refers to the business plans adopted by corporations and businesses in the global business environment to provide services and products consumers across the business strategy research paper. Corporations and businesses are therefore developing and adopting strategies which can meet their short and long-term goals.
Most corporations have international partners at least at some levels of supply chain to help them overcome the complexities in the international business environment, business strategy research paper, and as a result, compete favorably in the international market. PepsiCo Inc is among such corporations that apply several global strategies to increase its value in the international market, and to expand its market share.
PepsiCo Inc has its headquarters in Purchase, Harrison, New York in the US. The company deals in manufacturing, marketing, as well as, distribution of beverages and grain-based snack foods among other products, business strategy research paper. The company was first established in the s in the state of Delaware and has since expanded over the years to become a multinational corporation. Its expansion has majorly been through mergers and acquisition. The biggest merger was undertaken in between Pepsi-Cola Company and Frito-Lay Inc.
to form PepsiCo. Since s, PepsiCo has expanded through acquisition of businesses within and outside of its core focus which has mainly been in beverage, as well as, packaged food brands. It has also exited some of its non-core functions business lines especially in Inthe company bought Tropicana brand together with all the products going by the name. In Pepsi efforts to expand into the soft drink market saw it merge with Quaker Oats Company.
Today, it operates in North America, South America, Europe, Asia and Africa. The rest constitute food products. PepsiCo Inc has several hundreds of brands in the market PepsiCo Inc. Today, its products sell in more than countries, and operate in more than 40 countries across the globe, business strategy research paper. Its last market division, business strategy research paper, Asia, the Middle East and Africa has to be exploited adequately to realize the full benefits of its global strategies.
Currently, its major countries of operations in the division include India, Pakistan, Saudi Arabia, Thailand, China, Russia and Philippines. Among the countries the corporation is planning to expand its operations in is the United Arab Emirates.
It therefore plans to expand its PepsiCo Beverages International into the country by the end of PepsiCo Inc. is likely to experience several regulatory challenges. There are restrictions on new foreign companies which plan to set sup offices, as well as, conduct direct sales in the UAE.
Among these regulatory challenges include climate change regulations in the country. Environmental sustainability has become a critical global issue and the Business strategy research paper government requires every company to develop plans on how it will achieve environmental sustainability before it is licensed and given permit to operate in the country.
The government requires every company to come up with a comprehensive, business strategy research paper, as well as, practical approach on how it plans to maximize energy usage, reduce water usage and decrease greenhouse gas emissions.
Water usage in the UAE is a big problem and as such the company needs to look for alternatives to avoid running into problem with authorities. Production of its plastic packages consumes billions of gallons of petrochemicals. Emissions reduction is a major focus of the UAE environmental legislations. The government may only allow PepsiCo Inc to operate in the country under strict compliance to the environment regulations due to its high carbon emission.
The ratio of ingredients on each of its beverages has to be tested in the Bureau of UAE Standards laboratory to verify whether they meet the local standards.
The chemicals in the ingredients have to be within the tolerance limits for every product that the company produces to be allowed to operate in UAE. PepsiCo will be forced to meet the guidelines of the ministry of health which require business strategy research paper and food companies not to market or distribute foods and beverages which have high calories such as carbonated soft drinks to children.
These guidelines are also in the International Council of Beverages Associations regulations Fredrix In the UAE, any company that fails to pay its creditors within 30 days must file for bankruptcy; otherwise it faces bankruptcy charges, which is a criminal offense in the country.
Loan repayments are also not flexible due to non-existent structured bankruptcy laws in the country. Any company that fails to repay its loan within the stipulated time faces criminal sanctions. According to Arnold insolvency laws in the country are inefficient and therefore discourage investment into the country. It may take as long as five years to close a company in the country meaning that the cost of closing a company in the UAE is high Arnold As a requirement for every new foreign firm that enters UAE, PepsiCo will have to find a local sponsor for itself and its employees New Zealand Trade and Enterprise The sponsor in this case can be an institution within UAE or a UAE citizen who does not have to be involved in business.
The company has to pay the sponsor to provide the lawfully required administrative functions. The cultural environment in the UAE is highly influenced by the Islamic religion, which forms the foundation for the culture of its people, and the laws governing business operations in the country. Considering that Muslims are the majority population in the country, PepsiCo will be limited to manufacturing and distributing of soft drinks. It is against Muslim religion and culture to take alcohol New Zealand Trade and Enterprise The Islamic religion requires that all Muslims attend prayer meetings five times a day.
Besides, during summer, which occurs in July and August, business strategy research paper, many senior decision-makers in the country go on vacation due to extreme heat, as well as humidity, and therefore it is not possible to hold high-level business meetings. This also happens during the period of Ramadan when business schedules are disrupted or shortened. Besides, nobody, including non-Muslims is allowed to eat or drink in public during that period New Zealand Trade and Enterprise Availability of raw materials is likely to be the major challenge for PepsiCo in the UAE, business strategy research paper.
However, the climatic conditions of the region do not favor agricultural production and therefore relies on imports for its agricultural raw materials and food products. The financial institutions in the UAE are not well established, and therefore are likely to be affected by external macro-economic business strategy research paper Zogby This means that stock market collapse or even another banking crisis in the Middle East or in major world economies can highly damage its financial institutions.
This may affect the financial operations of PepsiCo in the country should such crisis occur. PepsiCo could also face labor challenges in the United Arab Emirates. Although UAE has population that can affectively supply labor to firms within the country, business strategy research paper, there are few experts as most of UAE nationals possess low levels of qualifications Zogby The percentage of UAE nationals who have high levels of education and experts in various fields are still low, and this means that PepsiCo will be forced to hire experts from abroad especially its executives.
Besides, UAE government bans entry of citizens from specific countries such as Israel. It has also enforced quotas for employing young nationals Zogby Worse still, it is very difficult to fire UAE nationals for under-performance Zogby Competition is also another major challenge for PepsiCo while entering the UAE market.
Major global beverage companies like Coca-Cola, Nestle and Cadbury are already operating in the UAE. Achieving customer loyalty especially in a market that has been majorly dominated by Coca-Cola, its main rival, could be difficult considering that advertisements targeting UAE consumers have to be modest.
It will therefore be forced to be more creative and innovative to capture the market. It will also implement machinery that captures water naturally contained in some of its agricultural raw materials to offset its water needs, business strategy research paper. It also plans to drop the production of its discretionary products like Aquafina in favor of water conservation Gunther It will also establish a plant for recycling its beverage bottles and cans, as well as, business strategy research paper, recycling machine kiosks to meet the requirements of waste management by the government Environmental Leader The recycling kiosks will be stationed in public places such petrol and gas stations, public parks among other places.
It plans business strategy research paper involve local NGOs to encourage community involvement in the program. This would make it easier for the company to acquire raw materials since there are no duties charged on agricultural raw materials especially from New Zealand.
In order for the company to compete favorably in UAE, it will business strategy research paper enter the market by producing brands which are already doing well in Saudi Business strategy research paper. As part business strategy research paper its marketing strategy, the company plans to use public figures in UAE in its advertisement campaigns in the country.
In addition, it will also adopt brand names which the locals find easy to pronounce. Besides, it will only major on producing soft drinks to meet the cultural practices of the majority population. PepsiCo can enter UAE through joint ventures, appointing a commercial agent, and authorization to a domestic firm through franchising agreement or licensing, business strategy research paper. Although PepsiCo can enter UAE market without establishing local offices within the country by contracting a commercial agent, it can better achieve its international expansion strategy through joint ventures with local beverage firms.
However, PepsiCo has to retain the business strategy research paper of a lawyer who is familiar with the local and the US laws and practices while drafting an agreement with the domestic company it chooses to deal with. Using this strategy, it is able to bring its unique technologies and new products into the market cheaply and faster, and more reliably and efficiently as opposed to what it could achieve alone as a new player in the market. This corporate strategy will also provide the company with access to political connections as well as new market segments.
PepsiCo will enter production joint venture with local beverage companies in the manufacture of its products, and contract manufacturing joint ventures with other bottlers for the manufacture of its packaging bottles and cans. The venture will also include recycling, business strategy research paper.
In its operations, PepsiCo plans to integrate the expertise of business strategy research paper and local employees, and to bring in its technologies in the production processes. In order for PepsiCo to enter the already competitive beverage market in the UAE, it plans to adopt cost leadership strategy, business strategy research paper. This, it will achieve by offering same prices as those products already in the market for larger quantities of its products.
For the company to offer lowest prices for its products while still achieving high revenues on its investments, it will have to streamline the existing technology at the local company it enters joint venture agreement with in order establish manufacturing plants which enable it produce high volume output. The distribution of these high outputs will be made possible by the existing distribution networks of the local partner. This means that it will limit customization of products that it sells in the country as much as possible.
It will also institute competitive bidding for its supply and procurements to help it achieve low cost of operations. It also plans to purchase its raw materials in bulk to benefit from quantity discounts. These strategies will help the company maintain its low pricing strategy, business strategy research paper. PepsiCo will adopt operations strategy as its functional level strategy so as to align it with its business level strategy since the latter majorly deals with reducing production cost.
Operations strategy will enable the company add value to its products. This will in turn give it an upper hand over some of its competitors and produce large quantities of products, and hence benefit from economies of scale.
The steps of the strategic planning process in under 15 minutes
, time: 11:05PepsiCo Inc. International Business Strategy - Words | Research Paper Example
1 day ago · Today’s business environment requires competency in managing risk and in selecting a business strategy based on a company’s internal and external analyses. In this task, after reviewing the scenario, you will discuss the market entry risk/reward ratio; analyze the company’s strengths, weaknesses, opportunities, and threats (SWOT); and recommend a business strategy by Robert S. Kaplan and David McMillan. Society increasingly expects businesses to help solve problems of environmental degradation, inequality, and poverty. This paper explains how the Balanced Scorecard and Strategy Map should be modified to reflect businesses’ expanded role for society. 07 Sep Research & Ideas by Mihnea Moldoveanu. This paper uses tools and models from computational complexity theory and the algorithmics of hard problems that are new to the strategy field in order to address how strategic process and structure adapt to the complex strategic scenarios and predicaments. The paper’s model of strategic problem-solving allows researchers and strategists to distinguish between different levels
No comments:
Post a Comment