Article

questions:

What is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2018.

2. What is your assessment of the long-term attractiveness of the industries represented in PepsiCo’s business portfolio?

3. What is your assessment of the competitive strength of PepsiCo’s different business units?

4. What does a 9-cell industry attractiveness/business strength matrix displaying PepsiCo’s business units look like?

5. Does PepsiCo’s portfolio exhibit good strategic fit? What value-chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see?

6. Does PepsiCo’s portfolio exhibit good resource fit? What are the cash flow characteristics of each of PepsiCo’s six segments? Which businesses are the strongest contributors to PepsiCo’s free cash flows?

7. Based on the preceding analysis, what is your overall evaluation of PepsiCo’s business portfolio in 2018? Does the portfolio provide the company’s shareholders with an opportunity for above-average market returns?