Assignment Overview:

The Case in this course is an ongoing exercise, meaning that we will continue to review one company over the course of our four modules. In Module 3, we will be conducting a strategic analysis of Pepsico.

Specifically, the Module 3 Case requires that you identify the primary business strategy employed : Pepsico. You will also be providing a critical, written analysis evaluating that strategy in the context of the strengths, weaknesses, opportunities, and threats you identified in Module 2.

Required Reading:

Refer to the required and optional readings related to strategic choices, the theme of Module 3.

Case Assignment:

In a 6  page paper, respond to the following:

1. Which of the four generic (Porter) strategies does Pepsico follow, and how do you know?
2. Integrate the strategy you have identified above with the strengths, weaknesses, opportunities, and threats you identified in Module 2 (this exercise should provide you with some specific actions the company should be taking relative to its strengths, weaknesses, opportunities, and threats. These actions are referred to as “strategic choices”). Do Pepsico’s strategic choices align with the firm’s generic strategy? If not, what are the specific points of disconnect? Think critically about this step, as no company achieves perfect alignment of its strengths, weaknesses, opportunities, and threats with its chosen strategy. As the MBA, it is your job to uncover the discrepancies and problems.
3. How can Pepsico leverage its strengths and shore up its weaknesses by altering its strategic choices? How can the company take advantage of environmental opportunities and minimize environmental threats by altering its strategic choices? Be specific.
4. Complete the paper by commenting on how your view of Pepsico’s vision and mission has changed or has been reconfirmed by this process of strategic analysis. Would you make any suggestions to revise the company’s vision, mission, or values statements, or to any of its goals/objectives?

5. Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as Pepsico’s consultant. This is a professional document. Follow the format below:

• Executive summary: This is a synopsis of the main points, conclusions, and recommendations made in the longer report. If you would like a refresher on writing an executive summary, check this website: http://www.csun.edu/~vcecn006/summary.html
• Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.
• Main Body: The “meat” of the paper. Emphasize analysis, not just description. Delineate separate topics or sections with headings.
• Conclusion: Summarize your paper in light of your thesis statement.

The MGT599 Case is an ongoing exercise, meaning that we will be thoroughly reviewing one company throughout our four modules. This session, we will be conducting a strategic analysis of Pepsico.

Most companies have something that resembles a vision, mission, or set of values; or stated goals/objectives that define who the company is and how the company plans to do business. However, organizations may not always label these statements properly — calling a vision a mission, or calling their values a set of beliefs. Sometimes, companies do not have a mission statement at all, operating instead on a set of goals.

Required Reading

Hammonds, K. (2007). Michael Porter’s big ideas. Fast Company, 44. Retrieved on August 27, 2014, from https://www.fastcompany.com/42485/michael-porters-big-ideas

In this assignment, you will be critically evaluating the vision, values, mission statement, and goals/objectives of Pepsico.

Keys to the Assignment

After studying the background materials and completing the SLP, you are in an excellent position to evaluate a company’s published mission, vision, values, and objectives/goals. This Case asks you to begin your strategic analysis of Pepsico by evaluating the company’s mission, vision, values, and goals. To do this, observe the following procedure:

• Step 1: Visit the official website of Pepsico and identify the company’s vision, mission, values, and goals. (Hint: You will need to do some exploring and a certain amount of speculation—as the terms “vision” and “mission” (and sometimes even the term “company goals”) are used interchangeably. Explore the “Who We Are” and “Investors” (and other) links. Also, be sure that you look closely at the most recent Annual Reports.
•  
• Step 2: Critically evaluate the mission, vision, values, and goals (again, you will likely need to make decisions as to which is which). Use the criteria in the background materials to support your assessment of the quality of the company’s mission, vision, values, and goals.
• Step 3: Determine which (if any) of the elements consider the goals and needs of specific stakeholder groups. Write down any examples.
•  
• Step 4: Consider what changes are needed to improve the vision statement, the mission statement, the statement of company values, and the company’s objectives and goals.
• Step 5: Write a 6 page paper addressing the above requirements. You must meet minimum length requirements, by responding to each step above with precision and with depth of critical thinking.
•  

NOTE THE FOLLOWING REQUIREMENTS AS WELL:

1. Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as Pepsico’s external consultant. This is a professional document. Follow the format below:
2. Note: You must use section headings to respond to all major requirements in all papers. Your section headings should appear similar to the following:

• Executive summary: This is a synopsis of the main points, conclusions, and recommendations made in the longer report. If you have never written an executive summary before, or would like a refresher, check this link: http://www.csun.edu/~vcecn006/summary.html
•  
• Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.
• Main Body: The “meat” of the paper. Emphasize analysis, not just description. Don’t just give me facts – interpret them! Delineate separate topics or sections with appropriate use of headings.

Simulation:

To begin the MGT599 SLP sequence, you first need to first run the simulation using the Default Decisions. In other words, use the prices and R&D percentages that are already there (do not change any decisions made by Joe Thomas).

Capture or collect the results for each product (W1, W2, and W3) for each year that you run the simulation. Copy (using Excel, by hand, or some other method) the financial results and marketing results, as well as the information provided by your Advisor.

REQUIRED READING:

Read the following scenario carefully before you proceed:

SCENARIO

It is December 31, 2016. Joe Thomas, the VP of Marketing at the Wonder Company, is smugly patting himself on the back for how well he has done with pricing and product development of the three company products: W1, W2, and W3. Of course, Joe knows his strategy was not creative at all (i.e., he did not change any prices or R&D allocations over the past five-year period: 2012 through 2016). But he is certain that he really did not need to change anything anyway, and that his overall performance is proof of his good work.

Sally Smothers, the CEO of Wonder Co., knows better, and she fires Joe (but why did she wait so long?).

On the same day Joe is fired, you are hired to replace him. And so…here you are, on December 31, 2016, as the new V.P. of Marketing of the Wonder Company. You are ready to move the company ahead into 2017. Your boss, Sally Smothers, expects you to make intelligent and informed product development and pricing decisions (after all, you are an MBA).

Session Long Project

Write a 6 pages paper (not including cover and reference pages), using Sally’s instructions, which follow:

Sally asks you to review Joe’s decisions from 2013 through 2016 to see what was going on in terms of product development, sales, pricing, and performance. Your final report is due on Sally’s desk by January 15, 2017 – you have only 2 weeks to run the simulation, analyze your results, and write up the report, so you had best get started on this now!

Using the default decisions (i.e., make no changes within the simulation), analyze Joe Thomas’s decisions and results, and then write the report that Sally is requesting. Access the Wonder Company simulation (https://forio.com/simulate/michael.garmon/wonder-co-simulation-v2/simulation/#p=page0) and collect the data for each year. Determine where you believe Joe went wrong, and propose a new strategy. Support your revised strategy using financial analysis and relevant business theories.

The readings this week covered six different areas of debate in macroeconomics. Select one of them and discuss the pros and cons of government involvement in that particular area. The textbook is a good place to start, but do not limit yourself to the textbook for this discussion. Enhance your discussion of your chosen debate with additional scholarly research.

Your posts must conform to APA guidelines in the CSU Global Writing Center (Links to an external site.).

Be sure to include in your initial post at least one reference using the CSU Global Library or other professional and scholarly references. The Economics Library Guide (Links to an external site.) is a good tool to use to start your research (sources such as The Balance, EconomicsHelp.org, Investopedia, and other help websites are not acceptable).

Choose one of the following:

1. 1. Should policymakers try to stabilize the economy?
2. 2. Should the government fight recessions with spending hikes rather than tax cuts?
3. 3. Should monetary policy be made by rule rather than by discretion?
4. 4. Should the central bank aim for zero inflation?
5. 5. Should the government balance its budget?
6. 6. Should the tax laws be reformed to encourage savings?

The U.S. economy is over a decade removed from the Great Recession. For several years after the Great Recession officially ended, the U.S. grew at an historically slow rate. Analyze the causes of the slow increases in U.S. GDP. Include in your paper:

• An analysis of the monetary policy approach the Federal Reserve took to the recovery
• An analysis of the fiscal policy approach the Federal Government took to the recovery
• An analysis of how the attempts to influence GDP in the short-run negatively affect GDP in the long-run
• An explanation of why the unemployment rate dropped rapidly in the United States despite low rates of increases in GDP
• An identification, as appropriate, of the economic principles (from Module 1) that factor into your analysis

Adhere to the following standards:

• Your paper should be 8-10 pages in length, not including the title or references pages.
• Your paper should include at least 5 scholarly references in addition to the course textbook. (use the Economics Library Guide (Links to an external site.) to start your research).
• Sources such as The Balance, EconomicsHelp.org, Investopedia, and other help websites are not acceptable.
• Review the grading rubric to see how you will be graded for this assignment.
• Your project must conform to APA guidelines in the CSU Global Writing Center (Links to an external site.).