Pepsico Restaurants Case Analysis

PepsiCo's Restaurant Problem Definition PepsiCo's senior management is considering the possibility of acquiring two companies, Colorado state shopping cart and California state pizza kitchen, to expand its catering business. If Pepsi decides to continue with one or both acquisitions, we will show how to adjust each business unit in a historically diversified management approach and how to establish relationships between acquired business units and existing business units You have to decide.

II. Analyzing the main problems, Peng Shikang has three main parts: soft drink (35% of PepsiCo sales, 39% of 1991 operating profit), snack food (29% of PepsiCo sales, sales 35% of profits) and restaurants (36%) PepsiCo sales and 26% operating income In the early 1990's, PepsiCo's three chain restaurants (KFC, Taco Bell, Pizza Hut) were leaders in their respective market segments . PepsiCo's senior management thinks that Pepsi's mobile capabilities in restaurants and restaurants will bring Pepsi a competitive edge in the food and beverage industry. Pepsi believes that their restaurant works well thanks to its strong management team; it was developed in-house. PepsiCo wants to add Pepsi's kitchen and CARTS OF COLORADO to the PepsiCo portfolio, taking advantage of the competitive advantage in the restaurant of PepsiCo.

Pepsi has always made strategic plans before starting business or before launching new products on the market. The same applies to the catering industry. There, we carefully plan how to add value to the business PepsiCo bought and how the business will help PepsiCo's improvement. PepsiCo's strategic planner believes that fast food restaurants will be the largest service over the next 10 years. You can think of each of the three restaurants owned by PepsiCo.

In 1986, PepsiCo purchased KFC fried chicken. Pizza Hut and Taco Bell partnered, PepsiCo became a global leader in the number of restaurants. In 1991, PepsiCo's catering division achieved the best sales in its three divisions, exceeding the first soft drinks. PepsiCo's strategic planner believes that fast food restaurants will be the largest service over the next 10 years. They confirmed some major industry trends. First, they think that simplicity and convenience are getting more and more important as people work longer hours and have less leisure time. Second, they believe that consumers pursue value because of consumer concerns about economic pressure and fame and status. Third, they believe that varieties are an important trend, indicating that the growth of ethnic product categories tends to reflect the increasing diversity of the population of the United States.