The purpose of this exercise is to get you familiar with strategy terms introduced and defined in this chapter. Let's apply these terms to Pepsico, Inc. (stock symbol = PEP).
Instructions:
Step 1: Go to www.pepsico.com. Along the top of the site, click on Relations. Then click on the 2012 Annual Report and print that document. The form 10K or Annual Report document contains excellent information for developing a list of PepsiCo's internal strengths and weaknesses.
Step 2: Go to your college library and make a copy of Standard & Poor's Industry Surveys for the snacks/beverages industry. This document will contain excellent information for developing a list of external oppurutnities and threats facing PEP.
Note: A substitute for basic information contained in the S & P survey referenced in Step 2 may be found online at www.plunkettresearch.com/industries/food-beverage-grocery-market-research/
Step 3: Go to the www.finance.yahoo.com website. Enter PEP. Note the wealth of information on down the left column. Then print out the resultant tables and information. Note that PepsiCo's major competitors are Coca-Cola Company, Kraft Foods, and Dr Pepper Snapple.
Step 4: Using the Cohesion Case, The www.finance.yahoo.com information, the Annual Report, and the Industry Survey document, list what you consider to be PepsiCo's fifteen major strengths, fifteen major weaknesses, fifteen major opportunities, and fifteen major threats. Each factor listed for this exercise must include a percent, number, dollar, or ratio to reveal some quantified fact or trend. These factors provide the underlying basis for a strategic plan because a firm strives to take advantage of strengths, improve weaknesses, avoid threats, and capitalize on opportunities.