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:
NOTE THE FOLLOWING REQUIREMENTS AS WELL:
- 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.
Your paper will be evaluated using the grading rubric.
Tips and Suggestions
Note the following tips and suggestions:
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- to 7-page 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 simulationand 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.
KEYS TO THE ASSIGNMENT:
The key aspects to this assignment that are required to be covered in your paper include:
Your paper will be evaluated using the grading rubric.
TIPS AND SUGGESTIONS:
Please note the following tips and suggestions:
NOTE: Throughout the SLP sequence, you will be asked to make business decisions under conditions of incomplete information and uncertainty. To do so effectively, you will need to make assumptions based on what you have learned throughout the MBA program as it relates to the ways in which markets operate. To this extent, you need to rely on models, financial analysis, and theories from such classes as Organization Behavior, Economics, Finance, Accounting, and Marketing. In addition, the simulation will give you some additional market information as you progress.
Be sure that you draw explicitly on concepts and theories from the courses you have taken throughout the MBA program. That means you must “think like an MBA” and use the various data you are given. You will have to crunch the numbersand present your data analysis professionally by creating some simple tables, charts, and graphs.