Considerering the whole CASE $23($just a sample an screenshot of the first page$),$ respond the following five questions: $1.$ Identify the business strategies that PepsiCo is using in each of its consumer businesses in $2018.$

$2.$ Assess the competitive strength of its different business units.

$3.$ Portfolio Strategic Fit: Assess the firm$$s opportunities for skills transfer, cost sharing, or brand sharing.

$4.$ Portfolio Resource Fit: Assess the cash flow characteristics of each of the firm$$s six segments.

$5.$ What strategic actions should the management take to improve the firm$$s financial and market performance?CASE $23$

PepsiCo's Diversification Strategy

in $2018$: Will the Company's New

Businesses Restore Its Growth? connect

John E$.$ Gamble

Texas A&M University$-$Corpus Christi

$$

epsiCo was the world's largest snack and bever$-$

age company, with $2017$ net revenues of approxi$-$

mately $$63\mathrm{.}5$ billion. The company's portfolio

of businesses in $2018$ included Frito$-$Lay salty snacks,

Quaker Chewy granola bars, Pepsi soft$-$drink products,

Tropicana orange juice, Lipton Brisk tea, Gatorade,

Propel, Bubly, Quaker Oatmeal, Cap'n Crunch,

Aquafina, Rice$-$A$-$Roni, Aunt Jemima pancake mix,

and many other regularly consumed products. The

company viewed the lineup as highly complemen$-$

tary since most of its products could be consumed

together. For example, Tropicana orange juice might

be consumed during breakfast with Quaker Oatmeal,

Stacy's pita chips and Sabra hummus might make a

nice snack, and Doritos and a Mountain Dew might

In addition to focusing on strategies designed to

deliver revenue and earnings growth, the company

maintained an aggressive share repurchase and divi$-$

dend policy, with a planned $$7$ billion returned to

shareholders in $2018$ through share repurchases of

$$2$ billion and dividends of approximately $$5$ billion.

The company bolstered its cash returns through care$-$

fully considered capital expenditures and acquisitions

and a focus on operational excellence. Its Performance

with Purpose plan utilized investments in manufactur$-$

ing automation, a rationalized global manufacturing

plan, and reengineered distribution systems to drive

efficiency. In addition, the company's Performance

with Purpose plan was focused on minimizing the

company's impact on the environment by lowering