This case is ideal for a module on corporate diversification strategies. The case teaches well because the majority of students are likely to be regular consumers of PepsiCo$$s products. Class debate should center on whether PepsiCo$$s diversification strategy has contributed to increased shareholder value. Analysis of the case data will lead students to conclude that PepsiCo$$s top managers have built a fine collection of businesses capable of delivering impressive earnings and cash flows. Students will recognize the success PepsiCo management has achieved in exploiting strategic fit opportunities across business units, acquiring new businesses to strengthen the overall quality of its business line up$,$ and increasing revenues and earnings in international markets. The issue in $2022$ is what further modifications to PepsiCo$$s corporate strategy are needed to increase shareholder value.

Before completing these exercises, be sure to read the PepsiCo Case.

What is your assessment of the long$-$term attractiveness of the industries represented in PepsiCo$$s business portfolio?