Module 3 –
Case
STRATEGIC CHOICES
Assignment Overview
The Case in this course is an ongoing exercise, meaning that
we will continue to review one company over the course of our four modules. In
Module 3, we will be conducting a strategic analysis of Pepsico.
Specifically, the Module 3 Case requires that you identify
the primary business strategy employed by Pepsico. You will also be providing a
critical, written analysis evaluating that strategy in the context of the
strengths, weaknesses, opportunities, and threats you identified in Module 2.
Required Reading
Refer to the required and optional readings related to
strategic choices, the theme of Module 3.
Case Assignment
In a 6- to 8-page paper, respond to the following:
Which of the four generic (Porter) strategies does Pepsico
follow, and how do you know?
Integrate the strategy you have identified above with the
strengths, weaknesses, opportunities, and threats you identified in Module 2
(this exercise should provide you with some specific actions the company should
be taking relative to its strengths, weaknesses, opportunities, and threats.
These actions are referred to as “strategic choices”). Do Pepsico’s strategic
choices align with the firm’s generic strategy? If not, what are the specific
points of disconnect? Think critically about this step, as no company achieves
perfect alignment of its strengths, weaknesses, opportunities, and threats with
its chosen strategy. As the MBA, it is your job to uncover the discrepancies
and problems.
How can Pepsico leverage its strengths and shore up its
weaknesses by altering its strategic choices? How can the company take
advantage of environmental opportunities and minimize environmental threats by
altering its strategic choices? Be specific.
Complete the paper by commenting on how your view of
Pepsico’s vision and mission has changed or has been reconfirmed by this
process of strategic analysis. Would you make any suggestions to revise the
company’s vision, mission, or values statements, or to any of its
goals/objectives?
5. Consider the Case as a formal business report that you
are developing for the Board of Directors and CEO as Pepsico’s consultant. This
is a professional document. Follow the format below:
Executive summary: This is a synopsis of the main points,
conclusions, and recommendations made in the longer report. If you would like a
refresher on writing an executive summary, check this website:
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. Delineate separate topics or sections with
headings.
Conclusion: Summarize your paper in light of your thesis
statement.
Assignment Expectations
Your paper will be evaluated using the grading rubric.
Tips and Suggestions
Business school case-study assignments are meant to offer
practice opportunities for future business people who are earning their MBA
degrees. Consider yourself a consultant hired by the company to make these
critical assessments. There are no right or wrong answers to the Case question,
as long as your position is well defended.
Study the theoretical concepts provided in the Background
materials section of the module, and identify main strategy concepts.
Include a cover page and reference page, in addition to the
6-8 pages of analysis described above.
Include section headings as appropriate.
Cite and reference all sources, including those that you
paraphrase. This means include citations and quotation marks for direct quotes
of more than five words, and citations for information you have
“borrowed” or paraphrased from other sources.
Follow Trident Guidelines for Well-Written Papers.
Submit your analysis by the end of this module.
Module 3 –
SLP
STRATEGIC CHOICES
Wonder Company Simulation – CVP Analysis
Simulation
In Module 3, you will use CVP analysis to inform the pricing
of your three products.
SCENARIO CONTINUATION:
You have now completed SLP2, and the date is (once again)
reset to January 15, 2017.
You turn on the TV. The local television news anchor is talking
about events that occurred on January 1, 2013.
Your decision-making process will be different this time, as
you will be using CVP analysis, a technique with which you recently became
familiar.
You analyze the results of the decisions you made in SLP2.
But this time, you aim to improve your Final Total Score by using the CVP
Calculator to help you determine a new and improved strategy.
You analyze your SLP2 results using CVP and develop your
complete four-year strategy, again taking notes, documenting your reasoning.
You finish the report that shows your revised strategy for
the next four years.
Do not run the simulation yet. Simply turn in your written
report.
Session Long Project
Write a 6- to 7-page paper, not including cover and
reference pages, in which you use the results from SLP2 and CVP analysis to
develop a revised strategy.
Keys to the Assignment
The key aspects of this assignment that should be covered
and taken into account in preparing your paper include:
The revised strategy consists of the Prices, R&D
Allocation %, and any product discontinuations for the W1, W2, and W3 tablets
for each of the four years: 2013, 2014, 2015, and 2016.
You must present a rational justification for this strategy.
In other words, you must provide clear and logical support for your proposed
strategy using financial analysis and relevant business theories.
Use the CVP Calculator and review the PowerPoint that
explains CVP and provides some examples.
You need to crunch some numbers (CVP Analysis) to help you
determine your prices and R&D allocations.
Make sure all of your proposed changes are firmly grounded
in CVP analysis, on the financial and market data provided to you, and on sound
business principles.
Present your analysis professionally, making strategic use
of tables, charts, and graphs.
Time Line Summary:
SLP1
2016: Hired on December 31, 2016.
Turned first report in to Sally on January 15, 2017.
SLP2
Time Warp 1 begins: January 15, 2017. You are warped back to
January 1, 2013.
You realize you have to make decisions for 2013 – 2016,
which you do.
December 31, 2016 – You have gone through all four years,
and you write your report to summarize how you did.
SLP3
Despite your efforts in SLP2, you are once again taken back
to January 1, 2013. You decide to use CVP analysis to revise the four-year plan
you developed in SLP2. You analyze the results of your decisions from SLP2,
taking detailed notes. You use the CVP Calculator to help develop your revised
strategy, taking additional notes explaining the logic of your decisions.
SLP Assignment Expectations
Your paper will be evaluated using the grading rubric.
Tips and Suggestions
Please note the following tips and suggestions:
You might find these downloads and readings useful:
Irfanullah, J. (2013). Cost-Volume-Profit Analysis.
Accounting Explained. Retrieved from
http://accountingexplained.com/managerial/cvp-analysis/
Decision Matrix Table – Download this Word doc with a blank
table you can use to show your proposed strategy decisions.
PowerPoint discussing CVP – Provides a good overview of Cost
Volume Profit analysis, the various equations that you can use, and how to use
it. Some examples are provided showing how to use the CVP Calculator.
CVP Calculator – This is an Excel-based calculator that you
can use to determine prices, volumes, and profits. Keep in mind that it will
tell you what need, but the market determines what you actually get.
Include a cover page and reference page, in addition to the
6-7 pages of analysis described above.
Use section headings as appropriate. Use graphs, charts, or
figures strategically – but not as “space fillers.”
Cite and reference all sources that you use in your work,
including those that you paraphrase. This means include citations and quotation
marks for direct quotes, and citations for that information which you have
“borrowed” or paraphrased from other sources.
Follow Trident Guidelines for well-written papers.
