Module 1 –
Case
STRATEGIC MANAGEMENT PROCESS/VISION, MISSION, GOALS AND
OBJECTIVES
Assignment Overview
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
Case Assignment
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:
Step 1: Visit the official website of Pepsico and identify
the company’s vision, mission, values, and goals. (Hint: You will need to do
some exploring and a certain amount of speculation—as the terms
“vision” and “mission” (and sometimes even the term
“company goals”) are used interchangeably. Explore the “Who We
Are” and “Investors” (and other) links. Also, be sure that you
look closely at the most recent Annual Reports.
Step 2: Critically evaluate the mission, vision, values, and
goals (again, you will likely need to make decisions as to which is which). Use
the criteria in the background materials to support your assessment of the
quality of the company’s mission, vision, values, and goals.
Step 3: Determine which (if any) of the elements consider
the goals and needs of specific stakeholder groups. Write down any examples.
Step 4: Consider what changes are needed to improve the
vision statement, the mission statement, the statement of company values, and
the company’s objectives and goals.
Step 5: Write a 6-7 page paper addressing the above
requirements. You must meet minimum length requirements, by responding to each
step above with precision and with depth of critical thinking.
NOTE THE FOLLOWING REQUIREMENTS AS WELL:
Use of proper APA style is required in this course.
Therefore, prepare your Case with proper documentation of sources, using
in-text citations and a complete end reference list. Refer to the Well-Written
Paper guide if you are not familiar with APA style.
Consider the Case as a formal business report that you are
developing for the Board of Directors and CEO as Pepsico’s external consultant.
This is a professional document. Follow the format below:
Note: You must use section headings to respond to all major
requirements in all papers. Your section headings should appear similar to the
following:
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.
Executive Summary
Introduction
Company’s Mission Statement and Analysis
Company’s Vision and Analysis
Company’s Values and Analysis
Alignment of Company’s Mission, Vision, Values, and Goals
with Stakeholders’ Interests
Recommended Changes
Conclusion
Assignment Expectations
Your paper will be evaluated using the grading rubric.
Tips and Suggestions
Note the following 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,
so 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.
Analyze the vision, mission statement, etc. according to the
criteria presented in the Background materials. Be critical and do not let
yourself be influenced by a company’s “spin.”
Do not hesitate to criticize the current statements. In many
instances, you may not be able to find information on the company’s website.
Many companies do not get this right.
Include a cover page and reference page, in addition to the
6-7 pages of analysis described above.
Include appropriate section headings.
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 TUI Guidelines for Well-Written Papers.
Submit your analysis by the end of this module.
Module 1 –
SLP
STRATEGIC MANAGEMENT PROCESS/VISION, MISSION, GOALS AND
OBJECTIVES
Simulation
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 simulation and
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:
A review of each product – W1, W2, and W3 – its life cycle,
and how each product stacks up in terms of price and performance.
Financial review of each product – W1, W2, and W3 – sales,
costs, profitability, prices, unit margins, etc.
Market review: New Sales, Repeat Sales, Market Saturation,
etc.
Propose an alternate strategy: A general idea of how you
might do better with these products: what pricing and R&D allocations,
etc., you would have put in place over the last four years, 2013 – 2016. In
short, what would you have done differently than Joe Thomas at each decision
point? Be specific.
SLP Assignment Expectations
Your paper will be evaluated using the grading rubric.
TIPS AND SUGGESTIONS:
Please note the following tips and suggestions:
Include a cover page and reference page, in addition to the
6-7 pages of written analysis described above.
Use section headings as appropriate. Use graphs, charts, or
figures strategically – but do not use these as “space fillers.”
Include large tables or graphics in an Appendix instead.
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 TUI Guidelines for well-written papers.
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 numbers and present your data analysis professionally by
creating some simple tables, charts, and graphs.
Module 2 –
Case
THE EXTERNAL ENVIRONMENT, INTERNAL PROFILE, AND SWOT
Assignment Overview
Remember that the Case in this course is an ongoing
exercise, meaning that we will be taking an intensive look at one company over
the course of our four modules. This session, we will be conducting a strategic
analysis of Pepsico.
The outcome of this Case is to use a completed external and
internal analysis of Pepsico in the completion of a SWOT.
Case Assignment
In a 7- to 10-page paper, integrate your external and
internal company analysis, completing a formal company SWOT.
Keys to the Assignment
Step 1: Perform research, and complete an industry analysis
using each of the Five Forces in Porter’s model. Support your analysis with
current financial, operational, and marketing data.
Step 2: Complete your external analysis using each of the
four elements in the PEST analysis. When considering economic data, use the
most current data you can find.
Step 3: Write up the results of your external analysis, and
be sure to label the impact of each of the Five Forces as high, moderate, or
low. Taken together, the Five Forces analysis and the PEST analysis should lead
to conclusions about the overall opportunities and threats facing Pepsico as
revealed by your research. All data and factual information that you report in
your Five Forces and PEST analysis must be properly cited using APA style.
Step 4: Conduct a critical and thorough internal analysis of
Pepsico, assessing as many of the company’s key internal strengths and
weaknesses as you can. Consider the operations, customer service, finance,
human resources management, and marketing functions. See the following website,
as it will help you decide which strengths and weaknesses you might wish to
evaluate: http://www.businessballs.com/swotanalysisfreetemplate.htm
Step 5: Discuss the results of your internal analysis,
including your conclusions concerning the strengths and weaknesses facing
Pepsico.
Step 6: Synthesize your internal analysis with your external
environmental analysis, formulating a complete SWOT analysis. Provide a SWOT
diagram (include as an Appendix – not as part of the written analysis) in which
you show – in each of the four quadrants – the most important 3-4 company
strengths, weaknesses, opportunities, and threats. Each of these should be
discussed thoroughly within your written analysis.
Based on your SWOT, give very specific and informed
recommendations as to what the company should do. Give your overall
analysis—does the company have more strengths than weaknesses? More weaknesses
than strengths? Whatever you decide, you need to recommend (with strong,
convincing support) what you believe should be the company’s strategy — in
response to your collective assessment of the organization’s strengths,
weaknesses, opportunities, and threats. You must demonstrate evidence of
critical thinking – do not simply restate facts you have learned about the
company. Interpret the data and factual information you have found instead.
Step 7: Consider the Case as a formal business report that you
are developing for the Board of Directors and CEO as Pepsico’s external
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
section headings.
Conclusion: Summarize your paper in the light of your thesis
statement.
Assignment Expectations
Your paper will be evaluated using the grading rubric.
Tips and Suggestions
Note the following tips and suggestions:
Business school case-study assignments are meant to offer
practice opportunities for future businesspeople 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 questions
– however, your position must be well-defended.
Study the theoretical concepts provided in the Background
materials section of the module, and identify main strategy concepts.
Conduct additional research on the organization using
IBISWorld in the TUI Library. IBISWorld is accessible through the Trident
Library Access search located at the TLC Home Page. Under the Library Access
search box, click on “Additional Library Sources.” IBISWorld is included in the
list. For navigation help, click here: IBISWorld Navigation Tips.
Include a cover page and reference page, in addition to the
7-10 pages of analysis described above.
Include section headings in all papers.
Cite and reference all sources, including those that you
paraphrase. This means include citations and quotation marks for direct quotes,
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 2 –
SLP
THE EXTERNAL ENVIRONMENT, INTERNAL PROFILE, AND SWOT
Simulation
Wonder Company Simulation
Simulation
The Module 2 SLP requires that you continue with the
scenario and simulation you began in the Module 1 SLP.
SCENARIO CONTINUATION
SLP2 – It is January 15, 2017. You have finished analyzing
the performance of the Wonder Company, and you have submitted the report
requested by your CEO, Sally Smothers. You are ready to move forward to 2017,
but then…..
….as you turn on the TV, you notice something very strange.
You recognize that the date is January 1, 2013, and that you get to make the
decisions for the Wonder Company for the 4-year period beginning with 2013.
Your challenge is to do better than Joe Thomas.
At the beginning of each year (2013-2016), you will
determine your pricing, your R&D allocations, and whether or not to
discontinue any products. You are required to make your decisions for each
year, and to report your results to see what happened. You must keep track of
your decisions, making specific notes supporting each of your decisions.
Run the Wonder Co. simulation through the end of 2016. When you
are finished, the date will be December 31, 2016. What is your total Score? Did
you do better than Joe Thomas?
You organize your notes about your decisions, your analysis,
and your reasoning into a well-written report.
Session Long Project
Run the Wonder Company simulation with your strategy, making
decisions year by year for prices and R&D allocations. Write a 6- to 7-page
paper, not including cover and reference pages, in which you discuss the
decisions and the results for each year. Discuss why you did better (or worse)
than Joe Thomas.
KEYS TO THE ASSIGNMENT
The key aspects of this assignment that should be covered
and taken into account in preparing your paper include:
As you run the simulation, keep track of your decisions and
the results – both financial and marketing. Copy and paste the results into
Excel or into a Word document. You will also want to record the information
that you get from the Advisor. Make a note of your Final Total Score.
Include your Final Total Score, some tables, and/or graphs
showing key results. Using sound logic, be sure to clearly explain the
differences from Joe.
Remember that the key here is quality of analysis.
Time Line Summary:
SLP1
2016: You are hired on December 31, 2016.
Turned in first report to the CEO on January 15, 2017.
SLP2
You again find yourself in a Time Warp that takes you back
to January 1, 2013.
You revise the decisions made by Joe for 2013 – 2016. You
make new decisions each year.
December 31, 2016 – You have gone through all four years,
and you write your second report to summarize how you did.
SLP Assignment Expectations
Your paper will be evaluated using the grading rubric.
TIPS AND SUGGESTIONS
Please note the following tips and suggestions:
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 do not use these as “space fillers.”
Include large graphs, etc., as an Appendix instead.
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 the Trident Guidelines for well-written papers.
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.
Module 4 –
Case
STRATEGY IMPLEMENTATION AND STRATEGIC CONTROLS
Assignment Overview
This final case involves an analysis of strategy
implementation at Pepsico. You will use the resources you identified in the SLP
to gather information about the company and relate that information to your
work in the previous cases.
Required Reading
Refer to the required and optional readings related to
strategy implementation and strategic controls, the themes for this module.
Case Assignment
In Module 4, we will conclude the case study process by
researching Pepsico’s strategic controls and their fit with the company’s
chosen strategy.
Keys to the Assignment
Step One: Review your Case papers from Modules 1-3 so that
you are familiar with the mission, vision, SWOT, strategy, and strategic
choices you have identified over the course of the class.
Step Two: Research the structure, systems, people, and
culture at Pepsico. You will not be able to get answers to every single
question, but you will need to answer at least one or two for each component.
Step Three: Describe Pepsico’s organizational design, key
strategic control systems (e.g., budgeting and variance analysis systems),
primary human resources concerns, and cultural factors, and the effect that
these have had on the implementation of Pepsico’s strategy.
Step Four: In a 6- to 8-page paper, critically evaluate the
fit—or the lack of fit—between the company’s mission, strategy, and
organizational components crucial to implementation. Do these components
complement the strategy? Why or why not?
Step Five: Choose three of the 13 ethical
“prescriptions” included in the following article:
https://www.scu.edu/ethics/focus-areas/business-ethics/resources/incorporating-ethics-into-the-organization/
. Next, discuss the extent which the company’s sense of business ethics has
been embedded within its strategic management process, as evidenced by your
chosen three indicators.
Step Six: What changes would you—as the CEO—make to better
assure the success of the company’s strategy? This is the most important
section of the Module 4 Case.
Step Seven: 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 (thesi
