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Innovation & Development Assignment: case of PepsiCo - Term Paper Example

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The firm that is analyzed in the paper is PepsiCo is one of the largest food and beverage companies in the world. The company manufactures and sells about 18 brands of snack food and beverages and generates almost $98billion through retail sales. …
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Innovation & Development Assignment: case of PepsiCo
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"Innovation & Development Assignment: case of PepsiCo"

Download file to see previous pages This research will begin with the statement that the words innovation and innovative are bantered in the business, media and everyday life. The words have evoked a feeling of progress with technology. Innovation is one of the driving forces towards welfare and contributes highly in the standard of living. The work tends to address new forms of innovation which usually takes place in the private sector, between companies and also within the companies. Innovation is the ultimate key to success and growth. Innovation is considered necessary as businesses particularly in the west can no longer guarantee themselves to compete globally based on prices only. Also in terms of economies of scale, the BRIC nations which constitute of the countries such as Brazil, Russia, India and China had possessed the internal market in a much greater way than UK. With low cost of transportation and with a better communication means, the BRIC nations have gradually moved on to the market with an increased rate. It has been rightly said that if organization cannot compete on price they need to differentiate and in order to differentiate the organization needs to innovate. Innovation needs to be linked with marketing strategy and also with the business planning process. When innovation and business strategy do not match up to the same level there exists a risk of diverting the key resources which in turn damages the focus of the organization. Thus it is important that the innovation activities are mostly driven by the strategies of the company and of current business imperatives. The type of innovation and extend of innovation should be undertaken keeping in mind the current business performance of the organization and also future expectation. PepsiCo is one of the largest food and beverage companies in the world. The company manufactures and sells about 18 brands of snack food and beverages and generates almost $98billion through retail sales. PepsiCo holds about 36% of the snack food market in US and about 25% in the beverage industry. The company has received many awards and recognition and has been raked in the top 25 in the category of best global brands and has also earned the Green Award by the Environmental protection Agency (Daniels Fund Ethics Initiative, n.d). PepsiCo is one of the companies which have successfully used its resources to create new products for the new as well as for existing market. Managing technology and innovation is crucial to stay ahead in the competitive environment. PepsiCo has a variety of new products around 200 new products that the company keeps on adding to its product portfolio every year. The question arises is in spite of its so many successful products why does PepsiCo introduces new product. According to the chairman of PepsiCo and CEO, Innovation is something which the consumers are looking for especially in their routine life. Thus the product development has seemed to have paid off the company at a successful rate. With its innovation PepsiCo has managed to increase its earnings by 19% in 2003 and increase in sale by 7% (FTP, n.d, p.1-2). Some of the strategic issues with regard to PepsiCo are in the field of technology and innovation. If the new products which are developed by the company do not click into the market, PepsiCo would have faced trouble with regards to revenue and profits. The time, money and effort needed to develop the new product would have been put to waste. Performing these strategies might also result in decline of the share in the market. Another strategic issue could be with regards to healthier food. If the trend of healthier food turns the other way affecting the demand of healthier fo ...Download file to see next pagesRead More
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The topic of "Innovation & Development Assignment: case of PepsiCo" is quite often seen among the assignments in college. Still, this sample opens a fresh perspective of seeing the issue. I’ll use the style for my own document.
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