Major Report on Rational and Adaptive Strategy - Research Paper Example

An efficient model provided by Burgelman enables to comprehend the effectiveness of strategies undertaken by an organization in dynamic business environment. Moreover, the two strategy making processes including induced strategy process and autonomous strategy process proposed by Burgelman offer various companies with comprehensive understanding of induced or existing business environment and autonomous business environment or the emerging business environment in determining effectual business environment.

Consequently, the two frameworks of strategy making process are related with the strategies formulated and implemented by PepsiCo Inc. in order to identify and measure the effectiveness of these strategies. In this report, the strategies adapted in recent past by PepsiCo are critically analyzed in light of Burgelman model. Based on the understanding of the existing strategies of PepsiCo, certain pertinent recommendations have been provided that can ensure long-term growth and sustainability of the business. . Table of Contents 1 Executive Summary 2 Introduction 4 Key Features of the Burgelman’s 3 Stage Model 5 The Living Organization Develops Using Evolutionary Methods 7 Three Conceptual Frameworks Supporting Strategy Making 8 Tool I – Forces Driving the Company’s Evolution 8 Tool II - Evolutionary Framework of the Strategy Making 9 Tool III- Process Model of Internal Corporate Venturing 10 Strategic Analysis of PepsiCo Based on Burgelman’s 3 Stage Model 11 Induced Strategy 12 Autonomous Strategy 13 Strategies Executed by PepsiCo 14 Environmental Sustainability Initiatives of PepsiCo 17 Implemented Strategies 20 Measuring PepsiCo Success and Identifying Its Barriers as well as Strength Factors 20 Conclusion 24 Recommendations 25 References 27 Introduction PepsiCo Inc.

is one of the most successful multi-national companies engaged in foods and beverages products with more than US$ 65 billion net revenues. The company operates in more than 200 countries with it’s headquarter in New York, United States. PepsiCo consists of brand like Pepsi-Cola, Tropicana, Frito-lay and Gatorade. The success of PepsiCo can be attributed to its quality products and distinct competitive strategies. The company seeks to achieve healthy rewards to its investors and provide opportunities to its employees by ensuring quality products to its widely distributed customer segments (PepsiCo Inc., 2004). It has not been an easy task for PepsiCo to reach the level as it is now.

In its journey to success, the company confronted with many ethical and legal challenges. Primarily, the challenges like entering into other countries with different cultures and laws were indeed difficult to manage and abide by. However, the company has been able to efficiently overcome its challenges with the efficient implementation of its strategies based upon the vivid circumstances (PepsiCo Inc., 2004). Strategic decisions are a complex task to be performed by the multinational companies like PepsiCo.

The present business environment is complex and dynamic which is affected by several factors. The dynamism in the business environment continuously pressurizes the company to constantly evaluate its strategic decision making process in order to sustain and survive its business in highly competitive business world. The traditional strategic planning process does not provide relevant aid to