Strategic Management of Pepsi Co and Coca-Cola - Coursework Example

The question of diversification often brings along the challenge of keeping them as a single unit. For example, in the case of Pepsi co, the beverage is suggested to keep separate from the snacks (Lay’s, Fritos, Doritos) and many more. The diversification in the case of Pepsi-Co has paid dividends in multiple forms.

Owning to its global recognition and acceptance, in Russia investors showed their interest with regard to investing capital of over 1 billion dollars (abcnews, 2015) over a phased process of two to three years. Coca-Cola itself has stated growth rates with the gradual diversification policy. According to its reports for the year 2013 and third quarter, the overall sales rose by a figure of 2 percent and this was largely attributed to the policies in the context of diversification (Trefis, 2013). This, in turn, brought about a balance to the company’s standing and performance with regard to the previous quarter’s performance.
Question 1:What theoretical issues do your scrapbook raise?

Diversification is a process when the given company changes its focus from one particular product or item to multiple items and services. This brings along various considerations, challenges, and questions with regard to future trends, policies, and actions along with marketing patterns that are needed to be kept intact. This scrapbook looks into these dimensions in the case of two globally recognized brands of beverages namely Pepsi Co and Coca-Cola. Each has over a period of time moved from a single item to diversified product and service delivery.

Coca Cola’s diversification plan and products delivery came about in the form of Coke Diet, Fanta, Sprite, Mineral water, and various other side products that have given Coca Cola an impetus in the market in terms of sales (Volkman, 2014)The scrapbook also looks into the question of whether working as a single unit and diversified or working in as two separate companies would serve the purpose of Pepsi-Co.
Question 2: where directly or indirectly the issues appear in strategic management?
Such a process of diversification brings along strategic management principles and actions with itself.

These include the concept of layout, feasibility against the new product, and the communication, promotion, and marketing strategy against the given items that are aimed at expansion. Coca Cola’s diversification plan and products delivery came about in the form of Coke Diet, Fanta, Sprite, Mineral water, and various other side products that have given Coca Cola an impetus in the market in terms of sales (Volkman, 2014)The process of diversification opens with itself the new horizons of the expanded market.

The expanded market in turn leads to increased demand, expanded supply chain network, and ensuring the timely delivery of products and services. These all come in the scope of strategic management and the top management ensures for taking the necessary steps towards the fulfillment of global practice and global service delivery.
Strategic differences: Coca-Cola has an edge in terms of marketing policies. Further Coca Cola enjoys a large market share in terms of beverages and this comes as an edge over Pepsi Co.

The marketing policies are different too (Ferrell & Fraedrich, 2006). With one largely focusing on the “Fun and young” policy, the other focusing on human emotion and sentiments.
Related diversification and its benefits: The advantage of diversified items and products offered is an increase in sales and an increase in the customer market. Pepsi co has seen similar trends and according to its Chairman and Chief Executive Officer, the company has seen increased performance and sales in a diversified sales-oriented working and marketing policies.