Strategic Decision Making: Pepsi Company - Case Study Example

Strategic Decision making: Pepsi Company Name Institution 1.0 Executive Summary The report herein gives an account of Burgelman’s work on adaptive strategy. It is formulated in line with the dynamics that take place in the business environment and the effect they have on the individual firm. The report begins with an introduction that unpacks the subject matter of adaptive strategy and the specimen of study which is Pepsi Company. The report evaluates the strategic direction adopted by Pepsi beginning 2008 and was aimed to run for three years. The report presents the dynamic forces driving Pepsi’s evolution at industry level as Burgelman’s first tool. The competitive forces in the beverages and soft drink industry are taunted to necessitate the ‘change the game’ strategy adopted by Pepsi. This move used soccer celebrities to promote Pepsi brands especially the energy drinks. Burgelman’s second tool deals with the evolutionary framework of strategy making. Pepsi has targeted youth over the years, and in the new expansion strategy, contracted Walt Disney, to enter China’s youth market. The third tool is the descriptive model of the specific autonomous strategy process. Pepsi has, on its own motion, initiated product improvement strategies in line with the health requirements of regulatory authorities. Such an example is reduction in fat levels for most of its products to reduce cases of obesity resulting from consumption of fast foods. The final part of the report recommends some strategy guidelines that would be vital in Pepsi future decision making particularly in promotional campaigns. Table of Contents Table of Contents 3 Strategic Decision making: Pepsi Company 2.0 Introduction This paper follows the study of the Pepsi, a multinational company in the food and beverages industry. Pepsi manufactures soft drinks using its two plants. Initially, Pepsi distributed its own products to its customers through its transportation wing. It did this through six major warehouses located in different strategic regions. Today it is a multinational company that rivals Coca-cola in the soft drink industry (Biswas & Sen, 1999). Pepsi was originally formed in 1898 in North Carolina as PepsiCo beverages North America. The current brand was founded in 1965 in USA following the merger of Pepsi-Cola and Frito Lay. Since then Pepsi has continued to expand geographically and in size, through acquisitions. For instance, Tropicana was acquired in 1998 and a merger agreed with The Quaker Oats Company in 2001. Pepsi operates in over 200 countries in the world. It does this through the parent company as well as the subsets of brands such as Mirinda, Walkers, Sabritas and Gamesa among others. The various beverage products span through carbonated soft drinks, juices, isotonic sports drinks, bottled water, enhanced waters and readymade teas. Some of the renowned brands are Diet Pepsi, Tropicana products, Dole, Sobe, Mug, Sierra Mist, and Aquafina Water. The focus of this report is to evaluate in how the changes in the environment influence the strategic direction of a firm, as well as the various factors that come into play when a firm is undergoing transformation and their contribution in success or failure of the company. The basis of reasoning is that change is constant, eminent and fast paced. The organization has many attributes that are beyond its control and can only respond to their changes by revising its mode of doing things. The forces that guide the pattern of response emanate from within the firm and from the external environment. Burgelman’s model is a response strategy for the environmental changes that confront organizations both internally and externally. 3.0 Burgelman’s Three Stage Model of Adaptive Strategy Modern decision making is complex owing to the numerous factors that come into play when a strategy is being formulated. The inherent challenges posed by the environment and the rapid pace of change in the way organizations are run just underlines how technical strategy formulation is in this day and age. Due to these factors, the traditional strategy making processes cannot be sustained. Such processes were based on stability, factors that were predictable and were usually deliberate. In contrast, today’s business environment is unstable, unpredictable and decisions are usually emergent. This implies that an organization will be forced into crafting a new strategy due to environmental pressures and the dynamism of the industry. Burgelman, suggests his three stage model of adaptive strategy as the recipe that can be exploited by organizations in the process of formulating their strategic direction in fast changing circumstances. Based on his studies, he has come up with practical tools of strategy making. The first covers the dynamic forces within the industry and how they impact on a firm. These are macro changes that happen within the context of the industry in general. These changes, however, have a strong effect on the performance of the company, and hence the company has to formulate a new strategic direction in line with them. The second exemplifies the evolutionary framework of strategy making process at the firm. This affects the business processes and the organizational structure. By extension, the way business is conducted is fundamentally changed. Finally is a descriptive model in internal corporate venturing. This refers to changes in the information systems that are necessary to support the new performance processes and procedures under the new strategy and calls for within the firm innovation. The report herein evaluates the key features of this model and their application in strategic decision making. The current state of affairs means that organizations have to find a balance in decision making between its own deliberate strategic change initiatives and the emergent aspects that are presented by the external environment. It is in the light of these facts, that modern business executives are increasingly applying the aspect of adaptive strategy. Scholars and authors have proceeded to research on the interconnection between the two attributes. It is worth to note here that the volatility of the environment in which entities have to operate, today, presents both challenges and opportunities. This means that the firm that maximizes revenues will design its strategic direction such that it cushions itself from the threats within the industry and capitalizes on the opportunities brought by it. All these happen due to rapid environmental change. Market dynamism calls for response by the organization to revise its business models (Dale 2007). These new models will subsequently require new processes to support them. The change process is complex and multitasking and requires careful conception and implementation. 3.1 Burgelman’s Tool One The first dimension is the impact that the industry forces have on the firm’s strategic direction. Porter’s analysis of the industry environment has been applied by authors to summarize the factors that are vitally significant in guiding the company’s strategic destiny. Needless to mention is the fact that these factors change almost day by day. The firm has no power over these forces hence it must respond to their changes by upgrading its corporate strategy. These dynamic forces, therefore, influence the company’s evolution overtime. Porter has given five forces which, according to him, influence the company’s growth pattern. These forces are bargaining power of suppliers; bargaining power of buyers; threat of substitutes; threat of new entrants and rivalry among competitors (Porter & Kramer 2011). It is worth noting that besides these industry forces there are other external factors that shape the strategic direction of a firm. Such would include government policies, consumer protection groups, climate change, and political forces among others. The report applies Burgelman’s approach to evaluate how these forces impact on the firm’s strategic evolution. From the supplier perspective the biggest the concern is the cost of their raw materials and services. Their desire is to sell at the highest price possible while the company would prefer to buy at the least cost. In a case where there are few suppliers; the industry is not regarded an important customer of the supplier or where the supplier is able to integrate vertically means that the supplier has a high bargaining power (Porter & Kramer 2011). The effect is reduction in profits of the company. The company must formulate a strategy that strengthens its significance to the supplier so as to neutralize the power. When inputs are overly expensive an undertaking that would be profitable may become unprofitable. It is along these dimensions that the suppliers influence the strategic evolution of the company. The buyers will have a high bargaining power if there are many players in the industry and there are low switching costs. The nature of the market largely determines this power. The strategy that a company adopts must be that which enables it to defend itself in the market. It is therefore upon the strategists to assess the importance of the buyer’s forces to the success of the company. The industry is flooded by firms that offer products that satisfy almost the same needs. In devising any new strategy the company must consider its chances in relation to the power of other products. Based on such assumptions, the company must make a choice whether the products should compete on quality, price or should serve a specific market niche (Hill & Jones 2010). In highly attractive industries the entry of new players is always eminent. The new firms reduce the industry capacity and vie for market share. In some circumstances, they may destabilize the market since they may choose a pricing policy that works to the detriment of existing players. For example, penetration pricing strategy makes existing players suffer reduced revenues or even losses as consumers switch to the low priced alternatives. Strategists must forecast the chances of new entrants in an industry and the effect they may have on the company and industry profitability before engaging in a mega investment. Another significant industry dimension is the rivalry among the competing firms in the industry. Rivalry is intense where firms persistently apply strategies aimed at increasing their market share and market dominance. The rivalry may take the shape of price wars where the products are not differentiated; competition in quality improvement and new innovation; designing of new products and improvement of customer service quality (Porter & Kramer 2011). The height and intensity of the rivalry will be felt most if and when all the players have a balanced market power; there is little differentiation; the industry is in a slow growth phase and where there are inherent barriers to exit. The influence of government in strategy evolution cannot be slighted. This is owing to the fact that many commodity markets are not fully unregulated particularly in developing economies. The influence may come in form of direct participation in business and/or regulation of the competition. The government also enacts business laws that guide the conduct of business in the industry and all strategic plans must follow the provisions of such legislation. Consumer groups have put a new dimension in today’s business context. There are more groups speaking on behalf of consumers now more than ever before. The company cannot afford to ignore the perception of these groups regarding a new strategic move. It is in this regard that the strategy team must carefully evaluate the possibility that a new plan may meet resistance from consumer groups. This is such a sensitive concern since a new product or product line can destroy the entire company’s reputation in the face of the public (Hill & Jones 2010). Today, consumers are concerned about lifestyle diseases, electronic waste, environmental issues like carbon effect and many more. Each industry has regulatory bodies that set and check the quality standards of the products. They have regulations on specific matters of concern that each producer must follow. In the food industry, for example, there are regulations on salt levels, fat content and type of preservatives contained per unit mass of food item. The political temperatures subsisting in a country or region cannot be overlooked as well. The politics of the day determines how healthy it is to do business. In times of political turmoil business performance is greatly affected. In times of general election and government transitions, for example, businesses find it difficult to launch new products. When the political landscape is not stable, there is high insecurity and by extension entities pay high insurance premiums (Hill & Jones 2010). These attributes underline how much influence the politics of a nation will have on the company’s strategic direction. There are also concerns by the environmental lobby groups. There is a general trend towards sustainable production and resource allocation, minimization of harmful industrial gases released to the atmosphere among others. New strategic plans must remain sensitive to these issues. In the electronic industry for example, there is a widespread campaign towards green computing owing to the high levels of electronic waste from corporations and individuals. 3.1.1 Pepsi’s Response to Environmental Forces Pepsi has found it quite difficult to enter markets that are dominated by Coca-Cola due to the perception in certain regions that all soda products are manufactured by Coca-Cola. The addition of novelty in advertising was hence a stringent move in countering such dominance. The war between Pepsi and Coca-Cola has intensified over the time. In the Cola war for example, the Pepsi-cola has surrendered the second position to Diet-Cola. This scenario was unique since Pepsi-Cola has for many decades ranked a close second behind Coca-Cola. Whenever this happens the first area of concern definitely becomes the marketing strategy (Abdul et al. 2012). In today’s business world it is almost impossible to mention advertising without mentioning online. This state of affairs necessitated the launching of the change the game strategy, which was a move to use soccer celebrities to promote Pepsi brands. The rationale behind this strategy was the known psychological influences, owing to the popularity the game of soccer commands among youth. The adverts were put on sites that focus on pop stars or star sportsmen. The move worked to entice the customer groups by making them feel part of the generational change patterns. These complex strategies have been possible through the use of internet. 3.1.2 Environmental Changes that Necessitated the Change Competitive Environment The industry is marred by a monopolistic type of competition. The major players are Pepsi, Coca-Cola and Cadbury. The companies redefine themselves by new innovations and development of existing products. The companies rarely compete on price. There has been recent trend of concentration in sports and energy drinks. Pepsi had to launch the expensive change the game strategy where it used football celebrities, which was a deviation from the sports it had used. The intensity of competition in the carbonated industry has been largely due to the large number of substitute products. The major players in the industry trade on many brands and this becomes difficult for consumers to have perfect knowledge about each product presented in the industry (Murray 2006). To this end consumers purely depend on company identity and reputation to make their buying decisions. 3.2 Burgelman’s Tool Two Tool two of Burgelman’s model is the evolutionary framework of strategy making process at the firm. Research on the evolutionary organization theory and research study at Intel found that having an effective strategy entails creating an environment such that middle class managers will be in a position to make decisions. The role of the top management of the organization was found to be that of reorganizing transitions rather than initiating them (Burgelman 1994) and this was found to be in line with the model of internal ecology which uses induced and autonomous strategy processes (Burgelman’s 1991). These findings can be extended to cover companies in other industries. By so doing, the definite roles of top managers and those of their middle level counterparts are distinguished. Induced strategy makes use of the prevailing company initiatives and blends them with the current market fundamentals. In other words, this process of strategic evolution is memory related and aims at exploiting the already available links that the organization has with its market. This approach aims at gaining success from a positive environmental feedback plus the right strategic action. This results in what authors have termed as co-evolutionary lock-in (Gersick 1994). Autonomous strategy on the other hand comes from the work of looking outside the current company strategy and identifies ways of entering new markets. Studies have also evaluated the probability of strategic inertia striking. This refers to an outcome opposite from what was desired and anticipated or planned as a negative consequence of co-evolutionary lock-in. Common sources of this inertia are used to explain the differentials in the level of efficiency in internal selection process (Miller 1999) and the external selection (Sorenson 2000). All this is done with regard to development in the product market. It is this development and subsequent maturity that the rationale of the processes is founded. The direction of firm innovation is geared towards the evolution in the environment and subsequently the firm grows in size, becomes more efficient and complex. There are psychological sources of inertia within the managers themselves. The co-evolutionary lock-in comes along since managers have a duty to apply their beliefs in decision making based on reasoned cause and effect process. These beliefs stop holding water once the environment undergoes an evolutionary change. Though past success helps to increase the managers belief in his/her decisions the resultant complacency and acceptance of status quo may make a manager less sensitive to changes in the environment that need to be incorporated in current decision making process (these factors did not exist previously hence past decision criteria do not reflect them). This implies that, though the manager’s instincts are important in making decisions, the manager must incorporate emergent factors that have an effect to the firm that never existed during the previous similar decision making context. Strategy making should not be a case of duplicating experiences, but rather a process of applying past knowledge to make current and future decisions. The strategic inertia by business executives is brought about by a fixed system of evolution. These limitations have to be overcome so as to strike a balance between induced and autonomous strategy processes as discussed earlier. On equal magnitude a mean has to be found as to the extent to which exploitation of the current company strategy will be applied and the extent to which new exploration will be done (Burgelman 2002). Strategists must undertake an environmental study and from their findings plus documented knowledge devise strategies that best suit the prevailing circumstances. The concept of co-evolutionary lock-in purports that, processes that are almost unnoticeable can help to identify the dilemmas in the environment in the process of a firm’s strategic adaptation. It further assists in articulating and linking ideas concerning the internal ecology of strategy making, the firm’s inherent economic theory and the general pattern of the firm’s evolutionary process (Burgelman 2002). 3.2.1 Pepsi Evolutionary Response There has been slowed growth in the beverages and soft drink industry since 1975. A report in 2006 showed that, market growth rate in some parts of the world, such as USA had gone as low as 0%. It has been the core strength of Pepsi to redeem its fortunes using the youth market. Pepsi opted to continue with its inbuilt strategy by moving to China’s youth market in a project that was worth U$ 1 Billion. To do this Pepsi engaged in a partnership alliance with Walt Disney. The latter’s assignment was to comprise of three fundamental undertakings. One was to offer support to all concerts by Hannah Montana who was to be the celebrity to endorse the products. Second was to undertake seamless advertisement during all Montana aired shows. This was to be done by making characters refresh themselves with Pepsi and use Pepsi colours in the backdrop. Finally was to air endorsements by Montana through the ABC channel network which is owned by Disney. This system would utilize the pull strategy by instigating demand and then channeling the products through the distribution systems (Ostrow 2007). 3.2.2 Environmental Changes that Necessitated the Change Trendy Fashions of the Youth The experiences with the packaging innovation suggest that manifesting the brand essence was a powerful tool at retail level. This is largely due to the fact that the youth want some uniqueness in what they shop for. They also want to feel that what they consume was developed for them. Once they perceive that a certain product belongs to the yester years they break their attachment with it. The youth want something that identifies them as youth. They also press for something that is new and distinguishable from what is in existence in the market. They shop for something that is real in that they perceive it as having been specifically designed for their sake. The decision to employ the services of celebrities was justified by the fact that they respond to something catchy. The youth in their teens are actively searching for identity and for this reason it is likely to find them idolizing a certain celebrity or celebrities. Celebrities hence have a strong appeal to the youth and will buy a product that is endorsed by a personality they like relating to. The conspicuous media footages and colourful magazines are fundamentally appealing to them hence the justification to seek the alliance with Walt Disney. There is also another inherent dimension presented by the industry. When people continue growing old they are likely to be advised by their doctors to refrain from soft drinks (Murray 2006). This implies that Pepsi must do something to boost its sales growth on a continuous basis to compensate for loss of customers on this ground. Political Turmoil in Parts of Asia USA as a country has enjoyed long spells of political stability for better part of its history. America as a country has had a healthy time in the political arena. This state of affairs is one of the contributing factors to today’s dominance of the US companies on the global front. Many of the world’s most powerful companies either hail from the US or have strong connection to its market (Blomstrom, & Kokko, 1998). Pepsi is one of those companies that took advantage of the situation since its inception in the late 1965. The government has been particularly supportive of the education systems and the yields are enormous. The high literacy levels in the country have assisted its growth in terms of expertise. Outside USA, Pepsi has had to deal with turbulent trends in some politically volatile countries. One such example is countries in the Asian region that have had numerous transitions hence destabilizing business. In Thailand, for example which has been a major market for Pepsi products, the fortunes have gone up and down almost for the entire time Pepsi has operated there. It is interesting to note that the country was ruled by eighteen constitutions in less than half a century since 1960. Such uncertainty in the state of the country’s most supreme law makes investment very tricky and risky. In such regions, there has been constant need to devise strategies that can redeem the company fortunes once they suffer harm as a result of political trauma. 3.3 Burgelman’s Third Tool The third tool addresses within firm autonomous strategy making processes of internal corporate venturing (ICV). ICV is a significant strategy for corporate innovation and entrepreneurship. Past studies have recorded that many successes and failures of ICV are bent on the consistency of the process used. Burgelman came up with a process model of the way various activities are inter-wined by the many actors who participate in the ICV process. The combination and manipulation of these activities form a new business or line of business unit for the corporation. The activities involved in the ICV process involve a new internal combination of corporate resources. This combination is matched with a new business opportunity presented by the external environment. The complexity of matching these two broad aspects causes the managerial problems that are entrepreneurial in nature. Burgelman’s model assists the manager to understand the interplay of the two activities and how they should be combined to balance out the company resources with the requirements of the new venture while maximizing shareholder’s wealth (Burgelman 1980). The environment presents opportunities and it becomes the duty of the managers to convert them into marketable ideas, hence the challenge is denoted as ‘entrepreneurial’. The innovative manager will reorganize the company resources in such a way that they generate revenues from the new opportunities. The concept of ICV is vital in enriching the theory of strategic management. The rationale is that a new business venture will unquestionably call for the formulation of a new strategy. The model henceforth explains how the strategy evolves in line with the growth of the organization. The model attempts to establish the relationship that subsists between strategies. It evaluates the connection between an intended-emergent strategy and emergent-realized strategies. It further defines the interrelationship between content and process. Research studies on the subject area suggest that various strategic activities interlock to constitute the strategy (Burgelman 1980). The basic activities involve strategic building and strategic forcing. Strategic forcing involves intensive activities aimed at gaining grip in the market with the new product, system or process. These activities on most occasions overlook the existing policies of the organization (Sundaram & Inkpen 2004). The transform the strategy from the embryonic business into mature undertaking that is self sustaining. Strategic building activities serve as the basis for inducing corporate support for the new venture. It involves integration of other units of the organization and put them under the same operational grounds. It entails extension of the existing corporate strategy and is coined in line with the master strategy (Sundaram & Inkpen 2004). Under strategic building function the managers envision the key success factors of the ICV project and come up with ways of widening the scope of the venture activity. Internal Corporate Venturing can be summarized as a strategic renewal process. All the activities focused on corporate entrepreneurship generate new ideas that renew the strategy of the firm. The model vests the adoption and development of these new ideas on the structural context of the firm’s management. The managers play the role of designing the administrative structures such as information systems, reward system and incentive to employees among others. The application of entrepreneurial innovation involves combining the technical know-how and the prudent allocation of firm’s resources. The internal organizational dynamics guides the process of resource allocation in line to renewing the organization’s corporate direction (Burgelman 1980). The internal entrepreneurial innovation is propagated by the environment’s hypercompetitive pressures. The market is composed of largely aggressive competitors who redefine their operations regularly to counter the efforts of their rivals. In such dynamic market or industry system it is incumbent upon each firm to create proactive strategies to disrupt the status quo or market leadership. The efficiency and effectiveness of the individual firm’s strategies is dependent on its workforce’s technical ability that allows the firm to be highly innovative and transformational. Secondly is the resource allocation, which is a factor of the management’s ability to prudently employ available resources in a manner to fund the strategies so devised, while remaining sensitive to the most viable environmental opportunities (Sundaram & Inkpen 2004). This is the basis of Internal Corporate Venturing. 3.3.1 Autonomous Strategy Process at Pepsi Pepsi undertakes to create products that are compliant to health standards as set out by government and other regulatory bodies. Also, Pepsi constantly works on continuous improvement of its existing products to ensure that they are fit for consumption, health-wise. The major driving force, to this new way of thinking, has been brought about by the massive consumer awareness and their changing fashions and perceptions. The advent of much improved technology and the subsequent creation of the social networking services, means that consumers have easier access to health information and the content of products they consume. More recently Pepsi had to remove trans fats from chips without extending the associated cost to the consumers. According to the CEO, Indra Nooyi, Pepsi considered it improper to ask the customers to pay more for a healthier product. She explained the reason for having a continuous improvement in the mix of the product portfolio was to ensure that there was a category of food for each consumer desires (Mangalindan 2010). 3.3.2 Environmental Changes that Necessitated the Change Pressures from Regulatory Authorities The regulatory authorities have intensified their campaigns particularly geared towards healthy concerns. There have been many cries over weight adding fast foods and addictive drinks in many parts of the world. Consumer organizations demand reduction in fat content per unit mass to help check the problem obesity and other lifestyle diseases. Addictive soft drinks are also facing threats with parents arguing that they are a risk to the health of their children. There are also concerns, over diet drinks from some quarters, with arguments that they are cancer causing. These issues, as brought about by the regulators, make the industry more complex to operate in. The desire to undergo consumer guided transition is frustrated by the regulatory bureaucracies. This state of affairs necessitated the strategy and innovation that Pepsi adopted. 4.0 Importance of Burgelman’s Model Burgelman’s model is vitally important in identifying the variables that need come into play when devising the strategic path of the organization. First is how various environmental factors necessitate a shift in strategic direction or creation of a new operational plan. The interaction of various factors by various stakeholders puts pressure on the decision maker since the final decision must reflect the desires of these parties. The internal innovation values of the organization are put into context of strategy formulation. These may include the value propositions that the company holds over time and has become the culture. It can also be the set of accumulated knowledge and experience that is extended to cover changing parameters all aimed at continued profitability of the venture. The model exemplifies the use and importance of the learning effect within the firm’s human resource function. The benefits that accrue are geared at strategic innovations, which enable to keep the entity relevant in the industry and competitive in the market. In responding to the new changes in the environment it is also worth considering the resource allocation. The management has a duty and obligation as charged by the shareholders of the company to exploit and employ the company resources prudently and for the benefit of their wealth maximization. 5.0 Recommendations Pepsi operates in different regions whose people subscribe to diverse cultural and religious beliefs. The promotional campaigns should reflect such factors. Use of celebrities could be an influential strategy for the youth but the real content of the adverts need to be discriminatory in the sense that some societies are sensitive to retain their cultural beliefs. The main target market, China, is a good example. China has largely been known to adhere to set of societal norms and business participants who target the market are entitled to taking key steps not to violate such beliefs. Pepsi needs to come up with a grand strategy to design a product that serves a range of nutritional needs. As a milestone in its evolutionary framework, Pepsi should address this need by coming up with a product package that combines more than one nutrient. Such a food supplement may contain high levels of protein and carbohydrates integrated in the same product. The product would offer a unique option for consumers who are looking for supplements of the two vital nutrients. The uniqueness of such a product, would exemplified by the combinational nature of proteins and carbohydrates which in all prior cases, have offered in separate packages, by food experts. The product would come as a pre-cooked package where the proteins and carbohydrates are cooked separately before mixing the two. This checks the problem of denaturing vital nutrients of one type due to over cooking or exposure to under cooked food substances due to incomplete cooking - as the case would be in home-made meals. 6.0 References Abdul, M, Muhammad, W, Ali, R & Sohaib, A 2012, ‘Consumer Preference Coca Cola versus Pepsi-Cola’, Global Journal of Management & Business Research, Vol. 12, no. 12. Biswas, A, & Sen, A 1999, ‘Coke vs Pepsi: Local & Global Strategy’, Economic & political weakly, Vol. 34 no.26, pp. 1701-1708. Blomstrom, BP & Kokko, A 1998, ‘Multinational corporations and spillovers.’ Journal of Economic Surveys, Vol.12, pp. 247-277. Brinkmann, J 2002, ‘Business and marketing ethics as professional ethics: Concepts, approaches and typologies’, Journal of Business Ethics Vol. 41 no.2, pp.159-177. Burgelman, RA 2002, ‘Strategy as vector and the inertia of co-evolutionary lock-in,’ Administrative Science Quarterly, Vol. 47, pp. 325-357. Burgelman, RA 1994, ‘Fading Memories: A Process Theory of Strategic Business Exit’ Administrative Science Quarterly, Vol. 39 p. 31 Burgelman, RA 1991, ‘Intra-organizational ecology of strategy making and organizational Adaptation: Theory and field research,’ Organization Science, Vol. 3, pp. 239–262. Burgelman, RA 1980, ‘Managing Innovation Systems: A study of the process of Internal Corporate venturing,’ Unpublished doctoral dissertation, Columbia University, New York. Gersick, CJ 1991, ‘Revolutionary change theories: A multilevel exploration of the punctuated paradigm,’ Academy of Management Review, Vol. 16: pp. 10-36. Hill, CWL & Jones GR 2010, Strategic Management Theory: an Integrated Approach, 9Th Ed, South-Western Cengage Learning, USA. Kotabe, M & Kristiaan, H 1998, ‘Global Marketing Management’, John Wiley & Sons, New York. Mangalindan, JP 2010, ‘Pepsi CEO: If all consumers exercised obesity wouldn’t exist’ money.cnn.com/2010/04/27/news/companies/indra_nooyi_pepsico.fortune/index.html. Retrieved 19th October 2012. Mohammad, OA & Mohammad, TB 2011, ‘The Effect of using Celebrities in Advertising on the Buying Decision: Empirical Study on Students in Jarash Private University’, American Journal of Scientific Research, Vol.1, no.13, pp.32-70. Murray, B 2006, ‘Pepsi Co. Hoovers,’ http://premium.hoovers.com/subscribe/co/profile.xhtml?ID=11166. Retrieved 29th October 2012. Ostrow, J 2007, ‘Disney Wields Its Marketing Magic.’ Denver Post. http://www.commercialfreechildhood.org/news/disneyweilds.htm. Retrieved 29th October 2012. Porter, ME & Kramer, MR 2011, ‘Creating Shared Value’, Harvard Business Review, vol. 89, no. 1-2, pp. 62-77. Pride & Ferrel, 2003, Marketing Principles, sixth edition. Sundaram, AK & Inkpen, AC 2004, ‘The Corporate Objective Revisited’, Organization Science, vol. 15, no. 3, pp. 350-363. Read More