Case analysis on PepsiCo's Diversification Strategy in 2008 Essay

Case analysis on PepsiCo's Diversification Strategy in 2008 - Essay Example Nevertheless, the challenge for PepsiCo is on how to improve its share of the international market, and how it would improve its sales in beverages and food commodities through appropriate market strategies. Recommendations Recommendation 1: Create an online retail market. This retail market can make their markets more accessible to the consumers, regardless of the consumers’ location. Tie-ups with local stores in the major cities and local stores can help direct the consumers towards areas where they can access the products they want. Recommendation 2: Increase accessibility of goods by increasing the number of products in the local stores and shops. More local stores must have their supply of PepsiCo products, from the beverages to their food items. Such goods must reach as many stores in both the cities and the rural areas in as many countries as possible. The company can provide online link-ups to these stores – to give local consumers the opportunity to access thes e goods through the internet and have them delivered to their homes or be picked up in the stores. Recommendation 3 Take out advertisements and commercials to run in the TV, newspapers, and similar media using the local talents or familiar celebrities in these countries. These advertisements can also run in magazines and in shopping areas, using these familiar and local celebrities. Promotional tours for these celebrities can also be used to assist in establishing the popularity and patronage of the products. Tie-ups with local activities in these countries can also be carried out. Significant factor list: 1. Its rival company Coca-Cola has created a formidable international market with a firm footing on many developing nations. 2. Its Quaker Oats products are not popular brands and products outside the United States. 3. Its recent acquisitions like Quaker Oats and Frito Lay Brands have not been popular brands outside the United States. Product lines like Fritos Corn Chips, Captain Crunch Cereal, and Cracker Jack popcorn, among others are not popular and strong products outside the United States. For the most part, these products are expensive purchases for other states, especially the developing nations. 4. The international crisis has affected sales for most major corporations operating in the local and in the international market. 5. Some of the local stores in countries outside the United States do not carry the PepsiCo and Quaker Oats products. 6. PepsiCo has not reached the local and cultural level of consumer appeal. It lacks a connection with the local people and such disconnect makes it more difficult for the company to be more appealable to the local consumers. 7. Environmental concerns on water consumption have been raised and have called for the company’s participation in conservation efforts. This implies higher production costs for the corporation. Justification of each recommendation Justification for Recommendation 1 Almost everything an d everyone these days is online. PepsiCo must take advantage of this new medium in order to ensure that its products would reach the most number of people in the international market. The internet is one of the most convenient, innovative, and time-saving technologies available today. It is a medium which allows users

SARBANES-OXLEY ACT 2002 IN MY OWN OPINION Essay Example | Topics and Well Written Essays - 500 words

SARBANES-OXLEY ACT 2002 IN MY OWN OPINION - Essay Example The solution that was implemented is known as the Sarbanes-Oxley Act of 2002 (SOX). The Sarbanes-Oxley is a piece of legislation that changed the business world forever. The Act was created in order to raise investor confidence in the marketplace. One of the major problems the markets were facing was that greedy corporate officials were taken advantage of their position in order to make themselves rich at the expense of the shareholders and other stakeholders of the company. The Sarbanes-Oxley Act fixed the problem by making the CEO and top officials liable in cases of fraud. The section 302 of the Sarbanes-Oxley Act mandates that senior management certify the accuracy of the financial reports (Answers, 2010). If there is fraud present in the financial statement of a company the top executive of the firm faces fines of up to $25 million and prison terms of up to 20 years. Another problem that existed prior to the creation of SOX was the possibility of collusion between the external auditors and the executive managerial staff. In the Enron case the auditors knew about the fraud, but decided to stay quiet due to economic interest. SOX changed the rules of the game with the creation of the independent auditor report. An auditing firm of a public corporation cannot have any other accounting contracts with the firm they are auditing. SOX also helped prevent fraud because it implemented new internal control protocols that help prevent fraudulent activity. Section 404 of SOX requires that each annual report of a public company contain an internal control report. The internal control reports have to include the following two things: a) A statement of management’s responsibility for the establishment of an adequate internal control structure for financial reporting; b) assessment of the effectiveness of the internal control structure at the conclusion of the latest fiscal year (Sec,