SWOT ANALYSIS

GROUP 3 ACN3

Company Profile

 John Clarkin, a native of Minnesota, USA who came with the American forces at the close of World War II, brought Pepsi-Cola to the Philippines. He became president and general manager of Pepsi-Cola Bottling Company of the Philippine Islands Ltd. upon acquiring a franchise to bottle Pepsi in the Philippines on October 16, 1946.

 For one year, Pepsi was imported from the U.S. until the first bottling plant was put up in Quezon City in 1947. In 1985, Pepsi Philippines became a Filipino corporation when the Escaler clan led Pepsi-Cola Distributors of the Philippines Inc. acquired its franchising and bottling rights.

 Premier Beverages led by Luis Lorenzo Sr. and the AFP-RSBS assumed majority ownership of the firm in 1989, and gave it a new name: Pepsi Cola Products Philippines Inc. (PCPPI).

Mission and Vision

We are the beverage company of choice - preferred by consumers, trade partners, investors and employees of the Philippines. As such, we continuously delight them by offering quality beverages at best value, for every drinking occasion.

We are a happy team in our workplace as we build a sustainable and profitable business, providing healthy financial rewards to our shareholders and opportunities for growth and enrichment to our business partners, employees and the communities where we operate.

Culture and Values

A PCPPI employee has the Passion to succeed, Excels in what he does, Professional in all his dealings, prioritizes Service, and treasures his Integrity and that of the Company.

Structure
Chief Executive Officer

President Executive Vice President for National Sales Operations Executive Vice President & Chief Strategy Officer Senior Vice President & Chief Financial Officer

Director Director Director Director

Senior Vice President for Manufacturing and Logistics

Senior Vice President for Human Resources, Employee and Industrial Relations, Communications and Legal

Director Director

Senior Vice President and Senior General Manager for Central Luzon Operations, North Luzon Operations, Cagayan Valley Operations and Pepsi University

Vice President & Senior GM for Metro Sales Operations, Southern Tagalog Regional Office, Naga Plant Vice President & Senior General Manager for Mindanao Vice President & Senior General Manager for Visayas

PCPPI has a divisional structure model headed by their Chairman of the Board and CEO Hwang Chung and Partha Chakrabarti as President. This divisional structure is appropriate to PCPPI management to find some synergy among divisional activities through the use of committees and horizontal linkages.

Resources
PCPPI takes pride in the establishment of support systems and processes to ensure the development of its employees through learning and skills trainings facilitated by qualified and competent teachers and professionals.

 March 25, 2005 Provide continuing education to PCPPI Employees focusing on the key function areas of MAKE-SELLDELIVER Enhance basic day-today capability of frontline Employees, especially Sales Employees

 Enhance managerial and leadership abilities of managers and employees with potential Instill Company values and Culture in all Employees Maintain a pool of certified educators, mentors and trainers from PCPPI, PI and recognized educational establishments and learning centers.

Strategies
Pepsi-Cola Products Philippines, Inc. strong performance was driven by the successful implementation of their strategic moves which include effectively preserving and defending their market share in carbonated soft drinks lines cola and non-cola and aggressively tapping the bright growth prospects of the non-carbonated beverages product lines, using the fast expanding health and wealth sector as their growth factor.

Financial Statements
Pepsi-Cola Coca-Cola

Source: AC Nielsen as cited by 2TradeAsia, January 2008

According to an industry report, Coca Cola Bottlers Philippines Inc. controls about 48.4% of the market for carbonated soft drinks in the country, followed by Cosmos Bottlers Corporation with 23.3%, PCPPI with 17.4%, and the remaining 10.9% is shared by the other small players.

Large market share Acquisitions and alliances

STRENGTHS

Customer loyalty Purchasing economies of scale Worldwide brand recognition Huge distribution network Strong market position Strong brand portfolio Strong growth in revenues and profits

Business concentration

WEAKNESSES

Smaller market share than Coca-cola Inability to substantially product differentiate Hard to compete with Cocacola strong brand identity and customer loyalty

Growing bottled water market

OPPORTUNITIES

Establishing of new branches in the country Promoting a cleaner environment Reducing costs for the company Generating income for farmers Growing population in the Philippines Adapting to market trend

Sluggish growth of carbonated beverages

T H R E AT S

High oil prices High level of competition with main rival, Pepsi will lose market share if rivals adapt to market trends faster

Strengths
can be described as among the leading company worldwide the company holds large market share and has allied with South Korea s number one beverage company, the Lotte Chilsung Beverage Corporation continuous customer loyalty and strong brand portfolio PCPPI continues to increase their distribution network and market location.

Weakness the company cannot claim of being in the top most of the beverage company due to their rival Coca-Cola Coca-Cola has greater market share worldwide and also has a strong brand identity and same customer loyalty to its market

Opportunities
plant expansion in different locations of the country reducing cost can also be expected thru some ways such as building Biomass Facilities for Renewable Energy with the growing population, the company may also be able to extend to other products such as Bottled Water and sees opportunities of making health drinks and be an advantage for them to be a socially responsible producer.

Threats
there might be a decline or slow increase of demands for carbonated beverages continuous oil price hike, this entails an increase in shipping and handling cost. if the company will not grab the present opportunities their rivals might be far ahead to them and probably will gain more market share

Alternative Courses of Action

Pepsi should focus on increasing sales nationally to compete effectively with Coke. They have been beaten badly in some markets, and need to focus more on untapped areas Continue to diversify their beverage selection through acquisitions. combat the decreased interest in cola a need to ensure that they can properly manage all of these acquired companies and should divest those that show limited potential

Alternative Courses of Action

Develop Imaginative and trendy advertising. Make socially aware campaigns. Capitalize on their aggressive corporate culture in overseas dealings. To combat the weakness of their current international strategies

Recommendation Based on the research, the best recommendation is to continue addressing the opportunities and risks of the global marketplace and concentrate the resources on growing the business, both through internal growth and carefully selected acquisitions.

Implementation Plan
pPrioritize having aggressive promotion on the market. to obtain more target customers and distribution networks develop the advertisements and making it trendier can be a better start pConduct a study whether having a Renewable Source of energy will help the company in reducing cost.

Implementation Plan

pCreate a feasibility study if making new product lines can be profitable for the company. pFocus on how to maximize sales and reduce cost. pLocate more strategic location for distribution.

Evaluation and Control

Conduct a market research whether there is a change in brand patronization of the market. The finance department should interpret the financial statements of the company if there is probable increase in profit due to different factors (reduce in cost or increase in sales).

Evaluation and Control Evaluation and Control

Each of the location supervisor must observe diligent and accurate reports of their distribution network. Make sure that making new product line can be accepted by the market. Developing better product and packaging.

Conclusion
The researchers conclude that the Pepsi-Cola Products Philippines Inc. performs a great job in manufacturing, selling and distributing their products. Although at present, they still cannot out overpower their number one rival, CocaCola Co., they foresee in the future that their goal to beat them will be possible. Confident of having greater investments from foreign big investors, the company may be able to increase its production and engaged in other types of products.

Conclusion

Furthermore, the researchers conclude that there are lots of opportunities coming for the company. If the company will focus more on taking actions to use this opportunities, probably the company will have more solutions than having problems.

Conclusion
Lastly, knowing the internal and external environment of the company, the researchers have assessed those factors in which the company should focus more and those which they should attend to as soon as possible. Having a systematic evaluation and controlling will give the company their vision of being in the top among the beverage companies not just nationally but also worldwide.

Thank You!