Cola Wars Essay

6428 Words Jun 25th, 2014 26 Pages
Abstract
This paper investigates the strategic management of Pepsi Cola and Coca-Cola in an effort to make recommendations on how Pepsi Cola can build strategies in gaining a larger share of the market. The assessment of strategic management begins with the vision and mission of both organizations, which leads into literature review that identifies the consumer preferences of both Pepsi Cola and Coca-Cola. Following the literature review is the teams’ own personal assessment of consumer preferences for the Pepsi Cola and Coca-Cola brand (Please refer to Appendix A for the assessment). Finalizing the investigation are recommendations for Pepsi Cola to gain a larger share of the market.

The Cola Wars Research Paper
According to an
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The mission of Pepsi Cola is to “be the world’s premier consumer products company, focused on convenient foods and beverages” (PepsiCo-purpose, n.d.).

Coca-Cola
The vision of Coca-Cola is “to serve the framework for our roadmap and guide every aspect of our business by describing what we need to accomplish in order to attain sustainable quality growth” (Coca-Cola Company, n.d.).The mission of Coca-Cola “declares their purpose as a company and serves as the standard against which we weigh our actions and our decisions” (Coca-Cola Company, n.d.). The differences of Pepsi Cola and Coca-Cola are clearly defined in their vision and mission statements. PepsiCo is consumer driven while the Coca-Cola Company is driven by their stakeholders.
Objectives
Pepsi Cola
The ongoing rivalry between Pepsi Cola and Coca-Cola is what has shaped the objectives of both companies. Pepsi Cola has identified an increase in demand for soda products in developing countries and reportedly is budgeting to spend $1 billion dollars in China within the next four years, to expand its business and broaden its product portfolio (Normandy, 2008). Pepsi Cola has purchased five farms in China for a value of $29.3 million dollars in order to have more control of the manufacturing process to control costs (Alcalay & Hauter, 2014). As

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