Presentation is loading. Please wait.

Presentation is loading. Please wait.

Chapter 9 Diversification.

Published byمبین سلطانی Modified over 5 years ago

Similar presentations

Presentation on theme: "Chapter 9 Diversification."— Presentation transcript:

1 Chapter 9 Diversification

2 Snack Foods Beverages Foods
Frito-Lay North America Frito-Lay International Quaker North America Pepsi-Cola North America Gatorade/Tropicana North America PepsiCo Beverages International

3 Snack Foods Frito-Lay North America Lay’s Funyuns Ruffles Sunchips
Doritos Santitas Fritos Cheetos Rold Gold Funyuns Sunchips Cracker Jack Chester’s popcorn Grandma’s cookies Munchos Smartfood Baken-ets fried pork skins Oberto meat snacks

4 Frito-Lay International
Snack Foods Frito-Lay International Bocabits wheat snacks Crujitos corn snacks Fandangos corn snacks Hamkas snacks Niknaks cheese sticks Quavers potato snacks Sabritas potato chips Twisties cheese snacks Walkers potato crisps Walkers Square potato snacks Walkers Monster Munch Corn snacks Miss Vickie’s potato chips Gamesa cookies Dippas Sonric’s sweet snacks

5 Frito-Lay International
Snack Foods Frito-Lay International Bocabits wheat snacks Crujitos corn snacks Fandangos corn snacks Hamkas snacks Niknaks cheese sticks Quavers potato snacks Sabritas potato chips Twisties cheese snacks Walkers potato crisps Walkers Square potato snacks Walkers Monster Munch Corn snacks Miss Vickie’s potato chips Gamesa cookies Dippas Sonric’s sweet snacks

6 Beverages Pepsi-Cola North America Pepsi-Cola Mountain Dew Slice Mug
Sierra Mist FruitWorks Lipton Dole Aquafina Frappuccino SoBe AMP

7 Beverages Gatorade/Tropicana North America Gatorade Propel Tropicana
Dole juices

8 Beverages PepsiCo Beverages International Loóza juices and nectars
Copella juices Frui’Vita juices Tropicana 100 juices

9 Foods Quaker North America Quaker Oats
Cap’n Crunch cereal Life cereal Quisp cereal King Vitaman cereal Mother’s cereal Quaker rice cakes and granola bars Rice-A-Roni side dishes Near East couscous/pilafs Aunt Jemima mixes & syrups Quaker grits

10 Foods Business Level Strategies
How are we going to compete and gain a competitive advantage in each of our businesses? Foods Business Level Strategies Quaker North America Quaker Oats Cap’n Crunch cereal Life cereal Quisp cereal King Vitaman cereal Mother’s cereal Quaker rice cakes and granola bars Rice-A-Roni side dishes Near East couscous/pilafs Aunt Jemima mixes & syrups Quaker grits

11 Snack Foods Beverages Foods
Corporate Level Strategy 1) What businesses do we want to compete in? 2) How do manage effectively across businesses

12 Goals of Corporate Strategy
Moves to enter new businesses Boosting combined performance of the businesses Capturing synergies and turning them into competitive advantages Establishing investment priorities and steering resources into business units

13 4 Conditions of Successful Diversification
1) Growing industries with complementary products and technologies Apple IPhone 2) Leverage existing capabilities which match the KSFs in other arenas Disney Cruise Lines 3) Closely related moves which reduce costs Kroger & Fred Meyer 4) Powerful brand and reputation Marguerittaville, NASCAR Café, or Emril’s

14 When/Why to Diversify? To create shareholder value
Porter’s Three Point Test 1) Attractiveness Test 2) Cost of Entry Test 3) Better off Test Should pass all 3

15 Levels of Diversification
Related Diversification - entering product markets that share some resource or capability requirements with the current business – horizontal relationships across businesses – synergies. Overlap in value chain activities. Advantages of related diversification include: Leveraging Core Competencies Sharing Activities Market Power

16 Levels of Diversification (cont.)
Unrelated Diversification - few similarities in the resources and capabilities required among the firm’s businesses Conglomerate Diversification - no relatedness between businesses

17 Drawbacks for Unrelated
Demanding requirements Limited to no opportunities to share advantages

18 Portfolio analysis BCG Growth-Share Matrix GE- Nine Cell Matrix
question marks, dogs, cash cows, stars GE- Nine Cell Matrix

19 Boston Consulting Group Matrix
Relative Market Share Question Marks Stars Growth Rate Cash Cows Dogs 16

20 BCG Matrix for PepsiCo - Early 1990s
Relative Market Share High Taco Bell Growth Rate 10% Pizza Hut Frito Lay Low Soft Drinks KFC Low High 1.0 17

21 BCG Matrix for PepsiCo - Early 1990s
Relative Market Share Pizza Hut Taco Bell High Growth Rate Frito Lay 5% KFC Soft Drinks Low Low High .75 18

22 Competitive Strengths
GE 9 Cell Matrix Competitive Strengths High Low High Invest Grow Attractiveness Hold Harvest Divest Low 19

23 GE 9 Cell Matrix for Pepsico Competitive Strengths
High Low High Snack Foods Attractiveness Soft Drinks Low 20

Download ppt "Chapter 9 Diversification."

Similar presentations

4/20 Warm-up 1. Identify 2 competitors in the same market. 2. Explain how your business distinguishes itself from its competitors What do they want people.

4/20 Warm-up 1. Identify 2 competitors in the same market. 2. Explain how your business distinguishes itself from its competitors What do they want people.
1 8-Select Vend w/ Carbonation 20oz 12oz Fruit Punch 20oz 8-Select Vend No Carbonation 20oz 12oz Fruit Punch 12oz Lemon Lime 12oz Glacier Freeze 12oz Grape.

1 8-Select Vend w/ Carbonation 20oz 12oz Fruit Punch 20oz 8-Select Vend No Carbonation 20oz 12oz Fruit Punch 12oz Lemon Lime 12oz Glacier Freeze 12oz Grape.
Corporate-Level Strategies Key Terms Corporate-Level Strategy – specifies actions a firm takes to gain a competitive advantage by selecting and managing.

Corporate-Level Strategies Key Terms Corporate-Level Strategy – specifies actions a firm takes to gain a competitive advantage by selecting and managing.
By: Ian Michael Cicero Accounting 4 th Hour 19 April 2012.

By: Ian Michael Cicero Accounting 4 th Hour 19 April 2012.
Chapter 9 Diversification.

Chapter 9 Diversification.
Team 4: Katy Neely Matt Tevis Andrew McDonald Shelly Brown Hunter Pond.

Team 4: Katy Neely Matt Tevis Andrew McDonald Shelly Brown Hunter Pond.
Section 5 Corporate Level Strategy: Creating Value through Diversification.

Section 5 Corporate Level Strategy: Creating Value through Diversification.
Chapter 6 – Corporate-Level Strategy

Chapter 6 – Corporate-Level Strategy
Competing For Advantage

Competing For Advantage
MG 506 (Fall 1999: Class 3) 9/29/99 Tuesday, September 28, 1999 n Term project n Cases/teams n Strategic Management n Web sites: –FaxSav, audible n Case:

MG 506 (Fall 1999: Class 3) 9/29/99 Tuesday, September 28, 1999 n Term project n Cases/teams n Strategic Management n Web sites: –FaxSav, audible n Case:
Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ 07458 1 Chapter 3.

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Chapter 3.
Levels of Strategy. Terms Arrange the following terms in a logical hierarchy: Arrange the following terms in a logical hierarchy: Company Company Division.

Levels of Strategy. Terms Arrange the following terms in a logical hierarchy: Arrange the following terms in a logical hierarchy: Company Company Division.
Evaluating the Strategies of Diversified Companies Crafting and implementing action plans to improve the overall attractiveness and competitive strength.

Evaluating the Strategies of Diversified Companies Crafting and implementing action plans to improve the overall attractiveness and competitive strength.
Jeopardy! Exam Review Questions Chapters 4 - 6. 1. ____________ is an asset, competency, skill or knowledge that is controlled and leveraged by a corporation.

Jeopardy! Exam Review Questions Chapters ____________ is an asset, competency, skill or knowledge that is controlled and leveraged by a corporation.
Chapters 9 - 10 Corporate Level Strategy Foods Quaker North America Quaker Oats Cap’n Crunch cereal Life cereal Quisp cereal King Vitaman cereal Mother’s.

Chapters Corporate Level Strategy Foods Quaker North America Quaker Oats Cap’n Crunch cereal Life cereal Quisp cereal King Vitaman cereal Mother’s.
Http://www.imediaconnection.com/content/cs/honda/051303/honda_ad.swf.

 Nike Case Due Next Tuesday  Guest Speaker Thursday Randy Conrads of Classmates and Red WeekRandy Conrads of Classmates and Red Week.

 Nike Case Due Next Tuesday  Guest Speaker Thursday Randy Conrads of Classmates and Red WeekRandy Conrads of Classmates and Red Week.
Chapter 9 Diversification Snack Foods BeveragesFoods Frito-Lay North America Frito-Lay International Pepsi-Cola North America Gatorade/Tropicana North.

Chapter 9 Diversification Snack Foods BeveragesFoods Frito-Lay North America Frito-Lay International Pepsi-Cola North America Gatorade/Tropicana North.
Supplementing the Chosen Competitive Strategy

Supplementing the Chosen Competitive Strategy
Strategy and Competitive Advantage in Diversified Companies

Strategy and Competitive Advantage in Diversified Companies

Similar presentations

Ads by Google