Management at Work

In addition to its famous soft drink, PepsiCo also owns Frito-Lay, Quaker, Tropicana, and Gatorade brands. The company owns 22 global brands which each generate over $1 billion in annual revenue. In the early 2000s, PepsiCo recognized that consumers were interested in healthier drink and snack options. As a result PepsiCo. has set targets for reduced sugar, sodium, and fat in their food and beverage products. They have also introduced healthier food items including Quaker Real Medleys portable oatmeal with real fruit and nuts and SmartFood Delight a reduced-fat popcorn. In addition to changes to their current products, PepsiCo. acquired healthier snack and beverage brands including Stacy’s Pita Chip Co., Naked Juice, and KeVita.

In addition to diversifying their product line, PepsiCo CEO, Indra Nooyi, has increased spending in Research & Development. The company is researching ancient grains, berries, and plants, and hired a former Mayo Clinic endocrinologist to advise PepsiCo on the impact of sugar, salt, and fat on consumers.

1. After scanning the environment, PepsiCo discovered consumers’ desire for healthier food options. The company then thought about how this environmental factor related to the possible actions the company could take. Managers at PepsiCo likely depicted these relationships by

A. listing the threats and opportunities.

B. completing an environmental scan.

C. creating a cognitive map.

2. After scanning the environment, Indra Nooyi wanted to use a cognitive map to help her summarize the relationships between the environmental factors and possible actions for PepsiCo. Which of the following would Indra list as potential strategies on a cognitive map? Check all that apply.

A. Reduce the amount of sodium in Frito-Lay brand chips and snacks

B. Acquire healthy snack food brands

C. Customers want healthier food and beverage options

D. Sugar content in Pepsi Cola is too high