Smoothie operators: Can PepsiCo loosen Innocent's UK stranglehold?

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Back in 1908, PepsiCo proclaimed its cola drink as “delicious and healthful”. While hindsight suggests the second part of this slogan may have been decidedly questionable, a century later the same cannot be said about many of the US giant's products. So much so that associating PepsiCo with health is becoming to feel somewhat natural. Much of this is unmistakably down to current CEO Indra Nooyi, who has risen through the ranks since joining the company in 1994 after stints at Motorola and Boston Consulting Group. Nooyi arrived at a seriously tricky time. PepsiCo's restaurant businesses were stagnating and the company's huge growth could suddenly no longer be taken for granted. But cometh the hour and cometh the woman who was to transform PepsiCo almost at a stroke. Research informed her that the fast food market had reached saturation point and this inspired PepsiCo to shed big names like Pizza Hut, KFC and Taco Bell. Since the restaurant division accounted for a third of the $31 billion company, there is no doubting that this was a pretty intrepid decision to take.

Practical implications

This paper provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Citation

(2008), "Smoothie operators: Can PepsiCo loosen Innocent's UK stranglehold?", Strategic Direction, Vol. 24 No. 9, pp. 13-16. https://doi.org/10.1108/02580540810897049