 |  International Business : The Challenge of Global Competition, 8/e Donald Ball
Wendell H. McCulloch,
California State University Long Beach
Paul L. Frantz,
California State University Long Beach
Michael Geringer,
California Polytechnic State University
Michael S. Minor,
University of Texas Pan American
Strategic Planning, Organization Design and Control of the Firm
Internet AssignmentsStudents: Included here are some internet/case assignments that you can use to review
or that your instructor may give as assignments. Your instructors have been
given the answers to these questions and may choose to give them out to you
or not.
This case is designed to:
- Provide you with experience in accessing corporate annual reports;
- Allow for the comparison and contrast of the strategic objectives of two
Multinational Companies operating in the same industry; and
- Assess the significance of company strategic planning to the environment
in which it operates.
The Pepsi challenge, keeping up with its archrival Coca Cola, never ends. It maintains
its place as the world's number 2 soft-drink maker after number 1 Coke. About
a quarter of Pepsi's sales are made up of its soft drinks, Pepsi, Mountain Dew,
and Slice. The bottling operations are run independently. Almost 60% of Pepsi's
sales come from Frito-Lay, the world's number 1 maker of snacks such as corn chips
(Doritos, Fritos) and potato chips (Lay's, Ruffles, WOW!). Pepsi's Tropicana Products
unit is the world leader in juices. Pepsi also sells Aquafina bottled water, All
Sport sports drinks, Dole juices (licensed), Lipton ready-to-drink tea, and Rold
Gold pretzels. One of Pepsi's major competitors is Cadbury Schweppes, plc.
Cadbury Schweppes, plc, is perhaps better known as a global candy maker. It is,
however also the world's number 3 soft-drink company. Headquartered in the United
Kingdom, Cadbury Schweppes, sells its products in more than 200 countries throughout
the world. Its beverage brands include 7 UP, A&W Root Beer, Canada Dry, Dr.
Pepper and Hawaiian Punch. It also makes Mott's apple products and Clamato juices.
Cadbury Schweppes added to its beverage lineup in late 2000 when it bought Snapple
Beverage Group, which produces Snapple drinks, Royal Crown Cola, Mistic and Stewart's
Root Beer. Cadbury Schweppes' confectionery brands include York, Peter Paul, and
Cadbury Cr;eacute;me Eggs. Global brands include Bassett and Trebor.
The Chairman's letter in a company's annual report is often a good source of information
about strategic goals and objectives. The 1999 annual report letter from Roger
A. Enrico, PepsiCo's chairman, can be found at http://www.pepsico.com/1999/letter.html.
The 1999 annual report letter from Sir Dominic Cadbury, Cadbury Schweppes chairman,
can be found at http://www.cadburyschweppes.com/investor/financial/annual_reports/index.html.
The Cadbury annual report is in PDF. Therefore, you will need Adobe Acrobat Reader
installed on your computer before you access the Cadbury annual report. If you
don't have Adobe Acrobat Reader, you can download it for free from the Adobe site.
The URL is http://www.adobe.com/products/acrobat/readstep2.html. Just follow the
on-screen instructions.
Case Instructions:
Read Roger Enrico's letter and Sir Dominic Cadbury's letter. Answer the following
questions.
- What strategic moves does Sir Dominic Cadbury mention in his letter? What
about Roger Enrico?
- What financial goals does Sr. Dominic Cadbury mention in his letter? What
about Roger Enrico?
- Which of the two letters provides you with better insight into where the
company is headed in the future?
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2002 McGraw-Hill Higher Education