PepsiCo Restaurants Case Study Example | Topics and Well Written Essays - 500 words

PepsiCo Restaurants - Case Study Example Secondly, both businesses have the capabilities of growing as COC has invested in technology, which might end up being cost effective while CPK has replaced advertising with store openings, which is more profitable. In addition, COC has many clients around the globe, therefore this will benefit PepsiCo by enabling it to enter the new competitive market and supply its products to big entities in the globe. Concurrently, acquiring CPK will be beneficial to PepsiCo because CPK has committed employees, which will increase PepsiCo’s task force (Harvard business school 13). PepsiCo adds value to all its restaurant business because before it purchases any restaurant or launches a product, it formulates a strategic plan to direct it. In the restaurant industry, the strategic plan that guides PepsiCo believes that fast food restaurants will be on demand for the coming decades; therefore, it is a preferable business for investment (Harvard business school 6). To gauge the value that PepsiCo adds to these restaurants, one can consider the situation in Pizza Hut, Taco Bell and KFC. The cooperate resources and core skills that PepsiCo apply in its business include the marketing strategies, finance, operations, human resources and information systems (Harvard business school 3). â€Å"Let us say that PepsiCo makes the acquisition of the two aforementioned companies, how should PepsiCo structure the reporting relationship of its newly acquired units with the rest of the company?† After acquiring CPK and COC, PepsiCo CEO will structure his reporting so that he explains to the rest of the company that each of the acquired restaurants operates on its own, but they just collaborated to share their views. The COE will insist that they conduct their business transparently; concurrently, they are helping other businesses to grow (Harvard business school 10). The current organization of PepsiCo restaurants makes long-term sense because it is a great business operating at a fair