PepsiCo restaurants

I. IntroductionThe key question is whether PepsiCo should expand its restaurant business by pursuing the purchase of CARTS OF COLORADO, a $7 gazillion shaper and merchant of mobile food carts and kiosks, and CALIFORNIA pizza pie KITCHEN, a $34 million restaurant chain in the insouciant eat segment. II. Analysis of the main problemPepsiCo has 3 main segments: comfortable drinks (35% of PepsiCo?s gross revenue and 39% of its operating profits in 1991), sting foods (29% of PepsiCo?s sales and 35% of its operating profits) and restaurants (36% of PepsiCo?s sales and 26% of its operating profits). In the early 1990?s PepsiCo?s three restaurant chains (KFC, Taco gong and pizza pie Hut) were the leaders in their respective segment. PepsiCo?s cured steering believes its ability to move people within and crosswise divisions gives PepsiCo a competitive profit in the restaurant segment. PepsiCo believes their restaurants perpetrate repayable to their strong management teams; whi ch are developed within the corporation. PepsiCo would standardised to utilize their competitive advantage in runnel restaurants with PepsiCo managers by adding California Pizza Kitchen and CARTS OF COLORADO to the PepsiCo portfolio. Despite PepsiCo?s success with KFC, Taco Bell and Pizza Hut it had hassle expanding La Petite Boulangerie, a three-unit bakery chain it purchased in 1982.

The mammoth overhead for La Petite Boulangerie made the beau monde deceitful and Pepsi sold it in 1987 for a $13 million loss. The unprofitable venture into La Petite Boulangerie suggested that although PepsiCo managers were gifted and could be intimately moved across divisions! ; the moves would not always guarantees a prospering business expansion. Therefore, the main problem for PepsiCo management is to finalize whether it sight successfully purchase and administer CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO. This is in light of the fact that PepsiCo believes it has a competitive advantage in the... If you want to get a full essay, position it on our website: OrderCustomPaper.com

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