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Liberty University BUSI 400 Individual Assurance of Learning Exercise 1 complete solution correct answers key

This document provides complete solutions for an Assurance of Learning exercise in BUSI 400 at Liberty University.

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    Liberty University BUSI 400 Individual Assurance of Learning Exercise 1 complete solution correct answers key (85% right) 1. Complete Assurance of Learning Exercise 1B, Step 4, on textbook page 36. (Note: In addition to the instructions, you may choose to use the company's corresponding website for the Annual Report and/or the Securities and Exchange Commission's Edgar database for the corresponding 10K.) 2. Complete Assurance of Learning Exercise 10D on textbook page 321. (Note: There are correct and incorrect answers.) 3. Complete Assurance of Learning Exercise 1D, Steps 1 – 2, on textbook page 37. 4. Complete Assurance of Learning Exercise 1F, Step 1, on textbook page 38. (Note: Use either www.strategyclub.com in the assignment instructions or Standard and Poor's. Standard and Poor's can be accessed via Liberty University's Online Library .) Upon completion of Step 1, prepare a 1 - page summary of your findings using current APA format. 5. Place the results of the exercise(s) in a single document and submit it via the link provided. Include your name, class, section number, and the number of the exercise(s) on the attachment (e.g.: 1B, Step 3). Be sure that the assignment is in a business - professional format; include current APA citing and referencing.

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    Strategic Planning Question 1 (1B, Step 4, p.36) PepsiCo SWOT Analysis Strengths 1. Extensive channels of distribution - The Company’s products are distributed to over 10 million stores weekly in over 200 countries. 2. Successful and robust advertising and marketing campaigns - the company spent over $2 million for promotions and adverting in 2012. 3. Complementary product sales - the report revealed that 30% of the customers who bought PepsiCo’s snacks also bought the companies beverages. 4. Product diversity - It has many brands including carbonated drinks, water, whole grain - based snacks, savory, and non carbonated drinks which strengthen the company as it has a survival potential if a brand is not performing well ( PepsiCo, 2013) . 5. Competent mergers and acquisitions - PepsiCo acquired Gatorade, Doritos, Tropicana, and Quaker Oats. 6. Corporate social responsibilities - The Company engages in recycling, education, water usage reduction, and obesity fighting through PepsiCo Foundation. 7. Progressive and proactive - New York Times reported that PepsiCo is the most progressive and proactive food company ( Warner, 2010) . 8. Numerous brands in the market e.g. PepsiCo has 22 brands in the market which earns more than one billion dollars annually. 9. Innovative - The innovative nature of the company has made it to compete in the world market against its competitors like Coca Cola. Its innovativeness and creativity is also revealed in its advertisements which are appealing to the potential customers.

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    10. Sponsorships - PepsiCo has sponsored several sports which gives it a good corporate image like NBA in china, NHL, and major legue Baseball. Weakness 1. The company over - depends on Wal - Mart - Over 13 percent of the company’s revenues are derived from Wal - Mart stores. 2. Weaker brand awareness - The Company has weaker brand awareness compared to the competitors like Coca Cola Company. 3. Low annual net profit margin - the net profit margin of PepsiCo is 9.7 percent compared to Nestle 11% and Coca Cola’s 18.55% ( United States Securities and Exchange Commission, 2012) . 4. Low pricing - Prices of PepsiCo brands are generally lower than those ones on Coca Cola which limits its profits. 5. Questionable and unethical practices like it was determined that the company was using tap water although it reports in its product labels that it uses mountain spring water. The Company was criticized because it used water containing excess pesticide in India. 6. Overdependence of US markets - About 52 percent of PepsiCo revenues originate from United States. 7. Low productivity - the company had revenue per employee of $219439 which is lower compared to the competitors. 8. Damage of reputation and image as a result of product recall - The Company pulled Wattle Mix and Aunt Jemima pancake from the market due to Salmonella contamination which dented its image.

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