What Strategic Actions Should Indra Nooyi Take to Sustain the Corporation

What strategic actions should Indra Nooyi take to sustain the corporation’s impressive financial and market performance? Should its free cash flows be used to fund additional share purchase plans, pay higher dividends, make acquisitions, expand internationally, or for other purpose? What other strategic actions should be pursued by corporate level management?

From my perspective there several strategies that Indra Nooyi should adopt to effectively utilize its free cash flow to generate more profits and be more competitive. In terms of cash allocation, PepsiCo should seek to increase spending on acquisitions of companies that are a good fit for its long term revenue, and pay higher dividends to shareholders, thus shareholders and public can have a relatively positive impression about the company.

In addition, when corporate level managers considering the strategic, they can adopt strategies from three aspects. First of all, indra nooyi should make acquisition of new business and diversify the company to take part in a broader market. Secondly, she can also use the strategy of vertical integration to stretch its value chain; for example, they can acquire the sugar manufactures, the carbon dioxide producer, and the bottle makers. Likewise, pepsico can also develop horizontal integration, such as cooperate with famous franchise fast food restaurant. Pepsico should continue its aggressive market expanding momentum and gains more power in other segment market. It should integrate with other strong players in the market and obtain more promising opportunities. Indra Nooyi and her team should focus on the aggressive expansion of the Pepsi brand internationally, aiming for market dominance in sodas in the international arena. Last but not least, PepsiCo should retain its strong focus on innovation and keep investing heavily in research and development, in order to keep ahead of the curve in this competitive industry, and face the vigorous competition from its viral- the coca cola.

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