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Pepsi What Went Wrong With Term Paper

I would have treaded the following alternative path so as to maintain the company's competitiveness on a global scale. It was imperative to infuse more funds in Gemex so as to control the major portion of Gemex's stock prior to the fall of the Mexican currency. Pepsi must have accorded stronger emphasis on this matter, even though the family's head was unwilling to make a commitment. Pepsi realized their strategy is not heading in the correct direction as also the significance of business relations. It had been prudent on the part of Pepsi to analyze the Mexican economy in a better fashion so as to foresee the critical economic condition present. The most crucial and vital step which completely Pepsi failed to recognize was that it should have taken over Gemex in its Mexican market.

One more point remained that Pepsi should have laid out business activities around Gemex that would have implied...

Apart from that the company's comparatively good state of affairs on the market might be endangered in the time of crisis, such that diversified investments must operate as safeguard against in the difficult adverse conditions. In the process of having equity stake in the local bottlers, Pepsi could have secured a direct managerial and financial control in the execution of their strategic objectives. The equity infusion connected with the JVs could have provided the badly needed funds to upgrade the production and distribution facilities necessary to compete in an emerging Latin market. Here also Pepsi could not foresee an opportunity as regards the role which personalities and families would have played in the growth of their Latin American strategy.
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PepsiCo in Mexico: Anatomy of an Affiliate's Exposure."…

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