Competitive and strategic Analysis 1 - Essay Example

Competitive and Strategic Analysis for Pepsi Company Pepsi Company comprises of several functional units. These divisionsare affected by a variety of issues; one of the most burning issues that affect Pepsi Company’s overall strategy is budget deficit. Budget deficit constitutes a status of financial health characterised by planned expenditures exceeding revenues. Pepsi Company prepares budgets during the end of every financial period. The company may experience deficits in its planned expenditures; this issue affects all the functional units of the company.

The marketing department will not function effectively because there will be no money to pay marketers and the advertising media (Rajagopal, 19). The financial department will lack funds for paying employees and buying the required facilities. Other departments such as engineering, design, customer service and production will not work effectively because of inadequate resources. The essential goal of the marketing department is to increase the company’s market share by 25% by the end of the year 2014.

The company will require a variety of resources for effective execution of the planned marketing action: financial resources for paying marketers and buying airtime, human resources who will work as marketers, printers for making advertising posters, and road show lorries for street advertising (Rajagopal, 19). Measuring the effectiveness of the marketing plan will be critical to the organization’s success. Pepsi Company will determine the functionality of the marketing plan by comparing the amount of sales before and after the marketing plan.

If the amount of sales increases, the functional strategy would have produced the required results; however, decline in the sales volume will indicate failure of the strategy. The functional strategy, therefore, will need to be revised. Work CitedRajagopal, "Marketing Strategy, Technology and Modes of Entry in Global Retailing." (2011). Print.