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The beginning sections of the topic focus on the corporate strategies of Heublein, R.J. Reynolds Industries, and PepsiCo. These sections brush off be used to discuss diversification strategies, portfolio management, and merger and acquirement (M&A) integration. It is particularly interesting to end this discussion by intercommunicate students what value they see each acquiring company transferring to KFC. by and by some discussion, it becomes apparent that neither Heublein nor R.J. Reynolds transferred much value to KFC. In contrast, there were numerous opportunities for PepsiCo to transfer value to KFC and take payoff of synergies amid KFC and its other divisions (i.e., Pepsi-Cola, Frito Lay, Pizza shack, and Taco Bell). However, significant differences between the corporate cultures of PepsiCo and KFC, and problems arising from PepsiCos attempt to impose controls on KFCs decentralized and individualist franchisees, offset many of these advantages. In the end, PepsiCo divested KFC along with Pizza Hut and Taco Bell in 1997. The instructor might win this section with a discussion of the costs and benefits of mergers and acquisitions.



While it is blue to identify potential advantages of a merger or acquisition, much than 50 percent of mergers and acquisitions fail to live up to expectations and a high percentage are divested within a a few(prenominal) years of acquisition. Today, both PepsiCo and KFC operate as independent entities. some(prenominal) companies have increased their performance levels significantly since their split in 1997.

The instructor might assign the following reading to make students for this discussion:

Michael E. Porter, From Competitive Advantage to Competitive Strategy, Harvard Business Review, May-June, 1987, pages 43-59.

The case moves to a discussion of KFC and the fast-food industry. These sections can be used to behavior an industry analysis (industry characteristics, trends, and driving forces), analyze competitive forces (Porters Five Forces...If you want to get a full essay, rate it on our website: Orderessay



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