1
AGENDA
Company Overview
Motives and Fits of Partner
Alliance Structure
Problem and Latest situation
Key Success Factors
Recommendation
2
PEPSICO BACKGROUND
An international beverage, snack, and food
company.
 Operation in many counties.

North America
 Mexico
 United Kingdom and more.


The chief executive of PepsiCo is Indra
Krishnamurthy Nooyi
3
CALBEE BACKGROUND
A major Japanese snack food maker.
 Established in 1949
 Calbee’s snacks are hugely popular in Asia.
 Calbee’s headquarters is located in the
Marunouchi Trust Tower Main in Tokyo.
 Yasuo Nakata is the CEO of Calbee.

4
MOTIVE OF PARTNERS
• Acquiring Calbee’s
shares
• Gaining Calbee’s R&D
facilities (Calbee’s
extensive R&D center)
• Accessing Calbee’s
innovative technology
• Acquiring the entire
share capital of Japan
Frito-Lay Ltd
• Getting undisclosed
amount of cash
• Gaining PepsiCo’s R&D
facilities (PepsiCo’s
global snack innovative
resources)
• Being able to diversify
and expand Calbee’s
portfolio
5
SAMPLES OF FRITO-LAY JAPAN
Caramel Macchiatto and Green tea Latte
Crisp, it’s also called “Caffeine
snacks”.
Strawbeery Cheetos
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WHAT’S FOR STAKEHOLDERS?

Revenues:

Generates annual revenues for shareholders. Plus,
Several qualities shared by both PepsiCo and Calbee
lead to their mutual achievement
7
STRUCTURE OF ALLIANCE

In 2009
PepsiCo and Calbee decided to join together and
announced is strategic one where in both companies
will jointly produce and sell a wide range of snack
food products in Japan market.
8
TYPE OF ALLIANCE

Strategic Alliances for Product Development:


Two companies will collaborate to develop their
products by using advance technology in order to
meet and satisfy consumers’ needs.
Strategic Alliances for Distribution:

Both parties gain benefits, Calbee has good
distribution channel that can bring products of
PepsiCo which is Frito-Lays to sell in Japan market
where PepsiCo cannot access alone.
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PROBLEM AND LATEST SITUATION

Government and regulations


Trade commission:
When the companies want to form an alliance, there will be an agency
set up by the national government to prevent from an unfair
competition practices which might occur from the alliance of the two
big companies.
Current situation

Both parties are still waiting for the government approval, and
they cannot continue this alliance
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KEY SUCCESS FACTORS
Trust
Commitment
Cooperation
Collaboration
Tolerance
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KEY SUCCESS FACTORS
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LESSON LEARNT FROM ALLIANCE

Need to consider many factors before entering to a market,
especially Japan market.
Regulations
Environment
Government
Trends
13
Thank You
14
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PEPSICO AND CALBEE