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A GENDA 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

M OTIVE OF P ARTNERS 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

S AMPLES OF F RITO -L AY J APAN Caramel Macchiatto and Green tea Latte Crisp, it’s also called “ Caffeine snacks”. Strawbeery Cheetos 6

W HAT ’ S FOR S TAKEHOLDERS ?  Revenues:  Generates annual revenues for shareholders. Plus, Several qualities shared by both PepsiCo and Calbee lead to their mutual achievement 7

S TRUCTURE OF A LLIANCE  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

T YPE 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. 9

P ROBLEM 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 10

K EY S UCCESS F ACTORS TrustCollaborationToleranceCooperationCommitment 11

K EY S UCCESS F ACTORS 12

L ESSON L EARNT F ROM A LLIANCE Need to consider many factors before entering to a market, especially Japan market. Government Environment Trends Regulations 13

Thank You 14