PepsiCo in Mexico

Conclusion
This case highlights how financing cash flows can threaten even healthy operating cash flows, and how a troublesome capital structure can threaten the ability of a global firm to implement a corporate strategy for increased market penetration. The market and financial health of a company affiliate can have a dramatic impact on a company's ability to successfully implement a market strategy.
PepsiCo has some real problems in Latin America. They must focus on taking control of bottling operations and improvements in marketing. Next, they should focus on lowering cost of sales. Also, an implementation of corporate owned/controlled bottling facilities that would act as recruiting agents for other regional and local bottlers is critical to PepsiCo's success in this market.
Based on my recommended solutions above and some well thought out strategies by PepsiCo management, they would see its market share return. Once these strategies are implemented and successful, PepsiCo should then concentrate on gaining share in the Latin American market from share leader Coca-Cola.
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