Summary

Connect selected strategy to projected statements and retained earnings

From: PepsiCo Strategic Planning: SPACE, Grand Strategy, and QSP Matrices

After selecting a strategy, connect the choice to the workbook's projected statements, retained earnings table, and forward-looking ratios. Strategic recommendations should have financial consequences that can be explained over the three-year horizon.

Integration checks

  • Confirm that revenue, cost, investment, and financing assumptions reflect the chosen strategy.
  • Trace projected net income and dividends into retained earnings.
  • Check EPS, margins, leverage, and other ratios against the projected statements.
  • Compare the forecast with the original factor analysis and note risks.

The final analysis should state the selected strategy, explain why it scored well in QSPM, and show how the projected financial results support or challenge the recommendation.