Management

Management

PART ONE

PepsiCo is one of most successful beverage brands of the world. The company enjoys the status of market leader in the industry as it holds more than 35% share in world beverage market. There are different internal and external factors that PepsiCo need to take into account when conducting the environmental analysis in order to maintain its competitive advantage. The environmental analysis thus results in the trends that are briefly discussed here.

Since the company performs its business activities in numerous international markets, it must be aware of the political, economic, social conditions of every markets within which it operates. Additionally, the company must be aware of and efficiently adapt to the different regulatory regimes.

Moreover, PepsiCo must also keep itself aligned with the economic dynamics of every target market as diverse economic conditions warrant a diverse approach regarding the marketing, distribution and pricing strategies of the company. In addition to the factors and trends mentioned above, the social factor is also significant for the company as it helps PepsiCo adjust its product according to the social standards of the target consumers. Other important factors include environmental and technological issues that confront PepsiCo in its quest for maintaining the competitive edge over its rivals.

Areas of Uncertainty

Since PepsiCo has its business stakes in many international markets, it is bound to face certain uncertainties as different markets pose different challenges for the businesses to operate smoothly. According to the PepsiCo strategic planning division, there are numerous areas of uncertainty facing the company such as the political, economic and social conditions of the target markets, legal or regulatory actions, maintain a profitable association with partners, availability of highly motivated and highly skilled labor etc. These uncertainties are handled by the company by continuously examining the change in the abovementioned areas in order to ...