Management

Management

PART ONE

PepsiCo is the most successful beverage brand in the world. According to the statistics, PepsiCo holds about 37 percent share of world beverage market. It, therefore, needs to be fully aware of different factors that have the potential to affect its business. Usually, these factors are understood by means of conducting an environmental analysis. The trends that come out of PepsiCo's environmental analysis are discussed in the following section.

As PepsiCo operates many markets across the globe, it takes into account different and, sometimes, opposing regulations the authorities of those countries impose on corporations. The political factor also matters a great deal for the company as political situation in a country govern its business conditions. The company, therefore, has to stay in line with all the regulations and policies of the country in which it operates.

Moreover, PepsiCo strives to be current with different economic conditions of the diverse markets around the world. The company confronts different competitors in different markets so it has to adjust the pricing scheme in accordance with market trends and consumer's buying power. Social factors play a significant role for the company to devise its business plans for different markets for the purpose of making its product socially acceptable. Finally, PepsiCo also takes into account the technological, legal and environmental issues in ensure its operate smoothly in global markets (Capparell, 2007).

Areas of Uncertainty

The major areas of uncertainty currently faced by the PepsiCo include, but not limited, market conditions, consumer preferences, political and economic condition, social unrest, availability of highly skilled workforce, change in legal or regulatory measures in the countries in which company operates, ability to maintain a good working relationship with manufacturing and distribution partners, etc.

To handles these uncertainties, PepsiCo evaluates the socioeconomic, political, legal and regulatory measures of the different on regular basis so that the company could keep current with any changes that may affect its business (Capparell, 2007).

PART TWO

1.After watching the video and carefully listening to the speaker's thoughts about innovation and competiveness in general and the progress of KSA in these areas in particular, I certainly feel that UAE is in rights direction to achieve competitiveness in the long term. UAE has moved far beyond its past where a rich endowment was its only source of prosperity and income. Now UAE is continuously striving to become innovative and competitive in tourism sector and the strategy has already started demonstrating some positive results. ...