Pepsico environmental scanning

Political stability in major economies opportunity Improved intergovernmental cooperation opportunity Government initiatives against carbonated drinks threat Major economies like the United States and Canada are politically stable, thereby presenting growth opportunities for PepsiCo.

Environmental Scan

InPepsico pledged to improve its electricity use efficiency by 20 percent per unit of production byand the company is well on its way to meeting this goal. As a result, organizations need to understand the entire market landscape in order to develop optimal business strategies.

PepsiCo PESTEL/PESTLE Analysis & Recommendations

Pepsi employees were able to reuse waste for everything from chicken feed to handbags. A helpful market evaluation tool that helps with this oversight is known as environmental scanning.

Business Consulting: Environmental Scanning

InPepsiCo saved more than 11 billion liters of water through eco-efficiency improvements, and it began innovative environmental practices, such as cleaning Gatorade bottles with purified air instead of rinsing them with water.

This has helped maintain their market share without significantly affecting its price level, even against the entry of new low-priced brands like Big Cola or own-brand chains like Carrefour. Pepsico environmental scanning stands as a leading brand in the soft drinks segment supported by high product differentiation, which is based on its brand image and has been listed several times as one of the most valued brand all over the world.

Expansion in developing economies Product innovation to address concerns on quality and health effects Business sustainability. And PepsiCo stated that it would reduce its U.

The political external factors that relate to PepsiCo are as follows: And PepsiCo stated that it would reduce its U. Global Context Global Context Helping to create a healthier relationship between people and food includes protecting the environment and finding sustainable ways to produce more food.

There appears to be little discernible difference in how both companies address these factors. Effective environmental scanning can help companies take advantage of opportunities before competitors, address threats before they become significant problems, and align the company's strategy to meet changing demand in the marketplace.

A caution here — supply chain quality controls become critical in the global markets as regards food products. Clients range from promising start-ups with one or two partners to established companies with hundreds of employees. Competitive Advantages It has been said that nothing drives competition like a well matched rivalry.

For an organization to survive, grow and prosper, management must master the challenges of this profoundly changing environment. In addition, the trend of intergovernmental cooperation improves opportunities for global expansion.

The bookstore chain Borders recently filed for Chapter 11 bankruptcy and was forced to shutter dozens of stores across the country. Pepsi is also conserving water and protecting the environment by equipping some of its facilities with state-of-the-art water filtration and purification systems.

Keep up with Mother Nature

Coke is primarily a soft drink company, whereas Pepsi has sought a niche in the snack foods industry amid a decreasing market share of the soft drink industry. Pepsi enjoys a clear advantage in snack foods where Coke does not compete, and in the healthier beverage market; as well as its global expansion positioning.

Pepsi's objective is to make acquisitions carefully and desire to use these acquisitions as a major competitive tool against Coca Cola. Additionally, Pepsi continues to acquire a portfolio of products as it pursues international expansion with a particular emphasis on a product line of healthier food alternatives, as well as incorporating its Tropicana and related beverage lines into local products.

Environmental Scan

Internal and External Environments Evaluation Wheelen, Hunger, Hoffman, and Bamforddefine environmental scanning as the monitoring, evaluating and disseminating of information regarding external and internal environments to key people to assist in strategic decision making.

The Financial Times reported that to placate these investors, Pepsi added a representative of these groups to its board of directors and announced special dividends and share buybacks.

These scans are just as important for small and medium-sized businesses as they are for multi-national corporations. While PepsiCo has adapted to the changing environment, other companies have not fared as well.

We removed nearly million pounds of packaging material from the market in compared with the prior year, and continued to reduce the amount of waste we sent to landfill.

Constant oversight through research and learning that is shared internally can help mitigate the risk that a business is left unaware of important changes in the marketplace.

Similarly, the company can improve products to address regulations about product safety and health effects. Small and medium businesses cannot afford to only focus on short-term profits. PepsiCo has the opportunity to reduce its use of GMO ingredients to satisfy these regulations.

Gathering data deliberately through market research studies; Having informal conversations with other executives; Reading secondary sources such as web articles, newspapers, magazines and journal literature; Monitoring demographic data; and Benchmarking initiatives that compare one company's or industry's performance, finances, etc.

The moderate rate of regulatory change gives opportunity for PepsiCo to grow with the expectation that its current strategic decisions will satisfy regulatory requirements in the long term. For example, Pepsi recently completed lighting upgrade projects at distribution centers, which conserved more than 6 million kilowatt-hours of electricity.

As Coke and Pepsi are the dominant competitors in the beverage industry, there are some similarities in both external and internal environmental factors.

How each company creates value and sustain competitive advantage through business strategy Coca-Cola Coca Cola creates value for its clients over its competitors by offering a product that the customer values in a special way.

Also, PepsiCo can exploit the benefits of knowledge management systems to support its various business processes, such as product innovation and strategic decision-making. Read more articles on sustainability. The unique strategy of Pepsi is to focus on its resources in order to grow the internal and external business.

Strategic Positioning for Value Creation and Competitive Advantage Pepsi continues to make strategic acquisitions both domestically and globally in order to expand its product offerings.

How each company creates value and sustain competitive advantage through business strategy Coca-Cola Coca Cola creates value for its clients over its competitors by offering a product that the customer values in a special way.

Pepsi is committed to the environment and focuses its sustainability efforts in three key areas: water, packaging and energy. According to PepsiCo’s Environmental Sustainability Annual. three primary methods of collecting information for environmental scanning are observation, secondary sources, and marketing research when PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is.

Environmental scanning Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes.

The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering.

Abstract Environmental scanning is the first portion to an organization’s strategic management and is very important to the corporation.

Environmental scanning is gathering information for the external and the. Environmental Scanning Examples Success: PepsiCo.

As the world’s second largest food and beverage company, PepsiCo realized that the increased focus on health and wellness (both societal and political) meant that the company needed to invest more heavily in this area.

When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in .

Pepsico environmental scanning
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PepsiCo PESTEL/PESTLE Analysis & Recommendations - Panmore Institute