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Extended Essay

Business & Management in English

“To what extent will Pepsi’s increase in Social responsibility prove to be a successful growth strategy in the Middle East?”

Word Count: 3642
School Name: Emirates International School Jumeirah
School Code: 000666
Supervisor: Mr. Liam Greenbank
Candidate Name: Mamoun Wael Samman
Candidate Number: 000666-056

Abstract:

The following report includes several references from newspaper articles, business theories applied to the given question, lots of these were obtained from the internet through articles, books and textbooks all referred to in the bibliography.

My research question was “To what extent will Pepsi’s increase in Social responsibility prove to be a successful growth strategy in the Middle East?” The reason this question was chosen was because businesses in the 21st century are continuously adapting to change. The biggest changes businesses are facing are whether to become socially responsible or not. The research includes a thorough analysis of the driving factors for PepsiCo to become socially responsible by referring to several newspaper articles. The investigation also includes consumer’s responses to PepsiCo’s strategies and whether it has had an impact on their preference of beverages. An analysis of the financial reports for the previous 2 years, 2011 and 2010 were looked to see if there was any financial benefit or gain to the company becoming more socially responsible.

Following intensive research, my findings were rather surprising. Typically, socially responsible businesses would be perceived to be successful in terms of corporate image as well as profitability. However, my findings showed that share prices have gone down while costs have gone up as well as participants answering the survey were not aware of the ethical implementations that PepsiCo has undergone suggesting a lack of marketing done by Pepsi. It did though garner some...
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