Internal and External Business Factors for Pepsi Co.

Topics: Pepsi, PepsiCo, Mountain Dew Pages: 5 (1893 words) Published: May 22, 2013
PepsiCo: Internal and External Factors
Internal and external factors such as technology, globalization, innovation, diversity and ethics can immensely affect and impact the four functions of management. Various functions such as organizing, leading, planning and controlling can be emerged and influenced by several different internal and external factors. This helps organizations reassure that they are prepared, planning and meeting the business needs. Also, organizations that continuously understand, pinpoint and identify the business factors such as needs and risks will be able to fully utilize their potential. Globalization

Globalization is defined as the process of increasing the connectivity and interdependence of the world’s market and businesses. PepsiCo’s global expansion has resulted in maximizing its growth potential while achieving geographic diversity. Although its products and logos are recognized across the globe, due to cultural differences, certain flavors are only available in certain countries. For example, in Russia, Frito Lay makes a red-caviar flavor potato chip; a biscuit with wheat and lentils as the main ingredient is only available in India; and PepsiCo manufactures beverages in China that contain Chinese medicinal herbs. In order to successfully prepare for global expansion, organizations must make certain changes to build a culturally diverse environment. It is essential to hire employees with international language skills. Financial resources will also be needed for travel, new promotional materials, or adapting an existing product to meet the needs of international consumers. The organizational structure of PepsiCo is also affected by global expansion. Six years ago, the company was comprised of two units: PepsiCo North America and PepsiCo International. It has now expanded into four sectors: PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo Europe, and PepsiCo Middle East and Africa. When expanding globally, it is important to choose managers who are culturally diverse with the sales, marketing, finance, and human resources departments. To achieve this, PepsiCo created the Talent Sustainability Leadership Council, which oversees programs related to engagement, diversity, compliance and safety. It also developed the Global Diversity and Inclusion Councils in all four continents of PepsiCo’s International businesses. Technology

For several years, PepsiCo has been using technology to make a difference throughout their organization, the community and the environment. This was accomplished with technological advances such as interactive vend technology, ‘Green’ refrigeration technology, and various apps that help PepsiCo connect with consumers and provide job opportunities to entrepreneurs (“Press Releases”, 2011). According to Bonin Bough, PepsiCo’s Director of Digital and Social Media, PepsiCo realizes “the lifeblood of innovation lies with the emerging technologies…” and uses that realization to aid the company in surviving in today’s market, by asking “how can we begin to understand how to bring those into our business in an impactful way?” (Way, 2011) Mr. Bough, also noted that PepsiCo utilizes emerging technology by partnering with start-ups rather than acquiring them by launching PepsiCo10 in 2010. PepsiCo10 is an “innovation incubator” that sought out to select 10 emerging technology start-ups and pair them with PepsiCo brands and launch pilot programs nationwide ("Exploring The Future Of Digital", 2012). The following years, PepsiCo took PepsiCo10 overseas; to include Europe and Brazil, in their search for innovating technology. By partnering up with entrepreneurs and searching for technological advances, PepsiCo has continued to grow successfully as an organization, not only with the brands they produce, but by having an impact on its community worldwide. In 2011, this organization partnered with Cambridge University to co-develop i-Crop™, a system that was...
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