Internal and External Business Factors for Pepsi Co.

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Internal and External Business Factors for Pepsi Co.

By | May 2013
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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...

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