Business Elements of Pepsi & Coca Cola

Topics: Coca-Cola, Pepsi, PepsiCo Pages: 6 (1622 words) Published: September 4, 2013
Business Elements of Pepsi & Coca-Cola

Introduction
The following is a comparison and contrast of the business elements based on a number of business elements like management and operations and on environmental aspects using SWOT and PEST. The two organizations chosen are Pepsi and Coca-Cola. Coca-Cola is a worldwide corporation that manufactures many different beverages. They also manufacture, distribute, and sell concentrates and syrups that are based in the United States of America. Its headquarters are based in Atlanta Georgia. The creator of Coca-Cola was Pharmacist John Pemberton who established the company in 1886 (BBC, 2013). Pepsi Company, on the other hand is a soft drink producer and manufacturer. Originally introduced as Brad's Drink in 1893, but was later renamed as Pepsi-Cola, and then changed to its current name Pepsi in 1961 (Pepsi, 2009).The companies are the two leading companies in the beverage industry. An analysis of the two companies is particularly interesting due to the intense rivalry between coca-cola and Pepsi co., popularly known as ‘the cola wars, and which dates back in years, and has resulted in blocking the other competition from the industry. The comparison ant contrast of the two companies will help to show a competitive advantage among them. This paper will focus on the Coca-Cola Company and Pepsi Co. to draw a comparison and the contrast between the two companies based on business environment, management-style, use of the SWOT tool, company culture and performance, and promotion policies.  

Overview Coca-cola is known worldwide as the biggest beverage company. (BBC, 2013). Currently, coca-cola offer over 500 different brands in more than 200 different countries and 1.7 billion servings each day. while Pepsi co. also a large beverage company, but falls in second behind Coca-Cola in the world and in the North America branch of Pepsi co., is ranked the biggest food & beverage company. In January 2012, Pepsi co.’s products channeled generated sales beyond $1 billion. (Pepsi, 2009).

 Legal, Social & Economic Aspects
Many external elements have an immense effect on a corporations operation within. (Kentucky Media, 2012). Coca-cola and Pepsi have the same legal and economic environment because they are the same type of corporation. Within the legal environment it is made of laws, government agencies, and other clusters of individuals that have a regulatory impact on companies, while economic environment is made of economic legislations, economic policies, economic system, economic conditions, and international economic environment (Neely, Adams, & Kennerley, 2002). Social environment elements includes; cultural influences of that particular time. In recent times, in the USA there has been change in life-hood in the USA population thus this paved the way to the creation of soft drinks that have a characteristic that is based on time management. Coca-cola has increased and improved its bottled water and diet soda production because of the ever growing need of consumption of other drinks, and lesser consumption of alcohol (BBC, 2013). The largely, negative effects of poor economy lead Pepsi to cut 3300 jobs in 2008; which is about1.8% of its employees to reduce its operational costs. Pepsi reported unfavorable economic conditions which in turn caused a reduction in their sales because of reduction of soft drink consumption unlike coca-cola company.   Company Culture and Performance

Company culture is the structure of values, norms, viewpoint, and the mixture of completely unique personalities that defines a company (Kentucky Media, 2012). Coca-cola (herein referred to as Coke) highly believes that its customers and brands defined in its core values: accountability, leadership, reliability, passion, diversity, quality, and collaboration. Coke has a large investment in...

References: BBC. (2013, March 15th). Coca-Cola - The History. Retrieved March 15th, 2013, from Coca-Cola - a Soft Drink with Other Uses:
http://news.bbc.co.uk/dna/place-lancashire/plain/A12590327
Hm, A. B., & Böhm, A. (2009). The Swot Analysis. Ravensburg: GRIN Verlag.
Kaplan, R. S., & Norton, D. P. (2004). The Strategy-Focused Organization. Boston: Harvard Business Press.
Kentucky Media. (2012). Business Operating Environment. Acme articles , 10-15.
Neely, A., Adams, C., & Kennerley, M. (2002). The Performance Prism: The Scorecard for Measuring . New jersey: Pearson Education.
Pepsi. (2009). Pepsco. Retrieved March 15, 20013, from Financial Performance :
http://www.pepsico.com/annual09/letterShare_solid_financial_performance.html
United States. Dept. of Agriculture. Risk Management Agency. (2008). SWOT Analysis: A Tool for Making Better Business Decisions. Dallas: U.S. Department of Agriculture, Risk Management Agency.
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