Internal and External Business Factors for Pepsi Co.

Powerful Essays
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

You May Also Find These Documents Helpful

  • Powerful Essays

    External/Internal Factors

    • 2729 Words
    • 11 Pages

    External/Internal Factors When analyzing a company it is important to understand what the internal and external factors of the company are and how those factors are affecting the four functions of management. The four functions of management are planning, organizing, leading, and controlling. Internal factors affect what happens within the company and external factors are the outside environment that affects the company. Through strategic planning the company can build on its strengths…

    • 2729 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    External/Internal Factors

    • 1590 Words
    • 7 Pages

    External/Internal Factors While driving on a congested freeway during rush hour many people may have often wished that all the other cars would simply disappear so we arrive at our destination on time. Realizing that it is beyond their control, their thoughts may return to another solution and something that they can control – the departure time. All those other cars on the freeway are external factors affecting a commute to work. Their presence or behaviors are beyond an individual’s…

    • 1590 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    word “Google” or the verb “to google” were unknown at the end of the twentieth century. Google comes from an idea of that began in 1998 with two Stanford’s students. Larry Page and Sergey Brin found an alternative searching engine algorithm for a business that was involved in globalization, innovation and in rapid transformations. Page and Brin did not only find an alternative, but also drove a market with innovation and leadership. In the beginning of 2012 Google inc. reported revenues of $10.58…

    • 952 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Internal and External Factors 230 September 14, 2014 Internal and External Factors There are four management functions that are typically found in most of the business environments around the world. The four functions of management are planning, organizing, leading, and controlling. These are most commonly used in high level management to organizational management too. There are five major factors that affect these and many other business functions which are globalization, technology, innovation…

    • 1021 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Internal and External Factors Paper XXXXXXXXXXXX MGT/230 xxxxxxxxx xxxxxxxx Internal and External Factors Paper The purpose of this paper is to explain how internal and external factors affect the four functions of management in the Wal-Mart Corporation. For any organization to survive, irrespective of its size, it must develop and implement its own management concept. Management is the process of working with people and resources to accomplish organizational goals (Bateman & Snell…

    • 1610 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Internal and External Factors University of Phoenix May 15, 2013 MGT/230 The four functions of management consist of planning, organizing, leading, and controlling. They can have a positive effect on the internal and external environment. An external environment is things, which are important factors outside the organizations boundaries. For example, if a recession hit the company, it would be something out of the hands of the company. It would be very inevitable because of the…

    • 699 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    External and Internal Factors Affecting General Electric Management: Theory, Practice, and Application External and Internal Factors Affecting General Electric We will use General Electric, also known as GE, to illustrate how internal and external factors affect the four functions of management. We will explain how globalization, technology, innovation, diversity, and ethics affect the four functions. We will also explain how delegation can be used to manage the different factors. General…

    • 2091 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Internal and External factors of an organization are effected everyday in many ways that could either make or break a company. The four functions of management are also a critical part of a business especially when talking about a well known company known as Verizon Wireless. The four functions of management include planning, organizing, leading, and controlling. Like Verizon Wireless and any other organization in such measurable size of production, it is important for any company to analyze and…

    • 743 Words
    • 3 Pages
    Better Essays
  • Powerful Essays

    External/Internal Factors

    • 2525 Words
    • 11 Pages

    EXTERNAL/INTERNAL FACTORS External/Internal Factors Paper External/Internal Factors Paper In 1962, the Dayton Corporation opened Target, a discount chain store in Minnesota. Through the years, Target has grown considerably so that in January 2000, the Dayton Hudson Corporation changed to Target Corporation. The Target Corporation Annual Report 2007 states that 118 new stores opened in 2007, 33 of them being SuperTarget stores. Nearly 1,600 stores are operating in 47 states, with plans to have…

    • 2525 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Internal and External Factors MGT/330 Management: Theory, Practice, and Application December 19,2011 Ian Peters Internal and External Factors (Goodwill Industries) Businesses everywhere have to plan and set goals in order to thrive and succeed in whatever conditions the economy may be in. Part of planning and goal setting for any company is identifying internal and external factors that will have an impact on the success of a company as well as determining how they will impact the company…

    • 1436 Words
    • 6 Pages
    Powerful Essays