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Pepsi - Research Paper Example

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Company Description Pepsi Co. Inc is a multinational corporation with interests in non-carbonated and carbonated beverages, rice, oat, and grain-based snacks, food, and other products. PepsiCo formation was a result of a merger between Frito-Lay and Pepsi-Cola in 1965 (PepsiCo)…
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Pepsi Research Paper
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Download file to see previous pages... The next unit is PepsiCo Asia, Middle East, and Africa (MEA), that includes all snacks, beverages, and food businesses in the region. Lastly, there is Pepsi Europe that includes all snacks, beverages, and food businesses in Europe. The company units comprise of the six segments: AMEA, FLNA, LAF, QFNA, PAB, and Europe. Operations of the company are in United States, United Kingdom, Canada, Russia, and Mexico, with headquarters in Purchase, New York, in the US. Recent acquisitions by the company include complete acquisition of Pepsi Bottling Company in February 2010, and Mabel in Brazil (Mabel produces snacks, cookies, and crackers). Environmental Uncertain PepsiCo lacks vital information concerning the environment, specifically those elements with which the company interacts with like its stakeholders, the population, and others. The most crucial external factor that affects the company is competition from its rival, the Coca Cola Company. Other factors include economic force that incorporate economic cycles and inflation, political changes in its operation region, regulations changes, technology, and social changes. Pepsi Co Environmental risk expectations PEP acknowledges the stiff competition from rival Coca Cola, which is threatening to creep in and steal the market share of the company. Other risks include vulnerability to changes in economic in its operation base, which may affect the purchasing influence of customers to its products, inflation rates that have been rising consistently affecting its market operation and cost of production. There are also risks of changes in political climate in its market, which may affect its business operations like limitation of quantity of snacks into those regions, and legal changes that may affect some of the legislations associated with its success, or probable addition of more regulations (Daft & Marcic 367). Other concerns arise from the current Europe debt crisis that may have a profound effect on its Europe businesses, possible changes in laws and regulation that regards beverage bottling, recycling of the bottles, and the packaging material, the company’s capability in managing its brands and business segments properly, and the ultimate goal of maintaining a good corporate image. There is also the issue of environmental conservation, and the probable effects of climate change globally that may affect the company’s raw materials supply. Environmental Statement As a multinational global business, the company relies on natural resources from the earth. In line with expansion strategy of the business in developed and subsequent expansion in developing and other emerging countries, the company strives to use production tolls and methods that are scientifically proven as economically sound and socially responsible to the environment. PEP is committed in its effort to protect earth’s natural resources by innovative use of energy, land, water, and packaging in all its operations. Company stability Being the world’s largest snack food company, and second in producing soft drinks, PEP has established itself as a stable company in the multinationals world. The company has 18 strong brands, whose combined annual sales pass one billion dollars. More than 40% of the company’s sales originate from outside the US. The company maintains ...Download file to see next pagesRead More
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