MGT499 - Strategic Management Mod 3 Case Assignment - Essay Example

Their international operations span across all countries in the world and the company is known to one of the best employers with over 185,000 employees as at year 2008. This paper identifies some of the key internal strengths and weaknesses of PepsiCo and assess how well they are utilizing their strengths and how they rate in minimizing their weaknesses. Environmental scanning is a strategic task which aids organizations to be alert to the developments in its external business environment as well as be well aware of its own internal strengths and deficiencies.

Through business analysis tools such as SWOT a company can draw conclusions on how it can best align its resource base and strengths to take advantage of the business opportunities while safeguarding against the threats. The findings from such an analysis will indicate which areas of weaknesses needs to be strengthened or managed by building required core competencies (Duncan, Ginter & Swayne 1998). Considering internal strengths of the beverage and convenient foods giant PepsiCo, the following key strengths which has allowed the company to continue with successful growth and profitability trends amidst stagnant industry environment have been identified.

Pepsi has achieved its current success by capitalizing on these core strengths. The most notable internal strength of the company lies in its broadly defined business domain that has allowed the company to operate in a wide variety of related but not mutually exclusive markets. Pepsi’s mission today is “to be the worlds premier consumer products company focused on convenient foods and beverages” (Pepsi Home Page 2008). If PepsiCo defined its business constrictively to cola business, today its business would have been a struggling story within a stagnant market.

Capitalizing on this broader definition of their business domain, the company has