PEST of Pepsi

The Pest Analysis identifies the political, economical, social a technological influences on an organization.

Political influences: - The production distribution and use of many of PepsiCo product are subject to various federal laws, such as the Food, Drug and Cosmetic Act, the Occupational Safety and Health Act ad the Americans with Disabilities. - The businesses are also subject to state, local and foreign laws. - The international businesses are subject to the Government stability in the countries where PepsiCo is trying get into (underdeveloped markets). - The federal, state, local and foreign environmental laws and regulations. - The businesses are also subject to de taxation policy in each country they are operating. - They also have to comply with federal, state, local and foreign environmental laws and regulations.

Economic influences: - The companies are subject to the harvest of the raw material that they use in their snack foods, soft drink and juice, like corn, oranges, grapefruit, vegetables, potatoes, etc. - Because of they rely on trucks to move and distribute many of their products, fuel is also an important subject, so they are subject to the fuel p

Sociocultural influences: - PepsiCo and moreover Pepsi is subject to the lifestyle changes, because of it bases her advertising campaigns in a concrete kind of people with an special lifestyle, it is for that PepsiCo has to pay a special attention on the lifestyle changes. - Particularly in the United States Pepsi drinkers are very defined, there is a kind of people who drinks Pepsi another kind who drinks Coca-Cola, it is for that they have to pay attention to the social mobility for not losing a possible market. - Taking into account that PepsiCo is trying to introduce itself in underdeveloped markets, they have to be careful with the possible problems with the governments of this countries, and with the problems could rise from PepsiCo act with the people of this countries.

rize fluctuation, and to possible fuel crisis. - Operating in International Markets involves exposure to volatile movements in foreign exchange rates. The economic impact of foreign exchange rates movements on them is complex because such changes are often linked to variability in real growth, inflation, interest rates, governmental actions and other factors. - PepsiCo is also subject to other economical factors like money supply, energy availability and cost, business cycles, etc.

Technological influences: - PepsiCo is subject to new techniques of manufacturing, for their three business sectors, snack food, juices and soft drinks. - It has to pay attention to the new distribution techniques. - And they have to fix their attention in the competence developed, to know about the new products. Porter’s Diamond: The Porter’s Diamond Analysis tries to explain the Competitive Advantage of Nations. There are four attributes of a nation comprise Porter’s Diamond of national advantage, they are: Factor Conditions: The basic factor conditions are natural resources, climate, location, the more advanced factor conditions are skilled labour, infrastructure and technology. There are some of these factors that can be obtained by any company (like unskilled labour and raw materials) and, hence, do not generate sustained competitive advantage. Even though, we have to take into account that specialized factors involve a heavy and sustained investment, we have to know that if we are able to achieve them, we could generate a competitive advantage. Some of the factor conditions PepsiCo has to take into account, in each country where they wan

Some topics in this essay:
Five Forces, Americans Disabilities, International Markets, Industry Knowing, Factor Conditions, United Pepsi, Competitive Rivalry, Demand Conditions, Buyers Considering, Chain Primary, orange juice, market share, factor conditions, raw materials, locating close, competitive advantage, businesses subject, porter’s diamond, strategy structure, local foreign, foreign environmental laws, environmental laws regulations, local foreign environmental, federal local foreign, conditions pepsico account,