Pepsi Co One of the Most Effective Research Paper

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Pepsi Co

One of the most effective ways of analyzing a business is to conduct a situational analysis. This is when there is a focus on looking at past / current economic, political, social and technological information to understand the opportunities / challenges impacting a firm. In the case of Pepsi Co, the company has been continuing to evolve with different changes that are taking place inside the industry. To fully understand what is happening requires examining various internal factors, resources, tangible / intangible assets, capabilities, core competencies and conducting a value chain analysis. Together, these different elements will highlight the strengths and weaknesses of Pepsi Co. ("Situation Analysis")

Internal Factors

Internally, Pepsi Co has been focusing on increasing their reach through rapidly expanding. This occurred by identifying those firms that have the brands, which are seeing dramatic increases in growth and then acquiring them. Over the course of time, this helped the firm to locate managers that allowed the company to rapidly expand its operations internationally. As these subsidiaries, are used to give the company a footprint in specific areas without changing the brand. The combination of these factors helped Pepsi Co to locate competent managers who understood the needs of consumers in different markets.

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This allowed the firm to rapidly expand its presence and increase the overall amounts of internal resources (via quality personnel). (Penzkopfer)

Resources

To deal with different challenges associated with rising costs (i.e. inflation), Pepsi Co, has been focused on reducing their operating expenses. This means that all of their different plants must be able to consistently identify new strategies in achieving these objectives. As a result, a series of environmental teams were created. This is composed of employees and managers, who are concentrating on reducing the firms waste and increasing productivity. The results are that the company realized: a 50% decrease in water, a 30% drop in natural gas and a 25% decline in electricity usage. This has helped the firm to maintain their competitive advantage and control how various resources are used during the process of producing different products. ("Pepsi Co's Factory of the Future")

Tangible and Intangible

As far as tangible assets are concerned, Pepsi Co has over 22 different brands with $1 billion in sales annually. A few of the most notable include: Frito Lay, Quaker Oats and Gatorade. At the same time, the company creates a unique local following in different countries through various bottlers. These are.....

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