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Macro and micro environmental factors which influence marketing decisions of pepsico s gatorade

Micro macro environment for coca cola

Public Domain PepsiCo is the second biggest company in the global food and beverage industry. The global market presents challenges that threaten PepsiCo while creating opportunities for improvement.

PepsiCo must develop strategies that enhance its abilities to withstand the external factors in its remote or macro-environment. PepsiCo must address the following political factors: Political stability in major economies opportunity Improved intergovernmental cooperation opportunity Government initiatives against carbonated drinks threat Major economies like the United States and Canada are politically stable, thereby presenting growth opportunities for PepsiCo.

In addition, the trend of intergovernmental cooperation improves opportunities for global expansion. The political external factors that relate to PepsiCo are as follows: Economic stability of most major markets opportunity Rapid growth of developing economies opportunity Slowdown of the Chinese economy threat PepsiCo has opportunities for growth and expansion based on the economic stability of developed countries like the United States, as well as the high growth rates of developing economies, such as those in Asia.

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However, this external factor also presents the opportunity for the company to improve its products to address such concerns. PepsiCo can also take advantage of the busy lifestyles of consumers, especially in urbanized and industrializing markets around the world.

People with these lifestyles are more likely to purchase ready-to-eat food products like those of PepsiCo. The technological external factors significant to PepsiCo are as follows: Also, PepsiCo can exploit the benefits of knowledge management systems to support its various business processes, such as product innovation and strategic decision-making.

In addition, an increase in the number of automated processes in the company can enhance business performance. The following ecological external factors are significant to PepsiCo: In relation, PepsiCo can improve its waste disposal strategies, such as recycling, to gain more support from customers.

PepsiCo PESTEL/PESTLE Analysis & Recommendations

However, the company can further diversify its global supply chain to minimize risk exposure to climate change. Regulation on GMO ingredients opportunity Health and product safety regulations opportunity Moderate rate of regulatory change opportunity Genetically modified organisms GMOs are now increasingly regulated worldwide, particularly in Europe.

PepsiCo has the opportunity to reduce its use of GMO ingredients to satisfy these regulations. Similarly, the company can improve products to address regulations about product safety and health effects.

  1. Also, PepsiCo can exploit the benefits of knowledge management systems to support its various business processes, such as product innovation and strategic decision-making. Project report on marketing environment of coca cola - free download as word doc doc , pdf file pdf , text file txt or read online for free this report includes the introduction, micro and macro environment factors affecting coke.
  2. Similarly, the company can improve products to address regulations about product safety and health effects.
  3. The coca-cola co beat earnings go long ko but in this fragile sentiment-trading environment i'd rather sell downside risk against the recent levels of the flash correction to generate but it showed the worst-case scenario in the stock under current macro and micro fundamentals.

The moderate rate of regulatory change gives opportunity for PepsiCo to grow with the expectation that its current strategic decisions will satisfy regulatory requirements in the long term.

The following are some of the key points that PepsiCo must address based on the results of the analysis: Expansion in developing economies Product innovation to address concerns on quality and health effects Business sustainability.