Capstone

Capstone Project

Report #2

Pepsico

BUSN 583

Dawn Carter

November 6, 2013

External Environment

The external forces that put pressure on the beverage industry include the economic and legislation forces. During the economic crisis, there was a strain in the operations of firms. The cost of production went up, accelerated by the increase in inflation and fuel costs.

The external environment for domestic and global marketing decisions is comprised of forces that are part of a company’s marketing process, but is external to the organization. Those forces include the organizations market, its producer’s intermediaries and suppliers. It would be necessary for companies to understand the environmental conditions because the conditions interact with marketing strategy decisions.

The external environment has a big impact on the determination of marketing decisions. Any successful company will scan the external environment that affects them so they would be able to respond profitably to the unmet trends and needs in targeted markets.

As a food and beverage distributor and producer that were developed in the late 19th century, Pepsico is in a dominant market position that has little concern about emerging competitors in the market. Its current concerns remain their top competitor, Coca-Cola who maintains a similar stance in the beverage market as well as Cadberry-Schweppes who controls the international market share of confectionary goods and beverages. Mergers and acquisitions of current mid-size beverage companies could prove to be an external threat to Pepsico, while not anywhere in the near future.

An immediate, external approach to environmental sustainability has been the implementation of product stewardship-minimizing a product’s environmental impact through its life-cycle, as opposed to focusing solely on sustainable production. Pepsico has used a design for environment practice to develop FSC certified...