PESTLE Analysis: Pepsico

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Have you ever wondered where your favorite soft drinks and potato chips come from? Well, let me introduce you to this company called Pepisco incorporated or also known as Pepsi-Cola. Pepsico is one of the world’s leading companies in the market of soft drinks to potato chips. How did the company get started? Well, Pepsico was actually established through the merger of Pepsi-Cola and Frito-Lay thus the company that created many of our favorite potato chips and soft drinks were created through this merger. They have reported sales of up to $510 million and have up to 19,000 employees. Pepsico does not only produce soft drinks and potato chips but they have ventured out into many different types of products like tea-based drinks, cookies, coffee …show more content…
Next I will tell you about PESTLE analysis and how Pepsico uses PESTLE to help their company. First I will tell you about PESTLE and what it is use for, PESTLE analysis is a concept in marketing principle’s, this concept is used by companies as a tool to track their environment their operating in or are planning to launch a new project, product, service etc. PESTLE is a mnemonic which is expanded from denotes P for political, E for economic, S for social, T for technology, L for legal and E for environmental. It gives a bird eye view of the environment from many different angles so that companies can check and track while contemplating on a certain idea or plan. Now I will tell you about how Pepsico uses this PESTLE analysis to help make their company what it is today. First I will start with the political factor, (Dudovskiy,J 2014) government stability in the USA and other countries selling Pepsico products is a huge political factor. Pepsico is also impacted by tax rates and tax policy in local markets as well as, employment rules and regulations. Employee’s health and safety rules and regulation can …show more content…
What are Porter’s five forces and how is it used to help companies or in this case Pepsico? According to Jurevicius,Q (2013) Porter’s five force tool is an analytical tool that company uses to determine the profitability of a company or business and also to shape a company’s competitive strategy. Porter’s five forces are a framework which helps classify and analysis which is the most important force which is affecting the intensity of competition in an industry and its profitability level. Porter’s fives forces are, competitive rivalry within an industry, threat of a new entrants, threat of substitutes products or service, bargaining power of suppliers and the bargaining power of customers. These five forces determine the level of competition and the structure of an industry. An industry will be less profitable if the competitive forces are too strong. It is important to identify the strength and weakness of a company so that it may be exploited to help strengthen the position of a company, evaluation of the competitive position is equally as important to help strengthen the position of the company. Porter’s five forces are very useful in formulating a company’s strategy as it reveals how powerful each of the five key forces is in a particular industry. As stated by Thompson, Peteraf, Gamble and Strickland (2012), the most commonly used tool for identifying the principals of competitive tension in a market and

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