Internal and External Business Factors for Pepsi Co free essay sample

For example, in Russia, Frito Lay makes a red-caviar flavor potato chip; a biscuit with wheat and lentils as the main ingredient is only available in India; and PepsiCo manufactures beverages in China that contain Chinese medicinal herbs. In order to successfully prepare for global expansion, organizations must make certain changes to build a culturally diverse environment. It is essential to hire employees with international language skills. Financial resources will also be needed for travel, new promotional materials, or adapting an existing product to meet the needs of international consumers. The organizational structure of PepsiCo is also affected by global expansion. Six years ago, the company was comprised of two units: PepsiCo North America and PepsiCo International. It has now expanded into four sectors: PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo Europe, and PepsiCo Middle East and Africa. When expanding globally, it is important to choose managers who are culturally diverse with the sales, marketing, finance, and human resources departments. We will write a custom essay sample on Internal and External Business Factors for Pepsi Co or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page To achieve this, PepsiCo created the Talent Sustainability Leadership Council, which oversees programs related to engagement, diversity, compliance and safety. It also developed the Global Diversity and Inclusion Councils in all four continents of PepsiCo’s International businesses. Technology For several years, PepsiCo has been using technology to make a difference throughout their organization, the community and the environment. This was accomplished with technological advances such as interactive vend technology, ‘Green’ refrigeration technology, and various apps that help PepsiCo connect with consumers and provide job opportunities to entrepreneurs (â€Å"Press Releases†, 2011). According to Bonin Bough, PepsiCo’s Director of Digital and Social Media, PepsiCo realizes â€Å"the lifeblood of innovation lies with the emerging technologies†¦Ã¢â‚¬  and uses that realization to aid the company in surviving in today’s market, by asking â€Å"how can we begin to understand how to bring those into our business in an impactful way? † (Way, 2011) Mr. Bough, also noted that PepsiCo utilizes emerging technology by partnering with start-ups rather than acquiring them by launching PepsiCo10 in 2010. PepsiCo10 is an â€Å"innovation incubator† that sought out to select 10 emerging technology start-ups and pair them with PepsiCo brands and launch pilot programs nationwide (Exploring The Future Of Digital, 2012). The following years, PepsiCo took PepsiCo10 overseas; to include Europe and Brazil, in their search for innovating technology. By partnering up with entrepreneurs and searching for technological advances, PepsiCo has continued to grow successfully as an organization, not only with the brands they produce, but by having an impact on its community worldwide. In 2011, this organization partnered with Cambridge University to co-develop i-Cropâ„ ¢, a system that was trialed in various potato fields throughout the United Kingdom, from whom potatoes were acquired to produce their potato chip brands. The i-Cropâ„ ¢ system measures the moisture in the fields, collects local weather conditions, and uses software to help farmers determine where to apply water and how much to use (â€Å"i-Cropâ„ ¢Ã¢â‚¬ , 2012). During its trial run, this technology helped farmers use 8% less water and grow 13% more potatoes. In 2012, PepsiCo was awarded the Stockholm Industry Water Award for introducing the â€Å"revolutionary technology† for sustainable agriculture. Technology has had a major impact on how PepsiCo has moved forward as an organization. PepsiCo has learned to use emerging technology in a positive manner and for the benefit of the organization and its community; making it a successful company that has been around for a long time, thanks to effective management. Innovation PepsiCo is always looking for new innovations to expand their product line into other countries. One way PepsiCo is doing this is by enlisting the owner of the world’s best restaurant, Ferran Adria (PepsiCo, 2012). Adria has worked with PepsiCo to create new flavors of food that will help the company to provide healthier products and flavors from around the world (PepsiCo, 2012). With the growing of flavors and products, they have made an impact in China. The potato chip flavors of Lays, which is part of the PepsiCo brands, have expanded to invoke the taste of Asian countries (Feature Interview, 2012); there are around 22 different brands of food and beverages (Feature Interview, 2012). Some of the flavors of chips are cucumber, ice lemon tea flavors and hot and sour fish soup and seaweed (PepsiCo Opens, 2012). When it comes to beverage flavors, it ranges from sour plum and peach (PepsiCo Opens, 2012). There have even been new ideas for Quaker Oats that have new ingredients from the country; ingredients involve red dates, wolfberry, and white fungus (PepsiCo Opens, 2012). There have been changes with beverages in the United States, where the company wanted to refresh the taste of a few drinks (Pepsi Refreshes, 2012). Those drinks were Pepsi Natural, Pepsi Throwback and Mountain Dew Throwback, which were all made with natural sugars (Pepsi Refreshes, 2012); Pepsi Natural is naturally made, with no artificial ingredients (Pepsi Refreshes, 2012). The two throwback drinks were to allow those who have had it, in the ‘60s and ‘70s, to experience it once again and for those that have not tasted it before, to taste a new twist on Pepsi (Pepsi Refreshes, 2012). A new idea for the PepsiCo is the Social Vending System (PepsiCo Introduces, 2012). This system is touch screen that has interactive technology (PepsiCo Introduces, 2012). Though it is still a prototype, it allows people to gift a friend and have the gift delivered by using a phone number or text messages (PepsiCo Introduces, 2012). This gives people who received the gift to return the favor or give someone else a gift to continue the cycle (PepsiCo Introduces, 2012). With this product the PepsiCo wants their consumers to be creative and to be engaging with the brands of the company (PepsiCo Introduces, 2012). Diversity According to the Pepsi Company’s website, one of the company’s mottos is â€Å"Together We Win† (PepsiCo, n. . ). This company embraces cultural diversity externally and internally. This company does not serve just the United States of America, but countries all over the world. PepsiCo has become a force to be reckoned with, since embracing the different cultures. To make sure PepsiCo promotes diversity inside and out, the company provides a survey for its employees and its customers. From 2004 to 2009, the company had seen an internal increase of diversity input from employees; this increase went from 66% to 80% in five years. The company’s diversity has also won many acknowledgments and awards, such as being included in Black Enterprise’s 40 companies with diversity (PepsiCo, n. d. ). The Pepsi Company appreciates the diverse population who enjoys its products. So-much-so that Pepsi has created an ethnic advisory board. The creation of this board has brought great success to Pepsi. The board’s main goal is to advise on external viewpoints to help serve diversity all over the world (PepsiCo, n. d. ). The company has embraced the importance of diversity, and without it, Pepsi would not have been able to produce the level of success that the company has seen. Ethics Ethics play a big part in the way a business operates; most companies develop a code of ethics that is business specific. When ethics are practiced inside the business, this code of ethics often helps employees to uphold the standards set in place, which also helps the business to operate in an acceptable ethical manner. In March 2013, the Ethisphere Institute named PepsiCo one the world’s most ethical companies. The Ethisphere Institute recognizes companies that go beyond making statements about doing business ethically and translates those words into action. PepsiCo, 2012). PepsiCo has made the list the last seven years, which is also the length the Ethisphere Institute has been putting out this list. In order for managers of PepsiCo to operate their business the most ethical way they can, they must follow the four functions of management. The company makes or changes a plan that will help it to follow its ethical values. The plans are organized by collecting informat ion to show employees which direction they need to move toward. The company, then, leads its employees by giving them the code of conduct. The code of conduct is not only a piece of paper, but also it is PepsiCo’s way to motivate its employees to be the best it can while working for the company. The company controls the goal by monitoring what employees are doing and what the company does to make sure they are following the organization’s ethical values. PepsiCo has a Global Code of Conduct that employees and the company follow. The Global Code of Conduct states â€Å"We believe acting ethically and responsibly is not only the right thing to do, but also the right thing to do for our business† (PepsiCo, 2012). The PepsiCo code of conduct is updated almost yearly to address changing laws that affect the business. The code of conduct is designed to provide employees with specific guidance on how to act ethically, while working for PepsiCo. PepsiCo states, â€Å"Our code remains our roadmap and compass for doing business the right way† (PepsiCo. , 2012). Recently, PepsiCo showed that it follows the code of conduct by cutting ties with a famous rapper that was to promote one of their products, due to the offensive reference he made in one of his songs; the reference was in regard to a civil rights martyr Emmett Till. PepsiCo said in a statement that â€Å"offensive reference to a revered civil rights icon does not reflect the values of our brand (Yahoo News, 2013). With PepsiCo cutting ties with this rapper, it showed that the values the company believes in are more important than having a famous person promote one of its products. PepsiCo has always said, â€Å"We believe that being a responsible corporate citizen is not only the right thing to do, but the right thing to do for our business† (PepsiCo. , 2012). Overall, when dealing or analyzing business plans it is very important to take into factor and consider both internal and external factors. Understanding and knowing how businesses evolve and operate on a consistent basis is crucial to the success and longevity of a company and organization. It is immensely important to understand and know how the external and internal factors both play a role and can possibly affect the organizations daily functions as well. When management and internal employees understand and know how each key role and functions processes work well for a company and organization then the short and long term goals can be met adequately.