International MBA Assignment Sample
Part 1
STEEPLE analysis is a planning tool for implementing marketing strategies. STEEPLE is considered as an advanced analysis that measures the macro-environmental external factors. This strategy also offers a detailed overview of the external fields STEEPLE stands for Social, Technological, Economic, Environmental, Political, Legal, and Ethical.
| Factor | Analysis |
| Social |
|
| Technological |
|
| Economic |
|
| Ethical |
|
| Political |
|
| Legal |
|
| Environmental |
|
Table 1:STEEPLE ANALYSIS OF PEPSICO
Source (Authors creation)
Part 2
The external environment depends on the business operation as it impacts the success and failure of the external environmental factor. These aspects also depend on the group culture. Similarly internal environment influences the progress of business (Shahidc & Ashfaq 2021).
Social factors
PepsiCo company has been deeply affected by the changes in the target market. Aspects like lifestyle fluctuations, spending of money, and understanding the buying behavior of the potential customers can impact the sales and revenue of the company. This strategy can impact negatively on the customers. Since the current market trend shows that the customers are moving towards a healthy lifestyle, the changes in the customer’s diet plan are also seen. It means that the customers are intaking more water rather than soda (Martin et al. 2020, pp:1370). It is also seen that many of the customers of PepsiCo follows socio cultural trends which strategically identifies the social condition and its impact on the company’s performance. As the customers of the company is highly health conscious, it creates a negative impact on the business of PepsiCo. such aspects also badly affect the present sales for soft drinks of PepsiCo (Yadavalli 2021).
In the case of the soft drink and beverage section, the company can introduce lower calories soft drinks under their brand to keep a good relationship with the existing customers. Similarly, as most people prefer a glass of fruit juice at their breakfast table, PepsiCo can introduce a new range of fresh fruit juice to create more value for society (Fawcett & Zweben 2021).
Economic factor
Although the current covid 19 pandemic and global recession has impacted the company’s business economics, still the loss of 0.4% in revenue in the last year has not been a matter of consideration for the company (Quan 2020Another key aspect of consideration for PepsiCo is the change in the foreign exchange rate(Alam 2021).
Conversely, to improve this situation, PepsiCo can merge with other Venezuela-based soft drinks companies to reduce direct costings and overheads which are affecting their monitary growth. Initially, the company had merged with different companies namely Mabel Cookies in Brazil, Dilexies cookies in Argentina to ensure good business collectively (Sehrawat 2019).
Environmental factors
Climate change impacts largely on the business of PepsiCo as it poses a direct danger for the company to obtain raw materials effectively. Since the organization relies heavily on raw materials, factors like temperature increase, droughts, extreme flooding as per the recent studies are proving to be negatively affecting the business of the company Similarly, climate changes can also harm the quality, quantity, and cost of raw materials like sugarcane and other necessary crops which are needful for making beverages.The aspects like draughts, scarcity of water creates a loss of $14billion to the beverage industry globally which has been inclined to 81% in the current year .Conversely, to address this issue, PepsiCo has implemented new strategies like focusing on energy efficiency through the conversion of resources. It is considered an effective platform to improvise the energy, water, and waste efficiencies in the manufacturing department. On the other hand, the company has an option to strategically diversify the global supply chain to reduce the risk exposure to climate change after improving the global impact on environment tom attract and retain customers for stabilizing the supply chain(Sehrawat 2019).
Reference list
Yadavalli, LK 2021, ‘An Analysis Of Brand Awareness Levels And Its Impact On Brand Salience Of Pepsico,’ Turkish Journal of Computer and Mathematics Education (TURCOMAT), vol.12, no.13, pp.2511-2518, retrieved 11th August, 2021,<https://www.turcomat.org/index.php/turkbilmat/article/download/8943/6964>.
Shahid, SE. & Ashfaq, A 2021, ‘Coca-Cola and PepsiCo Advertising in Pakistan: Changing Trends of Cultural Values Manifested in Television Commercials. Journal of the Research Society of Pakistan, vol.58, no.2, p.270, retrieved 11th August, 2021 <http://pu.edu.pk/images/journal/history/PDF-FILES/34_58_2_21.pdf>.
Martin, D, Zarro, M, Rahn, M, Gusba, J & Sherry, C., 2020, ‘Process and Method for Implementation of Automated Nutrient Profiling Reporting for a Global Food and Beverage Portfolio,’ Current Developments in Nutrition, vol.4(Supplement_2), pp.1370-1370, retrieved 11th August, 2021 <https://academic.oup.com/cdn/article/4/Supplement_2/1370/5844889>.
Fawcett, E & Zweben, S 2021, ‘Shining a Spotlight: A critical assessment of food and beverage companies’ delivery of sustainability commitments,’ retrieved 11th August, 2021<https://oxfamilibrary.openrepository.com/bitstream/handle/10546/621163/Mahendru_Gender%20Evaluation.pdf?sequence=12>.
Alam, W 2021, ‘Trade Marketing Activities of Transcom Beverages Limited,’ retrieved 11th August, 2021<http://dspace.uiu.ac.bd/bitstream/handle/52243/2147/Waresa%20Alam-%20111%20151%20197..pdf?sequence=1>.
Sehrawat, S. 2019, ‘Pepsico’s Sustainable Strategies,’ Journal of Management, vol.6, no.2, retrieved 11th August, 2021 <https://www.academia.edu/download/61888271/JOM_06_02_01020200124-123463-1n7047o.pdf>.
Atlantis Press, retrieved 11th August, 2021 <https://www.atlantis-press.com/article/125945868.pdf>.
………………………………………………………………………………………………………………………..
Know more about UniqueSubmission’s other writing services:
