Signature Assignment: Environmental Scanning. The Internal and External Environments of PepsiCo

Signature Assignment
Author Name
University Name
Introduction
PepsiCo is a non-alcoholic beverage and snack food company that has long given a tough competition to Coca-Cola and other similar brands. Since 1965, after the merger of Frito-Lay Inc. and Pepsi-Cola Company, PepsiCo has expanded its network worldwide and ensured the provision of quality products. Alone in North America, PepsiCo is considered the biggest food and beverage company by net revenues (Huang, Dyerson, Wu, & Harindranath, 2015).
The Internal and External Environments of PepsiCo
When it comes to talking about the external environment of PepsiCo, we should notice that globalization, technology, innovation, and diversity have played a significant role in the company’s success. When merged with the internal factors like business ethics, leadership, control, and organization, they have positively impacted the company’s growth and development. Without leadership, business ethics, control, and organization, PepsiCo could never achieve the desired results or meet its targets. Across their production units, the employees are provided with the best working environment and handsome salary packages based on their academic background and experience (Muzumdar, 2014).
The management ensures that the workers, clients, and suppliers are provided with utmost respect. Through globalization, innovation, technology, and diversity, PepsiCo has gained tremendous success in a short time. Globalization is the process through which the company has engaged snack food and beverage consumers worldwide. In terms of technology, PepsiCo uses the i-Crop system to measure the moisture level in its soft drinks and depends on a variety of software to check the quality and reliability of its snack foods. The company believes in providing its customers with a diverse range of products, and for this, they have been constantly looking for new innovations. Sometimes PepsiCo introduces new flavors of its soft drinks and tends to provide the consumers with healthier and delicious meals (2015).
Competitive Advantage of PepsiCo
According to CEO Indra Nooyi, PepsiCo’s mission statement is “Performance with Purpose” and that has been proved true with time. The success of PepsiCo lies in its different techniques and methods of competing for its industry rivals. First of all, the company has opted for a Merger and Acquisition (M&A) system that allows it to access all competencies, reduce direct costs and achieve organic success. Previously, PepsiCo completed some acquisitions like the acquisition of Wimm-Bill-Dann and Lebedyansky with an aim to defeat other food and beverage companies in Russia. In order to target the Brazilian and Argentinean markets, PepsiCo acquired Argentina’s Dilexis Cookies and Brazil’s Mabel Cookies and Lucky Snacks (Huang, Dyerson, Wu, & Harindranath, 2015).
Another aspect is the formation of strategic alliances on a large scale. For this purpose, PepsiCo partnered with Tingyi in China and overtook some of its shares in the beverage industry of Asia. Similarly, PepsiCo and Tata formed a joint-venture in India to increase its sales and generate more revenues. In Saudi Arabia, the company adopted strategic al...