Russia-Ukraine War Impact on Cost of Energy

CORP2544 Assessment 1: Russia-Ukraine War Impact on Cost of Energy
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Executive Summary
The ongoing war between Russia and Ukraine has significantly impacted international markets and organizations of all sizes, including PepsiCo Inc. PepsiCo Inc., like many organizations, is facing challenges associated with the ongoing war between Russia and Ukraine. The increasing cost of energy has caused prices of goods to rise, reducing customers' disposable income and affecting business growth. This report examines the strategic and relevant organizational management concepts that PepsiCo can use to minimize the impact of the energy crisis and achieve business growth during and after the war. A key recommendation is that PepsiCo should use a mix of cost-cutting measures, diversification, innovation, collaboration, and crisis management to reduce the impact of the energy crisis and remain competitive.
1 Introduction, Context, and Objectives
PepsiCo Inc. is a leading global food and beverage company that operates in more than 200 countries worldwide. The company has been dealing with various challenges associated with the business environment, including the ongoing war between Russia and Ukraine. The war has created a new problem for PepsiCo, resulting in rising energy costs. As a global enterprise, the company relies heavily on energy sources from both countries. It directly impacts the cost of PepsiCo's products and could potentially affect the company's ability to achieve business growth (Esmaeilian et al., 2020, p. 105064). The rising energy cost has caused prices of goods to rise, reducing customers' disposable income and affecting PepsiCo's business growth (Hillmann and Guenther, 2021, p.23). One of the most significant challenges is the rising energy cost, which affects the production and transportation of goods and services. As a result, companies are incurring higher operating costs, which can impact their profitability and sustainability (Antunes and Pinheiro, 2020, p.145). PepsiCo is no exception. Therefore, it needs to develop and implement strategies to minimize rising energy costs' impact on its products and operations (Panibratov, 2021, p.18). As a manager, PepsiCo will use a mix of cost-cutting measures, diversification, innovation, collaboration, and crisis management to reduce the impact of the energy crisis and remain competitive (Alam et al., 2022, p.352). Furthermore, PepsiCo should focus on developing innovative products, establishing a solid corporate reputation, and optimizing its supply chain (Bouncken et al., 2022, p.7). These strategies will also enable the company to remain competitive in the global market and continue to deliver value to its customers and stakeholders
1 Literature Review
The literature review explores managerial strategies that curb the energy crisis and its implications for PepsiCo Inc. The energy crisis is the conflict between Russia and Ukraine and the consequent disruption to the energy supply. The ongoing war between Russia and Ukraine has significantly affected the global economy, with rising energy prices being one of the most significant impacts businesses feel worldwide. Strategic approaches must be imp...