POLITICAL Political factors can often give a big impact on the business of a company. Often this factor is not in the hand of the organization. Several aspects of government policies can make a huge difference. However, all firls are required to follow the law. It is the responsibility of the organization to find how upcoming legislations can affect their activities. Being one of the largest non-alcoholic beverage and food industry, PepsiCo needs to be strictly regulated by Food Standards Agencies such as the European Food Safety Authority and Health, the American Medical Association, the World Health Organization and the US Food and Drug Administration (FDA). This agencies are body responsible for protecting and promoting public health through …show more content…
They have joined in hand with the International Food and Beverage Alliance (IFBA), a non-governmental organization to advertise products that only meet specific criterion to children under the age of 12. PepsiCo managed to make significant implementation by adapting diversified marketing strategies to promote their policy. They have managed to achieve 99 percent compliance globally on Advertising to Children Policy and a 100 percent complicane in the US and Canada. ECONOMIC The economy doesn’t always run smooth,there are times where there will be economic downturn and organizations are badly affected, where they have to restructure their business strategies. The economic factor plays an important role in any business. In 2009, there was a $90 million reduction in the net profit from the previous year that greatly affected PepsiCo. To overcome this situation, PepsiCo had to further adjust the costs as consumers were shifting to less costly drinks and snacks. There were also drop in bottled water, where there was a downward trend in the sales. …show more content…
This service helps the school, educators and parents to promote healthy eating habits among school students. There are variety of products such as bottled waters, juices, sports drinks and low calories carbonated soft drinks available for the school to decide where and when to sell. PepsiCo supports sustainable packaging policy, whereby they strive to lessen harm caused to the environment but yet still meeting the cost and performance criteria expected from consumers and customers. For example of PepsiCo sustainable packaging policy involves recyling materials, minimizing post industrial waste and achieving a lower carbon footprint. PepsiCo is aware of the differences in culture worldwide. Keeping in mind of the countries that have religious festivals, Pepsi uses this opportunity to the fullest for advertising campaigns in accordance to the respective festivals. For example, Holi Festival in India, PepsiCo uses this as an chance to increase sales. Besides that, solid waste management programs affects the operations at PepsiCo. PepsiCo has to be more socially responsible in order to maintain it’s
Perhaps the prominent regulation that most everyone is familiar with, is the listing of required nutritional facts about what the product contains. Just navigating the regulations in this environment is often not enough though, companies should be proactive in dealing with possible changes, potentially staving them off in the long run, which is part of the reason that Dr Pepper undertakes so many healthy living initiatives, along with Coke and Pepsi, to encourage consumers to make better decisions, and maybe buy diet product, rather than the company have to comply with the costs of reconfiguring its labels, in a manner that was proposed by the FDA in 2014, which would have required actual column nutritional facts label. In part due to the soda companies efforts, this initiative seems to have lost initiative for the time being. This is likely due to the fact that Dr Pepper does not operate, for the most part, beyond the United
In Eric Schlosser article, “ Kid Kustomers” he focuses on how American companies have began to target kids in the marketing business. This began in the 80’s and the companies attempt to influence children at a young age to decide on what companies they will buy from. Doing so the companies hope to create lifelong customers and increasing their profit. This can be seen in areas such as a children’s club where ads are seen regularly to be viewed by the kids. Nevertheless these companies benefit from targeting child audiences because eventually it will increase sales.
One strategy is to increase present sales, but also future sales. He says that "growth in children’s advertising has been driven by efforts to increase not just current, but also future consumption” (pg. 354). He is basically saying that targeting children as young as possible will create a “brand loyalty’’. Another marketing research he provided was the study on 7
The US Food and Drug Administration is a federal organization that safeguards the public's health by guaranteeing the efficacy, security, and safety of human and veterinary medications, biological products, and medical devices, as well as the security of our country's food supply and cosmetics. Due to the 1906 Pure Food and Drugs Act's approval and the need to safeguard consumers, the Food and Drug Administration was established. President Theodore Roosevelt approved the Pure Food and Drugs Act in 1906, making it illegal for misbranded and contaminated foods, drinks, and drugs to be traded across state lines. The structure of the Food and Drug Administration is made up of the Office of the Commissioner and four directorates that are in charge of the agency's core responsibilities, including
Big powerful special interest groups have interfered with politicians’ decision to do what’s right; it appears that the political system has become corrupted and money plays a big role in their decision and money is very influential in getting the legislators to pass bills. One would believe that our politicians are making the battles between the political parties personally; it appear that if the parties don’t agree with another, they resort to drastic measures such as shutting down the government causing more hardship on
As a result, the impact of large enterprises on the government is becoming more and more big, and big enterprises seem to learn more and more how to achieve their own interests in the
PESTLE analysis : Is a shortcut of six words which is political , Economic , Social , Technological , Legal and Environmental .Usually this concept used in marketing .Also it used as a tool by organization to track the environment they are operating in or are planning to new project or service .Moreover it used to assess the four external factors with regard to the situation of the organization's business ,and how it will effect in the business over long term. Political factors: This factor looks at how government regulations and legal issues affect a business's chance to be profitable and successful.
Coca-Cola has stated that to continue to meet the needs of the consumer that they would lower the amount of sugar and shrink the drink sizes (Zimberoff, 2017). In order for PepsiCo to stay a competitive force in the sports drink wars, they need to make changes such as offering a smaller size of their Organic Gatorade and lowering the price. Most sports drinks are offered to have a comparable price, however, if marketers for Organic Gatorade lowered their price they would be able to attract more consumers. They would be allowing the consumer the opportunity to have a healthier drink with a lower price than the
Coca-Cola uses key elements in the composition of “Friends” to draw attention to their new packaging’s environmental appeal. The most direct way this is done is through their use of subtitles; “ Friends”, an advertisement for Coca-Cola’s new PlantBottle, says “They [plants]…make our bottles” (“Friends”). This tells consumers in an direct manner that their product is made from plant materials and directly implies that their PlantBottle is more ecologically friendly then normal plastic. This statement, though it is vague and lacks proof, caters to a society has become concerned with the eco-friendliness of their purchases. Coca-Cola’s words catch the viewers’ attention even if it is an overall dubious claim; it also acts as a transitionary phase that leads to another
Today life is on the fast track. People are always on the go and don’t have time to properly take care of themselves or their families. For most Americans, fast food and junk food are ready to grab for a snack or a quick dinner. They don’t slow down to think about how the foods they are eating effect their long term health. Fewer and fewer families take the time to prepare a nutritious meal and are passing down bad habits to their children.
Part A Macro environment is important factor affecting the development of enterprises. A macro environment is the condition that exists in the economy as a whole, rather than in a specific sector or region.(Macro Environment n.d.) Cultures, politics, technology, nature, economy and demographic are the six major forces in the company 's macro-environment.(Kotler & Armstrong 2014, p96) Political factors Political factors include government regulations and legal issues and define both formal and informal rules.(PEST Analysis n.d.) All the companies have to follow these rules.
Next, the three crucial economic factors that affect the company include inflation, recession and currency. As Apple products are commonly viewed as luxury products, and with inflation and
Coca-Cola strives to utilize every strategy available to become successful whenever it launches its business in overseas markets. Pepsi seemed to have discovered Coca-Cola’s disadvantages and it was using them to check Coke’s dominance. The new market structure brought about cut throat competition between the two cola giants. However, the competition ate into a large chunk of the two companies’
Every industry to include the hospitality industry is impacted by external factors which directly influence organizational behavior and decision making. There are numerous factors to be considered, but political, economic, and social are three of the most influential. These outside factors sway managerial operational decisions daily regarding personnel, spending, policy, and short-term and long-term strategic planning concerning both core and exterior operations. As within every industry, the hospitality industry has unmanageable elements that affect management or ownership of hospitality establishments (Lewis 2017). Understanding these factors is important because it provides an opportunity for contingency planning (Lewis, 2017).
3. Social uncertainties: the impact of the public on the project has a significantly influence a project’s outcome. For example, resistance from the community to the use of overseas construction workers. Moreover, the construction of a building may have adverse social consequences due to its particular nature and location. The changing social environment may also affect an individual’s attitude and behavior due to different cultures and systems, for example, in terms of demands for better working conditions.