International Business Essay Example | Topics and Well Written Essays - 2500 words - 2

International Business - Essay Example Pepsi-Co manufactures and sells a large variety of grain -based snacks, sweets, beverages, convenient food items. Pepsi-Co is trying to reduce the negative environmental impacts by taking optimal decisions in the scientific packaging, water, energy initiatives. From the fourth quadrants of 2007, Pepsi-Co announced a new organizational structure which is implemented in 2008. The three businesses have been added in the changed organization structure. 1. PAF- Pepsi-Co American Food including FLNA, LATIN AMERICAN SNACK BUSINSS called LAF, QFNA and also including their Gamesa business in Mexico. 2. Pepsi Co American Beverages (PAB) includes PBNA and also the others Latin American beverages. 3. Pepsi Co international which also includes the other PepsiCo business in Middle East and Africa, UK and Asia. In the first quarter of 2008, six segments were followed for 3 businesses. FLNA LAF QFNA PAB Middle East, Asia, Africa. UK & Europe. The scope of the study depends on the success and fulfilm ent of the objectives. The objective of the report is to analyse the strategic issues undertaken from 2008 including the organizational development issues and integration of the functional strategies of the business, the analysis of corporate culture and a sustainable competitive situation analysis. Methodology The methodology used here is qualitative research. The analysis is based on qualitative analysis and not quantitative analysis. The analysis is not based on the computations of mathematics; it is the judgmental analysis of the environment. The report does not include any mathematical calculation and it requires the delivery of the report in the same way. The qualitative research analysis is sourced from primary and secondary data analysis. The primary data comprises of first hand data which is collected directly from the field. For example, sample survey, population survey. But secondary research is the second hand research. Books, Magazines, Journals, Reports are the example s of the sources of secondary research. The research report in this case comprises of secondary research because primary data collection is time consuming and costly. Main Findings Strategic Management Pepsi Co. applied the diversification strategy as a part of the movement of organizational structural change. The strategic diagnosis can be done with the analysis of external and internal environment. In the changed scenario, the Market trend is as follows: Popularity of diet food items is on the rise where the calories used is low and market for non-carbonated beverages. Second dimension is on great –tasting, various flavours and styles. The consumer perception in this dimension has changed a lot. Consumer prefers the ready to drink and ready to eat products than other traditional food products and for this reason Pepsi also introduced some products under this product line. Consumer does not only limit themselves between the local brands but they want to have the flavour of g lobal branding. PESTEL stands for Political, Economic, Social, Technological, ecological and Legal Environment (Randall, 2001, p.78). Political Environment: After the shocking recession of 2008, the market protections increased by different governments. So the entry barrier was tough for the international market. The government tried to follow the protectionist policies even in the emerging markets. Economic Environment: During the period of recession