EFE Matrix
OPPORTUNITIES
Weight
Rating
Weighted Score
Emerging markets expansion/diversification in Asian and African markets
0.12
1
0.12
Continued growth in low and/or non-caloric beverage market craft/artisan soda and craft teas, and juices including
0.15
1
0.15
Organic, vegan and gluten free sales and marketing
0.09
3
0.27
Continued product innovation
0.07
2
0.14
Use and cost of non-sustainable or recyclable plastics, metal and other materials
0.09
3
0.27
Health Lifestyle Choices/Ingredient Transparency
0.12
2
0.24
Competitive pricing strategy
0.13
2
0.26
Exploit Baby Boomer and youth population with disposable
0.12
3
0.36
New IT platforms (Hulu, Apple TV) and market
0.09
4
.32
TOTAL:
1.0
THREATS
Weight
Rating
Weighted Score
Strength of competing and collateral brands i.e., Coca Cola, Starbucks, Kelloggs etc.
0.13
1
0.13
Domestic and international government laws, regulations and practices (i.e., licensing, health, safety)
0.08
2
0.16
Rising cost of commodities including wheat and other specified food
0.09
3
0.27
Consumer confidence & shifting attitudes toward high caloric and other specific contents
0.15
1
0.15
Water usage, energy conservation and food/beverage packaging
0.10
3
0.30
Strength of competing global brands i.e., Coca Cola, Kellogg’s, etc.
0.14
2
0.28
Aggressive diversification and restructuring efforts/credit to debt issue
0.09
3
0.27
Consistent marketing strategy
0.07
3
0.21
Economic conditions i.e., recession/recovery affecting market volatility
0.14
2
0.28
TOTAL:
1.0
Based on the EFE Matrix Score, what is your conclusion concerning PepsiCo’s ability to capitalize on its key external factors? Domestic and international governmental regulations on food packaging will affect PepsiCo; expansion of innovative products or product categories such as beverages, savory snacks or foods might; developing healthier products and making their packaging more environmentally friendly