PepsiCo PESTEL Analysis
PepsiCo PESTEL Analysis
In external environment might affect organizational performance in direct and indirect manners; therefore they need to be taken into account in strategic planning. PESTEL analysis can be highlighted as the most appropriate strategic analytical tool for specifying and categorizing external factors impacting businesses.
PepsiCo PESTEL analysis is as follows. Political factors
Government stability in the south Asian countries selling PepsiCo products is a major political factor for the company. PepsiCo is also impacted by tax rates and tax policy initiatives in local markets, as well as, employment-related rules and regulations. Moreover, employee health and safety rules and regulations can be specifically mentioned due to its high level of importance.
Food and Drug Administration (FDA) Regulation
These regulations define which ingredients can and cannot be used in the product, how the product is produced, where it is produced, as well as other laws concerned with the quality and health effects of the product.
There are potential fines set by the government if companies do not meet a standard of laws regarding manufacturing, production, and distribution.
· Waste Management Regulation
Waste from firms' manufacturing plants must be taken care of in a responsible and legal manner.
If any of the waste management laws change, companies must update their processes to abide by the law.
· Legal factors include consumer laws, discrimination laws, employment laws, & health/safety laws
Firms must provide nutritional information of their product to the customer
Employees must be provided with at least the required minimum wage and discrimination is not tolerated in the workplace
All factories of the firms must abide by OSHA standards and regulations.]
If any of these laws change, companies must change their operations and procedures to avoid being fined or even worse, shut down.
Economical factors
Recessions:
The soft drink industry
In external environment might affect organizational performance in direct and indirect manners; therefore they need to be taken into account in strategic planning. PESTEL analysis can be highlighted as the most appropriate strategic analytical tool for specifying and categorizing external factors impacting businesses.
PepsiCo PESTEL analysis is as follows. Political factors
Government stability in the south Asian countries selling PepsiCo products is a major political factor for the company. PepsiCo is also impacted by tax rates and tax policy initiatives in local markets, as well as, employment-related rules and regulations. Moreover, employee health and safety rules and regulations can be specifically mentioned due to its high level of importance.
Food and Drug Administration (FDA) Regulation
These regulations define which ingredients can and cannot be used in the product, how the product is produced, where it is produced, as well as other laws concerned with the quality and health effects of the product.
There are potential fines set by the government if companies do not meet a standard of laws regarding manufacturing, production, and distribution.
· Waste Management Regulation
Waste from firms' manufacturing plants must be taken care of in a responsible and legal manner.
If any of the waste management laws change, companies must update their processes to abide by the law.
· Legal factors include consumer laws, discrimination laws, employment laws, & health/safety laws
Firms must provide nutritional information of their product to the customer
Employees must be provided with at least the required minimum wage and discrimination is not tolerated in the workplace
All factories of the firms must abide by OSHA standards and regulations.]
If any of these laws change, companies must change their operations and procedures to avoid being fined or even worse, shut down.
Economical factors
Recessions:
The soft drink industry