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Pepsico Political Factors

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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

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