Business Elements of Pepsi & Coca Cola Essay Example

different countries and 1. 7 billion servings each day. While 'Pepsi co. Also a large beverage company, but falls in second behind Coca-Cola in the overlord and in the North America branch of Pepsi co. , is ranked the biggest food & Diverge company. In January 2012, Pepsi co. 's prop 'ended $1 billion. (Pepsi, 2009). Legal, Social & Economic Aspects cuts channel EAI generate EAI sales Many external elements have an immense effect on a corporations operation Nothing. Kentucky Media, 2012). Coca-cola and Pepsi have the same legal and В±economic environment because they are the same type of corporation. Within the gal environment it is made of laws, government agencies, and other clusters of dividends that have a regulatory impact on companies, while economic environment s made of economic legislations, economic policies, economic system, economic :notations, and international economic environment (Newly, Adams, & Kenney, 2002). Social environment elements includes; cultural influences of that particular :mime.

In recent times, in the USA there has been change in life-hood in the USA 'population thus this paved the way to the creation of soft drinks that have a :harmonistic that is based on time management. Coca-cola has increased and improved its bottled water and diet soda production because of the ever growing deed of consumption of other drinks, and lesser consumption of alcohol (BBC, 2013). Ere largely, negative effects of poor economy lead Pepsi to cut 3300 Jobs in 2008; Inch is about . 8% of its employees to reduce its operational costs.

Pepsi reported Conferrable economic conditions which in turn caused a reduction in their sales 'cause of reduction of soft drink consumption unlike coca-cola company.

Company Culture and Performance Company culture is the structure of values, norms, viewpoint, and the mixture of :impolitely unique personalities that defines a company (Kentucky Media, 2012). Coca-cola (herein referred to as Coke) highly believes that its customers and brands offline in its core values: accountability, leadership, reliability, passion, diversity, *laity, and collaboration.

Coke has a large investment in their personnel; customers, ;Taft, the management department and within its brands. While Pepsi has a fun and 'revisionism's culture as its business environment, PepsiCo allows employees to do Sorenson goals and objectives as long as they incorporate them with those of the :many, Pepsi gives equal opportunity for the recruits from all races, plus opportunity for growth in one's carrier. Pepsi co. Concentrates on diversity of its perforce. The company culture creates togetherness and identity, so there is a :southerners effect in achieving the company's ultimate goal (Newly, Adams, & (nearly, 2002).

Marketing Marketing s a method of constructing understanding about certain goods and services that are Merged to consumers with a long term or short term goal of continually increasing its ;ales (Kentucky Media, 2012). Coca Cola uses incentives within its marketing plans to increase its sales. Retailers & intermediaries give certain incentives and/or free amplest or giveaways to attract consumers. Pepsi utilizes a very similar marketing 'Ian to capture the market and have an increase in its sales. Pepsi uses sponsorship MD celebrity endorsement to reach the young generation of its market (Pepsi, 2009).

Strategic Decision Making Decisions based on strategy are unstructured long term decisions made by the Geiger level management department within a company. At Coca Cola, directors of :nee company make

strategic echelons (Kentucky M 2012). Sun calicles Include, В±expansion into foreign market and growth, cessation of operations among others and rage capital investments. When coca-cola decided to rebind to 'new coke' the :many was criticized a lot, the decision made by the management would bring the :Mayans market share down and give Pepsi an advantage. (Kaplan & Norton, 2004).

Decision making, Management, Leadership and Communication Style Decision making is a process of choosing between two alternatives or more courses of action Kaplan & Norton, 2004). Coca-Cola uses three different management styles which ere; two democratic management styles where all managers & employees are :unconcerned in the idea process and final decision-making process, and Consultative enigmatic, where managers let employees make ideas where the managers :awards the employees to the executives for final decisions. Three factors influence :he decision making process at Pepsi co. (Pepsi, 2009).

Autonomy, employees are free :o govern them and take responsibility. Formal communication channels, where the rower levels managers have to use the company hierarchy to communicate to top В±executives, and Bureaucratic management style where decision-making is centralized MD ideas from lower levels are not accepted (Kentucky Media, 2012). SOOT tool The analysis of SOOT (strengths, weakness, opportunities, and threats) a tool that managers utilize better understand and evaluate their strengths, evenness's, opportunities, and any threats within a company (United States. Dept. Of Weissmuller. Risk Management Agency, 2008).

A company's strengths and weaknesses ere an internal aspect that managers control while the external aspects are the )opportunities and threats proposed are what the company cannot control directly. :many strengths works in favor of e company while weaknesses determines new 'Lana and

avoid failure (Ham & B¶ham, 2009). Coca-cola SOOT analysis Strengths Has a 47% of global volume in carbonate sales Have broad bottling programs. Coca-cola is fourth among the leading brands. Coca-cola brand enjoys a high-profile worldwide presence. Insaneness TTS distribution system currently is not efficient for non-carbonates.

It is complicated now coca-cola relates within bottlers in USA and other countries. Opportunities Have distribution strengths in Latin America and Europe TTS brands are highly placed in health concerns markets. Reheats naiad's objection to coke Vegetative publicity all over Western Europe 'peps, Storage, Tropical, and Aquifer are stronger brands. Pepsi SOOT analysis Has constant product innovation. Has high profile presence. 'Pepsi uses celebrity endorsement marketing strategy. -pep's owns ten world second Test selling 'Pepsi only targets the young. )creased in carbonates market Depositories Dramas.

Has an increased consumer concern in water drinking. Increases sells for the growing healthier beverages markets. Threats rhea is an obesity concern t over depends on America and European markets. Coca cola's increased and innovation spending Operations Operation strategy is an outline of different decisions that handed down by managers that build and structure the lengthy capabilities of the company's )operations and in their contributions to the overall marketing strategies through -caching the market requirements with their company resources (Kentucky Media, 2012).

Coke strategies by increasing operations regionally and then centralizing :heir concentrate facilities; this would reduce manufacturing costs. Coca-cola has an )objective of bottling investment that ensures the survival of its production, saturation, and marketing. This aids Coke in optimizing its lengthy sales cash flow MD shareholders' equity. Meanwhile Pepsi remains thriving within its continually -vamping its products, thus causing a major

intimidation to the operations of the :coca-cola company (Newly, Adams, & Kenney, 2002).

Impact of change within the External Conditions Coke and Pepsi operate at the same external environments (Kentucky Media, 2012). The elements that are found externally that put strain on the beverage :many include elements within legislation and economics. Through the recent В±economic crisis that has reached global proportions, which in turn effected the )operations negatively of the companies. The production cost increased, which was :caused by the rise in costs of fuel and the inevitable inflation.