Pepsico Macro Environmental Analysis

This report aims to identify all the macro and micro environmental PepsiCo faces. Based on analysis to analyze the severity external environment factor and industry situation the business to provide recommendations for improves the company.

1.1 Introduction

PepsiCo, Inc. (PEPSICO) was incorporated in Delaware since 1919, is a leading global F&B company with a complementary portfolio of enjoyable brand, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. It distributes and sell a wide variety of convenient and enjoyable beverage, food and snacks, servicing customer and consumers in more than 200 countries and territories, based on PepsiCo Annual Report 2015.

The company’s performance with purpose efforts are directed toward

Kendall. The company 's line of business includes the wholesale distribution of groceries and related products. Singapore being a Globalisation and International Development Country, devoid of any natural resources imports most of its food requirements, which is estimated to be about 90% of total food consumption.

2.0 Macro-Environment Factor

The Macro environment refers to the all external forces which influence the PepsiCo performance and strategies to achieve the building powerful brands. PESTEL analysis refer to the Political, Economic, Social-cultural, Technological, Environmental and Legal factors influence the PepsiCo to expanding brand name in Singapore.

1.2 Political Factor

The Political Factor is concerned with government regulation and legal issue that organisations must adhere to business activities. Singapore government manage the country for over 51 years, and it is very stable compare with other country, Singapore has entered into Free Trade Agreement (FTAs) to over the world. In the case of non-dutiable foods, Good and Service Tax (GST) will be based on the CIF value plus any commission and other incidental charges whether or not shown on the invoice. As the tax polities compare with US, the Singapore GST and Income Tax still in favourable. As this is the advantage and opportunities for PepsiCo to obtain business

Singapore is a Small Red Dot, which the economic affected by other country such as US and China. Economic are not stable in current business economic world, after Donald Trump told over the US president predicted the economic will turn into better position. The economic factors that affect PepsiCo include rise of inflation in all countries that sell their products and rise unemployment. Rising prices of raw material are significant affected business profitability. In addition, Change in the income levels is affects PepsiCo consumers impacts to the business as well. According to The Straits Times (2016, 02 July) PepsiCo has built a first local plant in Singapore where it is located in Jurong West. The company will employ more than 100 employee, it will help to reduce Singapore unemployment