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Factors to consider in globalization: case study of pepsi
Pages 10 (2510 words)
Business operations differs between various countries. Pepsi would reap plenty of benefits by opening up a manufacturing plant in the country due to increased markets, low productivity costs, good government policies, and stable economy. …
Regardless of the reasons that may necessitate a company’s entry into a foreign market, there are hindrances that the company is likely to meet in setting up a foreign base. These factors need a scrutiny, clear analysing and verification before the company decides to start its operations in the foreign country. Such factors include social-cultural factors, economic factors, and political factors, legal and technological factors. Pepsi, a soft drinks company will have to face and deal with these problems while trying to set up base in the United Kingdom. The company that has its roots in South Africa is trying to begin operating in the country, and set up a manufacturing plant for soft drinks commonly known as Pepsi cola. A proper audit and scrutiny of the market is a guarantee to the company of succeeding in the business while a poor analysis of the same market is a failure to the company. The factors responsible for influencing Pepsi’s operations can be classified into two broad categories that include external implications and the internal factors. Pepsi can hedge itself and come up with strategies of controlling its internal factors that include land, capital, labour, and business allocation, while it cannot control the external factors affecting its operations that include demographic factors, political forces, cultural influences, technological advancement, and legal practices. ...
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