Answer to Question #189649 in Management for Shaun G

Question

One of the best-known tools for scanning and managing the environment is a SWOT analysis. Conduct a SWOT analysis on PepsiCo. 

Answer 1

A SWOT analysis is a compilation of your company's strengths, weaknesses, opportunities, and threats. The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved in making a business decision. PepsiCo has several strengths, including being the best Global Brand, having the power of one strategy by selling food & snacks, making it a diversified firm with 22 brands. It has a robust global presence by being in over 200 countries, corporate social responsibility, It has gained market dominance over Coca-Cola, and it is an iconic youthful brand. PepsiCo faces several weaknesses, including overdependence on food and beverages, its products being regarded as unhealthy due to its carbonic nature. It has had controversial advertisements and faces challenges of failed products.

On the same note, PepsiCo has several opportunities that it can utilize that include; product diversification into other products, it can expand into e-commerce, increase consumer-driven research and development, and expand into emerging markets such as Africa, Asia. Lastly, PepsiCo faces several threats that put the business at more significant risk, such as stiff competition from other Multinationals, economic slowdown or recession, and competitors' technology effectively, and changes in demographics and trade patterns.