Answer to Question #199634 in Management for Precious

Question

Determine the approach to environmental scanning PepsiCo is using and provide reasons for your answer

Answer 1

PepsiCo is using SWOT analysis. This helps an organization to evaluate its strengths, weaknesses, opportunities, and threats. PepsiCo has been able to identify all of the above in the organization.

PepsiCo’s strengths

1.     Power of one strategy.

2.     Highly diversified portfolio.

3.     Effective marketing strategy.

PepsiCo’s weaknesses

1.     Controversial advertisements.

2.     Overdependence on food and beverages.

3.     Impacts of failed products.

PepsiCo’s opportunities

1.     Diversification of products.

2.     Expanding of e-commerce.

3.     Increase healthy options in their products.

PepsiCo’s threats

1.     The slowdown of the economy.

2.     Demographic changes.

3.     Increased trade tensions.