Environmental factors

Organizations must consider their environment of operations before beginning the marketing process. Environmental factors such as the PEST analysis examine changes in a marketplace caused by political, economical, social and technological factors. Environmental factors impact an organization both internally and externally Therefore, environmental analysis should be conducted continuously as it will feed all aspects of planning. To not consider environmental factors may result in the failed attempt to market a product. (marketingteacher, n.d)PepsiCo, a well known organization, conducts business both domestically as well as globally. They are famous around the world for their well known soft drink Pepsi cola. Pepsi Co is responsible also for other products including Tropicana, Frito Lay brand chips, Gatorade and Quaker brand. Together they account for nearly one third of the total soft drink industry in the U.S. Globally and are available in nearly 200 countries. (PepsiCo, 07)Political examination:When conducting business in international markets; government changes, political stability and restrictions to transfer capital across borders must be considered.

Plaza Venezuela, Caracas

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Changes in laws/regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions, are political factors required in the examination of a market environment. (WEB.ICS, n.d) PepsiCo hires environmental management systems to manage and identify any environmental risks, obligations and opportunities. Domestically PepsiCo products fall in the food category and are subjected to the federal laws of FDA. Local and foreign laws are closely monitored by PepsiCo, and any with any changes, marketing changes are implemented immediately. By adopting the Occupational Safety and Health Act, PepsiCo was rated as the 12th safest company to work for in Organizational Hazard magazine in 2005. (PepsiCo, 07)Economic Examination:Economic conditions include interest rates, the level of inflation...