Name: MYKA ELLA V. DIOQUINO Student No.

: 201910051 OUTPUT #4
Section: BSAIS-4B Subject: CMB-02 September 15, 2022

External Factor Evaluation Matrix of PepsiCo

Key Inter Factors Weight Rating Score

Opportunities
1. Increasing use of beverages and snacks in developing markets 0.12 4 0.48

2. To increase profits, the corporation will acquire a potential company 0.05 3 0.15

3. Boost R&D based on consumer demand 0.06 3 0.18

4. Putting cheaper products on the market and selling them lower than the 0.08 4 0.32
competition.
5. Altering social tendencies (healthy foods) 0.04 2 0.08
6. Work in the fastest growing industry (noncarbonated drinks) 0.03 1 0.03
7. Using brand image diversification 0.04 2 0.08
8. Preference for beverages among youth 0.05 2 0.10
9. Strive for acquisition and partnership 0.07 4 0.28
10. Boost Corporate Social Responsibility 0.02 1 0.02
Threats
11. Fierce Competition 0.09 4 0.36
12. Competitors Effectively Adopt Technology 0.05 2 0.10
13. Alterations in client lifestyles and habits 0.02 1 0.02
14. Alterations in consumer preferences 0.02 1 0.02
15. Government Laws and Regulations 0.03 2 0.06
16. Slowdown or Recession of the Economy 0.04 2 0.08
17. The growing demand for energy drinks 0.05 3 0.15
18. International Trade Problems 0.03 2 0.06
19. Plastic waste and pollution. 0.05 4 0.20
20. Risk of a labor strike 0.06 4 0.24
TOTAL 1.00 3.01

The table displays the External Factors Evaluation Matrix results, which are evaluated
from 1 being the lowest score and 4 being the highest. PepsiCo's overall score is 3.01, which
indicates that the evaluation rating is above average and is regarded as high rather than average.
PepsiCo responds above average to exploiting new opportunities and overcoming threats, as
evidenced by its performance. In addition to PepsiCo's 0.48 higher weighted score for the rising
consumption of beverages and snacks in developing nations, this high weighted score indicates
the company's primary potential. On the other hand, the rate of threats in the matrix is 0.36, which
is also greater. Therefore, PepsiCo must have a more robust and distinctive approach to get a
competitive advantage. In addition, PepsiCo responds to its opportunities and threats depending
on the evaluation. The organization should be able to effectively and efficiently capitalize on its
current opportunity and devise ways to minimize its threat.
 Competitive Profile Matrix

PepsiCo Coca-Cola Dr. Pepper

Weighted Weighted Weighted
Key Success Factors Weight Rating Rating Rating
Score Score Score
Financial Position 0.11 4 0.44 3 0.33 2 0.22

Advertising 0.07 4 0.28 4 0.28 3 0.21

Market Share 0.09 4 0.36 4 0.36 2 0.18

Brand Image 0.10 4 0.40 4 0.40 3 0.30

Customer Loyalty 0.05 3 0.15 4 0.20 3 0.15

Product Quality 0.06 4 0.24 4 0.24 3 0.18

Product Range 0.07 4 0.28 4 0.28 3 0.21

Distribution 0.08 4 0.32 4 0.32 4 0.24

Price Competition 0.09 3 0.27 3 0.27 2 0.18

Geographical Expansion 0.06 4 0.24 4 0.24 3 0.18

Organization size 0.05 4 0.20 4 0.20 2 0.10

Investment 0.07 3 0.21 3 0.21 2 0.14

Shareholders’ Equity 0.10 4 0.40 4 0.40 1 0.10

Total 1 3.79 3.73 2.39

There are many different kinds of soft drinks available, some of which are direct
competitors to PepsiCo, such as Coca-Cola and Dr. Pepper. Because of the range of its offers in
beverages and other areas, Pepsi is one of the most recognizable brands in the world. CPM
examines a company's strategic position and identifies its key competitors and strengths and
weaknesses. PepsiCo receives a 3.79 weighted average when compared to Coca-Cola and Dr.
Pepper. Because of the success of its advertising campaigns in garnering the attention of the
company's primary market: customers, and its solid financial position, PepsiCo is now more
valuable than its main competition. Coca-Cola Company is PepsiCo's direct and most potent
competitor. Their weighted average difference is only 0.06; Coca-Cola needs to strengthen its
financial position to catch up to the PepsiCo Company in this matrix.