INTERNATIONAL BUSINESS

CASE STUDY-3
ABHIJNA V C PES1UG22BB011

1.
● The environmental influence of the community on Pepsico was high diversity in the
target audience, products , and workforce .
● Pepsico is a company that promotes the brands/ labels of Frito-Lay on a multinational
level but heavily invests in localising itself to fit into the country/ community that it
is trying to penetrate.
● It also resulted in high social consciousness which resulted in the company
prioritising the environment, social and economic factors of the community as
something it wants to improve.
● We can see the environmental influence of the community on PepsiCo when it
markets its products with different names in different countries.

● In the picture to the right , you can see that it has a flavour of seaweed in its brand
in an Asian country[ seaweed is a beloved staple food/snack in japan and south
korea] This is an example of diversity of product which is one way the company
responds to environmental influence of the company.

2.
● The company places utmost importance in recognising diversity in customers and
treats it as a competitive advantage.
● To do so , it starts by including diversity as an important criteria to be checked in
the workforce that it recruits. Be it the employees or the suppliers. It recognises the
minorities and women in its network of production and supports their functioning.
1. It was also one of the first companies to have women in professional positions.
Have a african-american as its vice president.
 2. The policies that it makes and executes carry the values of respect, sensitivity
and fairness.
3. It also has dedicated executives for diversity management.

● Step 1: understanding : All the above points and steps that were taken by the
company enable a trans-perspective understanding of the market that it is dealing
with.
The input that it receives from its employees is going to come from various
cultural,social and economic backgrounds which improves the understanding that it
has of the people it's trying to serve/ target audience.

● Step 2: synthesising and executing : the steps that are then taken to recognise the
diversity are well informed. They are sensitive, respectful and fair
1. It localising the names as Lays, Sabritas or Walkers
2. Localising the flavours it provides: seaweed in Asia ; Cheese and onion in
Australia.
It takes into consideration the favourites/ staple foods and flavours that the
locals have and their dislikes to design its products.
3. Advertising and logos used : the logos use the local language in their names;
● It helps in increasing the brand recall value
● gaining trust
● facilitates easy communication with localities.

All these above points are examples of how the company recognises diversity in
customers.

3.
● It must first comprehend suppliers if it is to successfully meet customers' and
consumers' wants in the market.
● Suppliers are the reason they were able to establish themselves as a global brand.
The wide reach that they are known for is due to them.They are the company's biggest
asset as they are the means through which the company’s values and products reach
the consumers.
● The commitments that the company has set for itself as diversity and respect for
eachother are reflected in the way they communicate with their suppliers where their
needs and wants are recognised and catered to.
● For the long-term stability and profitability of the firm, working with suppliers
to mitigate these risks: PepsiCo is aware that social and environmental risks in its
supply chain might have a big effect on its operations, including reputational
concerns, supply chain interruptions, and higher costs.

● The above image shows a supplier’s risk, the company recognises their contribution
in establishing the network with consumers through different terrains and conditions
be it geographical, economic or political. This might also be one of the reasons.