Environmental Scan Research Paper Example | Topics and Well Written Essays - 250 words - 1

Environmental Scan - Research Paper Example The changes in economic cycles affect the sales of the two firms in the beverage and snacks industry e.g. fluctuating interest rates, exchange rates fluctuations and income levels (PepsiCo, 2010). Reduction in the income level will reduce the two company’s level of sales. The social factor like the cultural beliefs and practices determines the level of sales in the global arena. There are some regions across the globe where the consumption of snacks are discouraged hence reduce sales level. Demographic factors like youth population, family sizes further influence sales. Since the two firms operate globally, the political changes that determine the legislations, taxation and regulations affect the firms equally. The adoption of enhanced technology that reduces operational costs and efficiency will make the external environment (Coca-Cola, n.d). The internal environment that includes financial strengths, employee enthusiasms, organization culture, and innovation remain core to t he businesses. PepsiCo core competitive advantage is the diversified portfolio of products and brands, high innovation and differentiation of products and ability to enter into new markets successfully. The healthier food makes customers purchase their goods. The company strategy is to rethink and implement new efficient ways of production and best practices that would enhance customer satisfaction (PepsiCo, 2010). On the other hand coke competitive advantage include market leadership, business partnerships, multi-segmentation, strong brand portfolio, collaborative customer relationships, sustainable development and managerial expertise among others. These make core a leader in the snack industry. Coke strategy is the maximizing growth and profitability to create shareholders value through transforming commercial models, multi-segmentation, product innovation, and expansion