PART 1A

PESTLEG ANALYSIS

1. Political Factors:

 Government Stability: Political stability is crucial for PepsiCo's operations globally. Changes in government can lead to policy changes
affecting taxes, trade regulations, and overall business environment.

 Regulations: The beverage industry is subject to various regulations, such as health and safety standards, labeling requirements, and
restrictions on advertising to children.

Political factors impacting PepsiCo in Vietnam include trade policies, taxation and related regulations, partnership relations, political
stability, and raw materialrelated policies. An example of a specific political factor is regulations on advertising and dialogues with the
government, which require PepsiCo to comply with strict regulations on content, scope, and target audience, and engage in dialogue with
relevant government agencies to ensure compliance and protect the brand image.

2. Economic Factors:

 Income Levels: The economic prosperity of the countries in which PepsiCo operates directly impacts its sales. Higher disposable
incomes generally lead to increased consumer spending on beverages and snacks.

 Exchange Rates: As a global company, fluctuations in exchange rates can affect PepsiCo's profits when dealing with different
currencies.

Economic factors impacting PepsiCo in Vietnam include the country's economic situation, inflation rates and prices, competition,
production output and costs, consumer habits, and global pandemic and recession. Despite slight decreases in revenue and profits due to
Covid pandemic, PepsiCo expects to improve its revenue by 6-8% annually in the coming years. To succeed in the Vietnamese market,
PepsiCo needs to focus on improving product quality, optimizing production processes, developing new products, and reducing
operational costs, while also paying attention to tax policies, management, and labor market factors.

3. Social Factors:

 Changing Lifestyles: Health and wellness trends impact consumer preferences. PepsiCo has adapted by offering healthier options,
such as low-calorie beverages and snacks.

 Cultural Preferences: Cultural differences influence product preferences. PepsiCo tailors its products to local tastes, such as launching
unique flavors in specific regions.

 Regional differences: Vietnam has 3 regions: North – Central – South, each has its own taste. So that the demands of people all
throughout the country can be addressed, product development is a difficult issue for the food industry.

Population size: the population ranks 14th in the world and ranks second in the region. - Vietnam has a potential large market. In terms of
culture and consumption habits: Vietnam is a country with a rich and diverse cultural heritage, with many regulations and customs
regarding food and beverage consumption. While PepsiCo's products such as Pepsi, 7Up, and Mirinda are popular among Vietnamese
consumers, the company also has to compete with other rivals such as Coca-Cola and Suntory PepsiCo Vietnam. - Therefore, PepsiCo
needs to focus on developing products that are suitable for the taste of Vietnamese consumers, as well as researching and implementing 9
appropriate advertising and marketing strategies to enhance brand awareness and increase sales. Health and education: There are also
crucial factors in PepsiCo's business operations. Strengthening education and launching advertising campaigns to raise consumer
awareness about the benefits of consuming non-alcoholic beverages and ensuring health safety can help PepsiCo increase access and gain
consumer support. Finally, PepsiCo also needs to pay attention to other social issues such as social welfare, job creation, and sustainable
development. Participating in social activities and contributing to charity programs can help PepsiCo build a good image with the
community and increase consumer trust in the company's brand

PART 1B

PORTER’S FIVE FORCES

1, Which of the following is NOT one of Porter's Five Forces? d) 6, The intensity of competitive rivalry is typically high when: c)
Market segmentation There is low product differentiation

2, Which force examines the power of customers to influence 7, Which force examines the extent to which customers are
prices and demand? c) Bargaining power of buyers loyal to a particular brand or company? b) Threat of substitutes

3, Which force represents the likelihood of new competitors 8, Which force considers the influence of government
entering the market? b) Threat of new entrants regulations and policies on the industry? a) Bargaining power
of suppliers
4, Which force evaluates the ability of suppliers to raise prices
or reduce the quality of goods and services? a) Bargaining 9, Which force evaluates the potential impact of technological
power of suppliers advancements on the industry? d) Competitive rivalry

5, Which force considers the availability and attractiveness of 10, Which force examines the ability of buyers to negotiate
alternative products or services c) Threat of substitutes lower prices or higher quality? c) Bargaining power of buyers
 11, In the aircraft manufacturing industry, at least for large 13, The relative bargaining power of suppliers is high when: c.
commercial jets, Boeing and Airbus are the only competitors. incumbent firms can credibly threaten to backward integrate
There is not a significant threat of entry because: a. entering into the industry.
the aircraft manufacturing industry requires huge capital
investments. 14, When fashion magazines face competition from fashion
blogs on the web, which of the following forces in Michael
12, Which of the following features about a buyer indicates that Porter's five forces model primarily gets stronger? d. The threat
the buyer has high bargaining power? c. When the buyer faces of substitutes
high switching costs.
15, Competitive rivalry will be high if: a. The industry is
fragmented

PART 2:
analyze the impact of Geert Hofstede's six cross-cultural dimensions on PepsiCo's operations in the United States and Vietnam.
1. Power Distance:
United States:

 The U.S. has a relatively low power distance culture, meaning that there is a preference for equal distribution of power.

 In PepsiCo's U.S. operations, there's likely a more decentralized decision-making process, with an emphasis on individual
contributions and innovation.
Vietnam:

 Vietnam tends to have a higher power distance culture, indicating a more hierarchical structure and centralized decision-making.

 In PepsiCo's Vietnamese operations, there may be a greater acceptance of authority and established protocols.
Impact on PepsiCo: Understanding and navigating the different power distance expectations is crucial for PepsiCo's management to tailor
leadership styles and decision-making processes accordingly in each country.
2. Individualism:
United States:

 The U.S. is known for its high individualism, emphasizing personal achievements and autonomy.

 In PepsiCo's U.S. operations, there may be a focus on individual goals, and employees might expect a degree of
independence in their work.
Vietnam:

 Vietnam tends to be more collectivist, valuing group harmony and loyalty.

 In PepsiCo's Vietnamese operations, teamwork and collaboration may be more emphasized, and decisions might be
made with consideration for the collective.
Impact on PepsiCo: Balancing individualism and collectivism in management approaches is crucial for PepsiCo. Recognizing individual
achievements in the U.S. and fostering a sense of belonging and team spirit in Vietnam is important.
3. Uncertainty Avoidance:
United States:

 The U.S. has a lower uncertainty avoidance culture, indicating a higher tolerance for ambiguity and risk-taking.

 In PepsiCo's U.S. operations, there may be openness to innovation and adaptability to changes in the market.
Vietnam:

 Vietnam tends to have a higher uncertainty avoidance culture, suggesting a preference for stability and structured environments.

 In PepsiCo's Vietnamese operations, there might be a more cautious approach to change, and adherence to established
procedures.
Impact on PepsiCo: Adapting to the level of uncertainty avoidance is vital for PepsiCo's business strategies. Flexibility and innovation in the U.S.,
and clear structures and stability in Vietnam are essential.
4. Masculinity:
United States:

 The U.S. typically has a more masculine culture, valuing competitiveness and achievement.
  In PepsiCo's U.S. operations, there may be an emphasis on individual success and assertive leadership styles.
Vietnam:

 Vietnam tends to have a more balanced approach to masculinity and femininity.

 In PepsiCo's Vietnamese operations, there may be a focus on collaboration, and a more harmonious work environment.
Impact on PepsiCo: Understanding cultural attitudes towards masculinity guides PepsiCo in tailoring leadership styles. Recognizing individual
achievements in the U.S. and fostering a collaborative work environment in Vietnam is essential.
5. Long-term Orientation:
United States:

 The U.S. typically has a shorter-term orientation, valuing quick results and gratification.

 In PepsiCo's U.S. operations, there may be a focus on short-term goals and adaptability to market changes.
Vietnam:

 Vietnam tends to have a longer-term orientation, emphasizing perseverance and sustainability.

 In PepsiCo's Vietnamese operations, there may be a focus on long-term planning and stability.
Impact on PepsiCo: Aligning with the cultural orientation towards time is crucial for PepsiCo's strategic planning. Balancing short-term goals with
long-term sustainability in the U.S. and recognizing the need for stability in Vietnam is vital.
6. Indulgence:
United States:

 The U.S. is generally considered an indulgent society, allowing for the gratification of desires.

 In PepsiCo's U.S. operations, marketing strategies may focus on consumer pleasure and enjoyment.
Vietnam:

 Vietnam tends to be more restrained, emphasizing self-discipline and control.

 In PepsiCo's Vietnamese operations, marketing strategies may highlight responsible consumption and health benefits.
Impact on PepsiCo: Understanding the level of indulgence guides PepsiCo in tailoring marketing and product strategies. Recognizing consumer
desires and promoting responsible consumption in the U.S., and emphasizing self-discipline in Vietnam is crucial.
Examples of KPIs to measure organisation’s responses
A. Related and Supporting Industries:
KPI: Supplier Relationship Strength
Analysis:
1. Number of Strategic Suppliers:

 Measure the number of suppliers considered strategic to PepsiCo. A higher number may indicate a diversified and robust supplier
base.

 Example: PepsiCo has identified and maintains strong relationships with 20 strategic suppliers globally.
2. Supplier Satisfaction Score:

 Conduct surveys or assessments to gauge supplier satisfaction. A higher score indicates stronger relationships and better
collaboration.

 Example: PepsiCo's Supplier Satisfaction Score is 85%, reflecting a high level of satisfaction among key suppliers.
3. Supply Chain Resilience:

 Evaluate how well PepsiCo's supply chain handles disruptions. This could be measured by assessing the impact of external factors
(e.g., natural disasters, geopolitical events) on the supply chain.

 Example: PepsiCo demonstrated a supply chain resilience index of 90%, indicating the ability to adapt to unforeseen challenges.
B. Factor Conditions:
KPI: Research and Development Investment
Analysis:
1. R&D Expenditure as a Percentage of Revenue:
 Measure the percentage of PepsiCo's revenue invested in research and development. A higher percentage indicates a commitment
to innovation.

 Example: PepsiCo allocates 5% of its annual revenue to research and development activities.
2. Number of Patents Filed:

 Track the number of patents filed by PepsiCo. This indicates the level of innovation and the company's focus on developing new
technologies and products.

 Example: PepsiCo filed 50 new patents in the last fiscal year, showcasing a commitment to technological advancements.
3. Time-to-Market for New Products:

 Assess the average time it takes for PepsiCo to bring a new product from ideation to market. A shorter time frame indicates efficient
R&D processes.

 Example: PepsiCo achieved an average time-to-market of 12 months for its new products, showcasing agility and innovation speed.