BUSINESS ORGANIZATIONS AND ENVIRONMENTS IN A GLOBAL CONTEXT

Businesses make decisions upon guidance from undertaking extensive research on market factors which informs the ability of better returns from such markets. An analysis of the business organizations in relation to environments on a global perspective makes it imperative to identify the opportunities and threats existing in a given segment for the creation of working solutions. An appraisal of the business environment involves the understanding of the political, economic, social, technological, legal and ecological orientation of the market to establish how best the business organization can attain their objectives. Background Information on PepsiCo Pepsi Co. was first introduced in 1893 by Caleb Bradham in his drug store and renamed it Pepsi-Cola in 1898 originating from the ingredients used of dyspepsia and kola nuts (Muzumdar, 2014, 11). PepsiCo should equally recognize their role in negotiating a formidable strategy towards challenging suppliers bargaining power to enhance their capacity in Norway.

For instance, a decision to engage local multiple suppliers from Norway will provide the organization with the benefit of controlling their input hence limit the threat of supplier dominance. PepsiCo existence in the Norwegian market will have to recognize the threat that comes from buyers’ power to influence their performance. Buyers are always asking for a price that would better meet their budgets hence the nature of consumers in Norway requires PepsiCo to implement measures that would attract the interest of consumers. Product development through innovation will go a long way into improving the quality of their products to attract consumers. Developing markets consists of nations that are on the struggle to establish economies reflecting the standards of developed nations through several parameters on the elimination of poverty, enhancing food security, providing drinking water and decent sanitation facility, and enhancing the per capita income (Daniels, Radebaugh, and Sullivan, 2010, 18).

The market calls for international organizations to evaluate the possibility of such economies having the requisite purchasing power that would effectively support the consumption of their product. Norwegian Market PESTLE Analysis The political environment of the Norwegian community supports business progression since the Kingdom has fostered stability and serenity that allows business continuity with minimal disruptions. The constitutional monarchy structure of governance provides political and economic stability which makes the ease of doing business and prospects for growth predictable for most businesses. Moreover, the kingdom has extensively made it possible to provide an environment that better supports business growth through putting in place legislation that supports personal security and protection of property. The stable economy has made it possible for country to support their population through providing employment evident from the 2.

unemployment rate that is low compared to most world countries. The World Economic Forum in 2009 ranked Norway as the 15th most competitive economy among 131 countries on a review representing a nation positioned to rise exponentially on the Global Competitive Index. Despite the global economic dynamics and uncertainty, Norway is based on a strong economy based on a better GDP per capita indicative of improved purchasing power and expenditure by consumers. Norwegian GDP Per Capita The social orientation of the people of Norway indicates a society consisting of well-informed personalities that value the virtue of honesty and cooperation. The reliance of technology makes it possible for businesses to reduce their costs substantively and equally grow their brand through efficiency that satisfies consumer expectations. Digital revolution has set out a new dimension of communication that enables competent business to perform better and move their business interests to align with consumer expectations.

The Norwegian legal regime is above board when it comes to supporting international business growth and order due to the fair regulations governing business conduct. The country enjoys a history of honouring legal obligations and seeking to protect individual businesses interests. Additionally, the Norwegian market has set out ecological conscious initiatives to avert the difficulties that come with climate change and through the development of a robust legal framework adopted policies that support business growth. The strong PepsiCo brand globally offers a competitive advantage in the new market and having the expertise of administering a robust distribution network makes direct exporting as an ideal arrangement for the Norwegian market. The option is better since the market is too small to commit resources compared to having an alliance with local agents to facilitate effective distribution of the product.

The export initiative will take advantage of the company strengths that offers a better distribution framework (Albaum, & Duerr, 2011, 4). The expansion strategy should recognize the risks in the market and would be better placed to offer an effective market uptake of the product since the company has a diversified product range. The capacity to undertake constant research and development positively impact the establishment of a business model representing the aspiration of the people of Norway. Besides, it has an effective inventory system that ensures consumers get what they need whenever they need it. With its low prices, the company has created a barrier for new companies to venture into the industry and beat it and equally setting a higher pedestal for competitors (Timilsina 2015, 14). The global expansion drive comes with the need to apply different models that initiate a framework responsible for creating an understanding within the employees and stakeholders.

PepsiCo Norway should place its stakeholders in the order of priority. The investors hold the highest priority while the suppliers hold the least priority. References About - PepsiCo. n. d. Retrieved from http://www. pepsico. and Hashim, N. M. H. N. Threats to New Product Innovativeness and the Effects of Supplier Influence Processes. Soft Drink Supply Chain Sustainability: A Case Based Approach to Identify and Explain Best Practices and Key Performance Indicators.  Sustainability, 10(10), p. Muzumdar, P. A Study of Business Process: Case Study Approach to PepsiCo. Schrempf-Stirling, J. Timilsina, B. Competitively Distinct Operations as a Key for Superior and Sustainable Business Performance: An Example from Walmart.  Management (18544223), 10(3). Venkataraman, S. Summers, M. Alves, H. and Raposo, M. A model for stakeholder classification and stakeholder relationships.  Management Decision, 50(10), pp.