Environmental Factors

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Environmental factors can play a major part in a company's marketing plan. Environmental factors can include social, ecological, political, cultural, technological, and ethical issues. PepsiCo can face all these issues because they are a global company. Many of these issues can affect PepsiCo's marketing plan even in different areas of the United States. Larger environmental factors affect the way they market globally with different factors having to be considered in each area of the world.

A company operates within a larger framework of the external environment that shapes the opportunities and threat to an organization. The external environment for global and domestic marketing decisions is comprised of forces that are part of a
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The U.S. values and beliefs include equality, achievement, youthfulness, efficiency, practically, self-actualization, and freedom. The changes in a social/cultural environment affect the consumer's behavior, which in turn will affect the sales of products. The trends in social/cultural environmental include individuals that will change view of themselves, others and the world around them while moving toward self-fulfillment.

Technology can influence domestic and global marketing decisions and marketing and public relations common sense, especially when it opens any number of doors to being able to tap into a vast global marketplace. Information technology is increasingly becoming important as an enabler to being able to operate efficiently, interfacing with consumers and maintaining financial accuracy and effectively managing resources. PepsiCo has embarked on a multiyear business process transformation initiative that includes the delivery of a SAP (a computer system that will link all of PepsiCo's systems and processes) enterprise resource planning application (PepsiCo.com). This application will help to divert the possibility of PepsiCo not being able to process transactions accurately and effectively or remain in step with the changing needs of the trade, which could result in the loss of customers. Failing to deliver this application on time or anticipate the necessary readiness and training needs
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