Essay on Pepsi Challenge

2387 Words10 Pages
CONTENT :

Topic Page
Analyze Russia at the time of the case, 1992, 1-2 (Using the PEST and Geography framework)
Analyze Pepsi as a company using only the information in the case 3-4
Recommendations for Pepsi to become successful in Russia 4-5
Answer the specific questions asked by Bill Shaddy in the last paragraph of the case 5-6

Pepsi challenge – Russia 1992
Pepsi is a soft drink produced and manufactured by
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Therefore, this is the one talent issue for Pepsi to make more market share.
Social factor;
The social style and culture affect on international business. One problem why Pepsi cannot rapidly grow in Russia is language and cultural barriers. The culture is traditional. There are not many people who have English knowledge. Moreover, confidential issue should be careful because everyone talks and share information to each other in their society. The other interesting point is that Russians are not get use to western style resulting to difficulty of working in western company. Russian system is flexible and no specific rule in some topics; for example businesses cannot get reference checks for their employments. Because of social factors, Russians are less interest in foreign business even though there are many western companies in Russia, so that it creates the difficult work for HR department when they want to hire efficient labor.
Technology factor;
Technology is competitive advantage for international business. In Russia, there are fewer technologies to allow customers to easily access to products. All technologies base on the local resources. However, Pepsi use the technology to be the media of their advertising, such as television, and newspaper. Pepsi also adds the technology such as vending machine in their selling instead of using middle man
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