Insightful Business Report on Pepsico: Types, Size, Scope, Interrelationship of Functions, and Impact of Globalisation

This report provides insightful information on types, size, and scope of business organisation. It evaluates interrelationship of various functions organised in an business organisation with each other. It also presents framework models to identify and determine internal as well as external factors or forces that impact upon business operations. The report focuses on Pepsico, a leading brand in world engaged in manufacturing of Food products and beverages. It analyses the impact of globalisation on organisational decision-making.

Business Report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Types of business organisation...............................................................................................3
Size of Company....................................................................................................................4
Scope of Business organisation..............................................................................................5
Interrelationship of functions on organisation structure.........................................................5
Influence of Globalisation upon organisational decision-making........................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business organisation is determined as a entity engaged in carrying out commercial
operations and practices of buying and selling of goods and services. For instance, these entities
are organised with setting up of goals and objectives prior to their establishment to be achieved
by executing their operations and practices. Business environment is defined as aggregate of
factors that results in influencing operations of a business organisation in some or the other
manner. Pepsico is among the leading brands in world engaged in manufacturing of Food
products and beverages in order to be served into consumer market. This report assessment will
be comprised of insightful information and knowledge of type, size, and scope of business
organisation (Ilin, and et. al., 2018). Furthermore, it will further evaluate interrelationship of
various functions organised in an business organisation with each other. In addition to that, few
framework models will be presented in order to identify and determine internal as well as
external factors or forces that impact upon business operations.
MAIN BODY
Types of business organisation
Business organisation are established and organised upon different strcutures which
includes different approaches to work, operations, activities, funds, etc. There are various
different types of business organisation being regulated in business environment which are as
follows:
 Sole trader or proprietor: This type of business organisation is considered as most
easiest and simplest to be established as it involves single representative in carrying out
operations and activities of that particular business organisation. For instance, the sole
trader operates with unlimited liability as well as share of profit earned through business
activities and practises.
 Partnership: It includes involvement of two or more representatives engaged in business
operations and activities with an agreed amount of share in every aspect of business
organisation. In addition to that, these aspects includes investment, liability, share of
profit, stakes, etc. Therefore, each and every partner is responsible for any sort of
misconduct in workplace.

 Limited Liability company: This type of business organisation is quite similar to
partnership except the fact that liability of a partner is limited according to their
contribution in investment. For instance, LLP business organisation has to be registered
under HMRC in order to execute various operations and activities. Furthermore, it
requires minimum of 2 members that could either be an individual or a representative
company (Jallow, 2021).
 Public company: This business organisation is generally large scale business entities
which are owned by people as their shareholders and regulated by management
representatives. Moreover, these large scale business organisation are limited by shares or
by guarantee.
Being a large-scale business organisation, Pepsico is a public company which has
dispensed ownership to general public through issue of shares over the counter or on exchange.
For instance, it facilitates in raising funds for carrying out operations and activities on huge level
as it is engaged in serving their products to customers all around the globe. Furthermore,
respective organisation is operating with global presence which requires huge investment. In
addition to that, this type of business organisation is facilitated with funds from dispensing
ownership to people in society.
Size of Company
Size of a business organisation is determined by analysing the amount of revenue
generated by the same in a particular duration of time. Moreover, size of a business organisation
is further classified in 3 different categories which are as follows:
 Small Business enterprise: These business organisation is determined as small company
or business being comprised of 0 to 100 employees engaged in carrying out operations
and activities. Furthermore, it involves companies with annual revenue between 5 to 10
million euros and is serving under a limited and defined geographical boundary.
 Medium Enterprises: It include business entities with 100 to 500 employees engaged in
workplace, carrying out business operations. Moreover, companies or entities under this
category attains an annual revenue of 10 million euros to 1 billion euros.
 Large Business Enterprise: This division of size of business organisation is comprised
of big fortune business entities with over 1000 employees. In addition to that, these

business organisations result in attaining an annual revenue of over 1 billion euros (Mas
and Gómez, 2021).
Pepsico falls in the category of Large Business Enterprise as it has been employing over
200,000 employees in their workplace all over the globe. For instance, with huge scale
operations and activities being carried out by respective organisation, it facilitates in generating
and acquiring huge revenue and profits out of same. Furthermore, different and specific
representatives are engaged in carrying out assigned tasks and responsibilities according to need
and requirements of respective organisation.
Scope of Business organisation
Scope is basically determined as areas or opportunities for further growth and expansion
of respective business organisation in order to ensure success. There are various scope of
business organisations in order to attain further growth and development which are as follows:
 Globalisation: It is determined as interconnectedness of different economic nations
among each other with cross-border trades. For instance, it results in being a major scope
for business organisation to expand their services further which includes goods and
services, investment, technology, etc.
 Diversification: This aspect is meant by development and introduction of new products
and services into consumer market in order to meet customer requirements. In addition to
that, it facilitates in increasing overall sales for the products offered by respective
organisation into consumer market.
 Advanced Technology: Advancement of technology results in providing innovative and
efficient technological aspects to business organisations in order to enhance overall
productivity in workplace (Michie, 2019).
Interrelationship of functions on organisation structure
A business organisation is comprised of various functions to be organised in order to
carry out operations and activities for development of final product to be served into consumer
market. Moreover, it includes marketing, finance, HR, operations, etc. which are organised with
a interconnection among each other.
Marketing and Finance
Marketing is defined as activities and practices related to promotion of products and
services offered by a business organisation to customers. For instance, It starts prior to

development of product or service as it includes gathering information and knowledge for
development of appropriate and suitable product and goes on succeedingly.
Finance function in a business organisation is organised in order to facilitate financial
stability to respective organisation. For instance, it includes raising funds as well as efficient
allocation of acquired funds in order to earn most out of it.
Marketing and finance functions have a huge interconnection in a workplace of business
organisation as it involves practices and activities that results in influencing practices organised
in another function. Information and knowledge acquired in marketing practices facilitates in
suitable sources of raising funds whereas developing appropriate budget in finance function
determines efficient allocation of funds for carrying out marketing practices in order to promote
products and services offered to customers (Mikova, and et. al., 2018).
Therefore, activities and practices in these different business functions are interlinked
with each other.
HR and Operations
Human resource management function deals with workforce engaged in a workplace. For
instance, it includes activities and practices which initially starts with recruitment and selection
of appropriate candidates.
Operations is basically determined as production or manufacturing function being
regulated in a workspace.
Human resource management is directly linked with operations with various aspects. For
instance, candidates appointed in recruitment and selection procedure are responsible for
carrying out operations and activities in workplace of respective organisation. In addition to that,
HR practices are determined at development of positive and productive working environment
which further results in enhancing overall productivity in workplace. On the other hand,
analysing tasks and practices in operations further results in determination of eligibility criteria
of considering appropriate and suitable individual for carrying out business operations (Morozko,
Morozko and Didenko, 2018).
SWOT Analysis
It is determined as a strategic planning and management framework which is taken into
consideration in order to identify and determine internal factors as external factors related to
operations and activities in a business organisation. For instance, internal factors determines

strengths and weaknesses whereas external factors demonstrates opportunities and threats to
business organisation in carrying out their operations and activities.
Strengths
 Highly diversifies product range: The
respective organisation is engaged in
serving a diversified portfolio of
products to customers in society which
facilitates in attracting higher number
of customers towards company's
offerings. For instance, it includes food
and beverages with various flavours in
order to meet consumer demand and
preferences. Therefore, this aspect
results in being a major strength for the
respective organisation.
 Global Presence: Being a large-scale
organisation with world-wide presence
of business units, it facilitates in
serving higher number of customers to
a maximum extent. Moreover, it further
results in enhancing global awareness
of respective business organisation as
well as products offered by company.
Therefore, this aspect results in
acquiring maximum profits from
serving products into consumer market
(Ongena and Ravesteyn, 2019).
Weaknesses
 Perceived as unhealthy products:
Food products and beverages offered
by Pepsico are considered as unhealthy
among customers as it contains high
amount of sugar and additional
preservatives. Furthermore, this aspect
has resulted in being the barrier in
customer preference towards products
offered by respective organisation.
Therefore, respective organisation has
lost various customer from their
existing customer base.
 Controversial Advertisements:
Pepsico has faced various allegations in
their inefficient advertisement practices
due to neglecting social factors. For
instance, advertisement featuring
Kendall Jenner was condemned against
the movement of Black Lives Matter.
In addition to that, it was withdrawn
just after one day due to these false
allegations and objections in society.
Opportunities
 Introducing healthy products:
Awareness of Health consciousness is
spreading rapidly in society, which has
Threats
 Existing competitors: Food and
beverage industry is comprised of
enormous number of business

resulted in creating a opportunity for
respective organisation to innovate and
introduce their products with healthy
factors. For instance, Pepsico could use
healthy ingredients as raw materials in
producing final output to be served into
consumer market. Therefore, healthy
products as well as efficient
promotional activities for the same will
contribute in increasing existing
customer base of respective
organisation.
 Enhancing CSR: As a consequence of
controversies, respective organisation
has faced many challenges and issues
due to development of negative market
image. Initiating additional efforts
towards social responsibilities could
facilitate in regaining positive brand
image which could further result in
increasing sales for products offered by
company.
organisations engaged in serving their
products to meet customer
requirements. For instance, Coca-Cola,
Red Bull, P&G, Kellog's, etc. are some
major competitors of respective
organisation with high market share.
Therefore, competition in market is
always a major threat for a business
organisation to survive and ensure
further growth and success.
 Increasing awareness of health
consciousness: Increasing awareness of
health-consciousness in society could
result in being a major threat for
Pepsico. For instance, respective
organisation has been facing many
challenges due to unhealthy products
offered to customers. Therefore, it
could lead to shift of customers towards
healthy products as a substitute of Food
products and beverages offered by
Pepsico.
PESTLE Analysis
Pestle analysis is one of the primary framework used by management representatives of a
business organisation in order to determine macro environment factors that results in influencing
operations of business organisation. Furthermore, these factors are further classified into various
categories which are as follows:
Political Factors
 Political Stability: This aspect of stability in government of a geographical location
plays a major impact upon carrying out operations and activities in that particular

economic nation. For instance, it facilitates in providing smooth flow of cross-border
trades of products and services. Therefore, political stability results in being a positive
aspect for respective organisation (Perraton, 2019). Government initiatives towards healthy society: Government authorities are aimed at
promoting health factor in society with providing additional benefits to business
organisation engaged in serving healthy products to their customers. As the products of
respective organisation is considered as unhealthy, it could result in being a negative
aspect for Pepsico.
Economical Factors
 Developing economies: Growing economies results in being a good opportunity for
respective organisation for further growth and expansion of business organisation. For
instance, customers in developing economies have higher pocket allowance as well as
spending power which facilitates in increasing overall sales of products offered by
company. Therefore, it results in being a positive aspect for respective organisation. Economic Crisis: It is determined as situation of sudden downfall in an economic nation
due to various reasons which results in degradation of economy. For instance, higher
interest rates, less confidence in investment, credit crunches, etc. are some major reasons
to arise of economic crisis in a nation. Furthermore, it results in being a barrier to sales of
products offered by respective organisation up to a standard.
Social Factors
 Health-consciousness: Spread of awareness for health-consciousness in society results in
being a negative aspect to respective organisation. As a result, people in society often
look after healthy option for Food and beverages offered by company's in consumer
market. Therefore, it further results in degradation of overall sales of Food products and
beverages served by Pepsico in consumer market (Sisodia and Gelb, 2019). Spending behaviour of consumers: Consumer in society are now more likely to spend
upon Food and beverages in their daily routine due to their busy schedules. For instance,
this aspect facilitates in increasing sales of company's offering with regular consumption
of the same by consumers.
Technological Factors

 Research & Development: Technological aspects in a workplace facilitates in efficient
practices of research & development function of business organisation. For instance, it
allows management representatives in acquiring information and knowledge of various
external factors and aspects including future market trends and consumer preferences.
Therefore, information provided by R&D facilitates business organisation in being ready
to face future circumstances and situations. Technology advancement: With the rapid advancement and up gradation of technology,
it results in a necessity to adapt these changes into working as it facilitates in enhancing
efficiency and productivity in workplace. Furthermore, lack of advanced technology in
carrying out operations and activities could result in inefficient completion of operations
and activities.
Legal Factors
 Health and safety regulations: Rules and regulations implemented by government upon
health and safety precautions for business organisations are need to taken into
consideration in order to ensure effective and efficient completion of business operations.
Furthermore, lack of consideration of these regulations could result in negative impact
upon respective organisation. Rules over GMO ingredients: Regulations by government has been introduced in order
to minimise the usage of GMO ingredients as input in manufacturing of final product. For
instance, Pepsico need to consider these regulations in order to ensure ethical and
appropriate business practices.
Environmental Factors
 Environmental Sustainability: It is directly meant by minimising waste of resources
used in production procedures. For instance, in order to maintain environmental
sustainability, respective organisation need to operate with optimum utilisation of
resources which will further result in minimising waste of resources.
 Climate change: Climate and weather conditions of a particular geographic location is
considered as a major aspect which impact upon business operations and activities. In
addition to that, respective organisation need to consider appropriate choice of location
for their business units with suitable climate conditions (Widén, 2019).

Influence of Globalisation upon organisational decision-making
Globalisation is determined as increasing interdependence of economies with each other
all around the globe. For instance, it is defined as prevention of trade barriers among different
economic nations for efficient cross-border trades. These cross-border trades includes flow of
goods and services, financial resources, innovative technology, labour, etc. Moreover, it
facilitates in enhancing reach of business organisation towards foreign business environment as
well as resulted in being beneficial for both the economic nations involves in particular cross-
border trade. Furthermore, it has intensified global competition of business organisation engaged
in operating similar industry or sector.
With the increased reach, business organisations have access to international information
which facilitates in designing and development of appropriate strategies to be implemented in a
workplace in order to ensure further growth and expansion of business. These designed and
developed strategic planning will contribute in prevention of issues or challenges faced by
respective organisation as well as attaining increased heights of success.
In addition to above information, managers and leaders also look out for best approaches
and perspective in order to be implemented in their own workplace. For instance, participative
leadership approach is considered as most suitable and beneficial strategy to be taken into
consideration as it involves workforce in decision-making procedures. It further facilitates in
contribution of effective ideas and suggestions from employees which further results in
identification and consideration of most suitable out of them (Zhao and et. al., 2019).
All the acquired information and knowledge will be taken into account for further
analysis and determination of outcomes from the same. Furthermore, it will support in
developing and appropriate supply chain management in order to supply products and services to
general people from various other economic nations with minimum cost. In addition to that,
globalisation also contributes various other values towards decision-making of business
organisation including access to advanced and latest technology, benefits from economies of
sale, minimising manufacturing costs, learnings from international experience, etc. which
directly results in improvisation and enhancement of overall efficiency and productivity in
workplace.

CONCLUSION
Form the above report assessment it could be concluded that Pepsico is among leading
manufacturing brands engaged in manufacturing and supplying Food products and beverages to
customers in society. With the global presence and huge-level of operations, it falls in the
category of Large Business Enterprise. Furthermore, diversified product line and global presence
has been resulted in being strength of respective organisation as well as unhealthy products and
controversies resulted in being major weakness for the same. Therefore, it also includes impact
of globalisation upon decision-making practices of respective organisation.

REFERENCES
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