Assignment Detail

Assignment ID: FG133233118

Question: you will utilize PepsiCo as a focus company to discuss the business and economic environment focus of this organization. Please respond to the following questions:

Discuss the nature of PepsiCo’s business and its related environment by addressing the following:

Business: indicate the types of products that the PepsiCo sells and the global locations where it does business.

Internal Environment: describe two participants in PepsiCo’s internal environment and how they impact the success of the company.

External Environment: describe two participants in PepsiCo’s external environment and how they positively or negatively impact the success of the company.

Since PepsiCo is a global business, it operates in different economic systems and economic market structures. Assuming that PepsiCo would like to further expand its global operations, discuss the relationship between business and economics by addressing the following:

Summarize the difference between capitalism, communism, socialism, and a mixed economy. Indicate which economic system would be the most desirable for PepsiCo’s expansion plans and provide your rationale.

Summarize the difference between perfect competition, pure monopoly, monopolistic competition, and oligopoly. Indicate which economic market structure would be the most desirable for PepsiCo’s expansion plans and provide your rationale.

Differentiate between macroeconomics and microeconomics by addressing the following:

Macroeconomics: assume that PepsiCo monitors the U.S. Gross Domestic Product (“GDP”) as part of its U.S. operations and observed that the latest report shows a 2% increase over last year. Describe the purpose of the GDP and indicate how the information could impact a business such as PepsiCo. If you were part of their upper management, how would you utilize this information in a discussion related to expansion?

Microeconomics: discuss the factors which impact the demand for PepsiCo’s products. What would cause customers to demand more of them? What would cause customers to demand less? Assume that there was a shortage of an ingredient needed to make one of PepsiCo’s products, which will decrease supply. How would this impact the price? Also, how would this impact demand? Finally, describe how the equilibrium price for one of PepsiCo’s products would be determined. Could PepsiCo charge as much as they want? Why or why not?