Pepsi Company is one of the world's top consumer product companies possessing important and valuable trademarks in the world. It competes with other major beverages companies, coming second largest beverage company in the whole world after the Coca-Cola Company. Pepsi has dominated a large proportion of the markets globally. It produces several brands. Its major brand is Pepsi-Cola. Moreover, brands likeDiet Pepsi, andMountain dew are also common. All these brands are available in the United States beverage market. Other brands such as Pepsi-Cola are currently available in about 160 countries.The Pepsi Company deals with food and beverages business globally. The company's distribution of the beverages and bottling is conducted by the PepsiCo and other licensed bottlers in various regions of the world. An estimated 271,000 employees have been absorbed by the company for performing various duties. The employees of the Company receive various rewards and bonuses to motivate them. In addition to this, the employees also receive benefits. Such factors contribute to the success of the company globally. This paper gives a PESTLE and Porters five analysis of Pepsi and the recommendations that can be derived from the analysis.

PESTLE Analysis

PESTEL is an acronym in which P represents political while E denotes economic. On the other hand, S denotes social while T represents the technological factors. Moreover, the L stands for leg while the E represents the environmental factors (Ansoff, 2009). All these factors affect a business directly. The PESTLE analysis gives an overview of the overall situation of the business. Below is a PESTLE analysis done by Pepsi.

Political Aspect

Just like any other non-alcoholic beverage seller, Pepsi is regulated by the FDA. FDA like any other body has rules and regulations, whether strict or stringent, set aside to be followed consistently by all the organizations under their control. Like any other company, Pepsi has competitors. These competitors have a strategy of pricing; a fact that Pepsi cannot underrate. These prices are also controlled by the government, so the company has to be in the range of price ceiling and price floor set by the government. Political factors can also be as a result of civil unrest in some other regions of the world(Kluyver, 2000).

Economic Aspect

Recently, there has been an economic downturn in many economies in the world. This has made many companies restructure their marketing and sales strategies in a great way. Moreover, due to reduced profits, most companies have downsized their markets. Evidently, economic factors have the greatest influence on any business/company; irrespective of what it trades in. Fortunately, the economic downturn has been advantageous to Pepsi. This is because, as companies laid off their workers, these people had no option but to spend their time with family and friends at home. This increased the demand for beverage products hence increasing sales for Pepsi(Ansoff, 2009)

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