Following the fact on file that Pepsi Company has been undergoing a constant international training and development strategy, the best recommendation in such a situation would be incorporating the services of corporate managers. International corporate managers have the obligation of overseeing all the productivity as well as the liability levels of each and every department of the company and employees. The simple objective of this is to fuse the current needs of society together with the available resources of the firm and closely matching them with the Management trending taste and preferences of consumers of a particular good or services that Pepsi has to offer. We all understand that once the tastes and preference to customers have been met it reflects hugely on the sales and profits and makes an even greater impact to shareholders.
The second recommendation that can be considered by Pepsi is perhaps merging with a potentially lucrative firm that is still emerging but which is a little minor as compared to the market coverage of Pepsi (Vallabhaneni, 2012). The benefit of merging resources with another firm is simply to cut down the level of the initial cost of production that would have been used to run the major commodities that Pepsi has to offer. Merging of companies is a business strategy that is used to benefit mutually all the organizations that have agreed to work together in order to maximize their respective levels of economies of scale.
The first implication with hiring corporate managers is the fact they may come and steal the corporate intellectual knowledge about Pepsi and instead, sell it on the international market at a higher price. Stealing of corporate rights such as the raw plans of a marketing and sales strategy is a big risk since the organization may end up lacking a contingency plan if by any chance some of its current objective do not come to pass (Landly, 2012). This is the worst case scenario since the organization will definitely be destined for an untimely doom.
In conclusion, international relations have the tendency of predicting the future changes Management in the prices of commodities and Pepsi’s services will not be any different. If prediction comes to happen, chances are that the organization might lose a whole load of money to the predictions that are mostly benefitted by international intermediate businessmen. Ideally, this could impact the general productivity of the business by lowering its diseconomies of scale. The economies of scale of Pepsi could be cut down from an over 70% to a less than 50% depending on the intensity of the predictions in the real world.
Vallabhaneni, S. (2012). Corporate management, governance, and ethics best practices.
Hoboken, N.J.: Wiley. Landly, D. (2012). Corporate Management. Virginia, B.L Kislev
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