19 Jan 2010

Sample Essay: Diversity Action Plan- Pepsi Co


PepsiCo is a transnational organization that has a large consumer base all over the world. Due to future trends in population growth, it will be more important than ever for organizations to prepare for the challenges and opportunities presented by diversity. Issues like water scarcity, health consciousness, and access will be prime concerns for organizations like PepsiCo. With the growth of population, the major population growth is projected to be in Asia, notably in China and India.

To produce more bottled and can drinks for the growing population, PepsiCo needs water supply. Since the world is seeing a decrease in its available potable water level, PepsiCo could tap areas where it can draw enough water to produce both aerated soft drinks and mineral water.


The growing importance of transnational companies in the global market has resulted in risks to the community interests, such as protection of human rights and the environment. However, transnational enterprises could in the course of their activities effectively contribute to the enforcement of these community interests (Nowrot, n.d).

Both PepsiCo and Coca-Cola have had their share of litigations against causing environmental and health risks and water contamination. Under such negative publicity, PepsiCo might do well to stay away from impeding in the heavily populated areas and remove the already scarce water. With the world population set to grow, the need for fresh water and aerated drinks will only increase. In such a situation, the best possible solution for the company would be to increase its sales through innovative practices.

World Bank and Water resources

When the World Bank came up with the idea of establishing a separate body to handle the water resources across the globe, it did so with the intention of providing practical solutions to meet the demand of those who lived without proper drinking water. The World Bank identifies countries and basins where there is an abundance of water resources, but not distributed uniformly. With government approval these water resources are tapped for human consumption and irrigational purposes.

The policy proposed in September 2001 on water resources, saw the World Bank seek the assistance of the private sector. The World Bank felt that the transition in the management of water resources, private investment and management would play an increasing role in managing finance and changes (WRM, 2007).

By associating itself with the World Bank, PepsiCo will have access to enough water for its production, while getting the support of the investing partners to minimize financial implications. This is among the best possible solutions that PepsiCo could enjoy while meeting the growing demand of its aerated drinks and mineral water.


Figure Courtesy: UN World Population Prospects, 1993,  http://www.ifpri.org/2020/BRIEFS/NUMBER05.HTM

The world’s population, today numbering some 5.5 billion people, may approach 12 billion by the end of the next century (Figure 1). By the year 2020, 26 years from today, it will most likely have increased by about 2.5 billion to a total of 8 billion people, an increase of nearly 100 million a year. Over 93 percent of this growth will take place in the developing countries as shown in Figure 2 (Nygaard, 1994).

Considering the above statistics, it can be gauged that the market audience for PepsiCo will be tremendous, and its involvement in national and international water resource management will help the company establish its brand identity in the global market.

PepsiCo can avail financial assistance from the World Bank and other financial institutions and develop water resources for human consumption and also indulge in corporate social responsibilities by protecting water misuse and safe-guarding the environment.


Nowrot Karsten, Share the World’s Resources: Transnational Enterprises and Global Public Goods, http://www.stwr.net/content/view/92/37/

Water Resources Management (WRM), 2007, The World Bank, http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTWRM/0,,contentMDK:20441076~hlPK:1307119~menuPK:1304484~pagePK:148956~piPK:216618~theSitePK:337240,00.html

Nygaard David F, 1994, 2020 Vision Brief 5, World Population Projections, 2020, http://www.ifpri.org/2020/BRIEFS/NUMBER05.HTM

24 Aug 2009

Sample Essay: Growth and the Inflation

It is no doubt that both of these processes pull each other and business is the fluctuating transition between the two. Combating inflation would be counterproductive as it will bring down the growth. Soaring prices of commodities globally, will only result degrading the monetary value of a country. But this cannot be related with just particular country, as this process is globally, that means growth is taking over inflation. The best example is people now enjoy privileges of hiked incomes and incentives, will only push the prices high. Value of anything states that it could not be of any worth, if everyone possesses it. On contrary, prices are rising due to shortage of services, lack of available raw material and expensive processing charges.

For example: The crude prices are shooting exorbitantly, is the recent global turmoil. Every possible effort is being done to keep the Oil prices under control, but reason is very clear. Costly drilling rigs, shortages of operating tools, unavailability of required service, etc have pushed up the prices. Moreover, persons working there, to explore for oil are facing hardships, risk to lives and staying away from their families, will not only lured by fixed salary, but in addition to that incentives are paid from time to time to achieve the estimated target within time limit. Thus until this stage, when the crude is about to sold in the market, all the expenditure will become burden on consumer. This way the prices kept increasing for public, day by day.

Contrary to this, there was a period of 3 years in 1990’s when oil business was on its low and struggled to mark their presence in market. The reason was, crude prices went down tremendously this led all operators and Oil companies not to take out oil as the rates in which they have to market the Oil is lower than their expenditure, that would have made business losses, result was they avoided exploring oil. The outcome of this is that inflation does not mean bad for growth, but it fluctuates under the effect of demand and supply statistics of the market.

Now-a-days in US, there is spurt in demand for meat, eggs, milk that is basic commodities. It can be straight away be termed as Inflation, but as this is a global phenomena, this is that we all are heading towards growth. For countries, that are incapable to match the pace of rapidly developing nations in terms of economy, will definitely face price rise and will be the sole effect of Inflation. Supply demand mismatch arise due to structural shift in demand that is induced by fast growing sectors.

Recent market scenario is analyzed as a result of inflation, on other side that whether it may or may not be, national governments are taking concrete steps to control price rise by making it subsidized, putting ban on exports and eliminating duties on basic products.

After all there is a strong cooperation between World Bank, IMF and UN Food & Agricultural Organization, even that has failed to make any positive efforts and that threatens the macroeconomic stability. Many big companies in US are outsourcing their manpower, in order to cut cost to gain net profit. It cannot be just of inflation, but a reason of cheap resources and opportunities outside US.

Thus one can say that growth is answer to the current bout of high inflation. Inflation is not neutral and in no case if favors rapid economic growth. Also higher inflation never leads to higher income levels in medium and long runs. Inflation reduces the business investments and also reduces productivity. Control on inflation regularly will pay off sooner or latter, resulting in higher per-capita income and thereby pushing national on economic terms.

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