Decision Making Analysis Essay Example | Topics and Well Written Essays - 1250 words

Decision Making Analysis - Essay Example This scenario creates a paradox that demanded quite holistic considerations before the decision could be made. This paper shall explore such considerations made by Pepsi and evaluate the ultimate decision made by the CEO. Pepsi is one of the leading Food and Beverage companies worldwide. The head quarter of this company is based in the United State of America. From the USA, Pepsi reaches out to over two hundred other countries of the world and has employed almost three hundred thousand workers in these various countries. This company specializes on the production of soft drinks of different brands. The company however diversifies its production to other related products such as bottled water, savory and even the whole-grain snacks. This diversification has tremendously increased the sale and consequently, the gross profit of the company across the globe (Pepsi, 2010). Moving to Africa was not a soft nut for the management of the company. There were several factors that posed threats to the operations in Africa. On the other hand, the optimistic CEO could discern abundant opportunities for making huge profit in the fallow land of Africa. For that matter, the pros and cons had to be weighed on the same beam balance. Infrastructure is always the key consideration made by any multinational companies before opening corporate businesses in foreign countries. In this case, the target location had poor infrastructure. Bad roads may deter the product distribution and sales especially in the remote areas. The company might have to spend more on vehicle repair and maintenance. Electricity distribution in some parts of Africa is unevenly. The electricity energy is needed to preserve and cool the soft drinks would be lacking in such locations, giving the products a bad taste thereby lowering the demand. Another big challenge to Pepsi Company would be its competitors, and in this case, the Coca cola company which has deeply established its roots in the