Environmental Analysis Paper
MBA580
University of Phoenix
Introduction
PepsiAmericas needed to analyze the forces and trends that could impact the company in the next three to five years. The leadership team opted to benchmark companies or other industries to identify any opportunities or threats and this investigation reveals the results. “The operating environment also called the competitive or task environment comprises factors in the competitive situation that affect a firm’s success in acquiring needed resources or in profitably marketing its goods and services. Among the most important of these factors are the firm’s competitive position, the composition of its customers, its reputation among suppliers and creditors, and its ability to attract capable employees. The operating environment is typically much more subject to the firm’s influence or control than the remote environment. Thus, firms can be much more proactive (as opposed to reactive) in dealing with the operating environment than in dealing with the remote environment” (Pearce & Robinson, 2004, p. 29).
Within the operating environment, is a nature of labor market force that directly relates to PepsiAmericas. PepsiAmericas is a manufacturing company that employs several unionized labor workers. Several studies and forecasts have been released solidifying that unionized labor is decreasing steadily and by 2010 they will almost be nonexistent. The company’s human resources department decided to conduct environmental scanning to verify these conclusions and to identify alternatives to reverse union density. The Journal of Labor Research identified the main issues affecting the unions and what changes can be made to reverse the projected outcomes. The chal ...