External Factor Evaluation Matrix (EFE) for PepsiCo

Factors Weight Rating Score

Opportunities

Increasing demand for healthy food and drinks 0.10 4 0.40

Growing demand for organic and natural products 0.08 3 0.24

Increasing trend of online shopping 0.06 4 0.24

Growing demand for convenience foods and snacks 0.08 4 0.32

Growing demand for energy drinks 0.06 3 0.18

Increasing demand for sustainable packaging 0.08 3 0.24

Growing demand for plant-based food and drinks 0.10 3 0.30

Increasing popularity of e-commerce 0.06 4 0.24

Growing demand for non-alcoholic beverages 0.08 3 0.24

Increasing demand for snacks and beverages in emerging markets 0.10 4 0.40

Threats Intense competition from Coca-Cola and other beverage companies 0.12 2 0.24

Negative impact of COVID-19 pandemic on sales 0.10 2 0.20

Fluctuating commodity prices 0.07 3 0.21

Health concerns associated with sugary drinks 0.09 2 0.18

Changing consumer preferences and tastes 0.08 3 0.24

Stringent government regulations and taxes 0.08 2 0.16

Increasing popularity of private label brands 0.08 2 0.16

Volatility in foreign exchange rates 0.07 3 0.21

Environmental concerns and increasing focus on sustainability 0.10 3 0.30

Increasing cost of raw materials 0.11 2 0.22

Total 1.00 3.09

Please review the weight numbers as it should be calculated to equal 1.00 and the above is not equal to 1.00