Huffman Trucking

The risk associated with the initiative and financial effects are many, especially in today's economy. They can range and be as simple as the preference or taste of the consumer, to the success of campaigning and marketing of PepsiCo products. PepsiCo has many risk factors that can affect their corporation financially and its ability to be successful. Weak economic conditions of the world and competitive beverage companies are risks to be considered by PepsiCo. PepsiCo may also be impacted by unexpected change in litigation and regulations that putts limitations on their business activities, which cause prices to go up and demand to go down.

The demand of PepsiCo products depends on the consumer preference and taste. This consumer preference will be affected if Pepsi is unable to innovate and market its products effectively. As stated in PepsiCo's 2012 annual report "We are a consumer products company operating in highly competitive markets and rely on continued demand for our products. To generate revenues and profits, we must sell products that appeal to our customers and to consumers". Plain and simply marketing and innovation are paramount for Pepsi to remain competitive in today's market. Pepsi's success depends on its ability to adapt to consumer trends. As a result Pepsi has concentrated on improving and innovating its line of products to be healthier.

The ever-changing legal and regulatory environment means an increase in operation costs. This cost shall not be passed on to consumers in a large scale, or run the risk of lower demand for Pepsi products. Several other risks come about as a result of legal changes such as limited business activity, reduced demand of products and litigation.

The economy as a whole has had and will have effects on business. Not so good economies in operating countries have had an adverse impact on business results and the financial condition of PepsiCo. Business outside of the US is a significant contributor to Pepsis revenue and profitability. Pepsi has developed business in emerging markets such as China, in return presenting an important future growth opportunity. In its annual report Pepsi states that "If we are unable to expand our businesses in emerging and developing markets as a result of economic and political conditions, increased competition, an inability to acquire or form strategic business alliances or to make necessary infrastructure investments