Exam

SECTION ONE

1. Using two examples, explain the relationship between the social environment and the increasing criticism of business.

2. Explain the difference between internal and external stakeholders of a company. Referring to any company, give an example of each type of stakeholder.

SECTION TWO

Read the Case Study and answer ALL of the following questions.

PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $66 billion and almost 300,000 employees. Their mission is to be the world's premier consumer products focused on convenient foods and beverages. PepsiCo is home to hundreds of brands around the globe including many recognizable brands such as Pepsi, Sierra Mist, Tropicana, Ocean Spray, Mountain Dew, AMP Energy. SoBe, Aquafina, No Fear, and Dole. As of 2013, 19 of PepsiCo's product lines generated retail sales of more than $1 billion each, and were distributed across more than 200 countries. This established PepsiCo as the second largest food & beverage business in the world.

According to its 2013 annual report, PepsiCo states that it is "committed to delivering sustainable growth by investing in a healthier future for people and our planet", which it has defined in its mission statement since 2008 as "Performance with Purpose". The company's mission is supported by its Guiding Principles, which include "care for our customers, and consumers and the world we live in and "sell-only products we can be proud of". The Performance with Purpose refers to three key areas, namely Human Sustainability, Environmental Sustainability and Talent Sustainability.

The Human Sustainability is to facilitate diversity and healthy lifestyles among consumers. To this end; Pepsico has established the Global Nutrition Group(GNG). The aim of this group is to ensure that consumers' nutritional" demand becomes an integral part of the company's business operations and values, Pepsi Co sustains its innovativeness with the development of different food and beverage, dedicated to increase consumers' well being through food consumption. "

Increased public concern about marketing and distribution of carbonated drinks to children has also propelled PepsiCo to announce that it will remove beverages with high sugar content tom primary and secondary schools worldwide. In response to the "Let's Move" initiative endorsed by first lady Michelle Obama, PepsiCo (in collaboration with Campbell Soup, Coca-cola, Lipton amongst others) has also formed Healthy Weight Commitment Foundations to encourage healthier-food-options in public schools and increase physical activity for children in the US. The foundation consists of food and beverages producers, retailers, sporting goods and Insurance companies, trade associations, an on-governmental organisations. It targeted a reducing obesity by 2015.

PepsiCo as worked to identify and address pertinent public issue that are relevant to healthier lifestyles but also impact on their core business. For instance, PepsiCo has endeavoured to address the concerns of public health advocates regarding the ingredient make up of health advocates regarding the ingredient rates of health conditions such as obesity and diabetes. This has included reducing fat content, moving away from using trans-fats and producing products in calories-specific serving sizes to discourage overconsumption.

To address the criticism on the company's marketing practices, Pepsi Co implemented Responsible Marketing, which includes stricter advertising campaign and nutrition labelling of its products. One of the realizations of responsible marketing is through supporting the international Food and Beverage Allianc (IFBA), non-government organisation working to obtain global commitment to advertise products that meet specific nutrition criteria to children under the age of 12, On a more practical note, the company-stated in its-2012 Sustainability Report "we are working with local communities and schools to focus on providing water, juices, milk and low-calorie beverages in support of healthy nutrition habits."

1. Referring to case study, who do you think are the stakeholders of PepsiCO? List at least five stakeholders in your answer and explain why they are stakeholders.

2. What role can the food and restaurant industries, government and special interest groups play in a solution to the obesity epidemic and what strategies could they employ to communicate position on this social issue?

SECTION THREE

Choose ONE (1) question to answer. If you answer more than one question, only your first answer will be marked.

Utilise the knowledge you have gained to respond to one of the following essay questions. State your position and support it using logical arguments and content from your own research and that of your classmates. In particular you should support your arguments using examples from at least two of the eight companies that were the basis for research in this semester's assessments. These companies were Google, Monsanto, Samsung Electronics, Halliburton, L'Oreal, Hyundai Motor, Caterpillar Inc. and Nike.

1. "Globalisation is good for both business and society". Discuss.

2. What role do you think business should take in shaping Government policy? Discuss.