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organization's initiative impact costs

Looking at PepsiC 2006 annual report answer the question using the following initiatives.
PepsiCo will position its products as the favorites in the Asian market. To achieve this, the company will:

Description of strategic planning initiatives
Build 2 production plants in China.

Build a network of distribution centers.

Build a network of delivery trucks.

PepsiCo's 2006 Annual Report can be found on this link:

Provide at least 350 words and reference

Solution Preview

Effect on costs:
Build 2 production plants in China.
1. The fixed costs of Pepsi will go up as the plants have to be depreciated.
2. Increased marketing costs to sell the increased production.
3. An increase in variable costs for raw material that go into the production process;
4. An increase in staffing costs as the two plants need to be staffed.
5. An increase in general administrative costs;
6. An increase in licensing costs as new permissions have to be got from the Chinese and local governments;
7. Real estate costs as land has to be purchased in China;
8. Financial costs as Pepsi China will need capital ...

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