Introduction The Pepsi Company was founded by an American called Caleb Bradham in 1898 in New Bern, North Carolina and the syrup, currently known as Pepsi, was originally branded “Brad’s Drink” when it was first launched into the US market (Capparell, 2007). The company is the fiercest rival of the world’s number one carbonated soft drinks manufacturer Coca Cola both domestically and globally. Pepsi Beverage Company (simply referred to as PepsiCo) has spread its product in most countries around the world with the aim of increasing its market share and customer base. However, like any other company that seeks to venture into a foreign country, a well thought out marketing research must be done to inform the company’s management of the appropriating marketing strategy to adopt that would make the venture successful. The paper attempts to discuss the activities of PepsiCo in Israel; and how the country’s population, culture, political and socio-economic practices influence the product’s, Mountain Dew, marketing plan. The analysis of the business environment of Israel will be done through suitable marketing mix that considers the socio-cultural and politico- economic environments. The Business Environment of Israel Doing business in Israel means that PepsiCo masters the dynamics of the business environment of the country and streamlines its marketing strategy accordingly. The ostracization of Israel by most countries in the Middle East is a delicate reality that any foreign country venturing into Israel must consider. Given the strenuous relationship between Arab countries and the state of Israel, a company that wants to go global must choose either Israel with relatively small market share compared to the massive Arabic market share. For this reason, the two US giant carbonated drinks avoided the Israeli market and instead did business with Arab countries for a long time before Coca Cola pioneered the Israeli market in 1966. The entry of PepsiCo came much later in 1992 (BW, 1992). PepsiCo manufactures carbonated soft drinks and sells them under the following names: Pepsi, Mountain Dew, 7up and Mirinda , and sells them in the US, its domestic market. Mountain Dew, shortened as Mtn Dew , is a brand of citrus-flavored carbonated beverage that PepsiCo endeavors to market in the Israeli global marketplace. The company has produced the brand in many flavors since 1980s and the trend has continued in the 21 st century. The company has further expanded the brand into specialty, limited its production time, and made it retailer specific. By 2009, Mountain Dew brand had a 6.7% share of the all carbonated soft drinks within the US market; and it constitutes 80% sales of citrus soft drinks in the US (Standard & Poor’s, 2009). The ingredients used to manufacture Mountain Dew include carbonated water, high-fructose corn syrup, citric acid, concentrated orange juice, natural flavors, sodium benzoate, caffeine, erythorbic acid, sodium citrate, gum Arabic, brominated vegetable oil, calcium disodium EDTA (Capparell, 2007). It should be noted that the ingredients used to manufacture Mountain Dew varies from country to country and therefore, it will be different in Israel. When entering the Israeli global marketplace, PepsiCo will have to replace sugar with high fructo