roup Case Questions Fall 2012 Case 10 – Pepsi 1. What is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008. 2. What is your assessment of the long-term attractiveness of the industries represented in PepsiCo’s business portfolio?
Coca-Cola Vs. Pepsi August 25, 2013 Financial Accounting Page 1 Coca-Cola vs Pepsi Coca-Cola vs. PepsiCo When analyzing the financial statements of two industry leaders both in the soft drink industry. In the analysis of these two giants we can see a vertical analysis (also called common-size analysis) which is a technique that expresses each financial statement item as a percent of a base amount. When looking into each of these companies we will see how each of them have done in a three year plan. We look at how each of them stumbled a bit, but when taking a closer look at the overall aspect of the companies as a whole we will see how they did technically well and came out each year on top. Also analysis’s, base assets of total assets, for liabilities and stockholders’ equity.
The PepsiCo Company stated in 1965 when founder Donald Kendall, president of Pepsi-Cola and Heman W. Lay, chairman of Frito-Lay merged the companies together. Founder Caleb Bradham, a pharmacist from North Carolina started the Pepsi-Cola brand in the late 1890s. He would sale his cola out of his drugstores, a formula that he created on his own. “Brad’s drink was made of carbonated water, sugar, vanilla, rare oils, pepsin and cola nuts. The company renamed its name in 1898 and trademarked itself on June 16th, 1903.
■ From 1975 to 1995 both Coke and Pepsi achieve average annual growth of around 10% ■ American’s drank more soda than any other beverage ■ Very large market share. More than 50% after the year 1994 (reached the top to 54% in 1998). ■ Average 10.65% net profit in sales for both Pepsi and Coke. ■ The US soft drink market share of Coca Cola Company and PepsiCo Inc. grew from 53.8 % to 74.8% in the year 1966 to 2004. From this fact we can learn that the soft drink industry is dominated by these 2 firms which holding the market power and a competitive fringe with many smaller firms acting as price takers.
Ethics and Compliance-PepsiCo Learning Team A FIN/370 May 21, 2012 Ethics and Compliance-PepsiCo Most organizations employ the use of business plans to be successful. However, ethics and compliance should play an important role in every business to secure success. Learning Team A has chosen to evaluate PepsiCo and their commitment to ethical standards and compliance. Through the research, we have obtained PepsiCo’s annual report and Securities and Exchange Commission (SEC) filings for the last two years. Through their products and their beliefs nationwide, PepsiCo is committed to ethical behavior and compliance.
Many of the brands that the two companies have are intended to be direct competition of each other. The chart below gives a better view: Pepsi | Coke | Pepsi | Coca-Cola | Diet Pepsi / Pepsi Light Pepsi ONE Pepsi Max | Diet Coke / Coca-Cola Light Coca-Cola Zero | Sierra Mist | Sprite | Mountain Dew Kas Izze | Mello Yello Vault Fresca | Tropicana Dole | Minute Maid Fruitopia Simply Orange | Gatorade Propel | Powerade Aquarius Vitamin Water | AMP | Full Throttle NOS, Monster | The chart gives an illustration of how when one company introduces a new sports drink, or a new tea line the other competitor does the same thing as well but with a different name for the product. The way that Pepsi making their stamp in the market is to continue coming out with brands those customers may like and that’s in line with Coke. Pepsi wants to stay ahead and also wants to continue to make and gain revenue from their product. Pepsi wants to expand their growth and to take advantage of potential opportunities, they will be able to do this my expanding their
The information provided in this paper was taken from both Coco-Cola and PepsiCo Consolidated Financial Statements to present the analyses performed by utilizing three revenue statement analyses tools: The Vertical Analyses, Horizontal Analysis, and Ratios Analyses. I will also provide some recommendations on how Coco-Cola and Pepsi could improve their financial status. Those who are considering investing in both PepsiCo and Coco-Cola will need to look at while giving consideration to a large amount of information before making any decision on which of the companies would be a healthier investment. For example most investors should review for each business their current assets and their current liabilities amounts. Coca-Cola 2004 financial report revealed more than $12,281 million dollars in current assets and according to PepsiCo financial report for the same year it revealed just $8,639 million dollars in their current assets.
Coca-Cola Company vs. PepsiCo, Inc Tina Davis Dr. David Humphries ACC 305 Intermediate Accounting III 9/11/13 Pensions Plans of Coca-Cola and PepsiCo Pension plan is an important feature in the modern day society and should therefore be embraced by companies. The Coca-Cola and PepsiCo have done very well in ensuring that their employees get full benefits from this arrangement (The Coca-Cola Company, 2008). Though they may differ in the way they offer this service, the benefits are strongly felt by those who subscribe. The two companies work under the 401k pension plan with insurance advantage on the medical requirements for the employees. This is a special type of a plan with friendly taxation measures that favors the employees and the company itself.
Market through horizontal diversification growth strategy. Market a product that goes great with a cold Coca-Cola. Acquire vending machines that sells snacks, chips, candy bars. When a snack is purchased, what goes great with it, an ice cold coke. 3.
The brand has been owned by several different companies over the years and was recently purchased by the Cadbury Schweppes Company from Procter and Gamble Corporation. Hawaiian Punch joined the Dr. Pepper-Seven UP Inc. bottling network, which is the third largest carbonated soft drink bottler in the United States. This allowed the brand to be distributed in the soft drink aisle of the supermarket. The brand is unique in that it is sold in two different sections of the supermarket: the juice aisle as well as the carbonated soft drink aisle. II.