Please examine the historical performances of Coca-Cola and PepsiCo in terms of EVA. What trends do you observe? What are the factors behind those trends? What do you think are the key drivers of EVA? 3.
Comparative Analysis Case Coca-Cola Company and PepsiCo, Inc. By Intermediate Accounting, fall 2013 Instructor: Chapter2 (a) What are the primary lines of business of these two companies as shown in their notes to the financial statements? (b) Which company has the dominant position in beverage sales? (c) How are inventories for these two companies valued? What cost allocation method is used to report inventory? How does their accounting for inventories affect comparability between the two companies?
(2-3 sentences. 2.0 points) Its best known for Coca-Cola and Coca-Cola based products (shirts, hats, ect.). 3. Where does this company sell its products or services? (2-4 sentences.
Among them, critical accounting estimates includes: Sales revenue, Receivables, and sales incentive, and bad debt expense. 1b. What dose Pepsi say in Footnote 2 about its use of accounting estimates? What risk do these estimates pose for the auditor? The preparation of our consolidated financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities.
Coca Cola Amatil EXECUTIVE SUMMARY The purpose of this report is to communicate the internal and external influences on the operations of the business. The following points will be covered: 1. Relevant internal and external stakeholders of Coca-Cola Amatil. 2. Internal and external influences on the operations of Coca-Cola Amatil.
Over the next few pages I will discuss in detail eh history of one of the most famous breweries of all time Anheuser Busch. I will look at how the company was started and what changes or lack thereof had been made since its inception. I will also look at the marketing aspect of the company and focus specifically on the SWOT analysis (Internal Strengths and Weaknesses and External Opportunities and Threats). By looking at this I hope to highlight some of the marketing strategies used by Anheuser Busch and also look at how this will affect them moving forward into the future, especially with the impact of being bought out by InBev. Anheuser Busch is one of the biggest brewing companies in the entire world.
In addition, we used a multi-stage dividend discount model, and determined the stock’s intrinsic value to be $56.83. PepsiCo’s current price of $42.65 is lower than both our target price and its intrinsic value. This confirmed our belief that the stock was undervalued. We also analyzed the company’s management strategies, financial data, products, performance in its markets, as well as other business indicators of the health of a company. After conducting a complete analysis of the stock, we recommended: 1.
Table of Contents Executive summary 1 1. Introduction 2 2. A SWOT Analysis 3 a) Strengths 3 b) Weaknesses 4 c) Opportunities 4 d) Threats 5 3. Company objectives 5 a) Measurable objectives 5 b) Sustainability objectives 6 4.Target Markets 6 a) Lifestyle segment 7 b) Innovative segment 7 c) Family segment 7 5. Marketing Mix 8 5.1 Product strategies 8 a) Key consideration 8 b) Product strategies 9 5.2 Distribution strategies 11 a) The role of distribution 11 b) Physical distribution 13 5.3 Promotion strategies 14 a) Promotion objectives and Factors that affects promotional mix 14 b) Promotional mix decisions 15 c) Integrated Marketing Communication 16 5.4 Price strategies 16 a) Price objectives 16 b) Prices policies 17 c) Prices settings 17 6.
3.2 Industry Analysis …………………………………………… 3.2.1 Description of the Industry…………………………… 3.2.2 Industry Dominant Economic Features……………….. 3.2.3 Market Size …………………………………………… 3.2.4 Market Growth Rate…………………………………. 3.2.5 Industry Trends……………………………………….. 3.2.6 Five Forces Analysis …………………………………. 3.2.6.1 Threat of New Entrants………………….………….. 3.2.6.2 Power of Substitute Products………….....…………. 3.2.6.3 Power of Buyers…..……….……………...............… 3.2.6.4 Power of Suppliers……………………….............…. 3.2.6.5 Intensity of Rivalry …………………..…..............….
Question 1: Public Issues, Stakeholders and Expectations * Public issue: Corporate impact on water quality, availability and access around the world * Water is pertinent to Coca Cola because they use 80 billion gallons of water worldwide each year. 2/5 went into finished beverages and the rest went into the manufacturing process: to wash bottles, clean equipment, and provide sanitation for employees. However, Coca-Cola’s extensive use of water adversely impacted the surrounding communities * The Center for Science and the Environment, a think tank in India, charged that Coca Cola products there contained dangerous levels of pesticide residues. * Activists in India charged that the company’s bottling plants used too much water depriving local villagers of supplies for drinking and irrigation * Primary Stakeholders: Coca-Cola, local villagers, non-governmental organizations and India’s government * Expectations v. Performance: Stakeholders expected Coca Cola to use their resources responsibly and to protect consumers from harmful contaminants however, the emergence of pesticide residue in the product along with the depletion of ground water from local villages created a performance-expectation gap, that left Coca Cola fighting to save it’s image Question 2: Strategic Radar model * When applying the strategic radar screens model to this case, the geophysical environment plays a factor here because the company is faced with concerns of how they are using the Earth’s natural resources inefficiently * Another stage that plays a role is the technological environment because there is a need to implement a new system that could save water * The social environment applies in this case because of the concern surrounding the water access was shared among people in the societies where Coca-Cola conducts business * The customer