...DECISION MAKING. Submitted by. Submission Date. “PERFORMANCE OF COCA COLA AND PEPSI IN THE LIGHT OF FINANCIAL INDICATOR/RATIOS.” EXECUTIVE SUMMARY Coca Cola and Pepsi have dominated the marked of beverage throughout the world. In retail industry both “Coca Cola Company” and “Pepsico, Incorporated” hold most of the market shares. Resultantly, rivalry between them has been growing throughout the time. In relation to the subject matter the solved financial ratios of both the companies clearly indicatives that Pepsi Cola has led the excellence in relation to operate a good business over Coca Cola in financial year 2009. On the basis of facts and figures it would be convenient to say that Coca Cola company has to take some major measures like changing of strategy, setting of goal, efficiency, market scope, superior quality and innovation, customer responsiveness, environment, tough competition, human resource, technology and organization structures. Following these simple steps Coca cola can demonstrate tight competition Pepsi. Since both companies have achieved flourishing their brands name in the world therefore by doing slightly changing in the areas enumerated above, Coca Cola can prove to be a healthy competitor of Pepsi and in the same manner Pepsi Cola has to keep an eye of tough market competitors, credit crunch, meagre buying power of the consumer, e-marketing and latest technologies...
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...Analyst; Pepsi versus Coca Cola Renee Cole Dr. Tim Creel December 16, 2012 A closer look at PepsiCo and Coca Cola PepsiCo Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Then in 1965 Pepsi-Cola and Frito-Lay merged to create PepsiCo(No author, 2012). According to No author(2012) PepsiCo operates in the consumer goods sector and produces a variety of foods and drinks to include Lays and Ruffles potato chips, Doritos, Cheetos, Quaker oatmeal, Aunt Jemima mixes and syrups, Quaker grits, Cap n Crunch, Quaker rice cakes, beverage concentrates, fountain syrups, and finished goods under Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, ready-to-drink tea, coffee, and brands licensed from Dr Pepper Snapple. PepsiCo’s major customer is Wal-Mart holding 12% of sales (Nooyi, 2010). Major suppliers include E2M who specialize in packaging and manufacturing consulting and SHI International a regional reseller and global IT provider (Freeman, 2010). No author (2012) stated The president of PepisiCo is Zein Abdalla Indra and Nooyi is Chairman and Chief Executive Officer of PepsiCo, a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. PepsiCo’s main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola...
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...**** a. Coca-Cola – “The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world “(Coca-Cola Company pg. 3). PepsiCO inc. – “We are the leading global snack and beverage company. We manufacture, market and sell a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages and foods” (PepsiCo inc. pg 32). b. In terms of beverage sales, The Coca-Cola Company has the dominant position. (Coca-Cola Company pg. 3) c. Coca-Cola Company – Total Assets 2006 = $29,963, Total Assets 2007 $43,269 (Coca-Cola Company pg. 69). 43,269 – 29,963 = $13,306 / 29,963 = 44.4% increase PepsiCo inc. – Total Assets 2006 - $29,930, Total Assets 2007 $34,628 (PepsiCo inc. pg 62). 34,628 -29,930 = 4,698 / 29,930 = 15.7% increase d. Pepsi Co. depreciation and amortization - $1,426 (PepsiCo inc. pg 57). Coca-Cola Company depreciation and amortization - $1,163 (Coca-Cola Company pg. 68). I believe that Pepsi Co. has a higher depreciation and amortization expense is due to the higher amount of plant, property and equipment. Pepsi Co. has $11,228 (PepsiCo inc. pg 58) while Coca-Cola has $8,493 (Coca-Cola Company pg. 67). e. Both companies use consolidated statements of income, which is a condensed version of a multi-step format. There area subtle differences in them, Coca-Cola uses the term cost of goods sold (Coca-Cola Company pg. 66) and Pepsi uses cost of sales...
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...Coca-Cola vs. Pepsi Co 2 1. Using the current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt). The current ratio measures the company’s ability to pay its short term obligations with its short term assets. Between Coca Cola and PepsiCo, PepsiCo has a higher current ratio implying that is more capable of paying its obligations. The debt management policies of Coca-Cola in conjunction with share repurchase program and investment activity resulted in current liabilities exceeding current assets. From the ratio Pepsi Co suddenly had to pay all its short-term creditors, it would be able to do so and have a surplus of 44% of current assets. If Coca-Cola had to pay all its short-term obligations, it would have only 13% surplus of current assets after fully repaying all short term obligations. Therefore, it can be said that PepsiCo is more liquid than Coca Cola based on its current ratio. | Coca-Cola | Pepsi Co. | Current Ratio | 1.13 | 1.44 | 2. Using the profitability ratios, discuss what conclusions you can make about each company’s profits over the past three years. The return on assets ratio is an indicator of how profitable a company is relative to its total assets. Pepsi Co’s return on assets ratio is 14.92, slightly higher than the industry’s Coca-Cola vs. Pepsi Co ...
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...Coca-Cola History Coca Cola is a Carbonated soft drink that is sold in stores of over in over 200 countries, it is produced in the Coca-Cola Company at Atlanta, Georgia. This company became a registered trademark in 1944. Originally Coca Cola was a patent medicine when it was invented in 1886 by John Pemberton, who fought in the civil war and wanted to create a product. He tried creating several drugs and selling them at various pharmacies, but he failed and therefore tried to enter the beverage market. However, he did not know how to advertise but luckily that was when Frank Robinson, an early marketer and advertiser come into the picture. Robinson designed the original and now world famous Coca-Cola logo and patented Coca-Cola’s formula....
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...« Previous Post - Next Post » Coke vs. Pepsi The Dilemma: You’re at a restaurant. You’ve specifically asked for a Coke when you get handed a Pepsi, or vice versa. You tell the waiter what you requested, and he gives you the “What’s the difference?” shrug. Perhaps it’s time you laid it on him. People You Can Impress: “Impressed” probably doesn’t accurately reflect the aforementioned waiter’s likely response. The Quick Trick: If you drink them side by side, Pepsi is the sweeter of the two (which is why people tend to prefer Pepsi in the Pepsi Challenge). The Explanation: Although the fantastic ad campaigns run by both companies would have you think otherwise, the soft drinks’ similarities are pretty striking. For starters, Pepsi and Coke were both the brainchildren of Southern pharmacists. Coca-Cola was invented by Atlantan Dr. John Pemberton in 1886. And yes, there was originally a concentration of cocaine in the soda, but it was reduced to a tiny amount (1/400th of a grain per ounce) by 1902 and removed altogether by 1930. Th e Coca-Cola Company changed hands a few times, and after Prohibition Coca-Cola was sold to the Woodruff family for $25 million. Pepsi, on the other hand, was born a few years after Coke. In 1893, pharmacist Caleb Bradham began experimenting withvarious drink mixtures in New Bern, N.C. His 1898 concoction, then known by the creative name “Brad’s Drink,” became an overnight success, and “Doc” Bradham began selling his “Exhilarating, Invigorating...
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...Financial Research Report: The Coca - Cola Company FIN 534 – Assignment #1 07 December 2014 Coca Cola Introduction: Coca Cola Company is an American, multinational company that is infamous for its beverage products. The company is commonly referred to as coca cola. Invented and patented in 1886 and 1887, respectively, by an American pharmacist named John Pemberton. Pemberton sold the company in 1889 to Griggs Candler who incorporated it in 1892. For more than 70 years, coca cola had been the sole beverage of the company. Although international expansion was tested in 1928, expansion of the company in the United States did not start until late 1955 (World of Coca-Cola, 2014). This expansion into other beverage flavors as well as diet and caffeine free choices has allowed the company to become a market leader in the beverage industry. The Company has found success in appealing to the needs and desires of a broad consumer base. Their customers derive from various backgrounds, lifestyles, demographics and age ranges. Currently, the Coca Cola brand expands in the integrated form of more than 500 brands of beverages across more than 200 nations worldwide. As markets changed and competition grew, Coca Cola decided to introduce Diet Coke and later followed with several others to include, but not limited to, Coca-Cola Zero, Coca-Cola Cherry, Sprite, and Schweppes. As of today, it is estimated that the Coca Cola Corporation has more than 3500 beverages spread across a...
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...was found in the Coca Cola and Pepsi Ratio research. Using financial statement from both Coca Cola and Pepsi I was able to determine both of the organizations, current ratio, receivable turnover, average collection period, inventory turnover, days in inventory and current cash debt coverage. The information gather came from the 2004 consolidated financial statements for the Coca Cola Company and for PepsiCo, Inc. The figures in the financial statement where in millions, formulas of each of the requirement request, were tested to conclude with the right answer. The most significant finding in the report was the inventory turnover between Coca Cola and Pepsi. Inventory turnover is the ratio of cost of goods sold by a business to its average inventory during a given accounting period. The most important recommendation is to look at the current ratio information of each organization. The current ratio is a ratio between the assets and liabilities. In this case the organization that shows more profitability is Coca Cola. Pepsi-Cola in 2004 edged out Coca-Cola in profitability. Pepsi housed a more diversified holding through additional brands such as Gatorade. Gatorade was a very popular and profitable brand for Pepsi. Coca-Cola had a higher stockholder’s equity at 15,013 shares while Pepsi was at 12,734. However, Pepsi return was higher making Pepsi the more desirable and more profitable company. Coca-Cola’s Powerade was not as profitable putting Pepsi ahead in the on-going battle...
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...Introduction : The below essay is about Coca-Cola company which is a beverage manufacturer established in the year 1892.The company's primary product is Coca cola which was invented in the year 1886 and was first bottled in 1894.The focus of this essay will be on developing a marketing strategy for Classic Coca-Cola or Coke for first half of 2012.This will also discuss about the market segmentation ,pricing strategy and target market using micro and macroeconomics concepts. The economic forecast report 2012 from different sources clearly communicates high economic growth , less unemployment and inflation rates. http://businomics.typepad.com/businomics_blog/2010/11/economic-forecast-2011-2012.html Coca cola can use alternative scenarios to reduce the production cost * In countries were labors are very expensive, installing automated manufacturing machines and reducing the labor numbers in the production line will help to reduce its cost. * Coco cola base syrup which is the raw material is imported from regional units to several bottling plants which incurs transport cost, if it is manufactured at the same bottling plant some cost can be saved. * The use of LED lighting and automatic shut-down technology during rest periods in all plants will help to reduce cost on Energy. * Production of own energy from renewable sources like solar ,wind in the bottling plant will help to reduce energy costs. * Coca cola can effectively introduce bio degradable plant...
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...The Coca-Cola Company FINANCE Spring 2013 [FNCE 601] February 1st, 2013 | WEMBA38 | Team 17 Mathieu Verbeeck Why has coca cola been so successful in the past? When Douglas Ivester took over the reigns at Coca-Cola in October 1997, he had big shoes to fill – indeed, Goizueta – who passed away earlier in the year – would be remembered as one of the greatest wealth builders of the 20th century: during his tenure as CEO, Coca-Cola’s market value grew from $4.3 billion to $165 billion and an investment of in the Coca-Cola stock would have earned a compounded annual rate return of 33% over the last 10 years. Goizueta’s and Coca-Cola’s success can be attributed to a number of factors. Business Strategy Coca-Cola’s mission is to maximize shareholder value over time. To achieve this mission, The Coca-Cola Company executes a business strategy driven by four key objectives: increase volume, expand Coca-Cola’s share of worldwide nonalcoholic ready-to-drink beverage sales, maximize its long-term cash flows and create economic value added by improving economic profit. Coca-Cola achieves these goals by strategically investing in the high-return beverage business and by optimizing their cost of capital through appropriate financial policies. Marketing To meet its long-term growth objectives, Coca-Cola continues to make significant investments in marketing to support their brands. Marketing investments enhance consumer awareness and increase consumer preference for their...
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...complete evaluation of the Pepsi and Coca Cola companies. I’ve been assigned to complete a stock market analysis that will be presented to a client as part of a professional consultation process. Background information for both companies will included in the analysis in order to provide a summary of each company. Another part of my analysis will include the examination of stock trends for both companies as well as the stock trends that will be based from the initial public offering day to January 1, 2012. I will also display current events that are surrounding both companies to better assist in the analysis. Finally, the financial statements of each company will be analyzed. After all of the information has been gathered, it will be reviewed in order to make a recommendation as to which company will be the best investment opportunity for the client. Analyze each company’s history, product / services, major customers, major suppliers, and leadership and provide a synopsis of each company. Coca Cola was founded in 1886, John Pemberton invented the first prototype of soda. Over a century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup. The company is the world’s leading manufacturer, marketer, and distributor of nonalcoholic beverages concentrates and syrups. The company’s corporate headquarters are in Atlanta, Georgia. The Company and its subsidiaries employ nearly 31,000 people around the world. The Coca-Cola Company’s operating management...
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...Running head: COCA-COLA VS. PEPSI Financial Management The Business Enterprise – BUS508 Abstract Coca-Cola and Pepsi are very popular and widely recognized beverage brands in the world. This document will discuss each company’s current ratio and profitability ratio and make conclusions for the company’s profits over the past three years. The document will also discuss based on research which company is more likely to satisfy it stockholders. I will provide rational for determining which company is a better investment from a financial and a non-financial base. Financial Management PepsiCo and Coca-Cola have been long time competitors in the soft drink industry. Both are fortune 500 companies that have expanded to a broader range of food and beverage brands. Coca-Cola was created in 1886 by Atlanta GA. Pharmacist John Pemberton. Coca-Cola was originally intended as a patent medicine. Coca-Cola was bough by businessman Asa Griggs Candler whose perceptive business tactics led Coca-Cola to dominance throughout the 20th century. Pepsi was created in 1898 by Newbern, NC Pharmacist and industrialist, Caleb Bradham. As Pepsi grew in popularity, the Pepsi-Cola company was formed in 1902 and incorporated in the state of Delaware in 1919. 1.) Using the current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities. PepsiCo and Coca-Cola are forced to search for alternative sources of revenue to...
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...Abstract Coca-Cola is the most successful soft drink company ever created. This popular brand is sold in this country as well as throughout the world. Coke has been successful with the majority of its advertising campaigns, and continues to market to its chosen demographic. Furthermore, Coca-Cola has enticed well-known celebrities to pitch for the drink over the years. In conclusion, Coca-Cola is my favorite brand of soft drink. Their success is much deserved. There is a product that is well known all over the globe and has been loved by many and this is the drink called Coca Cola. This soft drink can be found practically anywhere and not only in the US but all over the world. The way that Coca Cola markets their product is innovative and well thought out. Coca Cola is the one of the largest if not the largest supplier, manufacturer and marketer of a soft drink in more than two hundred countries. They provide many products along with their number one brand. They have also had several types of soft drinks such Vanilla Coke, Cherry Coke, Diet and Coca Cola. In the year two thousand and two there was about 85% of the sales that were from around the globe that was from Coca Cola such as Powerade, Minute Maid, and Dasani. Coca-Cola bottlers that were independent grew to be well-known in middle-sized and small towns all over the US. The majority grew to be prosperous by achieving this. In Georgia there were many Coca-Cola bottlers that became franchised and run by...
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...want only the products and services but want what those products and services will do for them as well. Companies create value for its customer by creating, communicating, delivering, and exchanging values. They do this by understanding their customers, describing the product and making the product available to the customers, For example, diet coke, consumers buy them for reduced calories. The consumers should be able to receive the reduced calorie it promised and at a good price compared to the alternative and at a convenient location. It should also be worth the price paid compared to other brands. It should also have the label describe the content of the calorie without the customers searching to hard to find it. 2. Role of customer in the company’s strategic plan: The coca cola mission statement is, “To refresh the world, to inspire moments of optimism and to create value and make a difference”. This mission statement creates a close link and communication with customers. The understanding of the consumers need leads the company’s strategic plan towards satisfying those needs. They survey the environment and conduct a research of the current and potential customers. A customer knowing that a company’s mission centers on serving them will patronize that brand since they will have any issues they have properly dealt with or attempt to take care of it. Since most companies know that consumers do not know much about their product, they capitalize on that to market their brand...
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...that much fame that they are known by every single living being around the world. In this paper, we are going to make a comparison of such two beverage giants which are famous all around the Globe. One of them is PepsiCo and other is Coca-Cola. Both of them are operating in the beverage industry and are considered to be the leaders of it. Collectively, both of them are able to grab around more than half of the beverage market share across the globe. Description of PepsiCo PepsiCo Inc. was established in 1965, it was a merger of 2 companies called Pepsi-Cola and Frito-Lay. Pepsi-Cola was formed in 1890s by a pharmacist New Bern. Pepsi is considered to be one of the largest consumer trading companies operating all around the word. Currently it is operating in more than 200 countries of the world. Based on the ranking of revenues earned, PepsiCo is the second largest entity operating in the world of beverages and food items. Edible products of the company are generating more than 60% of the total revenues and remaining is being generated by the beverages section. Company is currently having major 22 brands operating all around the globe. Like all other companies, there are some worst competitors of the...
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