... pg. 3 Pepsi vs. Coke pg. 4 Pepsi vs. Dr. Pepper pg. 6 Pepsi vs. Kraft pg. 9 Recommendation and Conclusion pg. 11 Appendix pg. 12 Executive Summary PepsiCo, Inc is the result of a merger between Pepsi-Cola and Frito-Lay. Pepsi-Cola was originated by a pharmacist, Caleb Bradham, in the late 1890's; Frito-Lay was established in 1961 by a merger between the Frito Company and the H.W Lay company. The major products of PepsiCo, Inc include, but are not limited to, Pepsi-Cola (est. 1898), Diet Pepsi (est. 1964) and Mountain Dew (est. 1948). PepsiCo boasts several global brands including, Pepsi, Quaker Oats, Gatorade, Lays, and Tropicana. A vast portfolio allows PepsiCo to provide more choices for customers, and drive lower costs, productivity enhancements and new capabilities. Their products are available globally and the portfolio includes 22 brands that generates more than $1 billion in estimated annual retail sales each. PepsiCo, Inc IPO in 1999 had 1.6 million shares outstanding...
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...Based on your analysis, determine which company is better able to pay current liabilities (debt). Based on the liability analysis of both Coca-Cola and PepsiCo, Coke is better suited to pay their current and long-term liabilities (Coca-Cola Enterprises, Inc, 2009). Pepsi’s total current assets in year 2009 were $39,848 million and their total liabilities were $22,406, which nets a $1.77; giving Pepsi a 1.77 to 1 current debt to asset ratio (Pepsico, 2009). This ratio is not totally out of the norm, since a 2 to 1 ratio is acceptable. Coke’s total current assets in year 2009 were $21,579 and their current liabilities were $18,508, which net a $1.16; giving coke a 1.16 to 1 ratio. This ratio is below the acceptable target of 2 to 1 ratio. However, Coca-Cola Enterprises, Inc. is the largest marketer, producer, and distributor of nonalcoholic beverages in the world. Coca Cola markets, produces, and distributes products to customers and consumers through licensed territories in 46 of the 50 states, the District of Columbia, the US Virgin Islands, and certain other Caribbean islands and the 10 provinces of Canada (Coca-Cola Enterprises, Inc, 2009). Additionally, Coca Cola is the sole licensed bottler for products of the Coca-Cola Company in Belgium, continental France, Great Britain, Luxembourg, Monaco, and the Netherlands, referred to as Europe (Coca-Cola Enterprises, Inc, 2009). Coca Cola operates in the highly competitive beverage industry and face strong competition from other general...
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...Assignment #5: Financial Management Coca-Cola Company vs. PepsiCo. Rodséy E. Smith Daniel Sersland BUS 508: The Business Enterprise December 9, 2010 Abstract In the late 1800’s two of today’s largest and most recognizable food and beverage companies, PepsiCo and Coca-Cola Company began their quest to dominate the industry. Even today after over a hundred and twenty years, PepsiCo and Coca-Cola Company continue their efforts to compete against each other in order to gain additional market share. The purpose of this paper is to explore the two competing companies from a financial perspective, rather than a product preference. The paper will draw from information given in the 2009 year-end financial report for each of the two companies. From this information, several financial ratios will be computed and an analysis will be given to determine which company is more financially profitable. After a financial analysis is made, the paper will conclude by presenting what non-financial criteria could be considered when choosing which company is the better investment options. Using the current ratio, discuss what conclusions can be made about each company’s ability to pay current liabilities. The current ratio is a popular financial calculating tool used by financial analysts to determine a company’s liquidity, also known as the company’s working capital position. The ratio is determined by deriving the proportion of current assets available to cover the current liabilities...
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...Investment Analysis for Pepsi versus Coca Cola ACC557 – Financial Accounting December 13, 2012 Company Synopsis Pepsi Cola | Coca-Cola | The Pepsi Bottling Group, Inc. (PBG) is the world's largest manufacturer, seller, and distributor of Pepsi-Cola beverages. Separated from parent PepsiCo, Inc. in 1999, it accounted that year for 55 percent of Pepsi-Cola beverages sold in the United States and 32 percent worldwide. The company delivers its products directly to stores without using wholesalers or other middlemen. In addition to its extensive production and distribution facilities, PBG leases and operates about 20,000 vehicles and owns more than 1.1 million soft drink dispensing and vending machines. PepsiCo holds a controlling interest in the firm. | The Coca Cola history extends back to 1885, when John Pemberton invented the original recipe for a new cocawine. Pemberton developed Coca-Cola, a non-alcoholic version of his original cocawine, when Fulton County passed prohibition legislation. Carbonated water was added later by accident when Pemberton was mixing drinks for a friend and incidentally included it. His friends loved the new taste, so he altered the original formula to incorporate it. | Pepsi - International Directory of Company Histories, Vol. 40. St. James Press, 2001. (http://www.fundinguniverse.com/company-histories/the-pepsi-bottling-group-inc-history/). Major Suppliers Pepsi Cola | Coca-Cola | PolandEgyptUnited Arab EmiratesCanada | Poland...
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...story in the nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavors…and looking to noncarbonated beverages for growth.” In order to fully understand the soft drink industry, the following should be considered: the dominant economic factors, five competitive sources, industry trends, and the industry’s key factors. Based on the analyses of the industry, specific recommendations for competitors can then be created. Dominant Economic Factors Market size, growth rate and overall profitability are three economic indicators that can be used to evaluate the soft drink industry. The market size of this industry has been changing. Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry, illustrated in Table 1. Datamonitor (2005) also found that the total market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink volume was 325,367.2 million liters (see Table 2). Clearly, the soft drink industry is lucrative with a potential for high profits, but there are several obstacles to overcome in order to capture the market share. The growth rate has been recently criticized due to the U.S. market saturation of soft drinks. Datamonitor (2005) stated, “Looking ahead, despite solid growth in consumption, the global soft drinks market is expected to...
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...Coke and Pepsi Learn to Compete in India BRIEF SUMMARY OF CASE: This is a detailed and comprehensive case describing the market entry of two global consumer product companies, PepsiCo and Coca-Cola Corporation into a Big Emerging Market (BEM), India. It traces the history of the challenges encountered by these two companies in the developing country environment of India from the late 1980s to the present time. Emphasis is placed on lessons learned by the two companies as they adjust to competing in an unfamiliar and rapidly-changing environment. Key themes include: - The effects of the changing political scene resulting in the imposition of a non-standard domestication policy on foreign direct investors. - The need for foreign companies to adapt their marketing and competitive strategies to suit conditions in the Indian marketplace. - And the role of ‘globalization’ policies across the marketing mix variables, but particularly in the case of promotional strategies. Answers to Questions: Q1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company? A1. The political environment of India has had a very significant impact in the...
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...A look into the world of carbonated drinks will lead you straight to two of the biggest suppliers The Coca Cola Company and Pepsi Inc. Both of these companies provide a rich source of services and products but you will always find that consumers are still stuck with the question of which company provides the best overall product. Simply said.. Are you a Coke or Pepsi fan? I will examine both Coca Cola and Pepsi roots and determine which will provide the optimal solution for investors. John Pemberton an Atlanta pharmacist created Coca Cola by accident. In 1886 while in his home mixing some caramel and colored liquid Pemberton tasted what would soon be the first sampling of the future Coca Cola. Pemberton decided to take his mixture to a nearby pharmacy and add carbonated water to change the taste. He was determined this was the next big invention and convinced Jacob’s Pharmacy to allow him to let customers sample his product for five cents a glass. Knowing that the sampling was a success Pemberton took the idea to his friend and bookkeeper Frank Robinson who helped to name and create the signature script for Coca Cola that would be still used to today. During its first year in Jacob’s Pharmacy nine glasses of Coca Cola was served per day. Only two years into its discovery John Pemberton would pass away but his ideas would evolve as did the people involved with Coca Cola’s development (“Heritage timeline,”2012). Soon after Pemberton’s passing Asa Griggs Candler...
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...the story in the nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavors…and looking to noncarbonated beverages for growth.” In order to fully understand the soft drink industry, the following should be considered: the dominant economic factors, five competitive sources, industry trends, and the industry’s key factors. Based on the analyses of the industry, specific recommendations for competitors can then be created. Dominant Economic Factors Market size, growth rate and overall profitability are three economic indicators that can be used to evaluate the soft drink industry. The market size of this industry has been changing. Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry, illustrated in Table 1. Datamonitor (2005) also found that the total market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink volume was 325,367.2 million liters (see Table 2). Clearly, the soft drink industry is lucrative with a potential for high profits, but there are several obstacles to overcome in order to capture the market share. The growth rate has been recently criticized due to the U.S. market saturation of soft drinks. Datamonitor (2005) stated, “Looking ahead, despite solid growth in consumption, the global soft drinks market is expected to slightly...
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...the story in the nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavors…and looking to noncarbonated beverages for growth.” In order to fully understand the soft drink industry, the following should be considered: the dominant economic factors, five competitive sources, industry trends, and the industry’s key factors. Based on the analyses of the industry, specific recommendations for competitors can then be created. Dominant Economic Factors Market size, growth rate and overall profitability are three economic indicators that can be used to evaluate the soft drink industry. The market size of this industry has been changing. Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry, illustrated in Table 1. Datamonitor (2005) also found that the total market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink volume was 325,367.2 million liters (see Table 2). Clearly, the soft drink industry is lucrative with a potential for high profits, but there are several obstacles to overcome in order to capture the market share. The growth rate has been recently criticized due to the U.S. market saturation of soft drinks. Datamonitor (2005) stated, “Looking ahead, despite solid growth in consumption, the global soft drinks market is expected to slightly...
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...emerging market for many brands. It became the largest market in the world for automobiles earlier this year; car sales rose 25% in February after the government started issuing tax rebates for small engines. Companies are getting more and more of their revenues from China; Yum! Brands (nyse: YUM - news - people ) generates about a third of its revenue from its KFC and Pizza Hut sales in China. If the country turned inward, the effect on the bottom-line of businesses from Unilever to General Motors would be huge. However, China's government went to great lengths to indicate that the rejection of the deal was about monopoly, not protectionism. My own observations suggest that local officials throughout the country are green-lighting more investment projects faster now than at any time in the last three years, as fears about overheating and inflation give way to worries that more jobs will be lost on top of the 20 million already gone. While what some see as socialism creeps into American economic policy, China is going all out to jump-start its economy by becoming more capitalistic. Local officials in Beijing...
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...Assignment 3: You Are an Investment Analyst Strayer University ACC557: Financial Accounting Prepared for: Dr. Timothy Creel March 17, 2014 Abstract Organizations around the world have a lot of share in the market. These organizations aim to make sure that they work in a manner where they have a competitive advantage within the market they serve. The analysis of this paper will be based on two organizations, Pepsi and Coca Cola. Here, in the present paper, various information will be considered. The information will include company history, products and services, customers and suppliers, leadership, stock prices, the impact of news events on stock prices, and an overall financial analysis. Pepsi versus Coca Cola History Pepsi is an American multinational corporation which is engaged in the beverage and food industry. It was originated in 1893 by a young pharmacist named Caleb Bradham who experimented combinations of juices, syrups, and spices to create a new refreshing drink for customers. His unique mixture of kola nut extract, vanilla and rare oils became popular and customers named it Brad’s drink. Caleb decided to rename it to Pepsi-Cola and began advertising his new soft drink. In 1902, he applied to the U.S. Patent Office for a trademark. Pepsi was first sold through soda fountains until Caleb recognized a greater opportunity existed to bottle Pepsi for people to drink anywhere. People responded, sales began to grow, convincing him to form a company to...
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...[pic][pic][pic][pic] 3 TABLE OF CONTENTS 1- EXECUTIVE SUMMARY««««««««««««««««« 2 2- HISTORY OF PEPSI COLA INTERNATIONAL««««««« 3 3- VISION STATEMENT««««««««««««««««««. 4 4- MISSION STATEMENT«««««««««««««««««. 5 5- IMPROVED MISSION STATEMENT«««««««««««. 5 STAGE 1 (INPUT STAGE) 6- SWOT ANALYSIS«««««««««««««««««««« 6 7- EXTERNAL ENVIRONMENT ANALYSIS«««««««««. 10 8- KEY EXTERNAL FACTOR ANALYSIS .«««««««««« 14 9- KEY INTERNAL FACTOR ANALYSIS ««.««««««««. 15 10- ANALYSIS OF COMPETITORS PROFILE««««««««... 16 STAGE 2 (MATCHING STAGE) 11- TOWS MATRIX««««««««««««««««««««« 17 12- SPACE MATRIX««««««««««««««««««««.. 18 13- IE MATRIX««««««««««««««««««««««« 20 14- GRAND MATRIX«««««««««««««««««««« 22 STAGE 3 (DECISION STAGE) 15- QSPM OF PEPSICO««««««««««««««««««« 23 16- RECOMMENDATIONS & CONCLUSION«««««««««. 25 Growth, Balance, and aWorld of Fun [pic][pic] 4 ACKNOWLEDGEMENT We are thankful to Almighty ALLAH ´most beneficent and the most Mercifulµ Who made us able to complete our given project successfully and for giving us much cooperation and supporting parents who has given us this opportunity to study here. we would like to thank SIR SHAHID TUFAIL for giving us the confidence and opportunity to prove ourselves. EXECUTIVE OVERVIEW Strategic management process consists of three stages: strategy formulation, strategy implementation and strategyevaluation. The scope of the project is to discuss the strategies adopted and applied by Pepsi Cola, Pakistan and...
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...JAMES THOMAS INDEX SL. NO. | TITLE | SOURCE OF THE PROJECT | PAGE NO. | SIGN OF THE TEACHER | 1 | Acknowledgement | - | | | 2 | Brand RivalryAn INTRODUCTION | www.wikipedia.org | | | 3 | PepsiAn Introduction | www.wikipedia.org | | | 4 | Pepsi the history | www.wikipedia.orgwww.pepsiarabia.com | | | 5 | Products Of Pepsi | www.wikipedia.org | | | 6 | Coca-Cola An Introduction | www.wikipedia.org | | | 7 | Coca-Colathe history | www.cocacola.com | | | 8 | Products Of Coca-Cola | www.wikipedia.org | | | 9 | Pepsi Vs Coca-Cola A Comparison | www.versus.com | | | 10 | Pepsi Vs Coca-Cola THE COLA WAR | www.slideshare.netwww.scribd.com | | | 11 | Pepsi Vs Coca-Cola Which Cola brand is the Better Investment? | - | | | 12 | Pepsi Vs Coca-Cola PRESENCE IN INDIA | www.infobarrel.com | | | 13 | Pepsi Vs Coca-Cola Marketing | www.google.com | | | 14 | Pepsi Vs Coca-Cola Advertising Strategies | www.google.com | | | 15 | Pepsi Vs Coca-Cola Conclusion | - | | | 16 | BIBLIOGRAPHY | - | | | ACKNOWLEDGEMENT I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I thank my God for providing me with everything that I required in completing this project. I am highly indebted to the Teacher in Charge Mr. James Thomas for his guidance and constant supervision as well as...
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...COCA-COLA CO THE, SWOT ANALYSIS, IN SOFT DRINKS (WORLD) March 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Carbonates 169.5 billion litres Fruit/ Vegetable Juice 62 billion litres Sports and Bottled Sports and Energy Drinks Water Energy Drinks 205.1 billion15 billion litres 16.2 billion litres Concentrateslitres 43 billion litres Concentrates 43.7 billion litres RTD Tea 30.1 billion litres RTD Coffee 4.5 billion litres The Coca-Cola Company slightly underperformed the world’s soft drinks market amid the recession in Western Europe...
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...COCA-COLA CO THE, SWOT ANALYSIS, IN SOFT DRINKS (WORLD) March 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Fruit/ Sports and Carbonates Bottled SportsWater and Vegetable Energy Drinks 169.5 billion Energy Drinks Juice 205.1 billion15 billion litres litres litres 16.2 billion 62 billion litres Concentrateslitres 43 billion litres Concentrates RTD Tea RTD Coffee 43.7 billion 30.1 billion 4.5 billion litres litres litres Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible...
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