...The Coca-Cola Company vs. PepsiCo, Inc The Coca-Cola Company versus PepsiCo, Inc In this paper I will discuss the case of the pension plan between Coca-Cola and PepsiCo Inc. I will be comparing the pension plans of both companies of what they offer as well as the funded status at the end of 2007. You will also see that I have calculated the different rates used by both companies while they are trying to compute their portion of the pension amount. I will also explain through my justification which company myself would want to invest with as a shareholder. And lastly I will justify which company I would like to work with as an employee. 1. Compare the pension plans of Coca-Cola and PepsiCo, including type of plan and funded status at 2007 year-end. Each organization offers and sponsors 401K pension plans as well as medical and life insurance benefit plans for their employees or associates. Not all employees are eligible for participation in all plans. Coca Cola has a defined contribution plan that includes all U.S. employees and some international employees. This is a contributory plan; both the employer and the employee make contributions. This plan offers substantial tax benefits for the contributions made by the employer. In addition, Coca Cola also has a defined benefit pension plan. This plan is considered a nonqualified, unfunded plan primarily for the organizations officers, most U.S. employees, and some international employees. This plan offers no tax benefits...
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...The Coca-Cola Company vs. PepsiCo, Inc. ------------------------------------------------- Week 7 - Writing Assignment Carmen Y Velazquez Professor: Reza Rafi ACC 305004VA016-1118-001 November 18, 2011 The Coca-Cola Company vs. PepsiCo, Inc. ------------------------------------------------- Week 7 - Writing Assignment Carmen Y Velazquez Professor: Reza Rafi ACC 305004VA016-1118-001 November 18, 2011 1. Compare the pension plans of Coca-Cola and PepsiCo, including type of plan and funded status at 2007 year-end. Coca Cola has the defined contribution plan that includes all U.S. employees and some international employees, which are funded in accordance with local laws and income tax regulations. This is a plan that both, the employer and the employee make contributions. Coca-Cola match 100% of participants’ contribution up to a maximum of 3% of compensation and this plan offers significant tax benefits for the contributions made by the employer. In addition, Coca Cola also has a defined benefit...
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...Coca-Cola VS PepsiCo Carmine Strayer Strayer University Intermediate Accounting III ACC305012VA016-1136-001 Professor Bob A. Wright August 25, 2013 This paper will discuss the financial health and similarities and differences between the two major producers of soft drinks in the United States as of 2013. In order to understand the financial health of the two companies we must first understand the markets, history and products produced by both companies. Both companies were founded in the late l800’s by pharmacists working on their own. Coca-Cola was the first of the companies and its main product Coca-Cola, was invented and introduced to the public in 1886. The beverage was named after two of its major ingredients, Cocaine and the Kola nut. (Bellis, 2013, p. 2) Its first year sales as a fountain drink at Dr. Pemberton’s pharmacy are believed to have amounted to about $50, with a production cost of around $70. (Bellis, 2013, p. 2) Coca-Colas, 2009 Operating Revenues amounted to $30,990 billion with about 74% of that revenue coming from its international operations. (Kieso, Weygandt, & Warfield, 2012, Comparative Analysis Case; Coca-Cola Vs. PepsiCo p. 148) Its core product was and continues to be the carbonated beverage Coca-Cola even though it has acquired a few other beverages companies along the way. Those companies include Sprite, PowerAde and the Minute Maid Juice Company. Pepsi-Cola, the original product of what is now known as one of the major products of...
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...Valuation and Assessment for the PepsiCo Part1. Macro economic factors and Industry Analysis In recent year, PepsiCo was in the extraordinary complicated economic environment. Economic environment can have a significant impact on PepsiCo. The economic factors such as Gross Domestic Product (GDP), interest rates, high inflation rate and commodity price may affect the PepsiCo current and future performance in large extend. First, the increase of GDP affects the sales of PepsiCo. Pepsi is the world second largest food and beverage business, which sold products in more than 200 countries. In America, the GDP presents a slowly but stable increasing trend, the GDP growth rates were affected, and also influenced the sales of Pepsi America. According to the table 1, it can be seen that the core net revenue has increased 14 percent between 2010 and 2011. In addition, it was estimated that approximately 47 percent net revenue comes from outside the United States. Although most developing countries were suffered from global financial crisis, the GDP growth rates still keep a robust trend. For example, in China, the GDP growth was around 9.5 percent during 2010 to 2012. Therefore, PepsiCo in 2010, the revenue outside the America increased approximately 30 percent, which considerable above the global real GDP growth rate. Secondly, the increase of inflation will affect the profits of PepsiCo. The whole world’s inflation rates have increased in recent year and will continually rise...
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...Coca-Cola Company vs PepsiCo, Inc Professor Archie – ACC 305 Sara Griffith...
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...Coca-Cola Company versus PepsiCo, Inc. Anderson Intermediate Accounting 305 February 24, 2013 Coca-Cola Company versus PepsiCo, Inc. Introduction The Coca-Cola Company and PepsiCo are both very large manufacturing corporations that operate worldwide. Over the years, each corporation has had a very longevity of business success. The expansion of business and brands through subsidiaries, partnerships and franchises in beverage and food products has been a consistent growth in retail sales for both corporations. With such growth, they employ thousands of employees worldwide and offer competitive benefits to include medical, life, and retirement. In 2006, both corporation adopted SFAS 158, Employers’ Accounting for Defined Benefit Pension and Other Post retirement Plans – and a amendment of FASB Statement No 87, 88 , 106 and 132® (SFAS 158). For this particular paper, the goal will be to complete a comparative analysis of the pension plans that each corporation made available to their employees and retirees. Analysis A pension plan is an employer contributory or non contributory saving plan which can also be qualified and nonqualified that businesses offer to their employees to assist with their retirement. With contributory plans, The employer and the employee make contributions into the savings. Whereas, with noncontributory plans, only the employer is required to make the contributions while the employee’s participation is optional. Under a qualified plan...
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...Conclusion 6 Financial performance of FedEx 6 Growth 6 Profitability 7 Efficiency 7 Liquidity 8 Working capital management 8 Solvency 8 Conclusion 9 Financial performance of Coca Cola Co 9 Growth 9 Profitability 11 Efficiency 11 Liquidity 12 Working capital management 12 Solvency 13 Conclusion 14 Financial Performance of PepsiCo 15 Growth 15 Profitability 15 Efficiency 15 Liquidity 15 Working Capital Management 16 Solvency 16 Comparison between UPS and FedEx 16 Profitability 16 Efficiency 17 Liquidity 17 Comparison between Coca Cola Co and PepsiCo 18 Profitability 18 Efficiency 19 Liquidity 19 Solvency 20 Comparison between the freight shipping industry and the soft drinks industry 20 Introduction This report discusses the performance and ratio analysis of UPS and FedEx from the air delivery & freight industry and Coca Cola Co and PepsiCo from the beverages - soft drinks industry. Key ratios reported in Appendixes are either calculated based on financial statements or acquired from Morningstar. Market price used in ratio calculations is found by taking the average of weekly data for each year. The data is obtained from Yahoo Finance. Specific areas addressed include profitability, liquidity and solvency. Brief description of companies is provided below. Financial performance of UPS The following...
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...Financial Reporting And Analysis Name: Instructor’s Name: Course Title: Date: BYP13-1 Financial Reporting Problem PepsiCo, Inc. (a) Our financial statements include the consolidated accounts of PepsiCo, Inc. and the affiliates that we control. In addition, we include our share of the results of certain other affiliates based on our economic ownership interest. We do not control these other affiliates, as our ownership in these other affiliates is generally less than 50%. Equity income or loss from our anchor bottlers is recorded as bottling equity income in our income statement. Bottling equity income also includes any changes in our ownership interests of our anchor bottlers. Bottling equity income includes $147 million of pre-tax gains on our sales of PBG and PAS stock in 2008 and $174 million of pre-tax gains on our sales of PBG stock in 2007. There were no sales of PBG or PAS stock in 2009. Income or loss from other noncontrolled affiliates is recorded as a component of selling, general and administrative expenses. Intercompany balances and transactions are eliminated. Our fiscal year ends on the last Saturday of each December, resulting in an additional week of results every five or six years. Raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw material handling facilities are included in cost of sales. The costs of moving, storing and delivering finished product...
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...Diligence Report The Coca-Cola Company AC 600 Professor: John Kocikowski Keller Graduate School of Management 10/30/2011 Table of Contents Industry Overview 3 Corporate Overview 5 Organization and General Corporate Issues 6 Treasury 8 References 14 Executive Summary The diversity at the Coca-Cola Company is evident with their presence in more than 200 counties. They feel that they are empowered within their business structure as well as the communities they serve because of their differences. Their attribute their success to their consistent values. They understand that their future growth is dependent upon their ability to develop a worldwide team that is rich in its diversity of people, cultures and ideas. Knowing that diversity is not limited to the internal structure of an organization, Coca-Cola has used this same approach regarding their suppliers. Through their supplier diversity program they are building relationships with minority and women owned businesses by giving them equal access to procurement opportunities. Coca-Cola plays a major player in its industry, not only in the U.S, but also all over the globe. Coke is single handedly the most popular soft drink anywhere, beating out its competition, Pepsi Co. Overseas, Coke has established its empire from South America to Africa to all of Asia and Europe. Coke is the world's top soft-drink company. The Coca-Cola Company owns four of the top five soft-drink brands (Coca-Cola, Diet Coke, Fanta...
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...Introduction…………………………………………………………4 II Basic information about PepsiCo…………………………………4 2.1 Background PepsiCo……………………………………………..4 2.2 First step for entering international market………………………5 III Development of PepsiCo…………………………………………5 3.1 Business structure of PepsiCo…………………………………..5 3.2 Organization’s expansion ……………………………………….6 IV Products of PepsiCo………………………………………………6 4.1 Process of bringing a new product to market……………………6 4.2 Production Unit and its global position………………………….7 4.3 Influence of local market criteria ……………………………….8 4.4 Pricing and distribution policies and logistics…………………..8 4.5 Marketing of products…………………………………………..10 V Personnel of PepsiCo…………………………………………..…10 5.1 Recruitment policy………………………………………………10 5.2 Global salaries…………………………………………………..11 5.3 Labor relations…………………………………………………..11 VI Finance of company……………………………………………..13 6.1 Financial structure ………………………………………………13 6.2 Exchange rate ……………………………………………………13 6.3 Annual accounts …………………………………………………13 6.4 Influences of Financial information……………………………..13 VII Conclusion……………………………………………………….15 VIII Reference ……………………………………………………….16 IX Appendix……………………………………………………………17 Appendix I…………………………………………………………….17 Appendix II………………………………………………………….18 I Introduction The aim of this report is for outcome two to outcome five of Global business organization. This report is written base on situation of PepsiCo. The main purpose of this report is to understand how make the...
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...Coca-Cola Company Introduction Coca- Cola Company is the world leading manufacturer, distributor, and marketer of soft drinks. It was established after Coca-Cola invention on May 1886 by Dr. Pemberton. This company manufactures about 4000 products and 400 brands using tea, coffee, water, energy drinks, juices and much more. The company’s corporate center of operations is in Atlanta with local operations in more than 200 countries around the world. Only 30 percent of its income comes from within the United States with estimated brand equity of 84 billion dollars relating to more than 50 market share of the global beverage industry. In early 20th century, the company expanded rapidly into some European countries. Major and swift growth worldwide took place after the Second World War II. The African market is targeted the most because of its potential economic growth. The American, European and Asian markets utilized fully that’s why must interest is in African nations because they are undergoing urbanization thus make it easy for this company to distribute its products. Also, the middle-class population is on the rise in Africa hence willing to buy more and more due to increasing income. Coca-Cola Company Organizational Structure The organization structure is so flexible that it can meet both local and global needs. Corporate segment is at the top of the structure; it provides support and directions concerning the formulation of new strategic decisions. It is made up of twelve...
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...Report On Live Project “Comparative study Analysis between Pepsi and coca cola” Submitted To Prof.Mukesh Sehrawat Submitted By Munna Kumar Singh DM13151112 ACKNOWLEDGEMENT This research paper is made possible through the help and support from everyone including: Faculty members, mentor, friends, and in essence, all sentient beings. Especially, please allow me to dedicate my acknowledgment of gratitude toward the following significant advisors and contributors: First and foremost, I would like to thank Prof. Mukesh Sehrawat for his most support and encouragement. He kindly suggested to make my research paper and offered invaluable detailed advices on grammar, Perfect content and the theme of the paper. Second, I would like to thank DR. Rajiv bhardwaj which has given a golden opportunity to do a specific topic research on it. He has given a right way to survive and sustain our life as all the other professors who have taught me about research and he studied about how to make report in systematically way. Finally, I sincerely thank to my personal friend who provide the advice and support to make this report. The product of this research paper would not be possible without all of them. So I have learnt many things and terminology of research on a particular topic and also learn how to compare two products taking a specific aspect. CONTENT 1. INTRODUCTION…………………………………………………………………………………Page...
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...Selected Company: PepsiCo | | 2. Print your completed electronic template. 3. Attach the following: * This page completed with all required information. * Completed Word template. Template boxes expand as you input responses. Adjust page breaks as necessary to submit a professional representation of your work. Chapter 1 - Introduction Select a Company and Gather Documents Chapter 1: Select a Company and Gather Documents – Question 1 Identify with an “X” the primary source of data for this project. | | Annual report to shareholders | x | Annual report to shareholders with a letter from Chief Executive Officer and SEC Form 10-K as part of the annual report to shareholders. The annual report may include additional general company information. | | SEC Form 10-K and the company website. | Fill in the page numbers from the annual report where the following are located. | Required information for this workbook project. | Page No. | Required information for this workbook project. | Page No. | Financial Highlights * Not absolutely necessary, but very common in annual report to shareholders. * Not in SEC Form 10-K. May be posted on company website. If so put WEB in Page No. box. * If not available, put N/A in Page No. box. | 15 | Chief Executive Officer Letter * May be labeled President’s, CEO’s or other top official’s message or letter to the shareholders * Not in SEC Form 10-K. Likely posted on company website...
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...Table of Contents 1.0 Company profile 2 1.1 PepsiCo Mission: 2 1.2 PepsiCo Vision: 3 2.0 Product Group 3 3.0 Foreign market expansion 4 3.1 Our performance in 2013 was strong: 4 3.2 Frito-Lay North America 5 3.3 Quaker Foods North America 5 3.4 Latin America Foods 6 3.5 PepsiCo Americas Beverages 6 3.6 Europe 6 3.7 Asia, Middle East and Africa 7 4.0 ORGANIZATIONAL STRUCTURE 7 4.1 STRATEGIES 7 4.2 Supply Chain of PepsiCo. And Supply Chain Strategy 8 4.3 Supply Chain Planning 8 4.4 Supply Chain Operation 8 4.5 Process Views of a Supply Chain 8 4.6 Competitive Advantage to PepsiCo. 9 4.7 Distribution Channels 9 4.8 Customers 10 4.9 Competition 11 5.0 Financial Performance 11 5.1 2013 13 5.2 2012 14 6.0 Corporate Governance 16 7.0 Conclusion 16 1.0 Company profile Pepsi co. Inc. was established through the merger of Pepsi cola. Pepsi cola was created in the late 1890s by Caleb brad ham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer doling in 1932, and the H.W. lay company, founded by Herman W. lay, also in 1932. Herman lay, former chairman and CEO of Frito-Lay, was chairman of the boards of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi cola, was president and chief executive officer. PepsiCo, Inc. was in corporate in Delaware in 1919 and was reincorporated in North Carolina in 1986. When used in this report, the terms “we...
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...Provide a detailed overview of a U.S. publicly traded company. This should be one to two (1-2) pages. Overview Pepsico is the leading global food, snack and beverage company. The brand include Quaker Oats, Tropicana, Gatorade, Lay's and Pepsi . Pepsico is a global company, it includes strong regional brands such as Walkers, Gamesa and Sabritas. Either independently or through contract manufacturers .Pepsico market and sell a variety of convenient, enjoyable and wholesome foods and beverages in over 200 countries. Its portofolio includes oat, rice and grain-based foods, as well as carbonated and non-carbonated beverages. Pepsico largest operations are in North America (United States and Canada), Mexico, Russia and the United Kingdom. All the brand are united by its unique commitment to Performance with Purpose, which means delivering sustainable growth by investing in a healthier future for people and the planet .Pepsico’s goal is to continue to build a balanced portfolio of enjoyable and wholesome foods and beverages, find innovative ways to reduce the use of energy, water and packaging and provide a great workplace for our associates. Additionally, Pepsico is committed to respecting, supporting and investing in the local communities where it operates by hiring local people, creating products designed for local tastes and partnering with local farmers, governments and community groups. Pepsico make this commitment because it is a responsible . In recognition of its...
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