Pepsico Essay

1. Consider Coca-Cola’s advertising throughout its history. Identify as many commonalities as possible for its various ads and campaigns. (For a list of Coca-Cola slogans over the years, check out http://en.wikipedia.org/wiki/Coca-Colaslogans.)

1. Using the current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt).

PepsiCo is a huge, multi-billion-dollar company that invests its time and money into creating loveable and lasting products for consumers all over the world. PepsiCo has been on the rise for years and if things continue to prosper like they do know, they should be a lasting company for many more years to continue. PepsiCo relates to their customers and continues to create new and improved products that bring publicity to their company, while still producing the recognizable products that that they are known for.

Exchange rate gains or losses are brought to account in determining the net profit or loss in the period in which they arise, as are exchange gains or losses relating to cross currency swap transactions on monetary items. Exchange differences relating to hedges of specific transactions in respect of the cost of inventories or other assets, to the extent that they occur before the date of receipt, are deferred and included in the measurement of the transaction. Exchange differences relating to other hedge transactions are brought to account in determining the net profit or loss in the period in which they arise. Foreign controlled entities are considered self-sustaining. Assets and liabilities are translated by applying the rate ruling at balance date and revenue and expense items are translated at the average rate calculated for the period. Exchange rate differences are taken to the foreign currency translation reserve.

In The Onion 's satirical article “Ad Industry Veterans Honored With Cola War Memorial” ridicules how serious American’s had taken the advertising between Pepsi and Coke. The person wrote this because they are pointing out how serious this was to Americans and how they should have instead paid attention to important matters that were actually happening. The critic used satire to convey to American people how unimportant it truly was at the same time comparing it to something that was truly important, the real war at the time, and used ironic tone in order to correct the way of thinking of it being a major event. The Onion used burlesque satire to express their point to their American audience and

According to PepsiCo “Organic revenue grew 5 percent in the fourth quarter and in the full year, reported net revenue declined 1 percent for the quarter and 1.5 percent for the full year, reflecting the impact of previously announced structural changes” (PepsiCo, 2013). The cost of running the business paid off from a revenue standpoint but overall net revenue fell by one percent. Additionally, Pepsi remained exceedingly concentrated on generating appealing returns for shareholders, and returned $6.5 billion to shareholders in 2012 “through a combination of share repurchases and dividends,” (Pepsi, 2013) This increased costs for the company but the cost spending implemented paid off for shareholders who would be more willing to invest more in the company in the future.

For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. By employing various advertising tactics, strategies such as blind taste tests, and reward initiatives for the consumer, they have grown to become oligopolistic rivals. In the soft-drink business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market shares in virtually every region of the world. They have brands that the consumers want, whether it be soft-drink brands or in PepsioCo’s case, snacks. With only one soft-drink market, the two competitors have no choice but to increase sales by stealing the other competitor’s clients. This led to the term, the “cola wars” which was first used

The calculations you perform for this CheckPoint form the basis of your analysis of your capstone project.

PepsiCo is a global food and beverage corporation based in United States. Company received its current name in 1965, through the merger of Pepsi-Cola with Frito Lay Inc. PepsiCo makes, markets, sells and distributes more than 40 brands. A range of worldwide famous brand names includes Pepsi, Mountain Dew, Lay’s, Doritos, Quaker, Tropicana, Tostitos, Walkers, Cheetos, Ruffles, Fritos and others. PepsiCo generated net revenues of more than USD 65 billion in 2013, where 35% of revenue from developing and emerging markets (PepsiCo Annual Report). Pepsi products are available in more than 200 countries. The company has its own bottling manufacture and distribution facilities. Pepsi-Cola Company division is the second largest carbonated soda business in the world and the Frito-Lay division is the world’s leader in snacks business. The Frito-Lay generates more than 65% of PepsiCo 's net sales and more than 2/3 of the PepsiCo operating

The net profit was $6,320 million in FY2010, an increase of 6.3% over 2009 ($5,946). As stated in the mission statement, they seek to produce financial rewards. With the numbers previously mentioned, we can see they have succeeded. This significant financial performance gives them the resources they need to provide opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate and to invest in the four key areas (performance, human sustainability, environmental sustainability and talent sustainability) so they can reach their goals. (Yahoo Finance, 2011) 4. Conduct a competitive and marketing analysis of the organization to determine strengths and opportunities. PepsiCo is the largest snack and non-alcoholic drink producer in the United States, with 39% and 25% of the respective market shares. PepsiCo operates in over 200 countries, with its largest markets in North America and the United Kingdom. PepsiCo has three direct competitors, the Coca-Cola Company, Dr. Pepper Snapple Group, and Kraft Foods. Unlike its major competitor, Coca-Cola, the majority of PepsiCo 's revenues do not come from carbonated soft drinks. In fact, beverages account for less than 50% of total revenue. Additionally, over 60% of PepsiCo 's beverage sales come from its key noncarbonated brands like Gatorade and Tropicana. PepsiCo 's revenues

EVA stands for economic value added. EVA is a value based financial performance measure based

The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical

big market share, such as Pepsi Cola, Mt.Dew, and so on. I like to drink Coke

PepsiCo’s corporate strategy had diversified, in 2008, the company into salty and sweet snacks, soft drinks, orange juice, bottled water, and ready-to-eat drink teas and coffees, purified and functional waters, isotonic beverages, hot and ready-to-eat breakfast cereals, grain-based products, and breakfast condiments. Strategies that kept their brands at the top were tied to new product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. A new element of PepsiCo’s corporate strategy was product reformulations to make snack

Pepsi Co 's assignment taken as a whole is to amplify the value of its shareholder 's investment through sales intensification, expenditure gearshift and prudent investment of resources (Bongiorno, 1996, p 71). In this pose, Pepsi believes that its moneymaking triumph depends on providing safe and quality drink to its consumers and customers while adhering to the highest standards of truthfulness. Pepsi Co 's product portfolio encompasses sixteen labels that produce enough cash for the company. The most popular of these brands include Pepsi Cola, and Mountain Dew.