...Benchmarking Analysis of PepsiCo MGT 521 December 3, 2012 Watler Goodwyn Benchmarking Analysis of PepsiCo It is hard to tell what company to invest in until a person starts calculating their financial ratios. A company may have high revenues; however, that does not mean that they are fiscally responsible for those revenues. I was surprised to notice that just because the company may do good on the current ratio or earnings ratios that does not necessarily mean that they are financially stable. A person cannot look at one or even a few ratios to determine if a company is financially sound. Many ratios have are pulled to determine the financial stability of the company. I used a variety of ratios to use for analysis. I pulled a Current Ratio, Acid Ratio, Debt Ratio, Return on Sales, Return on Equity, Inventory Ratio, Cash Conversion Cycle and Net Income Per Share on the companies of Pepsi Co, Coca Cola, Dr. Pepper Snapple Group and Mondelez International. Because the company I had selected to analyze was PepsiCo, I know that I needed to diversify the companies I selected between food and beverage because the company covers both markets. Coca Cola is the top beverage distributor in the world, Pepsi Co is second and Dr. Pepper Snapple Group is the third. Mondelez International is a food company that is a recent spin-off from Kraft Foods. It has some familiar name brands of Nabisco...
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...16. Transfer pricing The price that is assumed to have been charged by one part of a company for products and services it provides to another part of the same company in order to calculate each division’s profit and loss separately. Companies with dispersed production facilities, usually in different countries, use transfer pricing. It involves over- or undercharging for goods sold between branches at a price determined by the company. The main objective is to take advantage of different tax rates between countries. Transfer pricing also is used to evaluate performance of divisions within a company. Objectives: tax saving, measure performance, boost profit Key factors to consider: Economic conditions Market conditions Competition Tax rates Profit for the affiliate Import restrictions, Custom duties, Price controls, Exchange controls Methods of transfer costing: Market based, Cost based, Negotiated Criteria for transfer pricing Tax regimes Local market conditions Market imperfections Joint venture partners 14. Major categories of resources (1) human resources, (2) financial resources, (3) physical resources, (4) information resources. Human Resources This is the most vital resource of an organisation. An organisation cannot work without human resources and hence it has to take care of this aspect. Organisations choose employees based on the qualifications and skills required for the work. In addition to this, they conduct...
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...CANDICE CHUA FINANCIAL STATEMENT ANALYSIS | SECTION 1 WEDNESDAY 8 AM 1. Incentives Similarities: * Benchmarking compensation to similar roles in a peer group – sends signals about performance benchmark & types of businesses executives can enter into * Both incorporate long-term aspects into performance compensation plans * Both tie executive compensation to company performance Differences Compensation characteristics | PepsiCo | Coke | Comments | Total CEO compensation benchmark | Leading consumer product companies, selected companies covered in S&P 500 Beverage, Food and Restaurant IndicesDefinition is narrow: limits competitive space to consumer product companies, with emphasis on food and beverage | Other large companiesDefinition is broader: competes against entire universe of large companies | Has implications for businesses the companies are willing to enter into and the talent pool to recruit fromFor both shareholders and employees, Coke is more attractive. F&B may not present the best return opportunities | Emphasis on long-term compensation | Emphasis on long-term performance is much less pronounced vs Coke – principal portion is tied to both annual objectives and long-term shareholder returns | Very clear focus on long-term performance pay: majority of pay composed of long-term, at-risk pay with less emphasis placed on salary and annual incentives | Coke’s investors/employees are more likely to be focused on the long term...
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...Pepsi – An Introduction Introduction PepsiCo, Inc., major producer of carbonated soft drinks, other beverages, and snack foods. Its beverage division, Pepsi-Cola Company, bottles and markets several popular brands of soft drinks in the United States and throughout the world. PepsiCo also owns Frito-Lay Company, the leading snack-food maker in the United States. PepsiCo is based in Purchase, New York. PepsiCo’s soft drink products include Pepsi, Diet Pepsi, and Mountain Dew. Other beverages include Lipton Brisk and Lipton’s Brew iced teas, All Sport athletic drink, and Aquafina bottled water. Frito-Lay products include Lay’s and Ruffles Potato Chips, Fritos and Doritos Corn Chips, Chee-tos Cheese Snacks, Tostitos Tortilla Chips, Rold Gold Pretzels, and Grandma’s Cookies. Early History PepsiCo traces its origins to 1898 when Caleb Bradham, a pharmacist in New Bern, North Carolina, created a curative drink for dyspepsia called Pepsi-Cola. Pepsi-Cola, later referred to simply as Pepsi, was a mixture of carbonated water, cane-sugar syrup, and an extract from tropical kola nuts. To sell his product, Bradham formed the Pepsi-Cola Company in 1903. In addition to selling the drink at drugstore counters, Bradham bottled Pepsi for sale on store shelves. At this time, bottling was a new innovation in food packaging. However, due to major increases in the price of sugar, Bradham began to lose money on Pepsi, and in 1923 he filed for bankruptcy. The Craven Holding Company of Craven County...
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...STRATEGIC GROUP * Once a company has identified its main competitors and their strategies , it must ask: 1. What is each competitor seeking in the market? 2. What drives each competitor’s behavior? Strengths and Weaknesses of Competitors 1. Share of market- the competitor’s share of target market 2. Share of mind- the percentage of customers who named the competitor in responding to the statement, “Name the first company that comes to mind in this industry” 3. Share of heart- The percentage of customers who named the competitor in responding to the statement, “ Name the company from which you would prefer to buy the product” Benchmarking -to improve market share many companies benchmark their most successful competitors as well as other world class performers. Steps in Benchmarking I. Determine which functions or processes to benchmark II. Identify the key performance variables to measure III. Identify the best-in-class companies IV. Measure the...
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...BENCHMARKING AT XEROX Report submitted in partial fulfillment of the requirement for the Operations Management II Course PGDM Under the Supervision of Ms. Sanjita Jaipuria By Group R To Rajiv Gandhi Indian Institute of Management Mayurbhanj Complex, Nongthymmai, Shillong – 793 014 Nov. 2014 TABLE OF CONTENT Topics Page No. List of Figures……………………………………….................................. 5 List of Tables………………………………………................................... 6 Glossary…………………………………………………………..………. 7 Case……………………………………………………………………….. 8 Annexure 1 …………………………………………………….…………. 11 Annexure 2 ……………………………………………………………….. 12 Annexure 3………………………………………………..……………… 14 Annexure 4………………………………………………..……………… 15 Abstract We have used the Xerox methodology for benchmarking, with some slight modifications that place more emphasis on the planning and analysis phases which are thought to be more relevant to the stage of Total Quality Management. Benchmarking is defined as either internal or external, i.e. competitive, generic, or functional, and we can apply the Xerox methodology to both. We found internal benchmarking very useful initially as it enabled familiarization with the benchmarking process throughout the company and encouraged cross functional communication. It also enable people to make their benchmarking errors within the company. The external benchmarking has been mainly competitive and generic. Much of the benchmarking...
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...for the financial services industry. A volatile climate has left many financial firms struggling to keep both their clients’ trust and investor’s credibility. In addition to the above, many factors including strong competition, technology, the economy, and social trends have started to have a significant impact on the financial industry. To succeed, investment companies need to offer a wide gamma of products coupled with expert advice. Therefore, Intersect Investments needs to consider carefully its strengths, weaknesses, opportunities, and threats as part of its strategic planning process. This paper will analyze benchmarking research made on companies dealing with transformational issues such as Coca-Cola, Ford Motor Co. Apple Computers and Legion Paper Co. Some of those organizations are global leaders within their respective industry. Therefore, any benchmarking analysis is relevant to the current situation at Intersect Investments. Coca-Cola Synopsis by Bruce McCormack It has become a cliché to state that tough times demand tough measures. The terrorist attacks of September 11, 2001 redefined this cliché for most businesses on Wall Street and throughout the world. One such Wall Street business, Intersect Investment Services, tried boldly to overcome the toughness of the times without making a drastic strategic shift, but found itself barely managing to survive. After four years of such struggles, Intersect is now looking to vision change to improve its brand image...
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...Strategic Choice and Evaluation Strategic decisions are an important factor to help with growth within an organization. Coca-Cola analysis trends in buying from the consumer in each market unit and provides the products that consumers want. Being able to analysis the trends will help the company to be able to set up goals to be able to grow. This paper will discuss value discipline, generic strategy, grand strategy to help the company realize growth, and a recommendation on what can be done to help the company grow. Value Discipline Value disciplines are a model that was created to describe three generic value that companies can adopt these values are operational excellences, product leadership, and customer intimacy (Business Dictionary website, n.d.). Coca-Cola has recently rolled out the Operational Excellent (OE) Site Lead within all of the facilities. This new position is in place to drive the OE culture, built OE capability, and to deliver the OE vision across the facility. The OE site lead is responsible to provide expertise, training and leadership on Lean Principles and Structured Problem Solving to all employees. Other programs that OE has led to are Total Productive Maintenance (TPM) and Total Quality Management (TQM) Recently Coca-Cola has been rolling out a new program called Total Productive Maintenance. This Total Productive Maintenance is a maintenance program that involves a newly defined concept for maintaining facility and equipment. The goal of the Total...
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...COCA-COLA BUSINESS ANALYSIS PART II Angel Hale Mgt/521 Coca-Cola Business Analysis Part II This paper will take a look at the financial health of the Coca-Cola Company in comparison to two of their competitors Pepsico & Nestle. As a potential investor, this information will help provide insight on the option to move forward, while looking at technological advantages and globalization effects on the company. At the end of this paper, you will be one step closer to deciding if the Coca-Cola company’s practices, financial & operational findings are in line with a potential investor’s requirement. It has often been said that business is about finding and exploiting advantages and the goal of any business is to maximize profits. As we look into the Coca-Cola Company as a potential investor some of the things to consider are: assets and liabilities, company track record, market position and future potential within the respective market. In general an investor wants to know how attractive current assets and future projects are in order to gauge how successful they may be. One of the first items to look into will be the financial standings for the company, not only will we review the current 2011 annual report, with regards to the balance sheet, cash flow and income statements. In order to understand how efficient the company is, we will also show the comparison between two other competitors within the same niche market: Pepsico & Nestle (see exhibits A, B & C)...
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...Vice President of Operations, Part 1 1. Evaluate key elements of the selected production or service organization’s operational efficiency with its operational strategy. Determine three (3) tasks that do not align with the operational strategy. Determine the weaknesses that are evident in each task. PepsiCo, Inc. operates as a food and beverage company worldwide. Through its operations, authorized bottlers, contract manufacturers and other partners, the company makes, markets, sells, and distributes various foods and beverages, serving customers and consumers in approximately 200 countries and territories. The company also owns Frito-Lay company and Quaker Oats. It has bottling and distribution facilities in Asia, North and South Americas, Africa, Europe, and the Caribbean (PepsiCo 2012). PepsiCo’s supply chain management is based on the just-in-time process which allows timely replenishment of their ingredients for processing and bottling (PepsiCo 2012). PepsiCo does not own or operate the bottling and production facilities it relies on, especially in Asia, Africa and Latin America. Recently, due to strong competition in North America, the company made a strategic decision to focus its growth projection on the international market (PepsiCo 2011). This subjects its transportation and supply chain management system at risk to disruption resulting in an adverse impact on its business and financial operations. Some potential risks are: natural disasters (earthquakes...
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...Harrison-Keyes, Inc. Benchmarking Harrison-Keyes, Inc. Harrison-Keyes Inc. is an organization that is trying to move into a new market that will enable them to sell their books using new media forums. Many obstacles are currently standing in their way to achieving the success that they believe they can obtain. Like many other companies Harrison-Keyes has turned to benchmarking other organizations that have encountered and overcome similar problems. We will identify organizations that have faced the specific issues that are now present at Harrison-Keyes. We will describe the situations that other organizations found themselves in, how the benchmarked company responded to the specific issue and what outcome was achieved by their responses. We will also identify the key concepts used by the benchmarked companies, and compare and contrast those concepts. Harrison-Keyes is a successful company with award winning authors writing books for them to publish. We will give Harrison-Keyes the tools that they need to keep that team together. We will establish ways for them to overcome obstacles using implementation plans, strategic and risk management as the foundation for success. Compare and Contrast Organizations that have gained recognition for best practices are often mimicked by others to gain or improve their company’s financial status and make them leaders in their markets. To find out which organizations have the best practice solutions, benchmarking research is done by...
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...MANAGEMENT CASE describes a real-life situation faced, a decision or action taken by an individual manager or by an organization at the strategic, functional or operational levels Reinventing a Giant Corporation: The Case of Tata Steel D V R Seshadri and Arabinda Tripathy A KEY WORDS Reinvention Change Management Turnaround Tata Steel Liberalization Response to Globalization t the meeting of the senior management of Tata Steel to celebrate the spectacular performance of the company, Mr. B Muthuraman, the Managing Director, recalled with satisfaction the remarkable strides that the company had made from the difficult days in the early nineties, when the company, used to a protected environment, was suddenly thrown open to global competition, consequent to the liberalization of the Indian economy. The company had closed the year with a record profit of Rs. 34.74 billion. A series of initiatives launched by the company over the last 15 years had culminated in these stellar results although there were many challenges at every step. At each stage in its journey, the company did what needed to be done. In retrospect, however, the various initiatives launched by the company over the years now appeared to fit into a coherent picture. The company had made steady progress over the years and had now achieved a pre-eminent status in the Indian steel industry. It had become one of the lowest cost steel producers in the world five years ago, a distinction that it had continued...
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...------------------------------------------------- 497 Study Guide Module I: Industry & Competitive Analysis “Porter’s Five Forces”: 1. What is strategy (fundamental question in strategic management) a. How to achieve superior financial performance 2. Why industry Analysis? b. Industry analysis helps a firm understand the underlying economic forces that contribute to or detract from its profitability, and subsequently suggests a means for firm to find an optimal position for itself. i. Industry is a group of firms that produce products or services that meet the same needs of customers in a competitive market. ii. Industry Analysis uses economic principles to understand how profit is distributed among participants in a market (including both direct competitors and other parties such as suppliers) 3. Porters Five Forces – are a checklist of things that can affect value capture and creation c. Rivalry Among Existing firms iii. Few firms : Betrand – fight in price Cournot – fight on quantity Collusion – Firms choose price cooperatively iv. Industry concentration: % of total industry sales accounted by the 4 largest firms d. Threat of New Entrants v. Switching cost, capital requirements, access to distribution, product differentiation vi. Puts a cap on profit potential of an industry e. Power of Buyers vii. Price Sensitivity f. Power of Suppliers ...
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...BASIC INFORMATIONS Company Profile Name of the Organization: Hindustan Coca – Cola Beverages Private Limited Year of Establishment: October 1993 Form of Business: Private Limited Nature of Business: Leading Producer & marketer of soft drinks in India Address of Corporate Office: Coca – Cola India Enkay Towers, Udyog Vihar V, Gurgaon, Haryana – 122106. Tel.: (0124) 2234 8041/8571. Plant Address (Gujarat): Village: Goblej, Dist.: Kheda, Gujarat – 387440. Name of the President: Mr. Sanjiv Gupta Telephone: 02694 84386 / 87 / 77585 Website: http://www.coca-colaindia.com History Birth of a Refreshing Idea John Styth Pemberton first introduced the refreshing taste of Coca – Cola in Atlanta, Georgia. It was of 1886 when the pharmacist concocted a caramel – colored syrup in a three – legged brass kettle in his backyard. He first “distributed” the new product by carrying Coca – Cola in a jug down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca – Cola at the soda fountain. Whether by design or accident, carbonated water was proclaimed “Delicious & Refreshing” Dr. Pemberton’s partner & bookkeeper, Frank M. Robinson suggested the name & panned “Coca – Cola” in the unique flowing script that is famous worldwide today. Mr. Robinson thought ‘the two C’s would look well in advertising. In 1886 sales of...
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...movement which is W. Edwards Deming introduced the concept of management named Total Quality Management (TQM). This approach management originated in Japanese Industry in the 1950’s and became popular in the West since early 1980’s. TQM is a system for a customer focused organization in continual improvement that involves all employees of all aspects of the organization. Employee involvement, focus on the customer, benchmarking, and continuous improvement are the four significant elements of TQM. Besides, there are some management techniques which involve in the implementation of TQM, such as quality circles, Six Sigma, reduced cycle time and continuous improvement Employee involvement is creating an environment for employees as to have impact on decisions making and actions which can affect their jobs. Focus on the customer Customer is the only element who determine the level of quality and the worthwhile level from all the efforts which organization do to foster quality improvement, training employees, integrating quality into processes management. Benchmarking Benchmarking is the process of comparing one's business processes and performance to industry as to learn and practice from other industry for achieving the best performance. Continuous improvement The process which involve ongoing efforts to improve the system, products, services or process to achieve improvement in an organization and company. Quality circles A quality circle is a group of volunteer form by workers...
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