...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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...Competitive Strategies Coca-Cola vs. Pepsi Co Joyce Conyers Strayer University 3 May 2013 BUS 508 Online Course Instructor: Dr. Phyllis Parise Dowers Grove Campus Phone Number: (630)874-6128 / (630)456-2348 Cell phone Question: Choose an industry in which two or more companies has historically competed to maintain a significant share of the marketplace. These could include: Coca-Cola and Pepsi-Cola, Apple and Microsoft, GM and Ford Motor Company, or any other well-known pair of competitors. 1. To thoroughly determine how each corporate culture differs from the other, I will start with the history of Coca Cola. Type of the company: Public Website: http://www.cocacola.com Employees: As of 2010, The Coca-Cola Company employed just under 140,000 people worldwide. Let’s began with the background on the Coca-Cola Company history from 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. The bottling business however, began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. See “LONNIE, 2003” This agreement stayed in place and operated solely as and independent, local business until the beginning of 1980s with certain bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations...
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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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...Investment Analysis In 1965, Pepsi Co was created through a merger of two companies Pepsi Cola and Frito Lay by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay. Pepsi was originally founded in 1898 by Caleb Bradham, a New Bern, North Carolina, druggist, who first formulated Pepsi-Cola. Today, Pepsi is part of a portfolio of drinks that includes carbonated and non-carbonated drinks such as soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced waters. PepsiCo operates in four major fields. These fields include: PepsiCo Americas Beverages, PepsiCo Americas Foods, based in America PepsiCo Europe, and PepsiCo Asia, Middle East and Africa. The Pepsi-Cola Company is the world’s second largest beverage company. Pepsi-Cola beverages are available in about 170 countries. The product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Dr. John Stith Pemberton, a local pharmacist, produced the syrup for Coca-Cola, and carried a jug of the new product down the street to Jacobs' Pharmacy, where it was sampled, pronounced "excellent" and placed on sale for five cents a glass as a soda fountain drink. Carbonated water was teamed with the new syrup to produce a drink that was at once "Delicious and Refreshing," a theme that continues to echo today wherever Coca-Cola is enjoyed. The company markets...
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...CONTEMPORARY BUSINESS DR.MAGGIE SIZER COMPETITIVE STRATEGIES : PEPSICO VS. COCA-COLA AKIN DUNDAR 200068711 MBA/FINANCE 1/30/2013 Every company has a descripted or non-descripted competitive strategy if they have at least a competitor in the industry. To have the conversion rate of the investment, the company should have a desired and defensible position and power to defence this position. Sometimes, even a company has a really successful product it still tries to produce a new item or improve the one it has and this decision could be one of the biggest fail of marketing history. According to some marketing experts; the reason of the success of coke drink in the beverage industry is the advertisement competition and marketing war between PepsiCo and Coca-Cola since years ago. If there was not a PepsiCo in the industry, Coca-Cola could not make a billion bottles of daily sales. Both companies are in top of the list of most valuable brands list. They had many successes during their 120 years of rivalry but both of them also made high-cost mistakes during that time. The competition between the ‘Enemy Brothers’ is one of the good sample of rivalry which is based on a lot of interesting cases,different strategies and cultures. Differences between Coca-Cola and PepsiCo cultures and strategies was the main result announcer. In the middle of 1880’s, Coca-Cola was unrivaled in the industry. When the industrial war begun, was the time that PepsiCo...
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...XII-E CBSE ROLL NO. : ACADEMIC YEAR : 2012-2013 TEACHER IN CHARGE : MR. 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...
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...CASE STUDY : COLA WARS CONTINUE : COKE AND PEPSI IN 2006 The case study “Cola Wars Continue: Coke and Pepsi in 2006” focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. ‘ Cola war’ is the term used to describe the campaign of mutually targeted television advertisement & marketing campaigns between Coke & Pepsi. Furthermore, the case also focuses on the Coke vs. Pepsi goods which target similar groups of costumers, and how these companies have had and still have great reputation and continue to take risks due to their high capital. Both Coke & Pepsi have segmented the soft drink industry into two divisions, via – 1.Production of soft drink syrup. 2.Manufacturing & distribution of soft drinks at retail level. Coke & Pepsi have chosen to operate primarily on the production of soft drinks syrup,while leaving independent bottlers with more competitive segment of the industry.The purpose of this report is to gain insight into the possible strategies that can be applied, in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted in cannibalization. Because of this, the report is described from the perspective of both Coca-Cola and Pepsi. This report focuses on increasing the overall share and finding new opportunities in the unrevealed...
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...Executive summary After analyzing the income statement, ratios and strategies of the Coca-Cola Company, we can conclude that Coca-Cola had a continuous revenue growth between the years 2009 and 2011. It is the largest soft drink industry company in the world and therefore stands in a privileged position to face potential crisis. The reason for having our results in the income statement, and thus also in our ratios can be explained by the company’s acquisition and consolidation of CCE’s North American business during the last quarter of 2010. Moreover, another important factor for the decline in equity interest was the sale of the company’s investment in Embonor during the first quarter of 2011. Coca-Cola has been using several strategies. As mentioned above, acquisitions have been an important factor of Coca-Cola over the last 50 years. By acquiring new companies, they were able to eliminate competition, increase their growth and become the market leader of the non-alcoholic beverage industry. Following our calculations, over the past three years, Coca-Cola had an increase in its current liabilities as well as in their “cash to sales”. The debt-to-equity ratio shows that it’s smaller than one, meaning that the company is financed through equity. This low debt-to-equity ratio will usually be preferable for investors because it means that their interest will be better protected if Coca-Cola faces difficult times. The “L-T Debt to total capitalization” shows that it is stable...
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...Jing Wen Paul Bennett ME, GFGB 6003-001 30 December 2012 The Price theory of Coca-Cola Company Coca-Cola is a well-recognized soft drink brand in United States. According reports from Coca-Cola in 2012.Coca-Cola Company sells its product around the world in more than 200 countries and has a product portfolio of more than 35,000 drinks. Based on Interbrain’s best global brand 2011, The Coca-Cola brand is worth $74 billion and therefore was the world's most valuable brand. The market type of the Coca-Cola Company The Coca-Cola Company is a monopoly, because Coca-Cola has the ability to affect market prices through its actions. Despite the report from the Web of Coca-Cola, Coke has been a firm leader in the U.S. carbonated drinks market, with 42.8% market share and Pepsi's 31.1%. Therefore, the market, which Coca-Cola belongs, is not a perfectly competitive market. As a result, we can conclude that Coca-Cola has Monopoly power for it faces a downward-sloping demand curve, displayed in Chart 1. Because the Coca-Cola is a Monopolist, it can decide both it’s price and supply. A monopolist has no supply curve. In order to maximize the profit, the Company choose where MR=MC. Therefore, the price of Coca-Cola is P and the quantity is Q. The consumer surplus is in area B and the supplier surplus is area A, and the deadweight loss is in area C. The area C is the amount by which the consumer’s losses exceed the producer’s gain. Chart 1 Chart 1 Q Q P P D D MC ...
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...Nevertheless branded products compete with each other, but normally to a lesser degree. Coca-Cola and Pepsi are two companies that share such a competition; they have been battling each other for more than a century. It's a legendary brand rivalry. Read more: http://www.businessinsider.com/coca-cola-vs-pepsi-timeline-2013-1?op=1#ixzz2NHwdKlQR Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham, a pharmacist and drugstore owner in New Bern, North Carolina. The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So, young pharmacist Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola. Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rareoils, became so popular his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a company to market the new beverage. In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office...
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...Coke or Pepsi, what would you choose? xxxxxx XACC/280 xxxxxx teacher name Everyone in the civilized world recognizes two companies as kings of the soda pop, Pepsi-Cola and Coca-Cola. These two companies have battled for over one hundred years to be top dog in the beverage business. In 2005, Coca-Cola (Coke) led the race by just over 7% in net income over Pepsi-Co (Pepsi). This essay will compare these two beverage giants side by side and analyze the financial statements of both as well as making suggestions about ways the each company may be able to improve their earnings. Pepsi-Cola was born in North Carolina, in 1898, as the invention of a pharmacist named Caleb Bradham. He put together various combinations of juices, syrups, and spices to try to come up with a new drink to serve to his customers at the soda fountain in his pharmacy. His drink, originally called “Brad’s drink” was soon renamed Pepsi-Cola (using a combination of the names of two of the ingredients Pepsin and Kola nuts). The drink was incredibly successful and soon took off beyond Bradham’s wildest expectations. In 1902, the Pepsi-Cola company was officially formed and the brand was patented. The beverage quickly moved from a soda fountain product to a bottled beverage (PepsiCo, Inc, 2010). The second half of this duo is Coca-Cola. Coca-Cola was invented in 1886, twelve years before Pepsi. It was created by Doctor John Pemberton, also a pharmacist...
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...PART IV: Case Studies 1. Coca-Cola vs. Pepsi in India: The Battle of the Bottle Continues, 395 2. Arun Ice Cream, 409 3. Gujarat Co-Operative Milk Marketing Federation Limited (GCMMF), 421 4. The Park, Calcutta, 439 5. Kanpur Confectioneries Private Limited (A), 461 6. Kanpur Confectioneries Private Limited (B), 467 7. Aravind Eye Care System: Giving the Most Precious Gift, 473 8. ITC Limited, Bangalore (A), 495 9. ITC Limited, Bangalore (B), 499 10. The Living Room: Redefining the Furniture Industry, 505 11. Cognizant: Preparing for a Global Footprint, 515 12. One Mission, Multiple Roads: Aravind Eye Care System in 2009, 535 13. Wal-Mart Stores, Inc. (WMT), 555 14. Alibaba.com, 583 15. Apple Computer, Inc.: Maintaining the Music Business While Introducing iPhone and Apple TV, 597 16. Blockbuster Acquires Movielink: A Growth Strategy?, 615 17. A Horror Show at the Cinemaplex?, 627 18. JetBlue Airways: Challenges Ahead, 635 19. Blue Ocean Strategy at Henkel, 655 20. Nucor in 2009, 663 21. TNK-BP (Russia) 2008, 687 22. Barclays: Matt Barrett’s Journey—Winning Hearts and Minds, 701 23. Nintendo’s Disruptive Strategy: Implications for the Video Game Industry, 707 Coca-Cola vs. Pepsi in India: The Battle of the Bottle Continues Case 1 S. Manikutty Soft drinks or cool drinks, as they are known in India, refer to non-alcoholic drinks served in bottles or other packaging, to be distinguished from hot beverages such as coffee and tea, or cold beverages such as squashes...
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...You are an Analyst Coca Cola vs Pepsi | | | | | | | | | | | | | | | | | | | ...
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...Coca-Cola Company Marketing Plan [pic] [pic] Beth Dougherty Terri Meunier Shadeequah Curry August 3, 2012 Table of Content I. Executive Summary (Terri Meunier) II. Organizational and Product Overview (Terri Meunier) II.1 Organizational Description II.2 Vision, Mission, and Goals/Objectives II.3 Product Description III. Market Analysis (Beth Dougherty) III.1 Market Definition III.2 Competitive Analysis III.3 Environmental Forces III.4 Market Segmentation IV. Marketing Strategies (Shadeequah Curry) IV.1 Target Market(s) Selection IV.2 Product Portfolio Mix IV.3 Product Positioning Strategy IV.4 Sales Support Strategies I. Executive Summary The Coca Cola corporation is a beverage company and is defined to be the most well known trade mark in the world, and it is justly so. The Company owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages, but also a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It owns and markets a range of nonalcoholic sparkling beverage brands, which includes Coca-Cola, Diet Coke, Fanta and Sprite. The Coca Cola products appeal to a wide range of people throughout the world from all races, genders, and ages. Coca Cola is well known for its worldwide...
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...S (Roll No. 171) Saravanan K (Roll No. 172) Saumil Shah (Roll No. 174) Saumyadeep Mazoomdar (Roll No. 175) Soumya Mukherjee(Roll No. 193) Table of Contents Executive Summary 3 5C Analysis 4 Company: 4 Collaborators: 5 Customers: 7 Competitors: 9 Climate: 11 Segmentation, Target, Positioning 13 Product Mix 21 Communication 24 Going to market 26 Pricing 27 Coca Cola pricing strategy 28 Coca Cola downgrade due to low cost rivals 29 Price gap blowout 29 Lower prices the answer 30 Profitability 30 Customer Acquisition, Retention and Development 31 Strategies used by companies in the carbonated drinks sector 32 Conclusion 33 References 35 Executive Summary Beverages are divided into 7 different categories - Energy drinks, Juices, Soft drinks, Tea and Coffee, Sports drinks and Water. This report we are concentrating on carbonated beverages. The major players in the carbonated beverage industry are The Coca Cola Company and Pepsi Co. For many years now, the cola soft drink market is led by the Coca-Cola Company and PepsiCo Inc. Besides the cola market, they have expanded their businesses to the other soft drink markets as well and achieved oligopoly positions with tremendous market shares in all of these markets. The following report explores the marketing framework of the carbonated drinks sector. The report performs an analysis of the marketing strategies used by companies to assess market opportunities, choose, design, deliver...
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