...Thompson−Strickland: Strategic Management: Concepts and Cases, 13th Edition 23. PepsiCo’s Acquisition of Quaker Oats Case © The McGraw−Hill Companies, 2002 1 case 23 PepsiCo’s Acquisition of Quaker Oats John E. Gamble University of South Alabama In 2001, PepsiCo was the world’s fifth-largest food and beverage company, with such brands as Lay’s, Tostitos, Mountain Dew, Pepsi, Doritos, Aquafina, and Lipton contributing to revenues of approximately $26 billion. PepsiCo’s revenues had reached $31 billion in 1996, but a new corporate strategy embarked upon in 1997 slimmed the company’s portfolio from a collection of fast-food restaurants, snack foods, and beverages to a sharply focused lineup of convenience foods and beverages. Between 1997 and 1999, CEO Roger Enrico spun off Kentucky Fried Chicken (KFC), Taco Bell, and Pizza Hut as one independent, publicly traded company; created a stand-alone softdrink bottling business through an initial public offering; and entered additional snack and beverage categories with the acquisitions of Cracker Jack and Tropicana. Enrico’s focus on convenience foods and beverages placed PepsiCo in food and beverage categories that grew at twice the 2 percent industry growth rate and gave it a 2-to-1 market share lead over its nearest competitor in the convenience food and beverage industry. Roger Enrico and Quaker Oats Company’s CEO, Robert Morrison, jointly announced on December 4, 2000, that PepsiCo would acquire Quaker Oats...
Words: 15973 - Pages: 64
...UV0273 BEN & JERRY’S HOMEMADE Jerry: What’s interesting about me and my role in the company is I’m just this guy on the street. A person who’s fairly conventional, mainstream, accepting of life as it is. Ben: Salt of the earth. A man of the people. Jerry: But then I’ve got this friend, Ben, who challenges everything. It’s against his nature to do anything the same way anyone’s ever done it before. To which my response is always, “I don’t think that’ll work.” Ben: To which my response is always, “How do we know until we try?” Jerry: So I get to go through this leading-edge, risk-taking experience with Ben—even though I’m really just like everyone else. Ben: The perfect duo. Ice cream and chunks. Business and social change. Ben and Jerry. —Ben & Jerry’s Double-Dip As Henry Morgan’s plane passed over the snow-covered hills of Vermont’s dairy land, through his mind passed the events of the last few months. It was late January 2000. Morgan, the retired dean of Boston University’s business school, knew well the trip to Burlington. As a member of the board of directors of Ben & Jerry’s Homemade for the past 13 years, Morgan had seen the company grow both in financial and social stature. The company was now not only an industry leader in the super-premium ice cream market, but also commanded an important leadership position in a variety of social causes from the dairy farms of Vermont to the rainforests of South America. Increased competitive...
Words: 5401 - Pages: 22
...Excellence through diversity is one of the Chancellor's goals, yet the term diversity often raises controversy, confusion, and tension. What does it mean? Is it the same as affirmative action? Why should you focus on it? When people think of diversity, they may think first of ethnicity and race, and then gender; however, diversity is much broader than that. In Workforce America! Managing Employee Diversity as a Vital Resource, diversity is defined as “otherness or those human qualities that are different from our own and outside the groups to which we belong, yet present in other individuals and groups.” Dimensions of diversity include, but are not limited to: age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educational background, geographic location, income, marital status, military experience, religious beliefs, parental status, and work experience (Loden and Rosener 1991, 18-19). It's important to understand how these dimensions affect performance, motivation, success, and interactions with others. Institutional structures and practices that have presented barriers to some dimensions of diversity should be examined, challenged, and removed. Managing diversity is defined as "planning and implementing organizational systems and practices to manage people so that the potential advantages of diversity are maximized while its potential disadvantages are minimized," according to Taylor Cox in "Cultural Diversity in Organizations." Managing...
Words: 4182 - Pages: 17
...County of Fairfax, Virginia Ten Principles of Sound Financial Management April 30, 2007 1. Planning Policy. The planning system in the County will continue as a dynamic process, which is synchronized with the capital improvement program, capital budget and operating budget. The County’s land use plans shall not be allowed to become static. There will continue to be periodic reviews of the plans at least every five years. Small area plans shall not be modified without consideration of contiguous plans. The Capital Improvement Program will be structured to implement plans for new and expanded capital facilities as contained in the County’s Comprehensive Plan and other facility plans. The Capital Improvement Program will also include support for periodic reinvestment in aging capital and technology infrastructure sufficient to ensure no loss of service and continued safety of operation. 2. Annual Budget Plans. Annual budgets shall continue to show fiscal restraint. Annual budgets will be balanced between projected total funds available and total disbursements including established reserves. a. A managed reserve shall be maintained in the General Fund at a level sufficient to provide for temporary financing of critical unforeseen disbursements of a catastrophic emergency nature. The reserve will be maintained at a level of not less than two percent of total Combined General Fund disbursements in any given fiscal year. A Revenue Stabilization Fund (RSF) shall be maintained in addition...
Words: 1450 - Pages: 6
...Question 12 1. Identify and discuss at least three issues that telecommuting raises for HRM. Include ways that we can manage these issues. Telecommuting allows employees to do their work without leaving their homes by using telecommunication and computer technologies. This means no rush-hour traffic, no time lost in traveling to the office, no expenses for gasoline or lunch or office clothes, and flexible work schedules. Telecommuting also enables employers to minimize office costs, attract and retain skilled workers and ultimately increase productivity. However, there are some significant disadvantages that telecommunicating raises for human resource management that need to be considered. These include lessened employee interaction and involvement, the threat to the security of company data. One obvious disadvantage to the individual employee is the reduced opportunity to get involved with co-workers and the informal communication network at the office. The conversations during tea breaks or coffee after working hours usually provide good opportunities to know more about what is going on within the organization and to feel a part of work group. The lack of such interaction may lead to a feeling of isolation from co-workers as well as a lack of understanding the company’s goals and values. The normal absences of the telecommuting employees could mean that co-workers remaining at the office have a better chance to be known by the supervisors. The telecommuters wish...
Words: 764 - Pages: 4
...Individual Assignment (40%) CHAPTER 1 : FUNDAMENTAL CONCEPT OF FINANCIAL MANAGEMENT 1. What you understand on maximization of shareholders wealth (2 M) Maximization of shareholders wealth means a) maximizing the firm’s value – achieving the highest possible value for the firm in the marketplace. (by making profits and avoiding losses. Economic Value Add (EVA) b) maximizing stock price - maximization of purchasing power, accumulating as much wealth as possible, by whatever means possible. 2. You are required to complete the gaps in the following table: (5M) Assets = Capital + Liabilities (current liabilities + long term liabilities) Assets | Liabilities | Capital | 19,600 | 3,150 | 16,450 | 28,000 | 4,900 | 23,100 | 159,000 | 49,000 | 110,000 | 88,000 | 26,000 | 62,000 | 51,400 | 11,650 | 39,750 | 3. Classify the following items into Liabilities, Assets, Income and Expenses (6M) Vehicles | Asset | Bank overdraft | Liability | Salaries | Expenses | Loan from A. Shark | Liability | A/C Payable | Liability | Machinery | Asset | Debtors | Asset | Opening Inventory | Expenses | Comm. Rec | Income | Sales | Income | Rental | Expenses | Premises | Asset | 4. Preparation of Financial statement Jamal started a book printing business on 01/01/2009 as Jamal Printers. The following are the transactions for the year ended 31/12/09: Date Transaction 01/01/09 Deposit RM50,000 with RHB Arabic Bank as a business capital. 15/02/09...
Words: 1904 - Pages: 8
...An Assignment On Finance for Managers Introduction: Unique horizon Ltd. is a recently formed in 2002 situated at London, a limited company which is facing increasing growth. They began their business as a family business so their level of financial accountability is low. But now the management needs a financial accountant in order to ensure the accountability and proper management of the firm. However, before that the management needs to know specifically the roles and responsibility of proper financial information. They also need to know about budgeted plans and methods for appraisal of a business opportunity. We have prepared this report basing on the information provided in the case of Unique horizon Ltd. which complies with the rules and regulations of this UK. Firstly, we have tried to give a theoretical review to the board of directors that will help them to realize the necessity and the total process of keeping financial records and the procedures to maintain these statements. Besides we discussed about the accounting and pricing processes to understand them to operate budgetary activities properly. Then we solve mathematical problems related to the variance over the costing method and a problem related to capital investment decision. Finally we recommend some step which should be taken to the development of the firm in long run. Task 1: 1.1 Purposes for keeping financial record: To maintain a venture systematically and smoothly, financial records play...
Words: 3315 - Pages: 14
...Project: Finance for Managers Table of content 1. Mission Statement 2. Company’s profile 3. Market Dynamic: SOTW 4. Case 1 & results 5. Case 2 & results 6. Evaluation Mission Statement We are committed to provide an outstanding experience in Automotive and associated businesses to all our customers through superior value products and services. | | | | | SSFF as a company is one of the reliable importers and distributors of automotive spare parts in Pakistan. Currently we are giving our services in Pakistan only, but in future, we are looking forward to extend it to the Afghanistan and other neighboring countries. | | | | | | | | | | | | | | | Hafeez Motors is a very renowned name in the field of new and used cars trade since last 3 decades. We are very conveniently located on Main M.A.Jinnah road. We, since our inception have provided honest and sincere services to our customers and have over the period built up a sizeable cliental which varies from Industries to Retail Customers. We initiated our company’s services from Karachi, which provides us an obvious advantage to sell out quality parts at the right price. We aimed to import best automobile parts and accessories from trusted sources in China, Italy, Japan, Korea, Thailand, and the U.K.We have started our business with a team of experts have over 5 (on average) years of experience in this market. Our professional management team and trained, customer-service...
Words: 1587 - Pages: 7
...Basel Committee on Banking Supervision Principles for Sound Liquidity Risk Management and Supervision September 2008 Requests for copies of publications, or for additions/changes to the mailing list, should be sent to: Bank for International Settlements Press & Communications CH-4002 Basel, Switzerland E-mail: publications@bis.org Fax: +41 61 280 9100 and +41 61 280 8100 © Bank for International Settlements 2008. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISBN print: 92-9131-767-5 ISBN web: 92-9197-767-5 Table of Contents Introduction ...............................................................................................................................1 Principles for the management and supervision of liquidity risk ...............................................3 Fundamental principle for the management and supervision of liquidity risk ...........................3 Governance of liquidity risk management.................................................................................3 Measurement and management of liquidity risk .......................................................................3 Public disclosure.......................................................................................................................4 The role of supervisors .............................................................................................................4 Fundamental principle for the management...
Words: 19195 - Pages: 77
...Q. Why is Finance important for non- finance managers? A. Finance is important to business as without it businesses would not be able to start up or survive. In order to start a business, sources of finance are needed such as grants or loans used to buy essential items such as vehicles, premises and other equipments. It is needed for a business to maintain the running costs such as electricity and rent. It explains the importance of time, risk and returns on investment. The return on investment must always be more than the cost of capital, risk investment should be least. It is also needed in expanding a business. Today’s Managers need to be more commercially aware more so than ever before. Even if they do not have to manage budgets or finances themselves as part of their role they still need to understand about the financials of a company, what it all means and impact of their actions on the bottom line. If one plans the financial side of a business accurately he/she will be able to track the progress of their business in terms of profit and cash surpluses. Accurate financial documents will allow them to keep track of their cash flow and monitor how much of their loans have been paid off. They can measure their success through accurate financial planning. Financial documents will help them in keeping the records as- when company has retained enough profits to expand and improve its business. Improving business performance requires an understanding of the components of...
Words: 412 - Pages: 2
...Course: Finance for Managers Course code: CONTENTS 1. Report to Directors of Bramble Waste Management a. Introduction b. Net Present Value c. Internal Rate of Return d. Tender Price for weekly Collection e. Tender Price for fortnightly Collection f. Other Financial Considerations 2. Report to Directors of Newtownabbot Borough Council a. Introduction b. Evaluation of the financial strengths and weaknesses of the three businesses short listed c. Company Ranking d. Key Financial Criteria for Consideration e. Further Considerations Appendix 1 Workings for Weekly Collection Appendix 2 Workings for Fortnightly Collection 1. Report to Directors of Bramble Waste Management A) Introduction This report presents an outline of the value of the Newtownabbot Borough Council (NBC) waste collection contract. In order to assist decision making the regard to minimum tender price to NBC Net present Value and Internal Rate of return are presented here, assuming NBC receives costs savings of 15% as experienced by other Councils which have outsourced. Additional assumptions are made with regard to Population growth, number of households, tonnage of waste collected and changes recycling rates during the lifetime of the contract. Figures are produced on the assumption of a 4% growth on the NBCs 2011 population and waste figures. On this basis suggestions for minimum tender price are made for both weekly and fortnightly...
Words: 5046 - Pages: 21
...FINANCE FOR MANAGERS SEMESTER 1 2011/12 ASSIGNMENT 1 Part A. The primary financial statements produced by a wide range of entities are the balance sheet, the income statement and the cash flow statement. These statements taken together provide the essential data required to analyse the financial position and performance of a business. The balance sheet, also known as the statement of financial position, presents the accumulated wealth of a business at a particular point in time, as well as the form in which this wealth is held (Atrill and McLaney). It also shows how finance has been raised and how it has been deployed. The income statement – or profit and loss account, as it is sometimes called – presents how much profit (or loss) a business has generated during a period of time (Atrill and McLaney). The income statement links to the balance sheet at the beginning and end of an accounting period. Finally, the cash flow statement shows the sources and uses of cash during a particular period (Weetman). It explains changes in the cash position caused by operating, investing and financing cash flows. These three financial statements will have to be used in conjunction one with another to provide a grater picture of the financial health of the business. The ‘current assets’ is one of the most meaningful items to be analysed in the balance sheet for a company like Marks and Spencer...
Words: 1085 - Pages: 5
...Counter Party Credit Rating Under Basel II-A Challenge for Finance Managers 1 WELCOME Counter Party Credit Rating Under Basel IIA Challenge for Finance Managers 2 Discussion Summary 1. 2. 3. 4. Basel Vs. Risk Management BaselBasel-II Road Map and Objectives BB Guideline of Basel-II implementation BaselCounter Party Rating by ECAI in determining Capital Adequacy of Corporate 5. How to face ECAI by counter parties for good rating 6. Question and Answer 3 Basel Vs. Risk Management • Basel from the view point of Risk Management • Relating to Capital Adequacy of Banks • Reflecting Risk management in Operation of Banks/FIs 4 Risk Management in Banks- Why? © Banks are highly leveraged. © Bank Directors and Senior Management are the agent of shareholders. © International survey reveals that the the Bank Management does not adequately consider the risk management information in strategic decision making. 5 CEO and Directors of Financial Institutions are currently facing … Two Major Challenges 6 Two Challenges First v Creation of Value for the Shareholders v Need to deliver ever increasing returns as per the Expectation of the shareholders Second Keep the Capital without Erosion 7 First Challenge Senior management believes that Superior Risk Management can create value to the shareholders But not Sure - HOW. 84% of the managers believe that the risk management can improve price earning ratios and reduce cost of capital which again...
Words: 7448 - Pages: 30
...P1: Assignment 1 In this assignment I will draw up a number of key documents required for the recruitment of a Finance Manager position in order to establish the correct documentation required in the recruitment process, which will then be adopted for all employment opportunities in Elite Management. I will also include the description of the recruitment documentation used in Elite Management. The position I have chosen to look into is that of the Finance Manager for Elite Management. In order to recruit the right people for the organisation, management needs to pay attention to the various stages of the recruitment process. Here I will discuss the four important documents used in the recruitment process. These are the Job Advert, the Application Form, Job description and the Person Specification. 1. Job vacancy advertisements A job advertisement is an announcement about a job vacancy. The advertisement is part of the recruitment process designed to attract suitable qualified candidates for a job. Traditionally job adverts have been placed on newspapers and other printed media, however nowadays a large number of Job advertisement are placed on internet on job websites as well as on the company’s own internet or intranet websites. Adverts include a summary of the job description, the person’s specification and remuneration for the job. Elite Management will advertise in its website and other job websites. We shall also place the adverts in national and local newspapers...
Words: 1661 - Pages: 7
...Although finance and accounting are both involved with the financial aspect of a business or organization, the managers and employees in these departments deal with finances in completely different ways. Accounting deals mainly with preparing and examining financial records and ensuring their accuracy, making sure taxes are paid on time and properly, and assessing financial operations to help ensure that organizations run efficiently. On the other hand, finance deals primarily with making important financial decisions for an organization and helping “develop strategies and plans for the long-term financial goals of an organization” (Financial Managers 2012). It is also important to note that financial managers use the financial information prepared by the accounting department in order to make the best decision possible for their organization. Nevertheless, both accountants and financial managers together must operate effectively and efficiently to ensure the continued short-term and long-term financial viability of any health care organization. In this short essay I will explain the relationship between finance and accounting and how they both help ensure the financial viability of a health care organization. First, despite the fact that finance and accounting both oversee the financial aspect of a health care organization, the way in which they handle finances are very different from one another. “Accounting is concerned with financial record keeping, the production of periodic...
Words: 943 - Pages: 4
