...PepsiCo Business Analysis: Part I Management/MGT-521 Dr. Olivia Herriford PepsiCo Business Analysis: Part I PepsiCo is a world leader in convenient snacks, foods, and beverages with revenues of $65 billion and more than 285,000 employees. The company headquarters are in Purchase, New York. PepsiCo products can be found in nearly 200 countries around the globe. The company has 22 brands that each generates more than $1 billion each in annual retail sales. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, and food service and vending (PepsiCo, 2012). A SWOT analysis of a company is an important piece for an investor to determining if it is possible invests in a company and have a viable return of this inversion. This analysis will help to understand if the company is achieving its goals and objectives. Another important point would be identifying the company stakeholder and how the needs of those stakeholders are meet. SWOT Analysis Conducting a SWOT analysis of PepsiCo will determine the current status and strength for a potential investor. A SWOT analysis is a planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats ((Nickels, McHugh, & McHugh, 2010). Strengths PepsiCo has 22 brands that...
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...Marketing Plan Pepsi Canada Contents: 1. Executive Summary...................................................................3 2. Introductio/problem stratement...............................................3 3. External Analyis.........................................................................4 4. internal Analysis.........................................................................8 5. SWOT analysis...........................................................................10 6. target market, Segmentation, Positioning...............................12 7. Strategy........................................................................................12 8. Objectives.....................................................................................13 9. Marketing Mix.............................................................................14 10. Budget.........................................................................................15 11. Peer Assessments .......................................................................19 1. Executive summary PepsiCo is one of the main players in the beverage markets. The Canadian drinks market exists 16.3% of carbonated soft drinks, PepsiCo is in this market the biggest in Canada, but they want more, even though PepsiCo had a market share of 45.3% in 2011, they feel the competition of Coca Cola...
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...STUDENTS MKT 421 University of Phoenix DATE Professor Pepsi B Energy Marketing Plan: Phase One Pepsi is performing a marketing control of their recent release of the Pepsi Diet Slim can, evaluating the successes and the failures of product. Based on the market successes of the Pepsi Diet Slim can, Pepsi is planning to develop a sugarcane-based Pepsi energy drink consisting of vitamin B12 and other B vitamins. This new product is packaged in a format similar to the Pepsi Diet Slim to offer a new look to Pepsi’s soda cans and to compete with the irregular shapes of existing energy drinks. Pepsi B Energy is to cater to customers who want to drink a healthier Pepsi. Pepsi B Energy’s Marketing Plan Phase One is designed to develop the basics of a marketing strategy for Pepsi B Energy. Pepsi B Energy’s Marketing Plan Phase One provides an overview of PepsiCo, a brief description of the product, the importance of marketing for PepsiCo, a SWOTT chart for Pepsi B Energy, and the preferred marketing research approach for Pepsi B Energy. PepsiCo Pepsi was founded in 1898 by a druggist from North Carolina named Caleb Bradham. Through a series of acquisitions and other business dealings, Pepsi became PepsiCo. PepsiCo currently produces a variety of beverages, many in partnership with other companies. PepsiCo sell soft drinks, juice drinks, sport drinks, bottled and enhanced waters. Recently, the company has acquired...
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...PepsiCo 2005 Case Analysis June 17, 2009 I. Definition of the Issue The PepsiCo-2005 case study has several issues revolving it. It has the internal issue that PepsiCo has not been able to consistently meet its growth goal of 15+ percent annual increase in earnings for the last 10 years. Its external issues consist of its products as reaching maturity stage industry wise and its divisions, except Frito-Lay North America (FLNA), fail to rank highest in its respective market segments. Division wise, the company holds a large share of each respective market, but over-all the company sustains a flat growth rate and fails to meet its growth goal. In respect to this, it can be seen that the real issue in this case is the need of a strategy to sustain a compound annual growth rate (CAGR) in earnings per share of 15 percent per year. This paper aims to develop a three-year strategic plan for PEPSICO that can best ensure this growth through this decade. II. Objectives The paper’s objectives include designing of alternatives that may aid its development for a sound strategy in response to the issue through a quantitative analysis. The paper would also include an analysis of each alternative. From the generated alternatives, the paper would focus on one that would seem to best apply to the given circumstances. The paper also includes a potential problem analysis to aid in strengthening the strategy’s defenses and enables the company to predict and anticipate...
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...PEPSI COLA CRISIS Yeşim Ekici, M.Sc Bahçeşehir University CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments References CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments Brief History of PEPSI 1891- 1935: faced bankruptcy twice 1898: becomes known as Pepsi Cola, formulated Pepsi-Cola 1941: First signs of success Listed on New York Stock Exchange 1964: formulated Diet Pepsi 1965: PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lays Named one of the world’s top beverage companies CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments CONTENTS Brief History of Pepsi Crisis Timeline of Crisis Crisis Management Analysis and Comments CRISIS PepsiCo was entering peak sales season (Memorial Day to Labor Day) June 9, 1993: Syringe found in Diet Pepsi can (Tacoma, Washington) Hypodermic syringes in cans which cause HIV/AIDS When the crisis hit, days later on: more than 50 new reports in more than 20 states with objects including: Syringes, a wood screw, a bullet, a crack cocaine vial and a broken sew needle TIMELINE OF CRISIS *2 more complaints reported 1 from Los Angeles; 1 from Pennyslvania *First complaint reported in Tacoma , Washington JUNE 9 JUNE 10 *FDA (US Food and Drug Administration) issues 5 states alert advising consumers to inspect their sodas by pouring JUNE 13 JUNE 14 *Multiple complaints reported from...
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...table of content External Analysis: 2 Macro environment: 2 Meso environment: 5 Internal Analysis 7 SWOT Analysis Pepsi case: 9 Objectives 10 Marketing Strategy 10 Marketing Plan 12 Product 12 Place 14 Price 14 Budget & Control 15 External Analysis: Macro environment: The environment is constantly changing and therefore also influencing PepsiCo’s operations. Environmental changes which are not directly involved with the company but do influence it can be put in six categories: economic, technological, political, cultural, natural and international changes. These changes and their influence on PepsiCo Canada are described per category. Management R. L. Draft, M. Kendrick, N. Vershinina, the general environment page 85-91. Economic In March 2012 Canada’s economy was ranked 11th of the world with a GDP of $1,759 billion. Canada is a wealthy nation with a very high standard of living and is also one of the world’s top trading nations. Since the 2008 world financial crisis Canada has emerged as one of the strongest developed economies in the world. The GDP growth of Canada in 2010 was more than 3% even though most of the World’s Western countries were in an economic recession. The stability of the Canadian economy even during a World financial crisis makes Canada a great country to operate in for a multinational like PepsiCo. http://www.rediff.com/business/slide-show/slide-show-1-worlds-20-economic-superpowers/20120312.htm http://www.economywatch.com/world_economy/canada/...
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...PepsiCo 2005 Case Analysis June 17, 2009 I. Definition of the Issue The PepsiCo-2005 case study has several issues revolving it. It has the internal issue that PepsiCo has not been able to consistently meet its growth goal of 15+ percent annual increase in earnings for the last 10 years. Its external issues consist of its products as reaching maturity stage industry wise and its divisions, except Frito-Lay North America (FLNA), fail to rank highest in its respective market segments. Division wise, the company holds a large share of each respective market, but over-all the company sustains a flat growth rate and fails to meet its growth goal. In respect to this, it can be seen that the real issue in this case is the need of a strategy to sustain a compound annual growth rate (CAGR) in earnings per share of 15 percent per year. This paper aims to develop a three-year strategic plan for PEPSICO that can best ensure this growth through this decade. II. Objectives The paper’s objectives include designing of alternatives that may aid its development for a sound strategy in response to the issue through a quantitative analysis. The paper would also include an analysis of each alternative. From the generated alternatives, the paper would focus on one that would seem to best apply to the given circumstances. The paper also includes a potential problem analysis to aid in strengthening the strategy’s defenses and enables the company to predict and anticipate...
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...PEPSICO CORPORATION STOCK ANALYSIS Presented by: St. John’s University Undergraduate Student Managed Investment Fund April 29, 2003 Recommendation: Purchase 400 shares of PepsiCo stock at market order Industry: Food and Beverage Kristopher Cartagena – kcart26@yahoo.com Dion Demetropoulos – Ddeme829@aol.com Tenisha Martin – tenishax@hotmail.com Share Data: Price - $42.65 Date – April 25, 2003 Target Price - $50.65 52 Week Price Range - $53.23 - $34.00 Market Capitalization – 74.5 billion Shares Outstanding – 1.72 billion Revenue 2002 – $25.112 billion Stock Chart: Fundamentals: P/E 2002 – 22x P/E 2003 – 19x Earnings Per Share Estimate: EPS 2003E = $2.28 EPS 2003 Consensus = $2.20 EPS 2004E = $2.45 EPS 2004 Consensus = $2.44 MEMORANDUM TO: Student Managed Investment Fund St. John’s University FROM: Kristopher Cartagena Dion Demetropoulos Tenisha Martin DATE: April 29, 2003 SUBJECT: ANALYSIS OF PEPSICO STOCK AS AN UNDERVALUED SECURITY This is the research report that was requested on January 23, 2003 about PepsiCo stock and whether it should be incorporated in to the Student Managed Investment Fund. The analysis was done primarily through secondary research. The analysis revealed that PepsiCo’s stock is currently undervalued at $42.65, as of April 25, 2003. We used a relative valuation model, and determined PepsiCo’s target price to be $50.65. In addition, we used a multi-stage dividend discount model, and determined...
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...Marketing Plan PepsiCo is a worldwide food and beverage supplier that employs more than 142,000 individuals and generates about 65 billion in profits. Pepsi was founded in 1898 and throughout the years it has developed strength thru mergers and acquisitions. Today it has subsidiaries and partnerships with companies like Lipton, Frito-Lay, Starbucks, Quaker and Gatorade. With their competitive strategies, PepsiCo has proven success and it has proven to be an industry leader. At PepsiCo, the mission is to “be the world’s premier consumer Products Company focused on convenient foods and beverages. They seek to produce financial rewards to investors and provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity” (Pepsico, 2012). PepsiCo strives for excellence by “Performing with Purpose” and it has placed presence internationally within its four branches. These are: PepsiCo is global company with four major businesses: PepsiCo Americas Beverages, PepsiCo Americas Food, PepsiCo Europe, and PepsiCo Asia, Middle East, Africa. Its products include Pepsi beverages (Sierra Mist, Pepsi, Mountain Dew), Frito-Lay foods (Doritos, Tostitos, Sun Chips, Walkers and Twistos) Tropicana and Dole family of juices ( Orange, Pineapple and Fruit punch), Quaker foods (Oatmeal, Near East Rice Pilaf and Captain Crunch) and Gatorade (Various flavored sports...
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...PepsiCo Business Analysis: Part 1 Mufuliat Adeseun Management 521 November 5, 2012 Dr. Olivia Herriford PepsiCo Business Analysis: Part 1 When making any investment decision, it is important for a potential investor to gain insight into the company. An evaluation of the company’s strengths, weaknesses, opportunities, and threats will help the investor determine if the venture is worth going into (Nickels, McHugh & McHugh, 2010). It also provides details about the internal status of the business and the future growth to expect in the future. SWOT Analysis Conducting a SWOT analysis of PepsiCo will help the company determine where change is possible. If the company is at a turning point, an inventory of its strengths and weaknesses can reveal possibilities. The identified strengths can be built on and used to their full potential and makes can be made to reduce the weaknesses. Potential problems that need to be addressed or at least recognized are identified. It will help PepsiCo discover what it does well, could improve, whether they are making the most of the opportunities around them, and whether there are any changes in the market that may require changes in the business (Nickels et al., 2010). Strengths PepsiCo has a diverse product portfolio that includes foods, snacks, and beverages with annual revenue of over $66 billion. The PepsiCo brands such as Pepsi, Gatorade, Tropicana, Mountain Dew, Lay’s, Aquafina, Sierra Mist, Fritos...
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...EXECUTIVE SUMMARY««««««««««««««««« 2 2- HISTORY OF PEPSI COLA INTERNATIONAL««««««« 3 3- VISION STATEMENT««««««««««««««««««. 4 4- MISSION STATEMENT«««««««««««««««««. 5 5- IMPROVED MISSION STATEMENT«««««««««««. 5 STAGE 1 (INPUT STAGE) 6- SWOT ANALYSIS«««««««««««««««««««« 6 7- EXTERNAL ENVIRONMENT ANALYSIS«««««««««. 10 8- KEY EXTERNAL FACTOR ANALYSIS .«««««««««« 14 9- KEY INTERNAL FACTOR ANALYSIS ««.««««««««. 15 10- ANALYSIS OF COMPETITORS PROFILE««««««««... 16 STAGE 2 (MATCHING STAGE) 11- TOWS MATRIX««««««««««««««««««««« 17 12- SPACE MATRIX««««««««««««««««««««.. 18 13- IE MATRIX««««««««««««««««««««««« 20 14- GRAND MATRIX«««««««««««««««««««« 22 STAGE 3 (DECISION STAGE) 15- QSPM OF PEPSICO««««««««««««««««««« 23 16- RECOMMENDATIONS & CONCLUSION«««««««««. 25 Growth, Balance, and aWorld of Fun [pic][pic] 4 ACKNOWLEDGEMENT We are thankful to Almighty ALLAH ´most beneficent and the most Mercifulµ Who made us able to complete our given project successfully and for giving us much cooperation and supporting parents who has given us this opportunity to study here. we would like to thank SIR SHAHID TUFAIL for giving us the confidence and opportunity to prove ourselves. EXECUTIVE OVERVIEW Strategic management process consists of three stages: strategy formulation, strategy implementation and strategyevaluation. The scope of the project is to discuss the strategies adopted and applied by Pepsi Cola, Pakistan and also decide which alternative strategy...
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...Wars Case Analysis July 31, 2010 Executive Summary Coca-Cola was invented and marketed in 1886 by a pharmacist named Dr. John Pemberton he named Coca-Cola after the coca leaves and kola nuts he used in order to create the product. Twelve years later in 1898 Caleb Bradham created Pepsi Cola for the beneficial effects it claimed to have on upset stomachs and indigestion. The enmity between the two soda companies are known as the “Cola Wars”. The war began in the 1960’s when Coca-Cola’s supremacy ruled the market as the beverage of choice above Pepsi Cola. Due to the competition between the two rival cola companies actions became extreme and forced both companies to implement strategic methods in order to keep the competitive edge over the other. Coca Cola Wars Case Analysis I. Current Situation: Coca-Cola's and Pepsi Cola’s marketing strategies has been as impossible to tell apart as the products themselves, both companies rely on vibrant colors, catch phrases, attractive people, and famous entertainers to grab consumer’s attention and to entice them into purchasing their products. In 1941 Coca-Cola officially renamed their product to “Coke” as an official trademark with a series of advertisements informing consumers that “Coke” means Coca-Cola (Coca-Cola, 2011). Pepsi was first introduced as " Drink" in 1898 by Caleb Bradham its inventor who created Pepsi at his home, it was later that Bradham changed the name and officially named the beverage Pepsi Cola (Pepsico...
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...Pepsi Project Table of Contents Executive Summary Pepsi (PEP) Background Statement of Cash Flows Analysis of ‘Cash Flow to Net Income’ Analysis of ‘Cash Flow Adequacy Ratio’ Analysis of ‘Free Cash Flow / Operating Cash Flow’ Competition Marketing Campaign Innovation References Pepsi (PEP) Background PepsiCo, Inc. is a global food, snack and beverage company. The Company's brands include Quaker Oats, Tropicana, Gatorade, Lay's, Pepsi, Walkers, Gamesa and Sabritas. Pepsico Inc. is registered on NYSE using the ticker symbol of ‘PEP’. Using the available data from 1978 till now, the PEP ticker symbol has seen the stock price increase of approximate 4400% , which is comparable to its closest competitor Coca-Cola’s (Ticker : KO) growth of 4500% in the same time period. Pepsico’s current Market Cap is approximately 98.83B with a P/E ratio of 15.90. A high P/E ratio suggests investor's confidence in the future growth prospects of the company and Pepsico has the highest P/E ratio as compared to its major competitors in the sparkling soda industry including Coca-Cola and Dr. Pepper. Even though it can be interpreted that PEP has lagged behind Coca-Cola over the years in US market but it is very important to understand that 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 non-carbonated brands like Gatorade...
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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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...STRATEGIC MANAGEMENT FINAL PAPER PEPSICO CASE STUDY ANALYSIS LECTURER: Sisdjiatmo K. Widhaningrat Composed by Chalinee Kunkaweeprad (1206323306) Karisma Maharani Anisakusuma (0906490790) Prasya Aninditya (0906532540) Shafa Tasya Kamila (1006663096) UNIVERSITAS INDONESIA DEPOK 2012 1 STATEMENT OF AUTHORSHIP “Kami yang bertandatangan di bawah ini menyatakan bahwa makalah/tugas terlampir adalah murni hasil pekerjaan kami sendiri. Tidak ada pekerjaan orang lain yang kami gunakan tanpa menyebutkan sumbernya. Materi ini tidak/belum pernah disajikan/digunakan sebagai bahan untuk makalah/tugas pada mata ajaran lain kecuali kami menyatakan dengan jelas bahwa kami menyatakan dengan jelas menggunakannya. Kami memahami bahwa tugas yang kami kumpulkan ini dapat diperbanyak dan/atau dikomunikasikan untuk tujuan mendeteksi adanya plagiarisme.” Nama : Chalinee Kunkaweeprad Nama : Kharisma Maharani A. NPM 1206323306 NPM 0906490790 : Tanda Tangan : : Tanda Tangan : Nama : Prasya Aninditya Nama : Shafa Tasya Kamila NPM 0906532540 NPM 1006663096 : Tanda Tangan : : Tanda Tangan : 2 EXECUTIVE SUMMARY This report provides an analysis and evaluation of the Marketing Strategy of PepsiCo. Methods of analysis include the internal and external analysis of the company. The research draws attention to the competition PepsiCo in the Cola and Snacks industry....
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