...PepsiCo From Wikipedia, the free encyclopedia Jump to: navigation, search This article is about the company. For the soft drink, see Pepsi. PepsiCo Inc. | | Type | Public | Traded as | NYSE: PEP NASDAQ: PEP S&P 500 Component | Industry | Foods, Beverages | Founded | North Carolina, U.S. (1965 (1965)) | Founder(s) | Donald Kendall, Herman Lay | Headquarters | Purchase, New York, U.S. | Area served | Worldwide | Key people | Indra Nooyi (Chairman & CEO)[1] | Products | See list of PepsiCo products | Revenue | US$ 57.838 billion (2010)[2] | Operating income | US$ 08.332 billion (2010)[2] | Net income | US$ 06.338 billion (2010)[2] | Total assets | US$ 68.153 billion (2010)[2] | Total equity | US$ 21.476 billion (2010)[2] | Employees | 294,000 (2010)[2] | Divisions | PepsiCo Americas Foods; PepsiCo Americas Beverages; PepsiCo Europe; PepsiCo Asia, Middle East & Africa | Subsidiaries | List of subsidiaries | Website | PepsiCo.com | PepsiCo Inc. (NYSE: PEP) is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998...
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...EXECUTIVE SUMMARY In the case study, PepsiCo is a producer of carbonated cola drink and was marketing its products in most countries around the world. PepsiCo’s competitor was Coca-Cola. PepsiCo made two acquisitions of Tropicana and Quaker and the view was that there was synergy and economies of scale to be gained. PepsiCo should have had an organisational structure that will enable the achievement of the organisational mission and objectives. The organisation reorganised their structure to a multidivisional structure in a move to exploit the full acquisition potential. A multidivisional structure is most suitable for an organisation that has not got a wide range of products like PepsiCo. The organisation did not experience benefits from the multidivisional structure because PepsiCo had a wide rage of products and different customers. The organisation was structured into divisions and each reporting to the headquarters and there was no synergies and economies of scale gained. PepsiCo revised the organisational structure to a matrix structure. It enabled the organisation to operate in its particular competitive situation at peak effectiveness. At Pepsi they discovered that it was essential to drive the various brands as part of one team. There was less conflict between employees because of the hierarchical setup of the organisation. PepsiCo Beverages became the No 1 liquid refreshment beverage company in measured channels. There was a strategic fit as its strengths in the...
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...PepsiCo, Inc. Nitesh Kalwar June 18, 2010 HOLD Pros: • • Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2012 P/E 2009 EPS Projected 2012 EPS Dividend Yield Morning Star Ratings Beta PEP NYSE Consumer Staples Beverages (NonAlcoholic) Income & Capital Appreciation $103.67 Billion $52.56-67.61 $64.28 16.34 13.81 $3.81 $5.50 3.00% **** .56 • • • • Broad portfolio in the soft drink, saltysnack market and beverages. Acquisition of bottlers will allow for cost savings and new business opportunities Opportunities for growth in healthy snack, and healthy drink markets; growth in emerging markets Commodity (raw materials) volatility, exchange rate risks Increased bad debt and higher interest rates No high prospects for growth Cons: Porter’s Five Forces: • • • • • Threat of Competition: Moderate Threat of New Entrants: Low Threat of Substitutes: Low to Moderate Power of Suppliers: Moderate Power of Buyers: High Brief Overview PepsiCo, Inc. operates four major businesses: Frito-Lay North America, 31% of sales; Quaker Foods NA, 4%; Latin American Foods, 13% of total revenue, PepsiCo America Beverages, 23% of revenue, Europe, 16% of total revenue, AMEA 13%. PepsiCo recently purchased two of its largest bottling companies for a combined total of $12.6 Billion.1 1 10K 2010 PORTFOLIO CONSIDERATIONS PepsiCo, a consumer staple equity, currently composes 3.39% of the equity value of the EIF portfolio. As...
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...PepsiCo and PepsiCo Greater China About PepsiCo PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola – make hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCo’s people are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which we believe also means a more successful future for PepsiCo. We call this commitment Performance with Purpose: PepsiCo’s promise to provide a wide range of foods and beverages for local tastes; to find innovative ways to minimize our impact on the environment by conserving energy and water and reducing packaging volume; to provide a great workplace for our associates; and to respect, support and invest in the local communities where we operate. In recognition of the continued sustainability efforts, PepsiCo was named for the fourth time to the Dow Jones Sustainability Index of the World (DJSI World) and for the fifth time to the Dow Jones Sustainability Index of North America (DJSI North America) in 2010. In 2011, PepsiCo is ranked as the No. 1 company in the Dow Jones Sustainability Index (DJSI) Food and Beverage supersector. PepsiCo is also named the beverage sector leader for the third consecutive year. ...
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...Coca-Cola Company vs PepsiCo, Inc Professor Archie – ACC 305 Sara Griffith...
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...strategy implemented by PepsiCo to exploit rapidly growing markets opportunities by acquiring the organisations Tropicana, Gatorade and Quaker. The case study will highlight that it was imperative for the PepsiCo organisation to embark on a radical restructuring strategy to optimise their return on investments. The paper will discuss the rationale behind the critical restructuring .The benefits of the acquisitions and restructuring strategy will be discussed and motivated in detail. The strong existing competitive resources that PepsiCo and the new acquired brands in the North America region possess will be emphasised. The modifications to PepsiCo structure in 2001 and 2004 will be scrutinised to motivate and justify the decisions of the PepsiCo leadership. In addition the case study will evaluate the execution of the radical change and the tasks that should be performed by key resources. The emotional impact on employees due to the radical transformation and the key role employees should perform will be described. The focus of the paper will be on the function; the leadership of PepsiCo must perform and the potential roles the employees of PepsiCo could execute. Ultimately, the case study will discuss the complex relationship between structure and strategy. The paper will establish that PepsiCo had to regular acclimatise their strategy and structure to accomplish their organisational goals. Introduction Over a three year period from 1998-2001, PepsiCo made 2 major acquisitions...
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...Assignment #5: Financial Management Coca-Cola Company vs. PepsiCo. Rodséy E. Smith Daniel Sersland BUS 508: The Business Enterprise December 9, 2010 Abstract In the late 1800’s two of today’s largest and most recognizable food and beverage companies, PepsiCo and Coca-Cola Company began their quest to dominate the industry. Even today after over a hundred and twenty years, PepsiCo and Coca-Cola Company continue their efforts to compete against each other in order to gain additional market share. The purpose of this paper is to explore the two competing companies from a financial perspective, rather than a product preference. The paper will draw from information given in the 2009 year-end financial report for each of the two companies. From this information, several financial ratios will be computed and an analysis will be given to determine which company is more financially profitable. After a financial analysis is made, the paper will conclude by presenting what non-financial criteria could be considered when choosing which company is the better investment options. Using the current ratio, discuss what conclusions can be made about each company’s ability to pay current liabilities. The current ratio is a popular financial calculating tool used by financial analysts to determine a company’s liquidity, also known as the company’s working capital position. The ratio is determined by deriving the proportion of current assets available to cover the current liabilities...
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...Cola Wars Case Study DMBA 630 Marketing and Strategy Management in the Global Markeplace Introduction Carbonated Soft Drinks (CSD) have been around for over a century and now accounts for a $60 Billion market with the average American consuming about 53 gallons a year. Coca-Cola was invented in 1886 by John Pemberton as a “potion for mental and physical disorders.” Asa Candler acquired the formula and began marketing it as Coca-Cola. The first bottling franchise was accorded in 1899 for a sum of one dollar. Pepsi-Cola was invented in 1893 by Caleb Bradham a pharmacist from North Carolina. Pepsi also franchised its bottling operations. Pepsi struggled over the years going bankrupt twice within a decade, first in 1923 and again in 1931. Pepsi competed aggressively against coke offering almost twice the amount of Pepsi for the same price in the 1930s. Coca –Cola or Coke on the other hand was the market leader through the early 20th century with numerous imitators popping up trying to clone Coke. Coke fought back in the courts to aggressively deter imitators and counterfeiters. During the 1920s and 1930s, Coke was marketed to multiple market segments making it available to anyone desiring the brand. Eventually Coke sued Pepsi for trademark infringement in 1938 and lost. Pepsi gained market share and became a titan competitor in the market for CSDs beating out all other brands except Coke. Thus began the “Cola Wars” in 1950 with Pepsi’s aggressive “beat Coke”...
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...Financial Analysis – PepsiCo Inc. In 1893, a pharmacist named Caleb Bradham invented a tonic, which he called "Brad's drink". This drink was carbonated and contained sugar, vanilla, rare oils, pepsin, and cola nuts. Bradham sold his drink at his pharmacy's soda fountain and by 1898, "Brad's drink" had been renamed to Pepsi Cola (Zokawics, 2007). Pepsi existed on the brink of ruin under various owners until Loft Candy bought it in 1931. Its fortunes improved in 1933 when, in the midst of the Depression, it doubled the size of its bottles to 12 ounces without raising the five-cent price. In 1939 Pepsi introduced the world's first radio jingle. Two years later Loft Candy merged with its Pepsi subsidiary and became The Pepsi-Cola Company. PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from just the Pepsi product to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001, which also added the Gatorade brand to its portfolio as well. As of 2009, 19 of PepsiCo's product lines generated retail sales of more than $1 billion each, and the company’s products were distributed across more than 200 countries...
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...(CSR) projects seeking to employ information and communications technology (ICT) competitions, crowdsourcing and social media narratives as a means for production of ideas or tasks. The Knight Foundation’s (2009) seven key components of ICT competitions will be used as a framework to review the project and from there analysis of the project will take place using industry information and reviews. Lastly, implication for other ICT competitions will be discussed. Overall, this study explores the Pepsi Refresh Project’s effect on sales and corporate loyalty of consumers for the PepsiCo brand through consumer corporate trust generation. CASE STUDY: THE PEPSI REFRESH PROJECT 3 Case Study: The Pepsi Refresh Project The purpose of this investigation is to complete a case study of the Pepsi Refresh Project and from it devise high impact practices for its application to other corporate social responsibility (CSR) projects. The Pepsi Refresh Project was started in February 2010 using dollars annually used for Super Bowl advertising by PepsiCo and instead directed towards a grant-funding program to find solutions in betterment of communities (Pepsi, 2011a). The project utilized crowdsourcing for both submission and judging. The study will use The Knight Foundation's (2009) seven key components of information and communications...
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...Coca-Cola VS PepsiCo Carmine Strayer Strayer University Intermediate Accounting III ACC305012VA016-1136-001 Professor Bob A. Wright August 25, 2013 This paper will discuss the financial health and similarities and differences between the two major producers of soft drinks in the United States as of 2013. In order to understand the financial health of the two companies we must first understand the markets, history and products produced by both companies. Both companies were founded in the late l800’s by pharmacists working on their own. Coca-Cola was the first of the companies and its main product Coca-Cola, was invented and introduced to the public in 1886. The beverage was named after two of its major ingredients, Cocaine and the Kola nut. (Bellis, 2013, p. 2) Its first year sales as a fountain drink at Dr. Pemberton’s pharmacy are believed to have amounted to about $50, with a production cost of around $70. (Bellis, 2013, p. 2) Coca-Colas, 2009 Operating Revenues amounted to $30,990 billion with about 74% of that revenue coming from its international operations. (Kieso, Weygandt, & Warfield, 2012, Comparative Analysis Case; Coca-Cola Vs. PepsiCo p. 148) Its core product was and continues to be the carbonated beverage Coca-Cola even though it has acquired a few other beverages companies along the way. Those companies include Sprite, PowerAde and the Minute Maid Juice Company. Pepsi-Cola, the original product of what is now known as one of the major products of...
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...shareholder ambition, and the belief that addressing social and environmental issues can also deliver on their aim and plan consisting of human, environmental, and talent sustainability. The following paper will discuss a comparison and contrast of three potential financial outcomes from PepsiCo; Increase in Sales, Decrease in Sales, and Effects on PepsiCo stock due to increase and decrease in Sales. Financial Outcome: Increase in Sales PepsiCo runs its global operation in an efficient and profitable manner. The company is the largest food and beverage business in North America, and the second largest in the world. What separates PepsiCo from the rest of the competition are brand identity, creativity, and excellence in execution. PepsiCo had a profitable 2011, and all indicators point to a successful 2012 leading to increased shareholder wealth. In 2011, PepsiCo net revenue grew 14% on a core basis, along with core division operating profits raising 7% over last year. Core earnings also grew 7% in 2011, with $5.6 billion returned to shareholders. The company will continue to increase sales with by expanding core brands, and focusing on target markets with other branding. PepsiCo currently has 12 core brands and 30 other brands. These brands are split between the beverage and food industries. In the...
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...business strategies that PepsiCo is using in each of its consumer business segments in 2008. 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 foods and beverages less unhealthy. Their belief that its efforts to develop “good-for-you” or “better-for-you” products would create growth opportunities from the intersection of business and public interests. The company was organized into four business divisions which all followed the corporation’s general strategic approach. Frito-Lay North America manufactured, marketed, and distributed such snack foods as Lay potato chips, Doritos tortilla chips, Cheetos cheese snacks, Fritos corn chips, Quaker Chewy granola bars, Grandma’s cookies, and Smartfood popcorn. The PepsiCo Beverages North America beverage manufactured, marketed, and sold beverage concentrates, fountain syrups, and finished goods under such brands as Pepsi, Gatorade, Tropicana, Lipton, Dole, and SoBe. PepsiCo International manufactured...
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...which company is more likely to satisfy it stockholders. I will provide rational for determining which company is a better investment from a financial and a non-financial base. Financial Management PepsiCo and Coca-Cola have been long time competitors in the soft drink industry. Both are fortune 500 companies that have expanded to a broader range of food and beverage brands. Coca-Cola was created in 1886 by Atlanta GA. Pharmacist John Pemberton. Coca-Cola was originally intended as a patent medicine. Coca-Cola was bough by businessman Asa Griggs Candler whose perceptive business tactics led Coca-Cola to dominance throughout the 20th century. Pepsi was created in 1898 by Newbern, NC Pharmacist and industrialist, Caleb Bradham. As Pepsi grew in popularity, the Pepsi-Cola company was formed in 1902 and incorporated in the state of Delaware in 1919. 1.) Using the current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities. PepsiCo and Coca-Cola are forced to search for alternative sources of revenue to continue growth due to the United States tight market. Over the last few years, Coca Cola’s stock has out performed PepsiCo. PepsiCo has since expanded by breaking into the snack food market called PepsiCo American Foods. They have products such as Tostitos and Frito-Lay. The snack operations in North America to South America hold 71 percent of the company’s net revenue Europe holds 16...
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...(CSR) projects seeking to employ information and communications technology (ICT) competitions, crowdsourcing and social media narratives as a means for production of ideas or tasks. The Knight Foundation’s (2009) seven key components of ICT competitions will be used as a framework to review the project and from there analysis of the project will take place using industry information and reviews. Lastly, implication for other ICT competitions will be discussed. Overall, this study explores the Pepsi Refresh Project’s effect on sales and corporate loyalty of consumers for the PepsiCo brand through consumer corporate trust generation. CASE STUDY: THE PEPSI REFRESH PROJECT 3 Case Study: The Pepsi Refresh Project The purpose of this investigation is to complete a case study of the Pepsi Refresh Project and from it devise high impact practices for its application to other corporate social responsibility (CSR) projects. The Pepsi Refresh Project was started in February 2010 using dollars annually used for Super Bowl advertising by PepsiCo and instead directed towards a grant-funding program to find solutions in betterment of communities (Pepsi, 2011a). The project utilized crowdsourcing for both submission and judging. The study will use The Knight Foundation's (2009) seven key components of information and communications technology (ICT) competitions to break down the project and discuss crowdsourcing in the literature review. The case study will be completed using industry...
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