Company Analysis : Pepsico Company

PepsiCo and Coca-Cola are fierce competitors and according to their financial statements they are both healthy companies. Therefore I would invest in Coca-Cola if I had to make the decision because it has higher income, a stronger long-term debt to networking capital ratio, steadily rising net income per common share, and a climbing and high solvency ratio. PepsiCo still shows healthy growth and outperforms Coca-Cola in many areas. I will conduct a financial analysis of Coca-Cola and PepsiCo to identify their strengths and weaknesses, ultimately deciding which one is worth the investment.

There are many different types of soft drink manufactures in the United States and throughout the world. The two most popular manufactures are Coca-Cola and PepsiCo. They are the two companies that are well known all over the world. These two companies have cornered the soft drink market with their products for many years.

PepsiCo is one of the world’s leading food and beverage companies. As a multi-national corporation, PepsiCo distributes its products in more than 200 countries and territories. PepsiCo has made it their mission to deliver top-tier financial performance while creating sustainable value for all their stakeholders. Their success derives from their global distribution, in addition to delivering for their consumers and customers, protecting the environment, sourcing with integrity, and investing in their employees. In 2015 their net revenue was over $63 billion. PepsiCo has 22 brands; each brand generates more than $1 billion in estimated annual retail sales. Some of the most popular divisions of PepsiCo include: Pepsi, Frito-Lay, Gatorade, Quaker and Tropicana. To better understand PepsiCo’s success we will analyze their role in the environment with suitability and their culture.

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),

Introduction Pepsico Inc. is an American multinational food, snack and beverage 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.

This report will examine the stock performance of PepsiCo and P&G over the past ten years and the factors that lead to this performance.

Being a worldwide company, PepsiCo has a vast supply chain. Beginning with the basic raw ingredients, PepsiCo uses ingredients like apple, orange and pineapple juices, corn, oats, and potatoes to manufacture its products. Packaging materials include plastic resins, aluminum, glass bottles and paper products. Other raw materials include natural gas and fuel to operate their facilities and to deliver products. In each reportable segment region, PepsiCo owns and operates factories. Worldwide, it is able to produce, market, sell and distribute its products to its customers. (10-K Annual Report 6)

Political processes does not crash search for opportunities to expand business even in difficult period , Laws and regulations may change due to political, economic or social events , Political pressure to increase taxes to make resolving tax problems more difficult in pepsico . Changes in the legal and regulatory environment that can restrict the company's business activities they could be adversely affected if we are unable

Coca-Cola Enterprises Inc. (NYSE: CCE) is the world's biggest advertiser, wholesaler, and maker of container and can fluid nonalcoholic refreshment. Coca-Cola Enterprises offers pretty nearly 80 percent of the Coca-Cola Company's container and can volume in North America and is the sole authorized jug for results of the Coca-Cola Company in Belgium, mainland France, Great Britain, Luxembourg, Monaco, and the Netherlands.

Tabulate the strengths and weaknesses in a table format. This will allow you to see, at a glance, where each competitor stands.

Results are compared to its competitors in the same industry in order to be interpreted.

Another factor that PepsiCo feels may affect their business is additional labeling or warning requirements or limitations on their product packaging (PepsiCo, 2016). New regulations may require companies to provide a label that highlights perceived concerns about a product or warns consumers to avoid consumption of certain ingredients present in their products on each product (PepsiCo, 2016). For example, in California, Proposition 65 requires a specific warning on any product that contains a substance listed by the State of California as having been found to cause cancer or birth defects if the levels of the substance are above a safe harbor level (PepsiCo, 2016). These new regulations could reduce the overall consumption of their products, lead to negative publicity or leave consumers with the perception that their products do not meet their health and wellness needs (PepsiCo, 2016). These regulations could ultimately negatively affect PepsiCo’s business, financial condition or results of operations (PepsiCo, 2016).

A case study analysis on PepsiCo’s diversion strategy in 2008 will be addressed in this paper. The elements that will be discussed are the vision and mission of PepsiCo, the background and history of the company, the external and internal forces of PepsiCo’s business environment, PepsiCo’s strategic marketing plan, and a conclusion and recommendations on how the PepsiCo company can improve their business strategy to stay competitive in years to come.

Threats (external): The biggest external treat for PepsiCo is Coca-Cola Company, because this is the most valuable brand in the World right now. Compared with Coca-Cola, PepsiCo growth rate is very slow. They need to increase their healthy beverage product line. PepsiCo acquired Gatorade, Tropicana, and Naked Juice, and executed a merger with Quaker Oats, but still needs to provide more healthy beverages and snacks.

Coca-Cola to increase their revenues they need to concentrate on the customer perspectives. The company can increase their revenues by making sure they retain their customers and increase customers that buy their product. The company can make sure that they increase their revenue and customers by analyzing the company’s sales prices, costs for materials and services, quality of products and services, product innovation, timing of delivery of products and services, and improvement in customer service.