Pepsico : A World Leader

1159 Words Oct 4th, 2015 5 Pages
I selected PepsiCo for my MNC research due to the fact that PepsiCo is a world leader in convenient food and beverages that manufacture, market, distribute and sell a wide variety of beverages, foods and snacks, serving consumers in almost every part of the world. PepsiCo operates under six reportable segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), Latin America Foods (LAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe (Europe) and PepsiCo Asia, Middle East and Africa (AMEA). All of the mentioned segments are registered under one symbol “PEP” whose shares are traded on the New York Stock Exchange, Chicago Stock Exchange and SIX Swiss Exchange. Since 49% of PepsiCo’s operations are outside of the U.S. that generates a significant portion of the company’s net revenue, PepsiCo selected the currency of its foreign subsidiaries in which they generally operate as its functional currency, which is translated into US dollars on the company’s financial statements. I have found that two major players, PepsiCo and Coca-Cola dominate the non-alcoholic beverage industry around the world. There is tremendous competition within a relatively slowing industry and PepsiCo currently controls nearly 21% of the industry with its Frito- Lay segment alone controls 60% of the U.S snack-food market.
PepsiCo’s consolidated financial statements are in conformity with U.S. GAAP, however if the company was to converge with the IFRS, there will be positive and negative…
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