Project topic: An analyze and evaluate the business and financial performance of the PepsiCo for the years 2013-2016.
Research Methodology:
1.0 Introduction:
The purpose of this chapter is to set out the approaches adopted during data collection and data analysis.
1.1 Purpose of research:
This study aims to investigate and evaluate the financial performance of PepsiCo Company and investigate PepsiCo's business over specific years which are 2013-2016.
1.2 Research objectives:
The following are the key objectives to ensure the above purpose achieved:
*Analyze the effects of financial ratios on PepsiCo over 2013-2016.
*Analyze the sustainability issues which impacts PepsiCo's profitability.
*To analyze the level of dividend on shareholders
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*Quantitative method defined as testing something and measuring it by numbers.
*Mixed process it is a combination of collecting both qualitative and quantitative data.
Driscoll, Yeboah, Salib, & Rupert, (2007) discussed the advantages and disadvantages of qualitative and quantitative methods. For example, the benefit of qualitative is the researcher will get more detailed data with a lot of written descriptions because the respondent will have the freedom to answer. But the disadvantage is it will take a longer time to do. On the other hand, for the quantitative method the strength of this technique that the researcher can measure the data and analyze it by using statistics, but it has weakness such as it needs a large number of populations to reach to more accurate
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For instance: interviews, questionnaire, observation techniques, rating scale, case study, and others. According to the study, I will use case study tool. I can collect both qualitative and quantitative data from annual reports of PepsiCo Company. Also, some articles about their shareholder's dividend and retained earnings, sustainability issues and their company marketing mix strategy will also obtain.
2.3 Data collection:
Dudovskiy (2016) Considered information about the two type of data collection which are primary and secondary. Firstly, he mentioned that primary source is about data which will be collected newly for a specific purpose. Because there wasn't data like it before, so no one distributes it. However, secondary data referred to the information which published in books, newspapers, magazines or any other websites. In this study, the secondary source will be conducted. These data are from different sites like the morning star, stock analyses on the net, marketing teacher, and PepsiCo's website.
3.0
Researchers often times are faced with the decision of choosing a methodology of research; either Quantitative or Qualitative that they think best fits their study and objectives. This choice is guarded by the topic of study, the advantages and disadvantages, and the strengths and weaknesses of using either one or the other type of the methodologies.
PepsiCo’s net income in 2004 was $4,212.00 or 14.3%, in 2005 the net income dropped by 1.8% bringing the net income to 12.5%. Both companies net income percentage decreased in 2005, though not by detrimental amounts it still is necessary to understand the financial status of both companies. Vertical analysis is a method of evaluating a company’s financial performance over a single accounting period, this helps to identify product items who’s sales may be increasing or decreasing at a faster rate than others, having the ability to perform this analysis throughout the year simplifies the process of product increase or decrease.
The analysis of a company's financial statements helps in the determination of both the weaknesses and strengths of the concerned entity. Further, such an analysis helps in the determination of the future viability of firms. There are a wide range of techniques utilized in the analysis of financial statements. In that regard, it is important to note that the relevance of a horizontal, vertical as well as ratio analysis of a company's financial statements cannot be overstated. This is more so the case when it comes to the interpretation of the various dollar amounts presented in both the balance sheet and the income statement. In this text, I carry out a horizontal, vertical as well as ratio analysis of both The Coca-Cola Company and PepsiCo, Inc. The analysis' results will be critical in the evaluation of each company's performance. Findings will be used as a basis for recommendations on how each company can improve its financial status.
The net profit was $6,320 million in FY2010, an increase of 6.3% over 2009 ($5,946). As stated in the mission statement, they seek to produce financial rewards. With the numbers previously mentioned, we can see they have succeeded. This significant financial performance gives them the resources they need to provide opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate and to invest in the four key areas (performance, human sustainability, environmental sustainability and talent sustainability) so they can reach their goals. (Yahoo Finance, 2011) 4. Conduct a competitive and marketing analysis of the organization to determine strengths and opportunities. PepsiCo is the largest snack and non-alcoholic drink producer in the United States, with 39% and 25% of the respective market shares. PepsiCo operates in over 200 countries, with its largest markets in North America and the United Kingdom. PepsiCo has three direct competitors, the Coca-Cola Company, Dr. Pepper Snapple Group, and Kraft Foods. Unlike its major competitor, Coca-Cola, 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 noncarbonated brands like Gatorade and Tropicana. PepsiCo 's revenues
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Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan .Pepsi cola is situated is an Industry that is dominator by two Competitors Coca
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1.) Why do companies like Pepsi need to globalize? What are the various ways in which foreign companies can enter a foreign market? What hurdles and problems did Pepsi Face when it tried to enter India during the 1980s?
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