Pepsico vs. Coca-Cola Essay

One department at Coca Cola is the financial department. The financial department uses on screen communication, this allows them to create data on the company’s financial assets. They use on screen communication to present databases, charts and a budgeting table for the company. A strategic decision that this department has made is to buy the remaining shares in Innocent drinks company. “The London company’s sales have grown 89% a year from £16.7m in 2004

Therefore, Coca-Cola is delivering a higher value to shareholders than Pepsi Co. Pepsi-Co’s ensures partnerships and acquisitions add significantly to the shareholder value.

     PepsiCo. Incorporated and The Coca-Cola Company are the two largest and oldest archrivals in the carbonated soft drink (CSD) industry. Coca-Cola was invented and first marketed in 1886, followed by Pepsi Cola in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi Cola after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. The rivalry between the soda giants, also known as the "Cola Wars", began in the 1960’s when Coca-Cola's dominance was being increasingly challenged by Pepsi Cola. The competitive environment between the rivals was intense and well-publicized, forcing both companies to continuously establish and

This is a financial comparison between Pepsi and Coca Cola in terms of company liquidity, solvency, asset management, profitability, and valuation between the years 2008 and 2009 respectively.

Exchange rate gains or losses are brought to account in determining the net profit or loss in the period in which they arise, as are exchange gains or losses relating to cross currency swap transactions on monetary items. Exchange differences relating to hedges of specific transactions in respect of the cost of inventories or other assets, to the extent that they occur before the date of receipt, are deferred and included in the measurement of the transaction. Exchange differences relating to other hedge transactions are brought to account in determining the net profit or loss in the period in which they arise. Foreign controlled entities are considered self-sustaining. Assets and liabilities are translated by applying the rate ruling at balance date and revenue and expense items are translated at the average rate calculated for the period. Exchange rate differences are taken to the foreign currency translation reserve.

However, no matter what the advertisements claim, the statistics concerning the shares and value of each company cannot lie. The Coca-Cola Company dominates the soft-drink market by owning four of the global top five soft-drink brands, which include Coca-Cola, Diet Coke, Fanta, and Sprite. The Coca-Cola Company makes or licenses more than 400 drink products in more than 200 nations. In 2006, Coca Cola’s sales reached 24,088 million dollars and had a net income of about 5,080 million dollars, with 71,000 employees working in the company. PepsiCo, Incorporated is the largest snack maker and second largest soft-drink maker in the world. It sells beverages and snacks in approximately 200 nations as well. In 2006, its sales reached 35,137 million dollars and had a net income of $5,642 dollars with 168,000 employees working in the company. With these numbers, one can assume that Pepsi is earning more profit if wages payouts are not considered, but Pepsi has a large number of workers working for

Does Coca-Cola allow various factors to influence the decision-making process? There are different strategy levels striving to meet or exceed overall corporate strategies within Coca-Cola. This essay will discuss functional, stability, competitive versus cooperative, trade offs, and retrenchment strategies. It will also provide examples or advantages and disadvantages the company utilizes at a corporate strategic management for tailor logical portfolio decision changes when warranted. Leading off with the first topic of this discussion, what is a functional strategy and can it affect decision-making?

Coca Cola and Pepsi are the brands with the highest brand equities. Both, Coca Cola and Pepsi have gone through the highs and lows of their business to reach that position. Coca Cola’s marketing has been changing over time with more and more products being added every day, while Pepsi has implemented several smart marketing strategies to improve its turnover and profits. So, let’s see what were the marketing strategies implemented by Coca Cola and Pepsi.

An eyeball assessment of the changes in Coke’s financial statements between 1996 and 2010 show that mainly all accounts are up. The total assets are up from 1996 to 2010 with an increase from $16,161 to $72,921. Also current assets increased 3.6% from 1996 to 2010 with total non-current assets increasing 5%. Revenue nearly doubled from 1996 having only $18,546 to increasing in 2010 to $35,119. The total current liabilities increased over the years from $7,406 to $18,508. The total long term liabilities also show an increase from 1996 having $2,599 to $23,410 in 2010. Also the

The argument is which taste better, and is more appealing to the average person. A general study was done where they blind folded people, and put both drinks in front of them. Majority of the people surveyed, agreed they liked Pepsi more when not knowing which was what. Even though majority of them originally said they prefer Coca-Cola over Pepsi. Coca-Cola has a very secret ingredient called “7x” this is most likely the key factor in its goodness. Once before Coca-Cola used to contain more dangerous ingredients such as cocaine. They also use many simple ingredients such sugar, high fructose corn syrup, caffeine, cane sugar and other basic ingredients that most soft drinks have. Pepsi does not how ever have a secret ingredient, but they have high fructose corn syrup, sugar, and caffeine. It is practically the same as Coke just without the formula “7x”. Coca-Cola has a smoother taste and goes down easier then Pepsi, making Coca-Cola more favorable. Pepsi is also a little more sweeter and not as carbonated.

Coca-Cola is a leading beverage industry in the United States and many other countries in the world. PepsiCo is also a leading worldwide beverage company, but they are also the parent company of the Frito-Lay and Quaker Oats Companies. This makes PepsiCo a leader in the beverage, snack and cereal industries. As consumers, we have indulged in their products for many years. My personal preference has always been Pepsi over Coke, which is why I was very interested in conducting this analysis. Regardless of the results, I will always seek out a Diet Pepsi over a Diet Coke and so will many of my physician friends at Children’s Hospital who start their mornings with a Diet Pepsi. These personal preferences are what contributes to a company’s profits through net sales. However, the key performance measurement tools used are not based on sales alone. Calculating liquidity, solvency, and profitability ratios on a regular basis give us a better insight on the performance and overall health of a company.

EVA stands for economic value added. EVA is a value based financial performance measure based

The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical

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.

EXECUTIVE SUMMARY In investigating PepsiCo’s accounting policies for G. D. Meyers and Company, we have focused on nine major areas of the annual report, comparing PepsiCo with Coca Cola throughout our analysis. Through the Balance Sheet, we focused on the major assets and major liabilities of each, and discovered that the primary difference is PepsiCo’s large balance of intangibles. In the Income Statement, we analyzed the major sources of revenue and expenses for