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Pepsi Co Finance Project
The taste of consumers is rapidly shifting. This is because they are becoming more health conscious and want products that meet these guidelines. In the case of Pepsi Co, the company is at a crossroads. They are known for providing a variety of sugary-based snacks and beverages. A few of the most notable include:: Lays, Ruffles, Doritos, Tostitos, Cheetos, Fritos, Santitas, Quaker oatmeal, grits, rice cakes, Aunt Jemima, Quaker Chewy granola bars, Captain Crunch, Life cereals, Rice-A-Roni, Quaker Oat Squares, Quaker Natural Granola, Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, 7UP, Diet Mountain Dew, Tropicana Pure Premium, Sierra Mist, Mirinda, Domik v Derevne, Chudo, Agusha and ready to drink teas. ("Pepsi Co Annual Report," 2015) However, to fully understand if the company is a good long-term investment requires focusing on if any financial, human and intellectual capital should be invested. Together, these different elements will determine if Pepsi Co is a good long-term investment. (Standard and Poor's, 2015)
Would you invest your financial capital in Pepsi Co?
Pepsi Co is a good long-term investment. This is because the company has been rapidly diversifying into other areas that take into account the changing tastes of...
While at the same time, they are continuing to deliver the same kinds of products they traditionally enjoy. The result is that the firm can adjust to changes in the marketplace by offering an assortment of products and services. This is something their largest competitor (i.e. Coca Cola) has been unable to accomplish. In the case of Coke, they have continued to focus mainly on beverages and have not really diversified into other areas to health conscious consumers. The most notable include: the Coca-Cola, Diet Coke, Coca-Cola Light, Coca-Cola Zero, Sprite, Fanta, Minute Maid, Powerade, Aquarius, Dasani, Glaceau Vitaminwater, Georgia, Simply, Minute Maid Pulpy, Del Valle, Ayataka, Bonaqua / Bonaqa and Schweppes. This is problematic for Coke, as they are struggling to keep up with shifts in consumer tastes who want healthy products. Second, they do not own any kind of food or snack companies. This means that Pepsi Co can continue to benefit even when someone is purchasing one Coke's products. ("Pepsi Co Annual Report," 2015) ("Coca Cola," 2014) (Standard and Poor's, 2015)
Would you invest human and intellectual capital in the firm as an employee?
Pepsi Co is a good place to invest human and intellectual capital. This is because the company is known…
References
Coca Cola. (2014). Coca Cola. Retrieved from: http://assets.coca- colacompany.com/d0/c1/7afc6e6949c8adf1168a3328b2ad/2013-annual-report-on-form- 10-k.pdf
Pepsi Co Annual Report. (2014). Pepsi Co. Retrieved from: https://www.pepsico.com/Assets/Download/PEP_Annual_Report_2014.pdf
Standard and Poor's. (2015). S&P Stock Guide. New York, NY: McGraw Hill.
Goodman, A. (2013). Pepsi Co Re-Energized. Forbes. Retrieved from: http://www.forbes.com/sites/agoodman/2013/06/14/pepsico-re-energized/
In the future, this could result in some kind of major restructuring to deal with these issues. The problem is that these changes will occur when the company is facing greater challenges. This will hurt their competitive position, profit margins, stock performance and brand image. The above information will impact an investor's decision, by making them more cautious about purchasing the company over the long-term. ("The Coca Cola Company,"
I would have treaded the following alternative path so as to maintain the company's competitiveness on a global scale. It was imperative to infuse more funds in Gemex so as to control the major portion of Gemex's stock prior to the fall of the Mexican currency. Pepsi must have accorded stronger emphasis on this matter, even though the family's head was unwilling to make a commitment. Pepsi realized their strategy
In September 1996, a mutual fund manager who had over 3 million shares in PepsiCo had told the CEO that no one understood why the restaurant group was not being sold off while the group was not being run efficiently. He had also mentioned that it did not fit in with other business of PepsiCo. Thus it is clear that the CEO of PepsiCo knows the reason, but is
("Contemporary Trends in Corporate Design," 2001) Pepsi's second era of expansion in the 1970's transpired when domestic markets at its corporate home base had become stagnant. Foreign markets were growing much faster than domestic markets and thus a source of greater volume of sales. It wished to maneuver itself ahead of its rival Coca-Cola by dominating the world, if it could not immediately dominate the domestic, American market. Globalization then
Coke Pepsi, . For reference, I 57 years male. Written Assignment: Analyzing Advertisements Essay - Rough Draft Analyzing Advertisements Overview: Logical argumentation studied accepted forms argument. The Soda Wars: Analyzing Messages in Advertising The battle between two soda giants, Coca-Cola and Pepsi, has been raging for many years. Both products are hugely successful, with world-wide brands and a wide array of products beyond their titular sodas. Similarly, their advertising campaigns and
Finance Project Ratio KO PEP Current Ratio ROA ROE Debt Ratio Fixed Asset Turn Dividend Payout P/E* as of today There is little to choose from, between Coca-Cola and PepsiCo, based on the cash flow indicator and the investment valuation ratios. The cash flow indicator is the dividend payout ratio, and these companies are quite similar. Pepsi's is a tiny bit higher, but not higher in a significant way. Likewise, the P/E for these companies is in the same range. Coca-Cola's