Coke vs PepsiCo
Mid Exam Assigment
Coke Versus Pepsi, 2001 Analysis
Company Background The Coca-Cola Company :
In 2000, Coca-Cola Company’s (KO) annual sales were $20,5 Billion and its market value reached $110,1 Billion. The company was the largest manufacturer, distributor and marketer of soft-drin concentrates and syrups in the world, and also marketed and distributed a variety of non carbonated-beverage product, which included minute maid orange juice, Fruitopia, Dasani bottled water, and Nestea, among others.
Company Background Pepsico, Inc : In 2000, PepsiCo, Inc., was a $20-billion company involved in the snack-food, soft-drink and noncarbonated-beverage business. The company sold and distributed salty and sweet snacks under the Frito-Lay trademark, and manufactured concentrate of pepsi, mountain dew, and other brands for sale to franchised bottlers. The company also produced and distributed juices and other noncarbonated beverages. Snack food accounted for roughly two-third of PepsiCo’s sales and operating income, while beverages accounted for the remainder.
Analysis :
a. Economic Value Added
EVA is a measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit.
Based on the EVA, the company performance of coke vs pepsi can be measured.
1994
1995
1996
1997
1998
1999
2000
Coke’s EVA
1602
1814
1292
1601
1422
1063
1016
Pepsi EVA’s
(464)
(760)
(916)
24
428
522
1201
If we look at the two of the cola company EVA’s we can clearly point, that Coca-Cola has outplay in history of economic value added of the two company, this can also indicate that coca-cola has more bigger operating profit and lower capital cost that PepsiCo. Even though pepsi still cant be compared to coca-cola EVA history, Pepsi EVA was grown rapidly from 1998 to 2000 so it has a promising EVA in the 2001-2003 since the merger with quaker oats instead of coca-cola that EVA are slowly decreased
Coke Versus Pepsi, 2001 Analysis
Company Background The Coca-Cola Company :
In 2000, Coca-Cola Company’s (KO) annual sales were $20,5 Billion and its market value reached $110,1 Billion. The company was the largest manufacturer, distributor and marketer of soft-drin concentrates and syrups in the world, and also marketed and distributed a variety of non carbonated-beverage product, which included minute maid orange juice, Fruitopia, Dasani bottled water, and Nestea, among others.
Company Background Pepsico, Inc : In 2000, PepsiCo, Inc., was a $20-billion company involved in the snack-food, soft-drink and noncarbonated-beverage business. The company sold and distributed salty and sweet snacks under the Frito-Lay trademark, and manufactured concentrate of pepsi, mountain dew, and other brands for sale to franchised bottlers. The company also produced and distributed juices and other noncarbonated beverages. Snack food accounted for roughly two-third of PepsiCo’s sales and operating income, while beverages accounted for the remainder.
Analysis :
a. Economic Value Added
EVA is a measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit.
Based on the EVA, the company performance of coke vs pepsi can be measured.
1994
1995
1996
1997
1998
1999
2000
Coke’s EVA
1602
1814
1292
1601
1422
1063
1016
Pepsi EVA’s
(464)
(760)
(916)
24
428
522
1201
If we look at the two of the cola company EVA’s we can clearly point, that Coca-Cola has outplay in history of economic value added of the two company, this can also indicate that coca-cola has more bigger operating profit and lower capital cost that PepsiCo. Even though pepsi still cant be compared to coca-cola EVA history, Pepsi EVA was grown rapidly from 1998 to 2000 so it has a promising EVA in the 2001-2003 since the merger with quaker oats instead of coca-cola that EVA are slowly decreased