Preview

Xacc280 Week 9 Financial Analysis

Better Essays
Open Document
Open Document
1930 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Xacc280 Week 9 Financial Analysis
Financial Analysis

Your Name Here

XACC 280

Instructor’s Name

Introduction:

Pepsi Co. and Coca Cola, both are very well known multinational companies. They are so famous that they perhaps don’t need any introduction since almost everyone knows basic info about these companies and their widely used products. Both of these companies have been dealing in the production of flavored waters, plain drinking water and soft drinks for decades now and have always been each other’s competitors in almost all the mainstream products they have been producing.

There are great many players in the same industry; some of them are locally based and the other ones operate internationally, but for years, Coca-Cola has been the fiercest rival of Pepsi Co and vice versa. Being one of the most dynamic transnational organizations, both the companies have their business and manufacturing sites established in overseas countries. Products of PepsiCo and Coca Cola are overwhelmingly loved by people from all of the countries in which they operate.

In fact people from all living classes and income groups find their products highly attractive and addictive. The products and services of the companies overlap since they are direct competitors of each other and each company doesn’t lose any opportunity of earning more than the other one.

The two things of main concern for every business whose operations are shifted and carried out in a land other tan its own homeland are the production management and eventual distribution of its products and services. To ease this up both of the companies have and manage full fledge manufacturing sites in the respective countries for carrying out the day-to-day operations of the two multinationals.

Since they try to compete with each other in every single thing, they use follow up strategies in response to other’s plans and strategies. This means that if PepsiCo devises



References: Coca Cola Company (2009). Retrieved from Nikolai, L.A., Bazley, J.D & Jones, J.P (2009). Intermediate Accounting. Cengage Learning. PepsiCo Inc (2009). Retrieved from http://www.pepsico.com/index.html Shim, J.K. & Siegel, J.E. (2008). Financial Management. Barron 's Educational Series. Retrieved from

You May Also Find These Documents Helpful

  • Better Essays

    Xacc280 Financial Analysis

    • 1828 Words
    • 8 Pages

    The Coca-Cola company has been in business since its inventor began selling it in drug stores in 1886 (The Coca-Cola Company, 2009). Pepsi-Cola was invented a short time later in 1898, but at the time it was called “Brad’s drink.” It was later renamed Pepsi-Cola in 1902 (Butler, 2006). Since those early days when the sodas were invented, Coca-Cola and Pepsi have been in competition with each other for the domination of the world’s soda market. Over the course of more than a century, sales have continued to rise for both companies, and they both consistently earn a profit. Both companies have expanded into new product markets in more recent years. They have chosen to invest their earnings in new ventures like bottled water, snack foods, and iced tea, and they each strive to continue increasing their profits in many ways. In order to maintain this continued growth in the coming years, these companies are both in need of investors who will fund their efforts.…

    • 1828 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    Both brands have an enormous cash pool, therefore in terms of distributing their products, for instance, PepsiCo are able to acquire several fast-food restaurants to exclusively offer Pepsi.…

    • 487 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Having said that, there is still a point where price is not the issue but taste. Some people swear by the taste in this loyal brand market. These two corporations have concentrated on cultivating brand management through applicable advertising, marketing campaigns. According to Bloomberg BusinessWeek, “Coca-Cola remains the best globally recognized brand across all industries for ages, while PepsiCo’s brand ranked number 26 in year 2008.” PepsiCo has been able differentiate itself from competitors by tapping into other markets like chips and healthy alternative foods. While PepsiCo is known for their soda, their expansion is clear in showing there is a need for other things being non-soda. The time for vitality comes with diversification because there are true signs of a shift in consumption. The decrease in soda consumption raises PepsiCo. has positioned it to continue to remain profitable for its shareholders.…

    • 1756 Words
    • 8 Pages
    Best Essays
  • Good Essays

    The two major companies that manufacture beverages are PepsiCo and the Cocoa-Cola Co. These two companies have been in competition for many years and both companies have a variety of choices when purchasing one of their beverages. These companies can be identified through their products such as; if a person were to buy a Pepsi the person would know it came from PepsiCo, and if someone were to buy a coke they would know it was from the Cocoa-Cola Co.…

    • 1261 Words
    • 6 Pages
    Good Essays
  • Best Essays

    Marketing Plan for Kickstart

    • 3527 Words
    • 15 Pages

    References: Bhasin, K. (2013, Jan 4.). Coke vs. Pepsi: The Story Behind the Neverending “Cola Wars.”…

    • 3527 Words
    • 15 Pages
    Best Essays
  • Powerful Essays

    Acc/557 Financial Accounting

    • 3924 Words
    • 16 Pages

    The Coca-Cola (NYSE: KO ) vs. PepsiCo (NYSE: PEP ) war is one of the greatest rivalries in corporate history, just like Apple vs. Microsoft. Coca-Cola and Pepsi are the two most popular and widely recognized beverage brands in the world. They have been competing in the soft drink sector for over a century and both companies enjoy a high degree of brand consciousness globally. Both companies try to market as part of a lifestyle. At the same…

    • 3924 Words
    • 16 Pages
    Powerful Essays
  • Better Essays

    In 1886, the Coca Cola Company was developed but it wasn 't until 1898 that the fierce competitor Pepsi-Cola entered into the market. These 2 companies are the two major players that dominate the consumer beverage (soft-drink) industry. Coke and Pepsi have since been competing to rein the global market in consumer beverages. The market of drinks in the United States alone is valued at more than thirty million dollars annually. With the growth of these two companies, PepsiCo has developed and acquired additional products outside the scope of just the consumer beverage industry, these products have helped the company to increase their exposure and position in the global market. This has not been the case for the Coca Cola Company; they have tried and have failed numerous times at expanding their product and marketing capabilities. Below is a list of key products offered by both Coca Cola and PepsiCo:…

    • 1477 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Comparing financial data from statements can help determine whether or not it is a sound decision to invest in a company. This information can also help determine if a company is operating successfully and areas of risk within the company. This analyzing can help one company compare itself to another company and ensure that they are able to compete with other companies in their respective industries. PepsiCo and Coca-Cola are two major companies that make a majority of their money from producing and selling soft drinks. To compare these companies we are going to use vertical and horizontal analyses to see if these companies are built for long-term success as well as short-term success. The use of ratio analyses for both companies can be useful to compare financial data for specified areas of each company. Both ratios and analyses will help determine which company would be of better interest to an individual for investment opportunities. Using financial analysis will help use the financial statements of PepsiCo and Coca-Cola to see which company is more financially sound, and determine which company will have the ability to make money over a longer period of time.…

    • 1967 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    There are many companies that make products that go head to head. Coca Cola and Pepsi are an example of such reveries. There has been many taste test and competitions that involved the soda kings. This reverie has been going on for over a century. (See appendix 1) The start of this long standing soda war began 1886 when creator John S. Pemberton developed the original recipe for Coke. Then 13 years later Pepsi creator pharmacist Caleb Bradham developed his formula. By this time Coca-Cola was already fulfilling order that totaled a million gallons per year. Coke then continue to develop its iconic bottle in 1921, they then secured huge name endorsements deals, expanded to Europe and Cuba, Canada and Panama. In the interim, Pepsi went…

    • 1117 Words
    • 5 Pages
    Better Essays
  • Best Essays

    2. Marcus. M., (February 9, 2010). Forbes.com. Coca-Cola Profits Have International Flavor. Retrieved from: http://www.forbes.com/2010/02/09/coca-cola-coke-markets-equities-china.html, November 27, 2010.…

    • 1891 Words
    • 8 Pages
    Best Essays
  • Good Essays

    Coke and Pepsi, the two main players in the duopoly market, have benefited from average growth of 3% since 1970 in the CSD market. There are many substitutes to CSD’s such as; milk, coffee, bottled water, beer, juices, tea, wine, sports drinks, and tap water yet American’s drank more soda than any other beverage. Coke and Pepsi competed fiercely for market share and this competition built brand recognition for both companies. Continuous improvements are always being made to the production and distribution networks of CSD’s, which consist of four major participants: concentrate producers, bottlers, retail channels, and suppliers. Coke and Pepsi achieved average annual revenue growth around 10% from 1975 through the mid- 1990’s. The combination of a consistently growing market, fierce head to head competition, brand recognition, and efficient production and distribution networks made the CSD industry extremely profitable.…

    • 1006 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Coca-Cola must strive to remain competitive in a changing market. The sales and consumption of soda has decreased over the past few years, so it is important for Coca-Cola to develop new products to increase sales.…

    • 1062 Words
    • 4 Pages
    Good Essays
  • Better Essays

    BRAND COMPARISON PAPER

    • 1347 Words
    • 5 Pages

    Pepsi Co. and Coca-Cola have been in business for a long time and both are largely successful companies in the beverage industry. They both have different brand components in comparison. A few of the different comparisons would be pricing, quality, packaging, logos, brand equity and features. In the following paper we will discuss these items in detail to see how different these two brands are.…

    • 1347 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Pepsi Max

    • 407 Words
    • 2 Pages

    Pepsi also compares with the competitors and find their disadvantages to update its own quality, flavor and also package promptly in order to satisfy the consumers' need. This is the biggest advantage of Pepsi Company.…

    • 407 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Pepsi and Coke

    • 541 Words
    • 3 Pages

    Coke and Pepsi are similar in a number of ways. First they are both leaders of beverage companies in the world. Coca-Cola currently offers nearly 400 brands in over 200 countries and serves 1.5 billion servings each day. Obviously Coca-Cola is very strong in beverage companies. It has an important position in the beverage market, especially in the USA and some European countries. Pepsi is the same. Pepsi dudes widely known brands, innovative products, and powerful market skills. In addition Pepsi plans to drive sustainable water practices and improve countryside water in China, India and Africa (Sodapop 2008-2-1). These actions all show Pepsi’s strong power. The major difference is that coke only focus on soft drink, however Pepsi has many production on other areas.…

    • 541 Words
    • 3 Pages
    Good Essays