Coke VS. Pepsi James Esposito Strayer University The Business Enterprise BUS 508 Dr. Amanda Manners June 11‚ 2011 Coke VS. Pepsi The following paragraphs will discuss the financial positions of both Coke and Pepsi. There will be a discussion on which company has the greatest ability to pay off any current liabilities the companies have and what type of financial tools can be used to determine their capability to pay such debt. The reader will also be provided the tools that anyone can
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THE BEVERAGE BATTLEFIELD In 2003‚ Jagdeep Kapoor‚ chairman of Samsika Marketing Consultants in Mumbai (formerly Bombay)‚ commented that "Coke lost a number ofyears over errors. But at last it seems to be getting its positioning right." Similarly‚ Ronald McEachern‚ PepsiCo ’s Asia chief‚ asserted "India is the beverage battlefield for 2003." The experience ofthe world ’s two giant soft drinks companies in India during the 1990s and the beginning of the new millennium was not a happy one‚ even though
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Internal Analysis of Coke and Pepsi (Appendix A) In this session‚ we would analyze Coke and Pepsi internally using SWOT analysis. SWOT is the short form of Strengths‚ Weaknesses‚ Opportunities and Threats. In Appendix A‚ we can see that the major strength for Coke is its name value. Coke is the World’s leading brand for CSD. Marketing and advertising is the major battleground for the CSD industry‚ from the SWOT analysis‚ we can see Coke did a great job for that. Being the market leader is definitely
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Coke Vs. Pepsi Interpret the results of your EVA calculation. If you had to choose between Coca Cola Co. and Pepsi Co‚ which one would you choose? Why? Both Firms EVAs are increasing from 2001 to 2003 _EVAs of Coca Cola is significantly higher than those of PepsiCo._ _EVAs insures that management perspective and objective is to maximize shareholders wealth‚ as such we would choose Coca Cola. The reason is because EVA is a measure of added value‚ and since Coca Colas EVA is
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Coke Strengths: 1. In 1993 Coke held a 59% share of the fountain market—using it to promote the brand further. 2. Coke earned a high percentage of its profits in the international market. They established themselves with the help of “ ‘anchor bottlers’—large‚ committed‚ and experienced bottling outfits like Norway’s Ringnes and Australia’s Amatil” 3. During WWII Coke was able to establish itself in the European and Asian markets with the help of the government because it was being
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scale/learning economies and the ratio of fixed to variable costs‚ and excess capacity and exit barriers. Threat of New Entrants. The threat of new entry can force firms to set prices to keep industry profits low. The threat of new entry can be mitigated by economies of scale‚ first mover advantages to incumbents‚ greater access to channels of distribution and existing customer relationships‚ and legal barriers to entry. Threat of Substitute Products. The threat of substitute products can force firms
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09 Pepsi & Coke 08 Fall In May‚ 1886‚ Coca Cola was introduced by John Pemberton a pharmacist from Atlanta‚ Georgia. John Pemberton started brewing his coca cola formula in a three legged brass kettle in his backyard. Pharmacists Caleb Bradham in New Bern‚ North Carolina first made competitor Pepsi in the 1890’s. The brand was trademarked on June 16‚ 1903. These companies have brand identification and customer loyalties that have made them a historical landmark. Today Pepsi and Coke control
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Case 1-3 Coke and Pepsi Learn to Compete in India 1. As far as I am concerned‚ there are three specific aspects of the political environment have played key roles: 1) As mentioned in the case‚ Indian government viewed as unfriendly to foreign investors. Outside investment had been allowed only in high-tech sectors and was almost entirely prohibited in consumer goods sectors. 2) Based on Indian laws‚ outside investment cannot use their original brand name. For Coca-Cola‚ they attempted
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Coke and Pepsi Learn To Compete in India 1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India. What specific aspects of the political environment have played key role? Could these effects have been anticipated prior to market entry? If not‚ could developments in the political arena have been handled better by each company? Answer The political environment have played key role as follow: - Indian government viewed
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calculations of Ratios‚ Horizontal Analysis and Vertical Analysis will show why one company would be the better choice in investing than the other. Performing a Vertical Analysis or Common Size‚ A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets‚ liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantage of vertical analysis is so that the balance sheets of businesses of all
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