Coke vs. Pepsi
Financial Management: Coke vs. Pepsi
BUS 508 – Business Enterprise
June 11, 2011
Financial Management: Coke vs. Pepsi
The purpose of this paper is to analysis companies Coke and Pepsi and determinate (a) which company is better able to pay current liabilities (debt), (b) explain what profitability ratios can tell about a company’s performance and how that information would influence investing decisions, (c) discuss which financial ratios to utilized while examining the company’s most satisfied stockholders, (d) create a list of financial-based guidelines that individuals should follow when selecting to invest and (e) evaluate the single piece of non-financial data most important when deciding to invest or not in a company.
In the world Coke and Pepsi have towered as the two leading brands of beverages. According to Dickinson 2011, Coke and Pepsi were both created before 1900. Coke was invented in Atlanta by pharmacist John Pemberton in 1886. Pepsi also was created by a pharmacist--Caleb Bradham from New Bern, North Carolina, in 1898. Over the years, both companies have seen worldwide expansion of their markets, which include varying lines of beverages, apparel and paraphernalia with their respective logos. Both have grown into longstanding global and social industry leaders.
Consumers and merchants both struggle to decide which brand to support. Merchants rely solely on marketing data, financial stability and consumer feedback to decide which brand to promote. Selecting one over the other can ultimately make or break a company as some may lose customers and profit selecting one over the other. The brands spend billions on creative advertisement and celebrity endorsement to maintain a strong presents. Some consumers and merchants gamble and support both brands as a decision is too difficult to choose.
Ability to Pay Liabilities
Over the years both companies have been forced to incorporate other avenues to continue growth and expansion.
BUS 508 – Business Enterprise
June 11, 2011
Financial Management: Coke vs. Pepsi
The purpose of this paper is to analysis companies Coke and Pepsi and determinate (a) which company is better able to pay current liabilities (debt), (b) explain what profitability ratios can tell about a company’s performance and how that information would influence investing decisions, (c) discuss which financial ratios to utilized while examining the company’s most satisfied stockholders, (d) create a list of financial-based guidelines that individuals should follow when selecting to invest and (e) evaluate the single piece of non-financial data most important when deciding to invest or not in a company.
In the world Coke and Pepsi have towered as the two leading brands of beverages. According to Dickinson 2011, Coke and Pepsi were both created before 1900. Coke was invented in Atlanta by pharmacist John Pemberton in 1886. Pepsi also was created by a pharmacist--Caleb Bradham from New Bern, North Carolina, in 1898. Over the years, both companies have seen worldwide expansion of their markets, which include varying lines of beverages, apparel and paraphernalia with their respective logos. Both have grown into longstanding global and social industry leaders.
Consumers and merchants both struggle to decide which brand to support. Merchants rely solely on marketing data, financial stability and consumer feedback to decide which brand to promote. Selecting one over the other can ultimately make or break a company as some may lose customers and profit selecting one over the other. The brands spend billions on creative advertisement and celebrity endorsement to maintain a strong presents. Some consumers and merchants gamble and support both brands as a decision is too difficult to choose.
Ability to Pay Liabilities
Over the years both companies have been forced to incorporate other avenues to continue growth and expansion.
References: Coke Company Website. (2011). Financial Statement. Retrieved on June 10, 2011 from Website: http://www.cce2009annualreport.com/ Dickinson, A. (2011). Coke vs. Pepsi. Retrieved on June 11, 2011 from Website: http://www.ehow.com/facts Dividend Growth Investor (2010) Pepsi Company Website. (2011). Financial Statement. Retrieved on June 10, 2011 from Website: http://www.pepsico.com/annual09/ Syllabus (2011). BUS 508 – Business Enterprise. Retrieved on May 28, 2011 from Website: http://www.icampus.com/strayer Wall Street Journal (2010). Who Does it Better. Retrieved on June 10, 2011 from Website: ESCOHOST Wiki Invest (2011). Ratios: Coke and Pepsi. Retrieved on June 10, 2011 from Website: http://www.wikiinvest.com/ratios