Preview

Financial Analysis of PepsiCo and Coca Cola

Better Essays
Open Document
Open Document
1271 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Financial Analysis of PepsiCo and Coca Cola
Financial Analysis of PepsiCo and Coca Cola
XXX
XACC 280 University of Phoenix

Financial Analysis2
Financial Analysis of PepsiCo and Coca Cola
PepsiCo and Coca Cola are two major companies that manufacture beverages. They compete to be the number on manufacturer and distributor of beverages in the world. These two companies are very identifiable in this market and you know them as PepsiCo and Coca Cola. These two companies have undoubtedly dominated the markets worldwide that they both receive universal recognition for their different products. Although, there are many other manufacturers and distributors of beverages these two are the major competitors. Not only do they produce soda drinks, they also produce flavored water, spring water, and some energy drinks.
PepsiCo, best known for Pepsi and Coca Cola best known for Coke have great marketing anddue to this they are able to target all income brackets. Their marketing and reasonable prices make iteasy for the people to buy their products in all income brackets.I will be examining both company’s income statements and balance sheets to disclose thefinancial condition of these companies in relation one to another. I will also perform vertical andhorizontal analysis from their annual report of financial data.
There are a vast amount of manufacturers and distributors in this market, but Pepsi and Coca-Cola have managed to stay in the number one spot for a couple of decades. These two companies have not only dominated the market domestically they have dominated the worldwide market. They followed a plan that kept them above and beyond the market of soft drinks. They have overcome obstacles that allowed them to manufacture and distribute globally. (The Coca Cola Company, 2009).
These companies compete with one another for the same customers. When one company comes up with a product the other company comes out with something very similar to it; this is called the “follow up



References: Principal of Financial Accounting 6th Edition. Weygandt,Kiesco, KimmelThe Coca Cola Company. www.thecoca-colacompany.com/www.pepsico.com/index.html#/flash/pepsico_slide.swf PepsiCo.com

You May Also Find These Documents Helpful

  • Powerful Essays

    This report will examine the stock performance of PepsiCo and P&G over the past ten years and the factors that lead to this performance.…

    • 1460 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    PepsiCo is a food and beverage company on a global scale with various bands, which aims at improve quality and deliver sustainable development with a healthier future for human. There are six principles which are PepsiCo’s tenets: care for customers, consumers and the world we live in; sell only the products we can be proud of; speak with truth and candor; balance short term and long term; win with diversity and inclusion; respect others and succeed together (guiding principles). Apart from satisfying consumers’ requirements and providing better services, PepsiCo also devote to environment protection. Besides, PepsiCo concerns about humanistic care inside operation such as establishing firm cultural and hosting activities to enhance the competitive strength of solidarity and cooperation. Honesty, fairness, integrity are PepsiCo’s major attitudes for employees, managers, investors and partners. In addition, society contribution is another crucial part which PepsiCo aims at. For instance, every PepsiCo firm can create thousands of jobs for a local area, which both reduce unemployment rate and take full advantageous of various resources such as labors, idle lands, capitals. PepsiCo focus on food and beverage and desires to improve three aspects: economy, environment, society. As for healthier future development, PepsiCo aims at create a better tomorrow than today (our vision). Employees can be provided diverse opportunities to achieve both their and firm’s goals. PepsiCo also delivers financial profits to investors and benefits to business partners with future growth.…

    • 1185 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Arbitrating a company’s monetary physical stability inculpate their financial statements (income statements, balance sheets, and statement of cash flow). These statements must follow the GAAP standards. Sidewise from the statements that are involved in balancing a company or in my case comparing the financial stability of the two successful companies’ three components are involved. The profitability, liquidity, and solvency are the three factors or components used in the analytical process of determining the success or nonsuccesses of a company.…

    • 1924 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Coke vs Pepsi

    • 334 Words
    • 1 Page

    Coca-Cola has been the dominant beverage company in the cola market for a large number of years. Their popularity has soared making them an easily recognizable brand with an image that almost sells it self, literally. Coca-Cola hasn’t always had the best of luck in the history of their existence, whether it be issues with their bottling facilities or having to deal with competition taking away their huge lead in market share. This case is about the war between Coca-Cola and Pepsi.…

    • 334 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Coke vs Pepsi

    • 3582 Words
    • 15 Pages

    When talking about market share, PepsiCo and Coca-Cola have the lions share. They have dominated the industry over the past 40 years with Coca-Cola leading in the category in 2004. With little resistance from Cadbury Schweppes, the distant third largest company in the industry, the two companies’ main focus was to increase market demand by outdoing each other in promotions, advertisements, and corporate acquisitions. Rivalry and power struggle have defined the existence of PepsiCo and Coca-Cola, looking for a competitive advantage to gain an edge on the competition. This rivalry has been to the benefit to the companies, the industry, and its consumers as a whole. Both have learned to not only stay afloat, but flourish in an industry that has constantly grown since Coca-Cola began advertising in 1891. They did this by increasing the demand in their products, and gaining brand loyalty by their consumers. In some instances, they were selling cases of Dasani (Coca-Cola) and Aquafina (PepsiCo) for less than the cost of bottling it.…

    • 3582 Words
    • 15 Pages
    Powerful Essays
  • Best Essays

    There are few markets in the world as clearly dominated by two companies as it is the soft-drinks one. In this business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market share in virtually every region of the world. This is why a big rivalry between them has been growing throughout time. In the present essay I am going to develop the main characteristics of this global battle. For a better understanding, let's take first a look to the principal features of both companies.…

    • 2935 Words
    • 12 Pages
    Best Essays
  • Better Essays

    coca vs pepsi

    • 1824 Words
    • 8 Pages

    The case is about the rivalry between two of the biggest companies in the world, Coca Cola and Pepsi. It is a battle which started in the early 1990s and which still characterizes the soft drink industry; but, as a former CEO of Pepsi said, it is a “battle without blood”: Coca Cola could not exist without Pepsi and the other way round. They mutually force each other to adapt their strategy to customers’ new needs, to apply competitive prices and to face the new challenges in a more innovative way, in order to keep their market share.…

    • 1824 Words
    • 8 Pages
    Better Essays
  • Good Essays

    This is a worldwide beverage company, which supplies soft drinks all over the world. The company has 22 brands, which range from flavors to different tastes. The company supplies the drinks to over 200 companies worldwide. It generates more than one billion each in annual retail sales. Beverage industry is a very competitive industry. In recent years The Pepsi Company has not been able to catch a break from, being criticized for marketing strategies. Pepsi Company has emphasized youth in all of its marketing campaigns (Russel, 2012). Pepsi Company faces great competition from the Coca Cola Company (Pride, 2008).…

    • 474 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Fin Analysis Coca Cola

    • 2947 Words
    • 12 Pages

    The Coca-Cola Company (NYSE: KO) is a beverage retailer, manufacturer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in over 200 countries or territories and serves 1.6 billion servings each day.[5]…

    • 2947 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    The soft drink industry survives on the rivalry that has existed for over a century between Coca-Cola and Pepsi-Cola. The two brands are competing for the market share nationally and globally by trying to clinch the thirst of every person in the world.…

    • 1173 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Mr Sadik

    • 1315 Words
    • 6 Pages

    Coca-Cola has many competitors as it is such a large business that sells its products around the whole world and has so many products that ranges from energy drinks to water. One of its biggest competitors is PepsiCo which makes a few very popular soft drinks such as ‘Pepsi’, ‘7 up’, ‘Tropicana’ and ‘Copella’. PepsiCo is also known for owning food brands like ‘Walkers’ and ‘Snack a jacks’, but as the Coca cola company doesn’t own any food products they do not compete in the snack area that ‘Walkers’ and ‘Snack a jack’ compete in. Coca cola and PepsiCo compete in customer service which PepsiCo is known for being appalling at after sale customer service, PepsiCo is known for ignoring calls, letters and E-mails and when you do get though they are unwilling to help. For example here is a review of their customer service…

    • 1315 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Mba Marketing

    • 1180 Words
    • 6 Pages

    Coca-Cola is the world’s most valuable brand and has strong brand loyalty. Wide variety of Coca-Cola products is sold in the restaurants, stores and vending machines over 200 countries. Coke is the dominant market leader of the global soft-drink industry right through the 20th century. Coke primarily competes on advertising and differentiation and has the high market share. Coca-Cola has enormous distribution and production facilities of non-alcoholic beverages and related products. Joint venture with Nestle has resulted in the formation of Beverage Partners Worldwide (BPW). The company has strong financial position and profits throughout the history. Its average ROE (return on equity) for the past five years is 37.08% whereas its ROC (return on capital) is 33.6%. 8. Coca-Cola has the heavy advertising and promoting activities. 9. More than 70 percent of revenue comes from outside the United States. 10. Enormous number of loyal customer’s and…

    • 1180 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Coca-Cola is unquestionably in an enviable position, though it's unfashionable to say so. Every 10 seconds 126,000 people choose to reach for one of Coca-cola's brands or if you'd prefer, at any minute of any day, half a million people are drinking Coca-Cola in all its forms from diet to caffeine-free to vanilla-flavoured…

    • 362 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Marketing Strategy

    • 864 Words
    • 4 Pages

    Coca Cola has been a complex part of the world culture for a very long time.…

    • 864 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Above all it is the grace & blessings of God Almighty, which made this, endeavor a success.…

    • 3552 Words
    • 15 Pages
    Powerful Essays