PepsiCo By: Ashley Cleary, Sylvia LaBrie, Andrea Baril, Marie- Michele Lachance

Transcription

PepsiCo By: Ashley Cleary, Sylvia LaBrie, Andrea Baril, Marie- Michele Lachance
PepsiCo
By: Ashley Cleary, Sylvia LaBrie, Andrea Baril, MarieMichele Lachance
Overview

















Company Overview
History of Pepsi
Growth
2009 Events and Issues
Existing Mission and Vision statement
New Mission and Vision Statement
SWOT Analysis
External Assessment
CPM
EFE
Positioning Map
Internal Assessment
Organizational Chart
Income Statement
Balance Sheet
Financial ratios
IFE Matrix




















Strategy Formulation
SWOT Matrix
Grand Strategy Matrix
BCG
Space Matrix Data
Space Matrix
IE Matrix
Matrix Analysis
QSPM Matrix
Strategic Plan
Strategy
Objectives
Recommendations
Assumptions
Implementation
EPS/EBIT
Projected Financials
Evaluation
Balanced Scorecard
Key Future Ratios
History
 In 1965: PepsiCo, Inc. is founded by Donald M. Kendall, President and CEO
of Pepsi-Cola and Herman W. Lay, Chairman and CEO of Frito-Lay, through
the merger:
 1. Pepsi-Cola In 1898: Caleb Bradham, a New Bern, North Carolina,
pharmacist, created "Brad's Drink," a carbonated soft drink he created to
serve his drugstore's fountain customers.
 2. Frito Company

 3. H. W. Lay Company

 The Major products of the companies are:
 Pepsi-Cola Company
 Fritos brand corn chips, Lay's brand potato chips, Cheetos brand cheese
flavored snacks, Ruffles brand potato chips, Rold Gold brand pretzels.
 Mountain Dew
Growth
1966:
Doritos is introduced
Pepsi enters Japan and Eastern Europe.
1970:
PepsiCo moves from New York City to new world headquarters in Purchase, N.Y
Pepsi is the first company to respond to consumer preference with lightweight, recyclable, plastic
bottles.
1977:
PepsiCo acquires Pizza Hut, Inc
1978:
Taco Bell
1980:
PepsiCo Food Service International (PFSI) is formed to focus on overseas development of restaurants.
Growth Cont.
1982:
Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas, are introduced.
Inauguration of the first Pepsi-Cola operation in China.
1985:
PepsiCo is now the largest company in the beverage industry. The company has revenues of
more than $7.5 billion, more than 137,000 employees.
Pepsi-Cola products are available in nearly 150 countries and territories around the world. Snack
food operations are in 10 international markets.
1986:
PepsiCo purchases 7Up International, the third largest franchise soft drink operation outside the
United States.
1993:
Pepsi-Cola introduces Aquafina bottled water into test market.
1996:
Pepsi-Cola launches Pepsi World at www.pepsiworld.com
Global
 Pepsi products are in almost 200 countries
throughout the world
 There are 22 different brand lines that account for at
least $1 billion per year per brand
2009
 Celebrated 75 years in Canada
 Was on the “Best Food for Women” list in Women’s
Health magazine
 Began a partnership with the NFL
 Won U.S. EPA SmartWay Environmental Excellence
award
 Became official beverage of Norwegian Cruise Lines
Mission Statement
 Our mission is to be the world's premier consumer
products company focused on convenient foods and
beverages. We seek to produce financial rewards to
investors as we provide opportunities for growth and
enrichment to our employees, our business partners
and the communities in which we operate. And in
everything we do, we strive for honesty, fairness and
integrity.
Vision Statement
PepsiCo's responsibility is to continually improve all
aspects of the world in which we operate environment, social, economic - creating a better
tomorrow than today."
Our vision is put into action through programs and a
focus on environmental stewardship, activities to
benefit society, and a commitment to build shareholder
value by making PepsiCo a truly sustainable company.
Proposed Mission
 Our mission is to be the world's premier consumer products company
focused on convenient foods and beverages through stores as well as
our website. (1,2.3,4) We seek to produce financial rewards to investors
as we provide opportunities for growth and enrichment to our
employees, our business partners and the communities in which we
operate. (5,8,9) And in everything we do, we strive for honesty, fairness
and integrity. (6,7)
1.
2.
3.
4.
5.
6.
7.
8.
9.
Customer
Products or Services
Markets
Technology
Concern for survival, profitability, and growth
Philosophy
Self-Concept
Concern for public image
Concern for employees
Proposed Vision
 PepsiCo, in association with smaller brands, offers a
wide variety of products from beverages to snacks at
low cost.
External Assessment
Opportunities
1. Opening in market for less costly products
2. Growth opportunities in developed countries as well as
international nonestablished countries
3. Pepsi recently reacquired ownership of its two largest bottlers,
Pepsi Bottling Group (PBG) and PepsiAmericas (PAS)
4. Compete in more than one industry (non-alcoholic beverage
industry, the salty or savory snack food industry, and the breakfast
food industry)
5. Growth in the carbonated drink market is the largest in Asia and
Europe
6. The world's demand is experiencing a growth with the sports
drinks, bottled water, and energy drinks
Threats
1. Fierce competition from Coca-Cola, which owns the largest piece
of the market share
2. The downturn in economy, which lead customers to shift away
from bottles of water to tap water.
3. Because of the recession, customers are finding cheaper
alternatives to the national brands.
4. Customers are getting more conscious and concerned about
their eating habits and general health.
5. Campaign against plastic containers has impacted the sale of
bottled beverages
6. Highly dependent on supplies of clean water, to prevent
contamination
CPM
Pepsi Co.
Critical Success factors
Advertising
Price Competitiveness
Product Diversity
Market Share
Company Image
Customer Loyalty
Financial Position
Sales Distrubution
Product Quality
Global Expansion
Totals
Coca Cola
Dr. Pepper Snapple Group
Weights Rating Weighted Score Rating Weighted Score Rating
0.0 to 1.0 1 to 4
1 to 4
1 to 4
0
0
0.12
4
0.48
4
0.48
3
0.11
3
0.33
3
0.33
2
0.1
4
0.4
4
0.4
3
0.1
3
0.3
4
0.4
2
0.12
3
0.36
4
0.48
3
0.12
4
0.48
4
0.48
3
0.09
3
0.27
3
0.27
2
0.08
2
0.16
4
0.32
4
0.09
4
0.36
4
0.36
3
0.07
3
0.21
4
0.28
3
1
3.35
3.8
Weighted Score
0
0.36
0.22
0.3
0.2
0.36
0.36
0.18
0.32
0.27
0.21
2.78
EFE
Key External Factors
Weights
Rating
0.0 to 1.0
1 to 4
Weighted
Score
Opening in market for less costly products
0.05
2
0.1
Growth opportunities in developed countries as well as international unestablished countries
0.08
3
0.24
Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and
PepsiAmericas (PAS)
0.05
1
0.05
Compete in more than one industry (non-alcoholic beverage industry, the salty or savory snack food
industry, and the breakfast food industry)
0.13
4
0.52
0.09
3
0.27
0.13
4
0.52
0
0.12
4
0.48
0.05
2
0.1
0.1
3
0.3
0.09
4
0.36
0.05
2
0.1
0.06
2
0.12
Growth in the carbonated drink market is the largest in Asia and Europe
The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks.
Threats
Fierce competition from Coca-Cola, which owns the largest piece of the market share
The downturn in economy, which lead customers to shift away from bottles of water to tap water.
Because of the recession, customers are finding cheaper alternatives to the national brands.
Customers are getting more conscious and concerned about their eating habits and general health.
Campaign against plastic containers has impacted the sale of bottled beverages
Highly dependent on supplies of clean water, to prevent contamination
Totals
1
3.16
Positioning Map
High Prices
Diverse
Products
Limited
Products
Dr. Pepper
Snapple Group
Coca Cola
Low Prices
Pepsi Co.
Market Share
6%
14%
PepsiCo
Coca-Cola
Others
80%
Revenue Distribution
Stock Price History
Internal Assessment
Strengths
1. Strong brand equity
2. Well-known worldwide
3. Innovating company
4. Ethical, socially responsible, and sustainable company
5. Strong advertising company with more than 40 slogans
and songs
6. PepsiCo as the largest part of the market share after CocaCola
7. PepsiCo owns a wide variety of smaller brands which able
them to offer a large product range from beverages to
snacks
Weaknesses
1.PepsiCo production is really expansive because of the need
to constantly develop new products to meet the changing
customers demands
2. PepsiCo is experiencing a lack of focus towards Pepsi sodas
3. PepsiCo is experiencing product recalls
4. PepsiCo has a low employment productivity and a weak
distribution
5. PepsiCo depends too much on the US market
6. PepsiCo is far behind Coca-Cola in the international market
IFE
Key Internal Factors
Weights
0.0 to 1.0
3 or 4
Internal Strengths
Strong brand equity
Well known worldwide
PepsiCo owns a wide variety of smaller brands which able them to offer a large product range
Innovating company
Ethical, socially responsible, and sustainable company
Strong advertising company with more than 40 slogans and songs
PepsiCo as the largest part of the market share after Coca-Cola
0.12
4
0.48
0.06
4
0.24
0.08
4
0.32
0.08
4
0.32
0.05
3
0.15
0.07
3
0.21
0.06
4
0.24
0.05
2
0.1
0.06
2
0.12
0.12
1
0.12
0.08
1
0.08
0.08
2
0.16
0.09
1
2
0.18
2.72
1 or 2
Internal Weaknesses
PepsiCo production is really expensive because of the need to constantly develop new
products to meet the changing costumers demands
PepsiCo is experiencing a lack of focus towards Pepsi
PepsiCo is experiencing product recalls
PepsiCo has low employment productivity and a weak distribution
PepsiCo depends too much on the US market
PepsiCo is far behind Coca-Cola in the international market
Totals
Weighted
Score
Rating
1, 2, 3 or 4
Income Statement
(in millions except per share amounts)
Net Revenue
Cost of sales
Selling, general and administrative expenses
Amortization of intangible assets
Operating Profit
Bottling equity income
Interest expense
Interest income
Income before Income Taxes
Provision for Income Taxes
Net Income
Less: Net income attributable to noncontrolling
interests
Net Income Attributable to PepsiCo
Net Income Attributable to PepsiCo per Common
Share
Basic
Diluted
2009
$43,232.00
$20,099.00
$15,026.00
$63.00
$8,044.00
$365.00
($397.00)
$67.00
$8,079.00
$2,100.00
$5,979.00
$33.00
$5,946.00
$3.81
$3.77
(In millions except per share amounts)
Assets
Current Assets
Cash and cash equivalents
Short-term investments
Accounts and notes receivable, net
Inventories
Prepaid expenses and other current assets
Total Current Assets
Property, Plant and Equipment, net
Amortizable Intangible Assets, net
Goodwill
Other nonamortizable itangible assets
Nonamortizable Intangible Assets
Investments in Noncontrolled Affiliates
Other Assets
Total Assets
Liabilities and Equity
Current Liabilities
Short-term obligations
Accounts payable and other current liabilities
Income taxes Payable
Total Current Liabilities
Long-Term Debt Obligations
Other Liabilities
Deferred Income Taxes
Total Liabilities
Commitments and Contigencies
Preferred Stock, no par value
Repurchased Preferred Stock
PepsiCo Common Shareholders' Equity
Common stock, par value 1 2/3 cents per share
(authorized 3,600 shares, issued 1,782 shares)
Capital in excess of par value
Retained earnings
Accumulated other comprehensive loss
Repurchased common stock, at cost (217 and 229
shares,respectively)
Total PepsiCo Common Shareholders' Equity
Noncontrolling interests
Total Equity
Total Liabilities and Equity
Balance Sheet
2009
$
$
$
$
$
$
$
$
$
$
$
$
$
$
3,943.00
192.00
4,624.00
2,618.00
1,194.00
12,571.00
12,671.00
841.00
6,534.00
1,782.00
8,316.00
4,484.00
965.00
39,848.00
$
$
$
$
$
$
$
$
464.00
8,127.00
165.00
8,756.00
7,400.00
5,591.00
659.00
22,406.00
$
$
41.00
(145.00)
$
30.00
$
250.00
$ 33,805.00
$ (3,794.00)
$ (13,383.00)
$ 16,908.00
$
638.00
$ 17,442.00
$ 39,848.00
2009
2008
Current Ratio
1.44
1.23
Quick Ratio
1.14
0.94
Debt-to-Total Assets
Ratio
0.56
0.65
Debt-to-equity Ratio
1.33
1.86
0.44
0.62
-17.1
-24.3
Inventory Turns
16.5
17.15
Fixed Assets Turnover
3.41
3.71
Total Assets Turnover
1.08
1.2
Gross Profit margins
0.54
0.53
Operating Profit Margin
0.19
0.16
Net Profit Margin
0.14
0.12
Return on Total Assets
0.15
0.14
Return on Stockholders
equity
0.35
0.41
Earning per share
3.36
2.9
Price-earnings Ratio
8.94
10.35
Sales
-0.04%
9.57%
Net Income
15.74%
-8.89%
Earnings per share
-0.27%
-5.87%
Liquidity Ratios
Leverage Ratios
Long-term debt-to-equity
Ratio
Times-Interest-earned
Ratio
Activity Ratios
Profitability Ratios
Growth Rations
(yearly)
Financial Ratios
Financial Trends
1-Dec-09
1-Dec-08
1-Dec-07
1-Dec-06
1-Dec-05
1-Dec-04
1-Dec-03
1-Dec-02
Avg P/E
14.7
20.6
19.6
18.3
23.3
21.2
21.6
27.7
Price/
Sales
2.22
2.02
3.24
3
3.1
3.07
3
2.96
Price/
Book
5.68
7
7.17
6.67
6.87
6.45
6.67
7.53
Net
Profit
Margin
(%)
13.7
11.9
14.4
16
12.5
14.2
13.2
11.8
Book
Value/
Share
$10.74
$7.80
$10.74
$9.38
$8.61
$8.05
$6.96
$5.53
Adapted from www.moneycentral.msn.com
Debt/
Equity
0.47
0.68
0.24
0.18
0.37
0.26
0.19
0.29
Return Return
on
on
Equity Assets Interest
(%)
(%)
Coverage
35.4
14.9
20.3
42.5
14.3
21.2
33
16.4
32.1
36.7
18.9
27.2
28.6
12.9
23.1
30.9
14.9
31.5
30
14.1
29.3
31.5
12.8
24.1
Organizational Chart
Revenues and Profits
Strategy Formulation
SWOT
Matrix
SO Strategies
ST Strategies
WO Strategies
WT Strategies
(O4, S1, S2, S6, S7)
Continue to offer
variety or product in
various brands.
(O5, O2, S2) Expand
and focus on the
carbonated drinks and
beverage segment in
Asia and Europe.
(O6, O4, S6, S7)
Respond to the
growing demand of
sports drinks, bottled
water, and energy
drinks by expanding
product market.
(T1, S1, S2, S3, S8)
Innovate Pepsi product
line with something
that is going to
differentiate us from
Coca-Cola.
(S1, S3, O4) Innovate
products by offering
healthier alternatives.
(T2, T3, S3) Offer more
promotions or
discounts to prevent
sales from decreasing.
(T5, S1, S2, S4)
(W2, W5, W6, O2, O5)
Expand Pepsi sodas
product in Europe and
Asia.
(W1, O4, O6) Improve
their sales in the
beverage segment by
responding to the
increasing demand for
sports drinks, bottled
water, and energy
drinks.
(W1, T2, T5) Adjust
production of bottles
with downturn in
economy.
(W1, T3) Produce
bigger size of bottles
and sale them at the
same price as the small
one.
(W3, T6) Be
responsible and
cautious towards
supplies of water.
(W1, W4, T6) Increase
supply chain
production by
monitoring cautiously
employees and
improving workers
training.
(W5, W6, T1) Increase
presence in the
international market.
Develop more
environmentally
friendly containers.
(T6, S6) Support
environmental issues,
such as pollution,
which causes water
contamination.
Grand Strategy Matrix
BCG
Division
Revenue
% Revenue
Profit
Frito-Lay North America
$ 13,224.00
Quaker Foods North America
$ 1,884.00
4% $
Latin America Foods
$ 5,703.00
13% $
PepsiCo Americas Beverages
31% $ 3,258.00
Profit %
Market Share
Market Growth
38%
1
5.42%
628.00
7%
1
-0.95%
904.00
10%
1
-3.26%
$ 10,116.00
23% $ 2,172.00
25%
0.8
-7.51%
Europe
$ 6,727.00
16% $
932.00
11%
0.4
-2.38%
Asia, Middle East & Africa
$ 5,578.00
13% $
716.00
8%
0.3
8.97%
Total
$ 43,232.00
100% $ 8,610.00
100%
BCG Cont.
SPACE Matrix
Financial Strength
rating is 1 (worst) to 6 (best)
1 Liquidity
2 Cash Flow
3 Return on investment
4 Earnings per share
Industry Strength
rating is 1 (worst) to 6 (best)
1 Ease of entry
2 Growth potential
3 Financial stability
4 Profit potential
Environmental Stability
rating is -1 (best) to -6 (worst)
1 Demand variablity
2 Price range from competing products
3 Barriers to entry
4 Price elasticity of demand
Competitive advantage
rating is -1 (best) to -6 (worst)
1 Market share
2 Product quality
3 Customer loyalty
4 Cotrol over suppliers and distributors
7
Ratings
4.0
5.0
4.0
4.0
FS Total
17.0
6.0
5.0
4.0
5.0
IS Total
20.0
-1.0
-1.0
-1.0
-1.0
ES Total
-4.0
-2.0
-3.0
-3.0
-3.0
CS total
-11.0
SPACE Graph
6
5
4
1
3 2
1
2
3
4
5
6
2
3
4
5
6
IE Matrix
The IFE Total Weighted scores
Strong 3.0
Average 2.0
to 4.0
to 2.99
High 3.0 to
4.0
Medium 2.0
The
EFE
to 2.99
Total
Weighted
Scores
Low 1.0 to
1.99
PepsiCo
Weak 1.0 to
1.99
Matrix Analysis
Alternative Strategies
Forward Integration
Backward Integration
Horizontal Integration
Market Penetration
Market Development
Product Development
Related Diversification
Unrelated Diversification
Horizontal Diversification
Joint Venture
Retrenchement
Divesture
Liquidation
IE
x
x
x
x
x
x
SPACE
x
x
x
x
x
x
x
x
x
BCG
GRAND
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Count
3
3
3
3
3
3
3
3
2
2
1
1
1
QSPM
Innovate products with Improve international
Key factors
External
Opportunities:
Provide less costly products
Improve presence in established countries and increase international market where they are not already settled
Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS)
Compete in more than one industry (non-alcoholic beverage industry, the salty or savory
snack food industry, and the breakfast food industry)
Growth in the carbonated drink market is the largest in Asia and Europe
The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks.
healthier alternative
AS
TAS
1 to 4
Weight
0.05
1
0.08
3
0.05
0.24
TAS
3
0.15
4
0.32
0
0
0.13
4
0.52
3
0.39
0.09
1
0.09
4
0.36
0.13
4
0.52
0
4
0.52
0
0.12
3
0.36
3
0.36
0.05
1
0.05
4
0.2
0.1
1
0.1
4
0.4
0.09
4
0.36
1
0.05
Threats:
Fierce competition from Coca-Cola, which owns the largest piece of the market share
The downturn in economy, which lead customers to shift away from bottles of water to tap water.
Because of the recession, customers are finding cheaper alternatives to the national brands.
Customers are getting more conscious and concerned about their eating habits and general health.
Campaign against plastic containers has impacted the sale of bottled beverages
Highly dependent on supplies of clean water, to prevent contamination
segment
AS
1 to 4
0.05
0
0.06
0
1
0
0
QSPM Cont.
Internal
Strengths
Strong brand equity
Well known worldwide
PepsiCo owns a wide variety of smaller brands which able them to offer a large product
range from beverages to snacks
Innovating company
Ethical, socially responsible, and sustainable company
Strong advertising company with more than 40 slogans and songs
PepsiCo as the largest part of the market share after Coca-Cola
1 to 4
1 to 4
0.12
4
0.48
4
0.48
0.06
3
0.18
4
0.24
0.08
4
0.32
2
0.16
0.08
4
0.32
4
0.32
0.05
2
0.1
3
0.15
0.07
3
0.21
3
0.21
0.06
4
0.24
0
3
0.18
0
0.05
1
0.05
2
0.1
0.12
1
0.12
1
0.12
0.08
1
0.08
1
0.08
0.08
2
0.16
1
0.08
0.09
2
0.18
1
0.09
Weaknesses:
PepsiCo production is really expensive because of the need to constantly develop new
products to meet the changing costumers demands
PepsiCo is experiencing a lack of focus towards Pepsi
PepsiCo is experiencing product recalls
PepsiCo has low employment productivity and a weak distribution
PepsiCo depends too much on the US market
PepsiCo is far behind Coca-Cola in the international market
0.06
0
0
1
4.68
4.96
Strategic Plan
Strategy
 Market development is a strategy that PepsiCo should
apply by expanding in countries that not already
established
 Use forward integration to acquire smaller companies
in foreign markets to increase their market share
 Product development and related diversification
should also be considered while trying to produce and
distribute healthier products
Recommendations
 In the next 3 years, PepsiCo should acquire 3 brands
per year in an international marketplace
 One of these 3 brands per year must be healthy
 Increase production and distribution of carbonated
drinks in Asian and European countries
 PepsiCo will expand into Africa to make use of the
international market they are not part of
Objectives
 Spend $15 million on a healthier more eco-friendly
beverage brand in an already established country
 Spend $15 million on a healthier more eco-friendly
snack brand in an already established country
 Spend $10 million to acquire a smaller brand in Africa
 Increase our revenues by 5% in 2010
 Start our own environmental cause fund with $1
million
Assumptions
 Spend $40 million to acquire new brands
 Spend $1 million to start an environmental cause
group
 Revenue increase of 5%
 Decrease short-term and long-term debt by using
some of our cash and cash equivalents as well as
retained earnings
Implementation
Projected Income Statement
(in millions except per share amounts)
Net Revenue
Cost of sales
Selling, general and administrative expenses
Amortization of intangible assets
Operating Profit
Bottling equity income
Interest expense
Interest income
Income before Income Taxes
Provision for Income Taxes
Net Income
Less: Net income attributable to noncontrolling
interests
Net Income Attributable to PepsiCo
Net Income Attributable to PepsiCo per Common
Share
Basic
Diluted
2009
$43,232.00
$20,099.00
$15,026.00
$63.00
$8,044.00
$365.00
($397.00)
$67.00
$8,079.00
$2,100.00
$5,979.00
2010
$ 45,393.60 5% increase
$ 21,549.09 Based on previous years %
$ 15,476.78 3% increase based on new brands/territories
$
63.00
$ 8,304.73
$ 365.00
$ (397.00)
$
67.00
$ 8,339.73
$ 2,100.00
$ 6,239.73
$33.00 $
33.00
$5,946.00 $ 6,206.73
$3.81 $
$3.77 $
3.98
3.94
Projected Balance Sheet
(In millions except per share amounts)
Assets
Current Assets
Cash and cash equivalents
Short-term investments
Accounts and notes receivable, net
Inventories
Prepaid expenses and other current assets
Total Current Assets
Property, Plant and Equipment, net
Amortizable Intangible Assets, net
Goodwill
Other nonamortizable itangible assets
Nonamortizable Intangible Assets
Investments in Noncontrolled Affiliates
Other Assets
Total Assets
Liabilities and Equity
Current Liabilities
Short-term obligations
Accounts payable and other current liabilities
Income taxes Payable
Total Current Liabilities
Long-Term Debt Obligations
Other Liabilities
Deferred Income Taxes
Total Liabilities
Commitments and Contigencies
Preferred Stock, no par value
Repurchased Preferred Stock
PepsiCo Common Shareholders' Equity
Common stock, par value 1 2/3 cents per share
(authorized 3,600 shares, issued 1,782 shares)
Capital in excess of par value
Retained earnings
Accumulated other comprehensive loss
Repurchased common stock, at cost (217 and 229
shares,respectively)
Total PepsiCo Common Shareholders' Equity
Noncontrolling interests
Total Equity
Total Liabilities and Equity
2009
2010
$
$
$
$
$
$
$
$
$
$
$
$
$
$
3,943.00
192.00
4,624.00
2,618.00
1,194.00
12,571.00
12,671.00
841.00
6,534.00
1,782.00
8,316.00
4,484.00
965.00
39,848.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
3,264.63
200.00
5,250.00
3,500.00
2,500.00
14,714.63
13,938.10
908.28
6,750.68
1,783.00
8,533.68
4,892.34
1,300.00
44,287.03
$
$
$
$
$
$
$
$
464.00
8,127.00
165.00
8,756.00
7,400.00
5,591.00
659.00
22,406.00
$
$
$
$
$
$
$
$
464.00
7,314.30 Use cash to reduce accounts payable by 10%
165.00
7,943.30
7,400.00
5,591.00
659.00
21,593.30
$
$
41.00 $
(145.00) $
$
30.00 $
$
250.00 $
$ 33,805.00 $
$ (3,794.00) $
$ (13,383.00)
$ 16,908.00
$
638.00
$ 17,442.00
$ 39,848.00
-$10 million for purchasing of new brands also paid off some accounts payable
More brands equal 10% increase
Based on previous years %
Purchased 3 brands and their goodwill
add $1 million for environmental group
41.00
(300.00)
30.00
250.00
39,980.73 Based on Income Statement - $31 million for purchasing of new brands and environmental group
(4,500.00)
$ (13,383.00)
$ 22,118.73
$
575.00
$ 22,693.73
$ 44,287.03
Evaluation
Area of Objectives
Measure of Target
Time Expectation
Primary
Responsibility
Costumer Survey
Webinars
Quarterly
Human Resources
Biannually
Supply chain
Operations
Yearly
Human Resources
Yearly
CEO
Yearly
CEO
Customers
1. Customer satisfaction
Representatives
1. Improve production
efficiency
2. Offer employee trainings
Increase in
production
Employee surveys
Production efficiency
Community/ Social
Responsibility
1. Eco-Friendly company
2. Ethical Company
Increase in
recyclable bottle
Being involve in
more events
regarding water
contamination
Number and success
of charitable events
UNICEF amount of
money donated
Operations/Processes
1. Innovation
2. Brand expansion
New products
Product appearance
Acquisition of new
brands
Numbers of new
countries entered
Number of sales in
the International
Segment
Yearly
CEO
Yearly
CEO
Financial
1. Reduce cost of
production
Income Statement
Quarterly
Chief Financial Officer
2. Increase profitability
Increase annual
report
Quarterly
Chief Financial Officer
Balanced
Scorecard
Future Ratios
2009
Projected 2010
Current Ratio
1.44
1.85
Quick Ratio
1.14
1.41
Debt-to-Total Assets Ratio
0.56
0.5
Debt-to-equity Ratio
1.33
0.97
Long-term debt-to-equity
Ratio
0.44
0.33
Times-Interest-earned Ratio
-17.1
-21.01
Inventory Turns
16.5
12.97
Fixed Assets Turnover
3.41
3.26
Total Assets Turnover
1.08
1.02
Gross Profit margins
0.54
0.57
Operating Profit Margin
0.19
0.21
Net Profit Margin
0.14
0.19
Return on Total Assets
0.15
0.16
Return on Stockholders equity
0.35
0.36
Earning per share
3.36
3.43
Price-earnings Ratio
8.94
8.74
Sales
-0.04%
5.00%
Net Income
15.74%
4.36%
-0.27%
15.79%
Liquidity Ratios
Leverage Ratios
Activity Ratios
Profitability Ratios
Growth Rations (yearly)
Earnings per share
Fun Facts
Pepsi/Coke Rivalry
 http://www.buzzfeed.com/pepsi/the-10-most-iconicpepsi-commercials-of-all-time-1q6t
Questions?
Sources













"2010 Will be Changing for PepsiCo." Medill Reports Chicago. N.p., n.d. Web. 20 Apr. 2012.
<news.medill.northwestern.edu/chicago/news.aspx?id=157896 >.
"Coke vs Pepsi." Coke vs Pepsi. N.p., n.d. Web. 25 Apr. 2012. <http://cokevspepsi.net/>.
" Google Image Result for http://41minds.files.wordpress.com/2011/04/bcggrowthsharematrix.png."Google. N.p., n.d.
Web. 22 Apr. 2012.
<http://www.google.com/imgres?hl=en&sa=X&rlz=1C1LENN_enUS472US472&biw=1366&bih=677&tbm=isch&prmd=im
vnsa&tbnid=VtCOuMODso-oZM:&imgrefurl=http://41minds.com/tag/bcg-matrix/&docid=JDNK6PE50NlOOM&imgur
"Key financial ratios: Financial results - MSN Money ." Money: Personal finance, investing news & advice - MSN Money.
N.p., n.d. Web. 25 Apr. 2012. <http://investing.money.msn.com/investments/keyratios?symbol=PEP&page=TenYearSummary>.
"PEP: Summary for Pepsico, Inc. Common Stock- Yahoo! Finance." Yahoo! Finance - Business Finance, Stock Market,
Quotes, News. N.p., n.d. Web. 25 Apr. 2012. <http://finance.yahoo.com/q?s=PEP>.
"Pepsi History." Sirpepsi. N.p., n.d. Web. 25 Apr. 2012. <http://www.sirpepsi.com/pepsi11.htm>.
"PepsiCo 2009 annual report." PepsiCo. N.p., n.d. Web. 19 Apr. 2012. <www.pepsico.com/Download/PEPSICO_AR.pdf>.
"PepsiCo Brands | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 24 Apr. 2012.
<http://www.pepsico.com/Brands.html>.
"PepsiCo Investors | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 25 Apr. 2012.
<http://www.pepsico.com/Investors.html>.
"PepsiCo MORE | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 25 Apr. 2012.
<http://www.pepsico.com/Global-Sites/More.html>.
Reppo, Ilya, and Michelle Yan. "PepsiCo Valuation." Leeds-faculty Colorado. N.p., n.d. Web. 14 Apr. 2012. <leedsfaculty.colorado.edu/madigan/4820/Presentations%202010/PepsiCo%20Report.pdf>.
segment. "PepsiCo Valuation." Google. N.p., n.d. Web. 23 Apr. 2012.
<http://webcache.googleusercontent.com/search?q=cache:egHCTRx43AYJ:leedsfaculty.colorado.edu/madigan/4820/Presentations%25202010/PepsiCo%2520Report.pdf+PepsiCo+net+revenue+compar
ative+2007-2009&hl=en&gl=us>
Steve. " Global Cola: 10 Pepsi-Cola Flavors You Can’t Get Here | WebUrbanist ." WebUrbanist | From Urban Art & 3D
Graffiti to Abandoned Cities . N.p., n.d. Web. 25 Apr. 2012. <http://weburbanist.com/2010/05/02/global-cola-10-pepsicola-flavors-you-cant-get-here/>.