Investment Analysis of Pepsi Bs. Coco Cola



Investment Analysis of Pepsi Bs. Coco Cola

Introduction to Pepsi Co.

Pepsi operates in consumer oriented goods industry and its core operations involve producing, marketing, and selling a range of food items, snacks and drinks. Pepsi Co. is engaged in producing a wide range of snacks in various flavors, and variety of drinks. There are around 22 famous brands that lie under the big brand name of Pepsi Co. and yielding $1000 million of sales in retail industry annually. The main office of the Company is located in New York and there are around 297,000 employees working in there.

Financial Facts

The company successfully earned $66,505 million of revenues in 2011, which represents a increase of 15% as compared to year 2010. It recorded an operating profit of $9633 million in 2011 i.e. 15.6% higher than 2010. The company recorded a net profit of $6443 million in 2011 which is increased by 1.9% in 2010 (MarketLine, 2013).

Leadership at Pepsi Co.

Pepsi has been one of the most successful companies in satisfying customers and gaining greater market share over a past century. The key leaders of the company like CEO namely Indra Nooyi appointed since 2006, has been planning strategically and innovatively to design an effective corporate strategy to combat fierce competition. The company believes in strength of talented leaders that brought a return of 30% to shareholders in 2011 and resulted in profitable investments in emerging markets, and effectively managed bottle acquisitions (Seghetti, N., 2012).

History

The company by the name of Pepsi cola initiated its operations in 1890s under the leadership of Caleb Bradham, who was a pharmacist. After few years company merged with Frito Lay Inc in 1961 and H. W. Lay Company. The present name and structure of the company by the name of Pepsi Co was established in 1965 under the guidance of Donald M. Kendall. The company gradually entered foreign markets like that of Japan and Europe in 1966 and altered its theme and enhanced its recognition of brand by choosing red, blue and white colors on package along with launch of new product line of snacks in 1969 (MarketLine, 2013).

Products and Services

The key products produced, marketed and sold by the company include cereals, side line dishes, pastes, syrups, mixtures, chips, popcorn, wafers, variety of snacks, French fries, carbonated drinks, juices, diet drinks, mineral water, energy drinks, smoothies, readymade tea or coffee etc (MarketLine, 2013).

Customers and Suppliers

The major category of customers for Pepsi Co includes manufacturer and producers of bottles, distributers of bottles and food items, retailers (Marketing Teacher Ltd, n.d.). The major suppliers of the company are packaging companies, distributors, consulting companies, raw material provision and handling companies. One of the biggest suppliers of Pepsi Co. is E2M (Diversity/Careers, 2010).

Introduction to Coca Cola

The company Coca Cola is engaged in manufacturing, distributing and marketing of variety of beverages. There are around 500 brands that operate under the brand name of Coca Cola. Its products include carbonated drinks, diet drinks, water and ...