Pepsi Term Paper

Situation analysis

Initial Stage & Development of Pepsico :

This is a soft drink and it was first developed in 1880 by a new born, north carolina pharmacist and industrialist. In 1898 the name of pepsi became change to pepsicola. as pepsicola got mach popularity, it was registered in 1902. Between the late 1970s to 1990s pepsico expanded via acquisition of business out side of its core focus of packaged food and beverage brand. Now a days there are lot’s of brand under pepsico it includes

Pizza Hut

Toca bell

California pizza kitchen

North american vanline

Wilson sporting goods

Hot’n Now

etc

Area of Business :

The Structure of pepsico global operation his shifted multiple time in its history as a result of international expansion and as of 2010 it is separated into four main division.

(i) pepsico ameriean food.

(ii) pesico beverage

(iii) pepsico europe and asia

(iv) pepsico middle east and africa

In 2009 71 percent of the company’s net revenue came from north and south america, 16 percent from europe and 13 percent from asia

Sales growth information :

In 2010 pepsico reported revenues of $10.3 billion for the quarter. A 70 percent from its sale last year, driven primarily by the consolidation of its bottling system. And every day all over the world the sales of persico soft drink is increasing incredibly.

Financial Condition :

A Cursory examination of pepsico income statement reveals that pepsico revenue have increased from $ 29.3 billion in 2004 to $ 43.3 billion in 2008 that means revenue growth was average 9.6% year over year. While the cost of goods has increased from $ 13.4 billion to $ 20.4 billion in the same time frame. This represent an increase of cost of goods sold from 45.8% to 47.1% in the five years period. The result is that pepsico gross margin has decreased from 54.2% to 52.9%.The obvious culprit is the increase in commodity price (oil, Gas, Sugar, wheat etc)

Market summary: Pepsi posses...