Business Report: Pepsico

Individual Research Paper/Case Analysis

Business Report: Pepsico

Janet Zaharchuk

October 27, 2014

Instructor: Rossie Kadiyska

BUSI 1023 – Introduction to Economics for Managers

Yorkville University

Introduction

PepsiCo, Inc. is among the most successful consumer products companies’ in the world, with revenues of over $22 billion and 151,000 employees. The company’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of their people. Their overriding objective is to increase the value of their shareholders’ investment through integrated operating, investing and financing activities. Their strategy is to concentrate their resources on growing their businesses, both through internal growth and carefully selected acquisitions. Their strategy is continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation’s success reflects their continuing commitment to growth and a focus on those businesses where they can drive their own growth and create opportunities (Hassani). PepsiCo, along with Coca-Cola, the corporation’s largest competitor, is in an oligopoly market. They are selling the homogeneous product so they can control over price but they will consider their action when they would like to change the price of their goods. PepsiCo, Inc. presents itself as a worthwhile investment opportunity.

Financial Income Statement (Hoover’s Inc.)

USD $ in millions | 2013 | 2012 | 2011 | 2010 | 2009 |

Revenue | $66415.0 | $65492.0 | $66504.0 | $57838.0 | $43232.0 |

Gross Profit | $35172.0 | $34201.0 | $34911.0 | $31263.0 | $23133.0 |

Operating Income | $9705.0 | $9112.0 | $9633.0 | $8332.0 | $8044.0 |

Net Income | $6740.0 | $6178.0 | $6443.0 | $6320.0 | $5946.0 |

SWOT Analysis 2014 (Dudovsky)

Strengths | Weaknesses |

1. Large, yet focused brand portfolio.2. Strong leadership from CEO3. Corporate Social Responsibility...