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