Pepsico Analysis

PepsiCo, Inc.

Katherine Schryner

MBA5002 - Microeconomics And Decision-Making

James Slate

03/09/08 I. Executive Summary
In1898, Caleb Bradham created the Pepsi Company (PepsiCo). The Pepsi-Cola Company merged with other companies (Frito-Lay, Tropicana and Quaker Foods to list a few) between 1965 and 2001 and is now referred to as PepsiCo, Inc. PepsiCo, Inc. has many headquarters worldwide for the several different companies. The main world PepsiCo headquarters residing in New York. These mergers made PepsiCo, Inc. a refreshment and snack company ranking 5th in the world (Pepsi). PepsiCo, Inc. is listed on four stock exchange markets. In 2006, they reported over $35 billion in revenues and listed having 168,000 employees (PepsiCo2).

II. Table of Contents
III. Supply, Demand and Price Analysis………………………………..Page 5
Company Introduction Page 5
Product description Page 5
Factors affecting supply, demand and price of product Page 6

Elasticity of demand and price for product Page 6

Suggested initiatives to improve revenue Page 7

IV. Cost Analysis………………………………………………………...Page 7
Fixed Costs Page 7

Variable Costs Page 7

Life Cycle Costs Page 8

Operating Costs Page 8

Cost Considerations Page 9

Revenue Page 9

Strategies to Enhance Profits Page 10

V. Market Structure………………………………………………….…Page 11
Pricing Strategies Page 12

Maintaining and Improvement Measure Page 14

VI. Comparative Advantage and Environmental Issues………………Page 15
International Trade Page 15

Risk Management Page 17

Comparative Advantages Page 17

Environmental Concerns Page 18

VII. Company 's Overall Strategy and Decision-making Process……..Page 20 Mission Statement Page 20 Business Opportunities Page 22 Long Term Objectives Page 22
VIII. References……………………………………………..…………….Page 24
IX. Appendices…………………………………………….…………….Page

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