Coca-Cola vs. PepsiCo: Financial Management Dr. Tressa Shavers Strayer University Coca-Cola vs. PepsiCo: Financial Management This paper will examine Coca-cola and PepsiCo financial ratios and profit for the year 2007 and 2008 using the liquidity measurement ratio‚ profitability indicator’s ratio‚ debt Ratio‚ Operating performance ratio‚ cash flow ratio‚ and investment valuation ratio. It will explain both company’s liabilities‚ and a few personal opinions that could better both Coca-Cola
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Company Overview Coca-Cola drink was created in May 1886 by Dr. John Pemberton in Atlanta‚ Georgia. In 1891‚ entrepreneur Asa G Candler gained ownership of the Coca-Cola business. Ernest Woodruff bought Coca-Cola for $25 million in 1919. Coca-Cola gradually grew and became one of the world’s largest soft drinks company. Although Coca-Cola also deals with non-carbonated drinks‚ its primary products are carbonated drinks. PEST Analysis The PEST Analysis is an analysis to examine the
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generates positive economic profits. The other reason why the soft drink industry is profitable is: * Bottling Network: Coke and Pepsi have agreements with existing bottlers which prevents it from taking on new competing brands. So no scope for future competitors due to high capital costs in setting up a new plant. * Advertising: Huge advertising costs by Pepsi and Coke which cannot be matched up to. * Brand Image/Loyalty: It is virtually impossible for a new entrant to match this scale
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of Coke-Cola is quite interesting; the product began as far back as the late 19th century (The Coca-Cola Company Britannica Academic. 2015). In this discussion‚ we shall consider what makes Coke-Cola and such an attractive investment (Ferrell‚ Fraedrich‚ & Ferrell‚ 2015). Furthermore‚ factors that stakeholder considers when addressing investments Coke-Cola itself and its reputation (Ferrell‚ Fraedrich‚ & Ferrell‚ 2015). First a historical look at Coke-Cola; historically the first Coke-Cola was invented
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so it seem‚ we the consumer‚ have had the pleasure of enduring the “Cola Wars” between Coke and Pepsi. This has been an ongoing battle between the big two cola manufactures for over one hundred years. John Pemberton‚ a pharmacist in Atlanta‚ Georgia‚ invented Coca-Cola in 1886; pharmacist Caleb Bradham invented Brad’s Drink‚ later to become Pepsi-Cola‚ in 1893 in New Bern‚ North Carolina. In 1938‚ Coke filed suit against Pepsi‚ claiming trademark infringement. In 1941‚ the court ruled in Pepsi’s
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1. Why is the soft drink industry (i.e.‚ the cola concentrate industry) so profitable? The soft drink industry survives on the rivalry that has existed for over a century between Coca-Cola and Pepsi-Cola. The two brands are competing for the market share nationally and globally by trying to clinch the thirst of every person in the world. In Michael Porter’s five forces‚ the threat of rivalry pushes both companies to “out compete” with each other and drive up the fixed cost to enter the market
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PEPSI CO. CONTENTS: 1. EXECUTIVE SUMMARY 2. BACKGROUND 2.1 Brief history 2.2 Current financial status 3. MISSION STATEMENT 4.1 Mission statement 4.2 Revised mission statement 4. VISION STATEMENT 5.3 Vision statement 5.4 Revised mission statement 5. EFE MATRIX 6.5 EFE matrix 6.6 EFE matrix summary 6. CPM MATRIX 7.7 CPM matrix 7.8 CPM matrix summary 7. IFE MATRIX 8.9 IFE matrix 8.10 IFE matrix summary
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Cola Wars Continue: Coke and Pepsi in 2010 1. Why‚ historically‚ has the soft drink industry been so profitable? Soft drink industry is profitable because the industry has concentrated revenues between 2 major players and it is virtually impossible for a new player to compete with the key players. The industry giant’s wield power over the retail outlets. Convenience stores‚ vending machines‚ fountains are widely distributed and hence they don’t have the power to bargain over pricing issues and
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Summary: "Cola Wars Continue: Coke and Pepsi in the 21st Century” explains the economics of the soft drink industry and its relation with profits‚ taking into account all stages of the value chain of the soft drink industry. By focusing on the war between Coca-Cola and PepsiCo as market leaders in this industry – with a 90% market share in carbonated beverages – the study analyses the different stages of the value chain (concentrate producers‚ bottlers‚ retail channels‚ suppliers) and the impact
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key success factors for Coca-Cola? The first reason of success expansion to the overseas‚ marketers saw an expansion opportunities everywhere. First in 1928 they introduced Coca-Cola to the Olympic Games. Then‚ as in case was mentioned they represented Cola in World War II. Thousands of people sent overseas to War and Coca- Cola rallied behind them. The Second strategy for success is making the brand feel local everywhere around the world. Step by step Coca-Cola found home in more and more countries
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