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2
COMPANY ANALYSIS
Introduction
Various organizations around the world have a lot of share in the market. These
organizations try to make sure that, they work in such a manner that, they have a competitive
advantage in the market. Here, in the present paper, the discussion shall include two
organizations. The first organization is PepsiCo and the second organization considered here
is Coca Cola. These organizations are in the beverage industry and also provide various kinds
The organizations considered in the present paper have a major share in the market
and these organizations try to ensure that, they will continue to have a competitive position in
the market in the future. Here, in the present paper, various kinds of things shall be
considered. The things will include the financial performance of the organization, the
products, stock prices, and the impact of the few events on the stock prices of the
organization. In this way, various kinds of things shall be taken into consideration.
Description of PepsiCo
an American multinational corporation which is engaged in the beverage and the food
industry. This organization is doing its activities in the field of food and beverage industry.
distribution, the grain based snacks. It was established in the year 1965 by virtue of the
merger between PepsiCo and Frinto Lay. The organization has moved leaps and bounds since
the date of its formation. The organization should make sure that, it enhances its profits to a
continuous level.
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COMPANY ANALYSIS
There are various kinds of products provided by the organization to its customers. The
products provided by the organization include soft drinks, potato chips, Quaker foods, snacks,
lipton tea and various other kinds of products. The organization is currently having its
operations in around 200 countries. The organization is the second largest food and beverage
organization in the world. For the organization, the major customers are those who are living
For the organization PepsiCo, the form of leadership is said to be one of the most
effective forms of leadership. The organization is not using the same form of leadership at all
the times. There are two styles of leaderships used in the organization. The styles of
leadership used in the organization include democratic style of leadership and autocratic style
of leadership. The organization makes changes in the form of leadership according to the
situation.
For example, if the situation in the organization is of the kind that, it is necessary to
take the assistance of the employees in a proper manner, then, the organization will make
sure that, it adopts the democratic style of leadership. On the other hand, if the organization
will have the situation in which, a major decision has to be taken then, the organization will
definitely adopt the method of autocratic style of leadership. In this way, both the forms of
In relation to the actions of the organization, it can be said that, the organization has
been able to perform its activities in a proper manner. The organization is having certain
product lines and regarding the product lines, it has been provided that, the organization has
been able to generate the sales up to the level of $1 billion each for all its product lines. The
annual net revenue for the organization PepsiCo has been about $43.3 billion. The
organization has been ranked as the best in terms of generation of net revenues. The
The second organization considered here is Coca Cola. This organization was
established in the year 1886. Since that time, the organization has come a long way and has
achieved a lot of success. The person responsible for the start up of the organization was
Perberton. The person died in the year 1888 and was not able to see the success of the
organization.
The organization is not engaged in selling the drinks on its own. Instead, the
organization produces concentrates and sells the same to the licensed Cola bottlers. The
organization tries to make sure that, the final product is of the highest quality so that, the
image and the reputation of the organization is enhanced. The bottlers then, sell the drinks to
the vending machines owners and the retail stores so that, the drinks of the organization could
Coca Cola Enterprises is one of the bottlers of the organization. The organization is
also engaged in selling concentrates for the soda fountains for various restaurants and food
service distributors. The organization Coca Cola was termed as the most valuable brand by
Interbrand’s ranking. There are a wide variety of products provided by the organization Coca
Cola.
At the present time, the organization sells around 3500 categories of beverages to the
customers. The organizational beverages have spread to around 200 countries in which, the
organizational operations are carried out. Over a period of time, the organization has been
carrying out activities properly regarding the achievement of its objectives and having better
The organization always looks forward to make sure that, it adds value to its products.
The organization is engaged in providing the best level of nutritional value to the customers.
The organization has a quality management system available with it. With the help of the
quality management system, the organization is able to make sure that, the quality of the
products provided by it to the customers is appropriate. Like PepsiCo, the organization Coca
Cola also has its operations in various countries. This organization is having its highest
customers in the country of the Untied States of America. In relation to the style of
leadership, the organization makes sure that, it achieves the proper results regarding the same.
In relation to the style of leadership, the organization Coca Cola also adopts the same
strategy like the organization PepsiCo. This organization is also having the two forms of
leadership methods. The leadership methods for the organization includes a democratic form
of leadership and autocratic form of leadership. Both these forms of leadership styles are used
by the organization in different times. The organization makes changes in the leadership
forms according to its needs and requirements so that, the results for the organization could
improve in the future and the decisions made by the organization are also appropriate and
At the present time, the organization is employing 146200 employees from all around
the world. This organization looks forward to ensure that, the world is refreshed and it is
inspired from the moments of happiness spread by the organization. The organization is also
very good in the case of giving dividends to the shareholders. The organization is there in the
business for a period of 126 years and this particular thing is a huge achievement on the part
of the organization.
For a particular organization, it is very important to make sure that, it considers the
stock price analysis. Here, in the present paper, the stock price analysis of the organization
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COMPANY ANALYSIS
shall be carried out. In relation to the stock price analysis, the analysis of the stock prices
shall be carried out from January 1, 2010, 2011 and 2012 and in addition to this, the stock
price analysis for the organization shall also be considered regarding the stock price of the
organization since the date of its incorporation. The graph showing the changes in the stock
Based on this chart, it can be said that, the stock price of the organization has
definitely gone down since the date of its incorporation till the present date. There can be
various reasons due to which, the stock price of the organization might have gone down. The
reasons for the reduction in the stock prices will include bonus issues, splitting of shares, and
The chart given below shows the changes in the stock prices of the organization from
January 1,2010, January 1,2011 and January 1,2012. These charts show the information that,
the organization has not been in a position to have enhanced in its stock prices for some time
now. In the month of movement in the year 2012, the stock price of the organization was at
the level of $40. This stock price of the organization was sitting pretty at the level of $70 in
Stock Prices
05/01/2014
02/02/2014
02/03/2014
02/04/2014
04/05/2014
02/06/2014
02/07/2014
03/08/2014
02/09/2014
02/10/2014
04/01/2016
02/02/2016
02/03/2016
03/04/2016
02/05/2016
02/06/2016
03/07/2016
02/08/2016
05/09/2016
02/10/2016
In relation to the organization PepsiCo also, the stock prices of the organization shall
be analyzed. The time period for which, the stock prices shall be analyzed will include the
time from the date of incorporation of the organization, January 1, 2012, January 1,2010 and
January 1, 2011. In the years of 1970s, the stock prices of the organization had seen a
downfall. At that point of time, the stock prices were at the level of $25. Since that time, the
The organization PepsiCo has seen a satisfactory level of growth in the stock prices in
the last 3 years. The stock prices of the organization were at the level of $60 and the same has
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COMPANY ANALYSIS
increased to the level of $70 at the present time. This shows that, the organization has tried to
make sure that, it does not get into any kind of problem or issues regarding the stock prices
for some time. Though, the increase has not been very high but, still, the organization has
made sure that, it carries out its activities in the most appropriate manner without any kind of
There are certain economic events which might have some kinds of impact on the
stock prices of the organization. The organization PepsiCo and Coca Cola are very strong
organizations and have been able to make sure that these organizations perform their
activities to the highest possible level. The organizations have a such good level of operations
that, it has been possible for them to make sure that, even the events do not make any kind of
One of the events which might have had some kind of impact on the stock price of the
organization was the acquisition by Petrow Food Industry Limited. It was likely that, this
event may have some form of impact on the stock prices of the organization but, the
organizations did not get into any kind of problem or issue. The organizations were able to
create a particular situation in which, it was possible for them to continue to have the same
The other events which might have had some kind of impact on the organizational
stock prices included the recessionary conditions in the country of the United States of
America and the level of unemployment in the country. In spite of both these kinds of
situations, the organization was in a position to make sure that, there is no reduction in their
stock prices at any point of time in the future. In this way, it can be said that, both the
The organizational financial data can be said to be appropriate in the situation when,
the organization will have its data audited through one of the major auditors around the
world. Both the organizations can be said to be providing proper financial data to its
shareholders. The auditor of the organization PepsiCo are KPMG LLP. On the other hand,
there is also a situation that, the organization Coca Cola is also having its accounts audited by
one of the major auditors around. In this way, it can be said that, both the organizations are
investors to make sure that, the investors consider certain key things. The points to be
considered by the investors include earning per share, net income and trend in movement of
the price of the security of the organization (Pogue, 2010). The price of the stock of the
organization Coca Cola Company is $37.67 whereas, the price of stock of PepsiCo is $70.27.
This shows that, Pepsico has a better stock price in comparison to Coca Cola. The earnings
per share of PepsiCo is $3.76 whereas, the earnings per share of Coca Cola Company is
$1.91. PepsiCo has net income of $6443000 whereas, Coca Cola Company has net income of
$8572000. In this way, it can be said that, PepsiCo is better than the Coca Cola company in
two of the above mentioned three years. Therefore, the investors should look forward to
04/01/2015
02/02/2015
02/03/2015
02/04/2015
03/05/2015
02/06/2015
02/07/2015
02/08/2015
02/09/2015
04/10/2015
04/01/2016
02/02/2016
02/03/2016
03/04/2016
02/05/2016
02/06/2016
03/07/2016
02/08/2016
05/09/2016
02/10/2016
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COMPANY ANALYSIS
Conclusion
The present paper was regarding two organizations. The organizations were PepsiCo
and Coca Cola. The organizations are in the same industry and provide various kinds of
products to the customers. In relation to the financial analysis of the organizations, it can be
said that, the organization Coca Cola is below the organization PepsiCo. The investors should
invest in PepsiCo in comparison to Coca Cola. The organizational accounts are audited by
one of the best auditors around the world. PepsiCo also has a better level of earnings per
share and better share value in comparison to the organization Coca Cola.
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COMPANY ANALYSIS
References
http://finance.yahoo.com/q/is?s=PEP+Income+Statement&annual
http://www.cjpetrow.co.uk/about-us.html
Pogue, M. (2010). Corporate Investment Decisions: Principles and Practice. Business Expert
http://finance.yahoo.com/q/hp?s=PEP+Historical+Prices
http://finance.yahoo.com/q/hp?s=KO+Historical+Prices