Sunteți pe pagina 1din 12

Running Head: COMPANY ANALYSIS 1

https://www.studypool.com/discuss/301199/how-do-i-complete-the-assignment-
3-you-are-an-investment-analyst

ACC 557 Assignment 3, You Are an Investment Analyst.doc

Company Analysis: PepsiCo and Coca Cola

Your name

Your Instructor’s name

Course#

Your Institution’s name

Date
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

of food products to the customers.

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

The organization considered in the present situation is PepsiCo. The organization is

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.

The organization provides to the customers by way of manufacturing, marketing and

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.
3
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

in the countries in which, the organization is selling its products.

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

leadership shall be used in different situations.

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

organization is also employing 297000 employees from around the world.


4
COMPANY ANALYSIS

Description of Coca Cola

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

reach the final customers (The Coca Cola Company, n.d.).

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

revenues and profitability.


5
COMPANY ANALYSIS

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

proper for it in the future.

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.

Stock Price Analysis

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
6
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

prices of the organization is provided below (Historical Prices, n.d.).

Coca Cola Stock Prices


03/01/1966
02/02/1966
02/03/1966
03/04/1966
02/05/1966
02/06/1966
03/07/1966
02/08/1966
05/09/1966
02/10/1966

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

various other kinds of corporate actions.

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

the month of April in 2012.


7
COMPANY ANALYSIS

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

Stock Price Analysis of PepsiCo

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

organization has definitely come hard strongly.

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
8
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

problem or issue for it.

Events having Impact on the Stock Prices

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

impact on the prices of their stocks (Petrow Food Industries, n.d.).

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

level of share prices in the future.

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

organizations are carrying out their activities appropriately.


9
COMPANY ANALYSIS

Review of Financial Data

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

having reliability in their financial statements to a proper level.

Recommendations for Investment

In order to make an investment in a particular organization, it is necessary for the

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

invest in this organization.


10
COMPANY ANALYSIS

Stock Prices PepsiCo since January 1 2010


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

04/01/2015
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
11
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.
12
COMPANY ANALYSIS

References

The Coca-Cola Company. (n.d.). Retrieved December 15, 2012 from

http://finance.yahoo.com/q/is?s=KO+Income+Statement&annual PepsiCo Inc. (n.d.).

Retrieved Dec. 12, 2014 from

http://finance.yahoo.com/q/is?s=PEP+Income+Statement&annual

Petrow Food Industries. (n.d.). Retrieved December 13, 2014 from

http://www.cjpetrow.co.uk/about-us.html

Pogue, M. (2010). Corporate Investment Decisions: Principles and Practice. Business Expert

Press. Historical Prices. (n.d.). Retrieved December 13, 2014 from

http://finance.yahoo.com/q/hp?s=PEP+Historical+Prices

Historical Prices. (n.d.). Retrieved December 13, 2014 from

http://finance.yahoo.com/q/hp?s=KO+Historical+Prices

S-ar putea să vă placă și