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Coke vs pepsi compare and contrast
Comparing and contasting to coke vs. pepsi
Comparing and contasting to coke vs. pepsi
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In the global consumer consumption of soft drinks, two global leaders that need no introduction to young and old, are Coca Cola and PepsiCo Inc. However, these cola drinks are also called "Pop" or "soda" most people just order Coke or Pepsi, please. For over the past 100 years both companies have competed against each other to bring a new twist to the consumer, by introducing new soft drink, offer public taste test to the consumer and doing the unthinkable as Coke tried to change the core formula. Coke learned a valuable lesson from their dedicated consumers that they will not support a radical change in a product that they love so well. In this paper, we will explore the financial comparison of each company, a vertical and horizontal analysis of each company and finally, recommendations to improve the financial status of each company. I will start with the Vertical Analysis but first, what does Vertical Analysis mean? Vertical analysis is a method of financial analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantages of analyzing a balance sheet in this manner are that the balance sheets of businesses of all sizes can easily be compared. It also makes it easy to see relative annual changes in one business (Weygandlt, Kimmel & Kieso 2008). The vertical analysis is correlated to the base amount in percentage, and the base amount is the total assets for each company at the end of the fiscal year. To obtain the percentage amount, one needs to refer back to the balance sheet and divide these by the total assets for each company. The total asset of eac... ... middle of paper ... ...r metal cans, that can supply the soft drink facilities on site, instead of shipping cans or plastic bottles great distances. The abilities to have a plastic / can manufacture on site, would eliminate the need for transportation cost and warehouse space to store empty cans or bottles on site. One-step further; I would look at eliminating warehouse operations and outsource the warehouse operations totally to a company that specializes in this field. In making, these hard and unpopular decisions you need to look at your core business and question if you are in the business to package soft drinks and what value/profit these operations bring to the Financial Analysis 7 stakeholders. These are a few recommendations that I would make from my knowledge of the filling/packaging/ warehouse operation that I feel could help both, PepsiCo Inc and Coca Cola.
The balance sheet provides a snapshot of a firm’s financial position at a specific point in time, by using the company’s Asset and Debit Equity.
The first method we will review is the accounting method. Through this accounting approach we will analyze specific ratios and their possible impact on the company's performance. The specific ratios we will review include the return on total assets, return on equity, gross profit margin, earnings per share, price earnings ratio, debt to assets, debt to equity, accounts receivable turnover, total asset turnover, fixed asset turnover, and average collection period. I will explain each ratio in greater detail, and why I have included it in this analysis, when I give the results of each specific ratio calculation.
The organization is able to build a barrier to new entrants in parcel industry. It is very expensive to set up the services that are equal to the existing organizations. There is high fixed cost associated with establishing the required international transport network. This includes ground transportation vehicles, depots, plants and a retail
• Accounting (financial) statements for a period of several years. The statements include the balance sheet and profit and loss account, in addition, cash flow statement, capital and the annex to the financial balance.
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
Apple’s balance sheet to give a more thorough explanation of the monetary value of the company’s assets and liabilities, like
Analysis of the Coca-Cola Company The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Company markets many of the world's top soft drink brands, including Coca-Cola, Diet Coke, Sprite and Fanta. Through the world's largest and most pervasive distribution system, consumers in nearly 200 countries enjoy the Company's products at a rate of more than one billion serving a day.
Coca –Cola (KO) is one of the world’s largest beverage companies. Company was incorporated in September 1919 under the State of Delaware law and headquarters is located in Atlanta Georgia. But from 1886, company established its brand in US (Coca-Cola, 2012, p. 1). Currently company is providing for more than 500 varieties of non-alcoholic sparkles to the customers around the world. Apart from this, company also serve for still beverages that includes enhanced water, water, ready-to-drink, juices, energy drink, sport drinks and so on.
Information from the income statement and the balance sheet are used to calculate financial ratios that are useful when making investment decisions.
A balance sheet is an educational, financial tool that summarizes a company’s assets, liabilities, and net worth during a particular time frame. The data provided by the balance sheet informs the organizational leaders of the financial status of the firm. Moreover, the balance sheet displays what the company owns and owes (Edmonds, Tsay, & Olds, 2011). Completing as well as understanding the numbers is equally as critical as the meaning behind the figures.
Although the balance is useful, it has its limitations. The primary limitation of the balance sheet is that it does not reflect the current value or worth of a company. In essence the importance of the balance is that it provides the financial position of a company on a particular date. It helps external users assess the financial relationship between assets, liabilities, and the owner’s equity. Assets and liabilities are usually classified as either current or long term and presented in descending order of liquidity. (W. Steve Albrecht, 2002)
It provides data for inter-firm comparison. Ratios highlight the factors associated with successful and unsuccessful firm. They also reveal strong firms and weak firms, overvalued and undervalued firms.
The statement of the financial position is also known as balance sheet has shown the accounting equation, Assests = Liabilities + Equity. The statement of the financial position shows the current assets, liabilities and equity owned by a business during an accounting period.
The accounting equation-: Accounting equation tells us a easy way to understand that law assets, liabilities of
Learning from experience Coca-Cola has had some fierce competition over the years but nothing in the form of an entire health market shift like now. As well as mounting political persecution of its products like they are facing today. They must rely on past experiences to get through but likely will need to start studying the new trends to stay relevant.