PepsiCo

By: Ashley Cleary, Sylvia LaBrie, Andrea Baril, MarieMichele Lachance

Overview

Company Overview History of Pepsi Growth 2009 Events and Issues Existing Mission and Vision statement New Mission and Vision Statement SWOT Analysis External Assessment CPM EFE Positioning Map Internal Assessment Organizational Chart Income Statement Balance Sheet Financial ratios IFE Matrix

Strategy Formulation SWOT Matrix Grand Strategy Matrix BCG Space Matrix Data Space Matrix IE Matrix Matrix Analysis QSPM Matrix Strategic Plan Strategy Objectives Recommendations Assumptions Implementation EPS/EBIT Projected Financials Evaluation Balanced Scorecard Key Future Ratios

History
In 1965: PepsiCo, Inc. is founded by Donald M. Kendall, President and CEO of Pepsi-Cola and Herman W. Lay, Chairman and CEO of Frito-Lay, through the merger: 1. Pepsi-Cola In 1898: Caleb Bradham, a New Bern, North Carolina, pharmacist, created "Brad's Drink," a carbonated soft drink he created to serve his drugstore's fountain customers. 2. Frito Company 3. H. W. Lay Company The Major products of the companies are: Pepsi-Cola Company Fritos brand corn chips, Lay's brand potato chips, Cheetos brand cheese flavored snacks, Ruffles brand potato chips, Rold Gold brand pretzels. Mountain Dew

Growth
1966: Doritos is introduced Pepsi enters Japan and Eastern Europe.

1970: PepsiCo moves from New York City to new world headquarters in Purchase, N.Y Pepsi is the first company to respond to consumer preference with lightweight, recyclable, plastic bottles.
1977: PepsiCo acquires Pizza Hut, Inc 1978: Taco Bell 1980: PepsiCo Food Service International (PFSI) is formed to focus on overseas development of restaurants.

Growth Cont.
1982: Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas, are introduced. Inauguration of the first Pepsi-Cola operation in China. 1985: PepsiCo is now the largest company in the beverage industry. The company has revenues of more than $7.5 billion, more than 137,000 employees. Pepsi-Cola products are available in nearly 150 countries and territories around the world. Snack food operations are in 10 international markets. 1986: PepsiCo purchases 7Up International, the third largest franchise soft drink operation outside the United States. 1993: Pepsi-Cola introduces Aquafina bottled water into test market. 1996: Pepsi-Cola launches Pepsi World at www.pepsiworld.com

Global
Pepsi products are in almost 200 countries throughout the world There are 22 different brand lines that account for at least $1 billion per year per brand

2009
Celebrated 75 years in Canada Was on the Best Food for Women list in Womens Health magazine Began a partnership with the NFL Won U.S. EPA SmartWay Environmental Excellence award Became official beverage of Norwegian Cruise Lines

Mission Statement
Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Vision Statement

PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environment, social, economic - creating a better tomorrow than today." Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Proposed Mission
Our mission is to be the world's premier consumer products company focused on convenient foods and beverages through stores as well as our website. (1,2.3,4) We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. (5,8,9) And in everything we do, we strive for honesty, fairness and integrity. (6,7)
1. 2. 3. 4. 5. 6. 7. 8. 9. Customer Products or Services Markets Technology Concern for survival, profitability, and growth Philosophy Self-Concept Concern for public image Concern for employees

Proposed Vision
PepsiCo, in association with smaller brands, offers a wide variety of products from beverages to snacks at low cost.

External Assessment

Opportunities

1. Opening in market for less costly products 2. Growth opportunities in developed countries as well as international nonestablished countries 3. Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) 4. Compete in more than one industry (non-alcoholic beverage industry, the salty or savory snack food industry, and the breakfast food industry) 5. Growth in the carbonated drink market is the largest in Asia and Europe 6. The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks

Threats

1. Fierce competition from Coca-Cola, which owns the largest piece of the market share 2. The downturn in economy, which lead customers to shift away from bottles of water to tap water. 3. Because of the recession, customers are finding cheaper alternatives to the national brands. 4. Customers are getting more conscious and concerned about their eating habits and general health. 5. Campaign against plastic containers has impacted the sale of bottled beverages 6. Highly dependent on supplies of clean water, to prevent contamination

CPM

Pepsi Co.
Critical Success factors

Coca Cola

Dr. Pepper Snapple Group

Weighted Score 0 0.36 0.22 0.3 0.2 0.36 0.36 0.18 0.32 0.27 0.21 2.78

Advertising Price Competitiveness Product Diversity Market Share Company Image Customer Loyalty Financial Position Sales Distrubution Product Quality Global Expansion Totals

Weights Rating Weighted Score Rating Weighted Score Rating 0.0 to 1.0 1 to 4 1 to 4 1 to 4 0 0 0.12 4 0.48 4 0.48 3 0.11 3 0.33 3 0.33 2 0.1 4 0.4 4 0.4 3 0.1 3 0.3 4 0.4 2 0.12 3 0.36 4 0.48 3 0.12 4 0.48 4 0.48 3 0.09 3 0.27 3 0.27 2 0.08 2 0.16 4 0.32 4 0.09 4 0.36 4 0.36 3 0.07 3 0.21 4 0.28 3 1 3.35 3.8

EFE
Key External Factors Weights Rating

Weighted Score
2 3 0.1 0.24

0.0 to 1.0

1 to 4

Opening in market for less costly products Growth opportunities in developed countries as well as international unestablished countries Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) Compete in more than one industry (non-alcoholic beverage industry, the salty or savory snack food industry, and the breakfast food industry) Growth in the carbonated drink market is the largest in Asia and Europe The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks.
Threats

0.05 0.08

0.05

0.05

0.13 0.09 0.13 0.12 0.05 0.1 0.09

4 3 4 4 2 3 4

0.52 0.27 0.52 0 0.48 0.1 0.3 0.36

Fierce competition from Coca-Cola, which owns the largest piece of the market share The downturn in economy, which lead customers to shift away from bottles of water to tap water. Because of the recession, customers are finding cheaper alternatives to the national brands. Customers are getting more conscious and concerned about their eating habits and general health. Campaign against plastic containers has impacted the sale of bottled beverages Highly dependent on supplies of clean water, to prevent contamination
Totals

0.05
0.06 1

2
2

0.1
0.12 3.16

Positioning Map
High Prices

Limited Products
Dr. Pepper Snapple Group Coca Cola Pepsi Co.

Diverse Products

Low Prices

Market Share

6%

14%

PepsiCo Coca-Cola Others 80%

Revenue Distribution

Stock Price History

Internal Assessment

Strengths

1. Strong brand equity 2. Well-known worldwide 3. Innovating company 4. Ethical, socially responsible, and sustainable company 5. Strong advertising company with more than 40 slogans and songs 6. PepsiCo as the largest part of the market share after CocaCola 7. PepsiCo owns a wide variety of smaller brands which able them to offer a large product range from beverages to snacks

Weaknesses

1.PepsiCo production is really expansive because of the need to constantly develop new products to meet the changing customers demands 2. PepsiCo is experiencing a lack of focus towards Pepsi sodas 3. PepsiCo is experiencing product recalls 4. PepsiCo has a low employment productivity and a weak distribution 5. PepsiCo depends too much on the US market 6. PepsiCo is far behind Coca-Cola in the international market

IFE

Key Internal Factors Internal Strengths

Weights 0.0 to 1.0 0.12 0.06 0.08 0.08 0.05 0.07 0.06

Rating 1, 2, 3 or 4 3 or 4 4 4 4 4 3 3 4 1 or 2

Weighted Score

Strong brand equity Well known worldwide PepsiCo owns a wide variety of smaller brands which able them to offer a large product range Innovating company Ethical, socially responsible, and sustainable company Strong advertising company with more than 40 slogans and songs PepsiCo as the largest part of the market share after Coca-Cola
Internal Weaknesses

0.48 0.24 0.32 0.32 0.15 0.21 0.24

PepsiCo production is really expensive because of the need to constantly develop new products to meet the changing costumers demands PepsiCo is experiencing a lack of focus towards Pepsi PepsiCo is experiencing product recalls PepsiCo has low employment productivity and a weak distribution PepsiCo depends too much on the US market PepsiCo is far behind Coca-Cola in the international market
Totals

0.05 0.06 0.12 0.08 0.08 0.09 1

2 2 1 1 2 2

0.1 0.12 0.12 0.08 0.16 0.18 2.72

Income Statement
(in millions except per share amounts) Net Revenue Cost of sales Selling, general and administrative expenses Amortization of intangible assets Operating Profit Bottling equity income Interest expense Interest income Income before Income Taxes Provision for Income Taxes Net Income Less: Net income attributable to noncontrolling interests Net Income Attributable to PepsiCo Net Income Attributable to PepsiCo per Common Share Basic Diluted 2009 $43,232.00 $20,099.00 $15,026.00 $63.00 $8,044.00 $365.00 ($397.00) $67.00 $8,079.00 $2,100.00 $5,979.00 $33.00 $5,946.00

$3.81 $3.77

(In millions except per share amounts) Assets Current Assets Cash and cash equivalents Short-term investments Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other nonamortizable itangible assets Nonamortizable Intangible Assets Investments in Noncontrolled Affiliates Other Assets Total Assets Liabilities and Equity Current Liabilities Short-term obligations Accounts payable and other current liabilities Income taxes Payable Total Current Liabilities Long-Term Debt Obligations Other Liabilities Deferred Income Taxes Total Liabilities Commitments and Contigencies Preferred Stock, no par value Repurchased Preferred Stock PepsiCo Common Shareholders' Equity Common stock, par value 1 2/3 cents per share (authorized 3,600 shares, issued 1,782 shares) Capital in excess of par value Retained earnings Accumulated other comprehensive loss Repurchased common stock, at cost (217 and 229 shares,respectively) Total PepsiCo Common Shareholders' Equity Noncontrolling interests Total Equity Total Liabilities and Equity

2009

Balance Sheet

$ $ $ $ $ $ $ $ $ $ $ $ $ $

3,943.00 192.00 4,624.00 2,618.00 1,194.00 12,571.00 12,671.00 841.00 6,534.00 1,782.00 8,316.00 4,484.00 965.00 39,848.00

$ $ $ $ $ $ $ $ $ $

464.00 8,127.00 165.00 8,756.00 7,400.00 5,591.00 659.00 22,406.00 41.00 (145.00)

$ 30.00 $ 250.00 $ 33,805.00 $ (3,794.00) $ (13,383.00) $ 16,908.00 $ 638.00 $ 17,442.00 $ 39,848.00

2009

2008

Financial Ratios

Liquidity Ratios
Current Ratio Quick Ratio 1.44 1.14 1.23 0.94

Leverage Ratios
Debt-to-Total Assets Ratio Debt-to-equity Ratio Long-term debt-to-equity Ratio Times-Interest-earned Ratio 0.56 1.33 0.44 -17.1 0.65 1.86 0.62 -24.3

Activity Ratios
Inventory Turns Fixed Assets Turnover Total Assets Turnover 16.5 3.41 1.08 17.15 3.71 1.2

Profitability Ratios
Gross Profit margins Operating Profit Margin Net Profit Margin Return on Total Assets Return on Stockholders equity Earning per share Price-earnings Ratio 0.54 0.19 0.14 0.15 0.35 3.36 8.94 0.53 0.16 0.12 0.14 0.41 2.9 10.35

Growth Rations (yearly)

Sales Net Income Earnings per share -0.04% 15.74% -0.27% 9.57% -8.89% -5.87%

Financial Trends

1-Dec-09 1-Dec-08 1-Dec-07 1-Dec-06 1-Dec-05 1-Dec-04 1-Dec-03 1-Dec-02

Avg P/E 14.7 20.6 19.6 18.3 23.3 21.2 21.6 27.7

Price/ Sales 2.22 2.02 3.24 3 3.1 3.07 3 2.96

Price/ Book 5.68 7 7.17 6.67 6.87 6.45 6.67 7.53

Net Profit Margin (%) 13.7 11.9 14.4 16 12.5 14.2 13.2 11.8

Book Value/ Share $10.74 $7.80 $10.74 $9.38 $8.61 $8.05 $6.96 $5.53

Debt/ Equity 0.47 0.68 0.24 0.18 0.37 0.26 0.19 0.29

Return Return on on Equity Assets Interest (%) (%) Coverage 35.4 14.9 20.3 42.5 14.3 21.2 33 16.4 32.1 36.7 18.9 27.2 28.6 12.9 23.1 30.9 14.9 31.5 30 14.1 29.3 31.5 12.8 24.1

Adapted from www.moneycentral.msn.com

Organizational Chart

Revenues and Profits

Strategy Formulation

SWOT Matrix
SO Strategies
(O4, S1, S2, S6, S7) Continue to offer variety or product in various brands. (O5, O2, S2) Expand and focus on the carbonated drinks and beverage segment in Asia and Europe. (O6, O4, S6, S7) Respond to the growing demand of sports drinks, bottled water, and energy drinks by expanding product market.

ST Strategies
(T1, S1, S2, S3, S8) Innovate Pepsi product line with something that is going to differentiate us from Coca-Cola. (S1, S3, O4) Innovate products by offering healthier alternatives. (T2, T3, S3) Offer more promotions or discounts to prevent sales from decreasing. (T5, S1, S2, S4)

WO Strategies
(W2, W5, W6, O2, O5) Expand Pepsi sodas product in Europe and Asia. (W1, O4, O6) Improve their sales in the beverage segment by responding to the increasing demand for sports drinks, bottled water, and energy drinks.

WT Strategies
(W1, T2, T5) Adjust production of bottles with downturn in economy. (W1, T3) Produce bigger size of bottles and sale them at the same price as the small one. (W3, T6) Be responsible and cautious towards supplies of water. (W1, W4, T6) Increase supply chain production by monitoring cautiously employees and improving workers training. (W5, W6, T1) Increase presence in the international market.

Develop more environmentally friendly containers. (T6, S6) Support environmental issues, such as pollution, which causes water contamination.

Grand Strategy Matrix

BCG

Division
Frito-Lay North America

Revenue
$ 13,224.00

% Revenue

Profit

Profit %
38%

Market Share
1

Market Growth
5.42%

31% $ 3,258.00

Quaker Foods North America

Latin America Foods PepsiCo Americas Beverages Europe Asia, Middle East & Africa Total

$ 1,884.00
$ 5,703.00 $ 10,116.00 $ 6,727.00 $ 5,578.00 $ 43,232.00

4% $
13% $

628.00
904.00

7%
10% 25% 11% 8% 100%

1
1 0.8 0.4 0.3

-0.95%
-3.26% -7.51% -2.38% 8.97%

23% $ 2,172.00 16% $ 13% $ 932.00 716.00

100% $ 8,610.00

BCG Cont.

SPACE Matrix

Financial Strength rating is 1 (worst) to 6 (best) 1 Liquidity 2 Cash Flow 3 Return on investment 4 Earnings per share Industry Strength rating is 1 (worst) to 6 (best) 1 Ease of entry 2 Growth potential 3 Financial stability 4 Profit potential Environmental Stability rating is -1 (best) to -6 (worst) 1 Demand variablity 2 Price range from competing products 3 Barriers to entry 4 Price elasticity of demand Competitive advantage rating is -1 (best) to -6 (worst) 1 Market share 2 Product quality 3 Customer loyalty 4 Cotrol over suppliers and distributors 7

Ratings 4.0 5.0 4.0 4.0 FS Total 17.0 6.0 5.0 4.0 5.0 IS Total 20.0 -1.0 -1.0 -1.0 -1.0 ES Total -4.0 -2.0 -3.0 -3.0 -3.0 CS total -11.0

SPACE Graph

3 2
1 2 3 4 5 6

IE Matrix

The IFE Total Weighted scores Strong 3.0 Average 2.0 to 4.0 to 2.99

Weak 1.0 to 1.99

High 3.0 to 4.0

PepsiCo

Medium 2.0 The EFE to 2.99 Total Weighted Scores Low 1.0 to 1.99

Matrix Analysis

Alternative Strategies Forward Integration Backward Integration Horizontal Integration Market Penetration Market Development Product Development Related Diversification Unrelated Diversification Horizontal Diversification Joint Venture Retrenchement Divesture Liquidation

IE x x x x x x

SPACE x x x x x x x x x

BCG x x x x x x x x x x x x x

GRAND

x x x

Count 3 3 3 3 3 3 3 3 2 2 1 1 1

QSPM
Innovate products with Improve international healthier alternative AS TAS 1 to 4 1 3 0.24 0 segment AS 1 to 4 3 4

Key factors External Opportunities:

Weight

TAS

Provide less costly products Improve presence in established countries and increase international market where they are not already settled Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) Compete in more than one industry (non-alcoholic beverage industry, the salty or savory snack food industry, and the breakfast food industry) Growth in the carbonated drink market is the largest in Asia and Europe The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks.
Threats:

0.05 0.08 0.05

0.15 0.32 0

0.13 0.09 0.13 0.12 0.05 0.1 0.09 0.05 0.06 1

4 1 4 3 1 1 4

0.52 0.09 0.52 0 0.36 0.05 0.1 0.36 0 0

3 4 4 3 4 4 1

0.39 0.36 0.52 0 0.36 0.2 0.4 0 0.05 0

Fierce competition from Coca-Cola, which owns the largest piece of the market share The downturn in economy, which lead customers to shift away from bottles of water to tap water. Because of the recession, customers are finding cheaper alternatives to the national brands. Customers are getting more conscious and concerned about their eating habits and general health. Campaign against plastic containers has impacted the sale of bottled beverages Highly dependent on supplies of clean water, to prevent contamination

QSPM Cont.
Internal Strengths 1 to 4 0.12 0.06 0.08 0.08 0.05 0.07 0.06 4 3 4 4 2 3 4 0.48 0.18 0.32 0.32 0.1 0.21 0.24 0 0.05 0 1 1 2 2 0.12 0.08 0.16 0.18 4.68 1 1 1 1 1 to 4 4 4 2 4 3 3 3 0.48 0.24 0.16 0.32 0.15 0.21 0.18 0 0.1 0 0.12 0.08 0.08 0.09 4.96

Strong brand equity Well known worldwide PepsiCo owns a wide variety of smaller brands which able them to offer a large product range from beverages to snacks Innovating company Ethical, socially responsible, and sustainable company Strong advertising company with more than 40 slogans and songs PepsiCo as the largest part of the market share after Coca-Cola
Weaknesses:

PepsiCo production is really expensive because of the need to constantly develop new products to meet the changing costumers demands PepsiCo is experiencing a lack of focus towards Pepsi PepsiCo is experiencing product recalls PepsiCo has low employment productivity and a weak distribution PepsiCo depends too much on the US market PepsiCo is far behind Coca-Cola in the international market

0.05 0.06 0.12 0.08 0.08 0.09 1

Strategic Plan

Strategy
Market development is a strategy that PepsiCo should apply by expanding in countries that not already established Use forward integration to acquire smaller companies in foreign markets to increase their market share Product development and related diversification should also be considered while trying to produce and distribute healthier products

Recommendations
In the next 3 years, PepsiCo should acquire 3 brands per year in an international marketplace
One of these 3 brands per year must be healthy

Increase production and distribution of carbonated drinks in Asian and European countries PepsiCo will expand into Africa to make use of the international market they are not part of

Objectives
Spend $15 million on a healthier more eco-friendly beverage brand in an already established country Spend $15 million on a healthier more eco-friendly snack brand in an already established country Spend $10 million to acquire a smaller brand in Africa Increase our revenues by 5% in 2010 Start our own environmental cause fund with $1 million

Assumptions
Spend $40 million to acquire new brands Spend $1 million to start an environmental cause group Revenue increase of 5% Decrease short-term and long-term debt by using some of our cash and cash equivalents as well as retained earnings

Implementation

Projected Income Statement

(in millions except per share amounts) Net Revenue Cost of sales Selling, general and administrative expenses Amortization of intangible assets Operating Profit Bottling equity income Interest expense Interest income Income before Income Taxes Provision for Income Taxes Net Income Less: Net income attributable to noncontrolling interests Net Income Attributable to PepsiCo Net Income Attributable to PepsiCo per Common Share Basic Diluted 2009 $43,232.00 $20,099.00 $15,026.00 $63.00 $8,044.00 $365.00 ($397.00) $67.00 $8,079.00 $2,100.00 $5,979.00 2010 $ 45,393.60 5% increase $ 21,549.09 Based on previous years % $ 15,476.78 3% increase based on new brands/territories $ 63.00 $ 8,304.73 $ 365.00 $ (397.00) $ 67.00 $ 8,339.73 $ 2,100.00 $ 6,239.73

$33.00 $ 33.00 $5,946.00 $ 6,206.73

$3.81 $ $3.77 $

3.98 3.94

Projected Balance Sheet

(In millions except per share amounts) Assets Current Assets Cash and cash equivalents Short-term investments Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other nonamortizable itangible assets Nonamortizable Intangible Assets Investments in Noncontrolled Affiliates Other Assets Total Assets Liabilities and Equity Current Liabilities Short-term obligations Accounts payable and other current liabilities Income taxes Payable Total Current Liabilities Long-Term Debt Obligations Other Liabilities Deferred Income Taxes Total Liabilities Commitments and Contigencies Preferred Stock, no par value Repurchased Preferred Stock PepsiCo Common Shareholders' Equity Common stock, par value 1 2/3 cents per share (authorized 3,600 shares, issued 1,782 shares) Capital in excess of par value Retained earnings Accumulated other comprehensive loss Repurchased common stock, at cost (217 and 229 shares,respectively) Total PepsiCo Common Shareholders' Equity Noncontrolling interests Total Equity Total Liabilities and Equity 2009 2010 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,943.00 192.00 4,624.00 2,618.00 1,194.00 12,571.00 12,671.00 841.00 6,534.00 1,782.00 8,316.00 4,484.00 965.00 39,848.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,264.63 200.00 5,250.00 3,500.00 2,500.00 14,714.63 13,938.10 908.28 6,750.68 1,783.00 8,533.68 4,892.34 1,300.00 44,287.03 -$10 million for purchasing of new brands also paid off some accounts payable

More brands equal 10% increase Based on previous years % Purchased 3 brands and their goodwill add $1 million for environmental group

$ $ $ $ $ $ $ $ $ $

464.00 8,127.00 165.00 8,756.00 7,400.00 5,591.00 659.00 22,406.00

$ $ $ $ $ $ $ $

464.00 7,314.30 Use cash to reduce accounts payable by 10% 165.00 7,943.30 7,400.00 5,591.00 659.00 21,593.30 41.00 (300.00)

41.00 $ (145.00) $

$ 30.00 $ $ 250.00 $ $ 33,805.00 $ $ (3,794.00) $ $ (13,383.00) $ 16,908.00 $ 638.00 $ 17,442.00 $ 39,848.00

30.00 250.00 39,980.73 Based on Income Statement - $31 million for purchasing of new brands and environmental group (4,500.00)

$ (13,383.00) $ 22,118.73 $ 575.00 $ 22,693.73 $ 44,287.03

Evaluation

Area of Objectives
Customers 1. Customer satisfaction Representatives 1. Improve production efficiency 2. Offer employee trainings Community/ Social Responsibility

Measure of Target
Costumer Survey Webinars Increase in production Employee surveys Production efficiency

Time Expectation

Primary Responsibility
Human Resources Supply chain Operations Human Resources

Balanced Scorecard

Quarterly

Biannually Yearly

1. Eco-Friendly company

2. Ethical Company

Increase in recyclable bottle Being involve in more events regarding water contamination Number and success of charitable events UNICEF amount of money donated

Yearly

CEO

Yearly

CEO

Operations/Processes

1. Innovation

New products Product appearance Acquisition of new brands Numbers of new countries entered Number of sales in the International Segment

Yearly

CEO

2. Brand expansion

Yearly

CEO

Financial 1. Reduce cost of production 2. Increase profitability Income Statement Increase annual report Quarterly Quarterly Chief Financial Officer Chief Financial Officer

Future Ratios
2009 Projected 2010

Liquidity Ratios
Current Ratio Quick Ratio 1.44 1.14 1.85 1.41

Leverage Ratios
Debt-to-Total Assets Ratio Debt-to-equity Ratio Long-term debt-to-equity Ratio Times-Interest-earned Ratio 0.56 1.33 0.44 -17.1 0.5 0.97 0.33 -21.01

Activity Ratios
Inventory Turns Fixed Assets Turnover Total Assets Turnover 16.5 3.41 1.08 12.97 3.26 1.02

Profitability Ratios
Gross Profit margins Operating Profit Margin Net Profit Margin Return on Total Assets Return on Stockholders equity Earning per share Price-earnings Ratio 0.54 0.19 0.14 0.15 0.35 3.36 8.94 0.57 0.21 0.19 0.16 0.36 3.43 8.74

Growth Rations (yearly)

Sales Net Income Earnings per share -0.04% 15.74% -0.27% 5.00% 4.36% 15.79%

Fun Facts

Pepsi/Coke Rivalry
http://www.buzzfeed.com/pepsi/the-10-most-iconicpepsi-commercials-of-all-time-1q6t

Questions?

Sources
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