CASE 14 Coke vs Pepsi

7/23/2019 CASE 14 Coke vs Pepsi

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By:Farhana Athirah binti Azly

CEA140033

Noor Atiqah binti Badrul Shisham

CEA140093Nur Al a binti Mohamad uso!

CASE 14:

COKE VS PEPSI

CFEA 2124:

BASIC MANAGERIAL FINANCE

%r&'ar&d !or: (r) Shahrin Saaid binShaharuddin



Company Backgron!: "#$ Coca%Co&a Company

"#$ &arg$'( man)ac(r$r* !+'(r+,(or an!mark$($r o) 'o)( !r+nk conc$n(ra($'*

noncar,ona($! ,$-$rag$ pro!c(' an!'yrp'.

I(' 2/// anna& 'a&$' 0$r$ 2/. ,+&&+on.

From 133 (o 1335* (#$ Coca Co&a

Company #a! con'+'($n(&y con6$r$! (#$(op 'po( +n For(n$7' anna& rank+ng o) (#$(op 0$a&(# cr$a(or'.



Company Backgron!:P$p'+Co* Inc

A 2/ ,+&&+on company +n y$ar 2///.

In-o&-$! +n (#$ 'nack )oo!* 'o)( !r+nk an!

noncar,ona($! ,$-$rag$ ,'+n$''$'. "#$ company a&'o pro!c$! an!

!+'(r+,($! 8+c$' an! o(#$r noncar,ona($!,$-$rag$'.



In!'(ry O-$r-+$0

In 2///* ,$-$rag$ +n!'(ry 0a' n!$rgo+nga rap+! (ran')orma(+on.

% (#$ noncar,ona($! !r+nk' '$gm$n( gro0n

,y 92 +n -o&m$ o-$r (#$ &a'( y$ar'.% So)( !r+nk -o&m$ gro0(# #a! ,$$n'&gg+'#.

Bo(# company '+gna&$! an aggr$''+-$

comp$(+(+on (#rog# mark$(+ng campa+gn'.



OB;EC"IVE

"o compar$ 0#+c# compan+$' ,$(0$$nCoca%Co&a Company an! P$p'+Co* Inc ,$'((o +n-$'( +n.



F*NANC*A+ ANA+S*S

1) EC,N,M*C -A+.E / A((E( E-A +' am$a'r$ o) a company<' =nanc+a& p$r)ormanc$,a'$! on (#$ r$'+!a& 0$a&(# ca&c&a($! ,y!$!c(+ng co'( o) cap+(a& )rom +(' op$ra(+ng

pro=( ?a!8'($! )or (a@$' on a ca'# ,a'+'.

EVA ?R$(rn on +n-$'($! cap+(a& D$+g#($!a-$rag$ co'( o) cap+(a& In-$'($! cap+(a&

In a '$n'$* EVA +' (#$ n$( pr$'$n( -a&$ o) a pro8$c(+n cap+(a& ,!g$(+ng.



"#$ conc$p( ,$#+n! EVA

% I) EVA +' po'+(+-$* (#$ company #a' $arn$!mor$ n$( op$ra(+ng pro=( a)($r (a@$' (#an (#$

co'( o) (#$ a''$(' '$! (o g$n$ra($ (#a( pro=(*+n o(#$r 0or!'* (#$ company #a' cr$a($!0$a&(#. I) (#$ EVA !o&&ar amon( +' n$ga(+-$* (#$company +' con'm+ng cap+(a&* ra(#$r (#an

g$n$ra(+ng 0$a&(#. A company<' goa& +' (o #a-$po'+(+-$ an! +ncr$a'+ng EVA.



2) E*56E( A-E7AE C,S6 ,F CA%*6A+ACC +' (#$ a-$rag$ o) (#$ co'(' o) a&& 'orc$'

o) =nanc+ng '$! ,y a =rm.

By ca&c&a(+ng DACC o) an +n-$'(m$n( op(+on* (#$=rm can #a-$ an +!$a o) 0#a( &$-$& o) r$(rn' ar$

r$6+r$! (o r$ma+n pro=(a,&$ +n (#$ )(r$. "#'*DACC +' an +mpor(an( (oo& +n mak+ng =nanc+a&!$c+'+on a( (#$ corpora($ &$-$&.

A' (#$ DACC o) a =rm +ncr$a'$'* an! (#$ ,$(a an!



FINANCIAL COMPARISON



Ba'$! on E@#+,+( 1* ,$(0$$n 1334 (o 2///* Coca%

Co&a #a' a r$&a(+-$&y '(a,&$ EVA a' compar$! (oP$p'+ Co. !$'p+($ (#$ )ac( (#a( Coca%Co&a7' EVA +'!$c&+n+ng )rom (#$ 'a+! p$r+o!. On (#$ o(#$r #an!*P$p'+ Co. #a' ac6+r$! n$ga(+-$ EVA +n (#$ pa'(,( #a' ,$$n '($a!+&y +ncr$a'+ng an! 'rpa''$!Coca%Co&a7' EVA +n 2///.

"#$ (r$n! +n P$p'+ Co*7' EVA 0a' (#$ !+r$c( +mpac(o) +(' CEO* Rog$r7' Enr+co7' !$c+'+on (o '$&& oKFC* "aco B$&& an! P+HHa ( +n 133J a' par( o) amo-$ (o o-$r#a& (#$ company an! )oc' on'nack an! ,$-$rag$.



B'+n$'' m+'(ak$' o) +(' CEO* og I-$'($r* &arg$&ycon(r+,($! Coca%Co&a7' &o0 EVA mor$ (#an (#$

g&o,a& $conom+c $n-+ronm$n( !r+ng (#a( p$r+o!.B$(0$$n 1334 an! 1335* ,o(# Coca%Co&a an!P$p'+ #a-$ '+m+&ar DACC -a&$' ,( Coca%Co&a#a! &$''$r cap+(a& +n-$'(m$n( 0+(# #+g#$r ROIC'

(#an P$p'+ an! (#' #a' #+g#$r EVA'.

By 2///* (#$ '+(a(+on +' a&mo'( '+m+&ar 0#$r$P$p'+ Co. no0 #a' #+g#$r EVA. Ba'$! on (#$'$

o,'$r-a(+on'* +( can ,$ a''m$! (#a( R$(rn onIn-$'(m$n( Cap+(a& ?ROIC +' (#$ !$c+!+ng )ac(or)or EVA ana&y'+'.

I( +' +mpor(an( (o +n-$'( cap+(a& a( a #+g#$rra($ (#an (#$ cap+(a& +' o,(a+n$! a(. A' &onga' (#$r$ ar$ $nog# pro8$c(' (#a( pro!c$

7,*C8ACC an! $nog# cap+(a& 'pp&+$!*EVA can ro0 +n!$=n+($& .



Ba'$! on E@#+,+( 5* +( '#o0' (#a( Coca%Co&a '#ar$pr+c$ +' #+g#$r (#an P$p'+Co. "#$r$ 0a' a&mo'( ap$r)$c( corr$&a(+on ,$(0$$n EVA an! (#$+r '(ockpr+c$. Goa& o) (#$ =rm +' (o ma@+m+H$ '#ar$#o&!$r'0$a&(#. "#$r$)or$* +( +' ,$(($r (o +n-$'( +n Cok$

Co&a7' '(ock o-$r P$p'+7' '(ock ,$ca'$ (#$y 0+&&cr$a($ mor$ EVA an! #$nc$ a!! mor$ -a&$ )or(#$ '#ar$#o&!$r' o-$r (#+' p$r+o!.



C,NC+.S*,N

I( +' ,$(($r (o +n-$'( +n Coca%Co&a ,$ca'$

Coca%Co&a +' $@p$c($! (o 'r-+-$ mor$

$c+$n(&y +n (#$ &ong rn a' +( #a' )ac$! n$ar,ankrp(cy ca'$' an! r$co-$r$! )rom (#$m0#$r$a'* P$p'+ Co. #a' no(

"#$y 0+&& cr$a($ mor$ Econom+c Va&$ A!!$!

an! #$nc$ cr$a($ mor$ -a&$ )or (#$'#ar$#o&!$r'.



RECOMMENA"IONS

Coca%Co&a Company'(ay (r$ (o 0#a( (#$y #a-$ ,$$n !o+ng )or y$ar'

P$p'+Co* Inc.

=n! 0ay' (o mak$ (#$+r ,ran! mor$ r$cogn+Ha,&$0ork #ar!$r (o r$&a($ (o a&& p$op&$ c&(ra&&y*

ra(#$r (#an 8'( (#rog# (#$ campa+gn'

Foc' on a!-$r(+'+ng an! promo(+on (o!+$r$n(+a($ )rom comp$(+(or

C#ang$ (#$ +mag$ an! p$rc$p(+on o) Co&a (o =((#$ #$a&(#y &+-+ng (r$n!.



65AN ,.)

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CASE 14 Coke vs Pepsi