PepsiCoBy: Ashley Cleary, Sylvia LaBrie, Andrea Baril,

Marie-Michele 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

1966: Doritos is introducedPepsi enters Japan and Eastern Europe. 1970:PepsiCo moves from New York City to new world headquarters in Purchase, N.YPepsi 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

 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

Growth Cont.

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

Global

Celebrated 75 years in Canada Was on the “Best Food for Women” list in

Women’s Health magazine Began a partnership with the NFL Won U.S. EPA SmartWay Environmental

Excellence award Became official beverage of Norwegian

Cruise Lines

2009

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.

Mission 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.

Vision Statement

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)

Proposed Mission

1. Customer2. Products or Services3. Markets4. Technology5. Concern for survival, profitability, and growth6. Philosophy7. Self-Concept8. Concern for public image9. Concern for employees

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

Proposed Vision

External Assessment

1. Opening in market for less costly products2. 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 Europe6. The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks

Opportunities

1. Fierce competition from Coca-Cola, which owns the largest piece of the market share2. 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

Threats

Critical Success factors Weights Rating Weighted Score Rating Weighted Score Rating Weighted Score0.0 to 1.0 1 to 4 1 to 4 1 to 4

0 0 0Advertising 0.12 4 0.48 4 0.48 3 0.36Price Competitiveness 0.11 3 0.33 3 0.33 2 0.22Product Diversity 0.1 4 0.4 4 0.4 3 0.3Market Share 0.1 3 0.3 4 0.4 2 0.2Company Image 0.12 3 0.36 4 0.48 3 0.36Customer Loyalty 0.12 4 0.48 4 0.48 3 0.36Financial Position 0.09 3 0.27 3 0.27 2 0.18Sales Distrubution 0.08 2 0.16 4 0.32 4 0.32Product Quality 0.09 4 0.36 4 0.36 3 0.27Global Expansion 0.07 3 0.21 4 0.28 3 0.21Totals 1 3.35 3.8 2.78

Dr. Pepper Snapple GroupPepsi Co. Coca Cola

CPM

Key External Factors Weights RatingWeighted

Score  0.0 to 1.0 1 to 4  

Opening in market for less costly products 0.05 2 0.1Growth opportunities in developed countries as well as international unestablished countries 0.08 3 0.24

Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) 0.05 1 0.05

Compete in more than one industry (non-alcoholic beverage industry, the salty or savory snack food industry, and the breakfast food industry) 0.13 4 0.52Growth in the carbonated drink market is the largest in Asia and Europe 0.09 3 0.27The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks. 0.13 4 0.52Threats     0Fierce competition from Coca-Cola, which owns the largest piece of the market share 0.12 4 0.48The downturn in economy, which lead customers to shift away from bottles of water to tap water. 0.05 2 0.1Because of the recession, customers are finding cheaper alternatives to the national brands. 0.1 3 0.3Customers are getting more conscious and concerned about their eating habits and general health. 0.09 4 0.36Campaign against plastic containers has impacted the sale of bottled beverages 0.05 2 0.1Highly dependent on supplies of clean water, to prevent contamination 0.06 2 0.12Totals 1   3.16

EFE

Positioning MapHigh Prices

Pepsi Co.Coca ColaDr. Pepper Snapple Group

Low Prices

Diverse Products

Limited Products

14%

80%

6%

PepsiCoCoca-ColaOthers

Market Share

Revenue Distribution

Stock Price History

Internal Assessment

1. Strong brand equity 2. Well-known worldwide3. Innovating company 4. Ethical, socially responsible, and sustainable company5. Strong advertising company with more than 40 slogans and songs6. PepsiCo as the largest part of the market share after Coca-Cola7. PepsiCo owns a wide variety of smaller brands which able them to offer a large product range from beverages to snacks

Strengths

1.PepsiCo production is really expansive because of the need to constantly develop new products to meet the changing customers demands2. PepsiCo is experiencing a lack of focus towards Pepsi sodas3. PepsiCo is experiencing product recalls4. PepsiCo has a low employment productivity and a weak distribution5. PepsiCo depends too much on the US market6. PepsiCo is far behind Coca-Cola in the international market

Weaknesses

Key Internal Factors Weights RatingWeighted

Score0.0 to 1.0 1, 2, 3 or 4

Internal Strengths 3 or 4Strong brand equity   0.12 4 0.48Well known worldwide 0.06 4 0.24PepsiCo owns a wide variety of smaller brands which able them to offer a large product range 0.08 4 0.32Innovating company 0.08 4 0.32Ethical, socially responsible, and sustainable company 0.05 3 0.15Strong advertising company with more than 40 slogans and songs 0.07 3 0.21PepsiCo as the largest part of the market share after Coca-Cola 0.06 4 0.24Internal Weaknesses 1 or 2PepsiCo production is really expensive because of the need to constantly develop new products to meet the changing costumers demands 0.05 2 0.1PepsiCo is experiencing a lack of focus towards Pepsi 0.06 2 0.12PepsiCo is experiencing product recalls 0.12 1 0.12PepsiCo has low employment productivity and a weak distribution 0.08 1 0.08PepsiCo depends too much on the US market 0.08 2 0.16PepsiCo is far behind Coca-Cola in the international market 0.09 2 0.18Totals 1 2.72

IFE

Income Statement(in millions except per share amounts) 2009Net Revenue $43,232.00 Cost of sales $20,099.00 Selling, general and administrative expenses $15,026.00 Amortization of intangible assets $63.00 Operating Profit $8,044.00 Bottling equity income $365.00 Interest expense ($397.00)Interest income $67.00 Income before Income Taxes $8,079.00 Provision for Income Taxes $2,100.00 Net Income $5,979.00 Less: Net income attributable to noncontrolling interests $33.00 Net Income Attributable to PepsiCo $5,946.00 Net Income Attributable to PepsiCo per Common Share Basic $3.81 Diluted $3.77

Balance Sheet(In millions except per share amounts) 2009AssetsCurrent AssetsCash and cash equivalents 3,943.00$ Short-term investments 192.00$ Accounts and notes receivable, net 4,624.00$ Inventories 2,618.00$ Prepaid expenses and other current assets 1,194.00$ Total Current Assets 12,571.00$ Property, Plant and Equipment, net 12,671.00$ Amortizable Intangible Assets, net 841.00$ Goodwill 6,534.00$ Other nonamortizable itangible assets 1,782.00$ Nonamortizable Intangible Assets 8,316.00$ Investments in Noncontrolled Affiliates 4,484.00$ Other Assets 965.00$ Total Assets 39,848.00$ Liabilities and EquityCurrent LiabilitiesShort-term obligations 464.00$ Accounts payable and other current liabilities 8,127.00$ Income taxes Payable 165.00$ Total Current Liabilities 8,756.00$ Long-Term Debt Obligations 7,400.00$ Other Liabilities 5,591.00$ Deferred Income Taxes 659.00$ Total Liabilities 22,406.00$ Commitments and ContigenciesPreferred Stock, no par value 41.00$ Repurchased Preferred Stock (145.00)$ PepsiCo Common Shareholders' EquityCommon stock, par value 1 2/3 cents per share (authorized 3,600 shares, issued 1,782 shares) 30.00$ Capital in excess of par value 250.00$ Retained earnings 33,805.00$ Accumulated other comprehensive loss (3,794.00)$ Repurchased common stock, at cost (217 and 229 shares,respectively) (13,383.00)$ Total PepsiCo Common Shareholders' Equity 16,908.00$ Noncontrolling interests 638.00$ Total Equity 17,442.00$ Total Liabilities and Equity 39,848.00$

Financial Ratios2009 2008

Liquidity Ratios

Current Ratio 1.44 1.23

Quick Ratio 1.14 0.94

Leverage Ratios

Debt-to-Total Assets Ratio

0.56 0.65

Debt-to-equity Ratio 1.33 1.86

Long-term debt-to-equity Ratio 0.44 0.62

Times-Interest-earned Ratio

-17.1 -24.3

Activity Ratios

Inventory Turns 16.5 17.15

Fixed Assets Turnover 3.41 3.71

Total Assets Turnover 1.08 1.2

Profitability Ratios

Gross Profit margins 0.54 0.53

Operating Profit Margin 0.19 0.16

Net Profit Margin 0.14 0.12

Return on Total Assets 0.15 0.14

Return on Stockholders equity

0.35 0.41

Earning per share 3.36 2.9

Price-earnings Ratio 8.94 10.35

Growth Rations (yearly)

Sales -0.04% 9.57%

Net Income 15.74% -8.89%

Earnings per share -0.27% -5.87%

Avg P/EPrice/ Sales

Price/ Book

Net Profit

Margin (%)

Book Value/ Share

Debt/ Equity

Return on

Equity (%)

Return on

Assets (%)

Interest Coverage

1-Dec-09 14.7 2.22 5.68 13.7 $10.74 0.47 35.4 14.9 20.31-Dec-08 20.6 2.02 7 11.9 $7.80 0.68 42.5 14.3 21.21-Dec-07 19.6 3.24 7.17 14.4 $10.74 0.24 33 16.4 32.11-Dec-06 18.3 3 6.67 16 $9.38 0.18 36.7 18.9 27.21-Dec-05 23.3 3.1 6.87 12.5 $8.61 0.37 28.6 12.9 23.11-Dec-04 21.2 3.07 6.45 14.2 $8.05 0.26 30.9 14.9 31.51-Dec-03 21.6 3 6.67 13.2 $6.96 0.19 30 14.1 29.31-Dec-02 27.7 2.96 7.53 11.8 $5.53 0.29 31.5 12.8 24.1

Financial Trends

Adapted from www.moneycentral.msn.com

Organizational Chart

Revenues and Profits

Strategy Formulation

SWOT Matrix

SO Strategies ST Strategies WO Strategies WT 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.

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

(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.

(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.

Grand Strategy Matrix

BCG

Division Revenue % Revenue Profit Profit % Market Share Market Growth

Frito-Lay North America $ 13,224.00 31% $ 3,258.00 38% 1 5.42%

Quaker Foods North America $ 1,884.00 4% $ 628.00 7% 1 -0.95%

Latin America Foods $ 5,703.00 13% $ 904.00 10% 1 -3.26%

PepsiCo Americas Beverages $ 10,116.00 23% $ 2,172.00 25% 0.8 -7.51%

Europe $ 6,727.00 16% $ 932.00 11% 0.4 -2.38%

Asia, Middle East & Africa $ 5,578.00 13% $ 716.00 8% 0.3 8.97%

Total $ 43,232.00 100% $ 8,610.00 100%

BCG Cont.

Financial Strength rating is 1 (worst) to 6 (best) Ratings1 4.02 5.03 4.04 4.0

Industry Strength rating is 1 (worst) to 6 (best) FS Total 17.01 6.02 5.03 4.04 5.0

Environmental Stability rating is -1 (best) to -6 (worst) IS Total 20.01 -1.02 -1.03 -1.04 -1.0

Competitive advantage rating is -1 (best) to -6 (worst) ES Total -4.01 -2.02 -3.03 -3.04 -3.07

CS total -11.0

Product qualityCustomer loyaltyCotrol over suppliers and distributors

Demand variablityPrice range from competing productsBarriers to entryPrice elasticity of demand

Ease of entryGrowth potentialFinancial stabilityProfit potential

Market share

Cash FlowLiquidity

Return on investmentEarnings per share

SPACE Matrix

SPACE Graph

1 2 3 4 5 6

1

2

3

4

5

6

6 5 4 3 2

The EFETotal Weighted Scores

High 3.0 to 4.0

Medium 2.0 to 2.99

Low 1.0 to 1.99

Strong 3.0 to 4.0

Weak 1.0 to 1.99

The IFE Total Weighted scoresAverage 2.0

to 2.99

PepsiCo

IE Matrix

Matrix Analysis

Alternative Strategies IE SPACE BCG GRAND CountForward Integration x x x 3Backward Integration x x x 3Horizontal Integration x x x 3Market Penetration x x x 3Market Development x x x 3Product Development x x x 3Related Diversification x x x 3Unrelated Diversification x x x 3Horizontal Diversification x x 2J oint Venture x x 2Retrenchement x 1Divesture x 1Liquidation x 1

QSPM

Key factors Weight AS TAS AS TASExternal 1 to 4 1 to 4Opportunities:Provide less costly products 0.05 1 3 0.15

Improve presence in established countries and increase international market where they are not already settled 0.08 3 0.24 4 0.32

Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) 0.05 0 0

Compete in more than one industry (non-alcoholic beverage industry, the salty or savory snack food industry, and the breakfast food industry) 0.13 4 0.52 3 0.39

Growth in the carbonated drink market is the largest in Asia and Europe 0.09 1 0.09 4 0.36

The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks. 0.13 4 0.52 4 0.52Threats: 0 0Fierce competition from Coca-Cola, which owns the largest piece of the market share 0.12 3 0.36 3 0.36

The downturn in economy, which lead customers to shift away from bottles of water to tap water. 0.05 1 0.05 4 0.2

Because of the recession, customers are finding cheaper alternatives to the national brands. 0.1 1 0.1 4 0.4

Customers are getting more conscious and concerned about their eating habits and general health. 0.09 4 0.36 0

Campaign against plastic containers has impacted the sale of bottled beverages 0.05 0 1 0.05

Highly dependent on supplies of clean water, to prevent contamination 0.06 0 01

Innovate products with

healthier alternative

Improve international

segment

QSPM Cont.

Internal 1 to 4 1 to 4StrengthsStrong brand equity   0.12 4 0.48 4 0.48

Well known worldwide 0.06 3 0.18 4 0.24

PepsiCo owns a wide variety of smaller brands which able them to offer a large product range from beverages to snacks 0.08 4 0.32 2 0.16

Innovating company 0.08 4 0.32 4 0.32

Ethical, socially responsible, and sustainable company 0.05 2 0.1 3 0.15

Strong advertising company with more than 40 slogans and songs 0.07 3 0.21 3 0.21

PepsiCo as the largest part of the market share after Coca-Cola 0.06 4 0.24 3 0.18Weaknesses: 0 0PepsiCo production is really expensive because of the need to constantly develop new products to meet the changing costumers demands 0.05 1 0.05 2 0.1

PepsiCo is experiencing a lack of focus towards Pepsi 0.06 0 0

PepsiCo is experiencing product recalls 0.12 1 0.12 1 0.12

PepsiCo has low employment productivity and a weak distribution 0.08 1 0.08 1 0.08

PepsiCo depends too much on the US market 0.08 2 0.16 1 0.08

PepsiCo is far behind Coca-Cola in the international market 0.09 2 0.18 1 0.091

4.68 4.96

Strategic Plan

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

Strategy

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

Recommendations

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

Objectives

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

Assumptions

Implementation

Projected Income Statement

(in millions except per share amounts) 2009 2010Net Revenue $43,232.00 45,393.60$ 5% increaseCost of sales $20,099.00 21,549.09$ Based on previous years %Selling, general and administrative expenses $15,026.00 15,476.78$ 3% increase based on new brands/territoriesAmortization of intangible assets $63.00 63.00$ Operating Profit $8,044.00 8,304.73$ Bottling equity income $365.00 365.00$ Interest expense ($397.00) (397.00)$ Interest income $67.00 67.00$ Income before Income Taxes $8,079.00 8,339.73$ Provision for Income Taxes $2,100.00 2,100.00$ Net Income $5,979.00 6,239.73$ Less: Net income attributable to noncontrolling interests $33.00 33.00$ Net Income Attributable to PepsiCo $5,946.00 6,206.73$ Net Income Attributable to PepsiCo per Common Share Basic $3.81 3.98$ Diluted $3.77 3.94$

Projected Balance Sheet(In millions except per share amounts) 2009 2010AssetsCurrent AssetsCash and cash equivalents 3,943.00$ 3,264.63$ -$10 million for purchasing of new brands also paid off some accounts payableShort-term investments 192.00$ 200.00$ Accounts and notes receivable, net 4,624.00$ 5,250.00$ Inventories 2,618.00$ 3,500.00$ Prepaid expenses and other current assets 1,194.00$ 2,500.00$ Total Current Assets 12,571.00$ 14,714.63$ Property, Plant and Equipment, net 12,671.00$ 13,938.10$ More brands equal 10% increase Amortizable Intangible Assets, net 841.00$ 908.28$ Based on previous years %Goodwill 6,534.00$ 6,750.68$ Purchased 3 brands and their goodwillOther nonamortizable itangible assets 1,782.00$ 1,783.00$ add $1 million for environmental group Nonamortizable Intangible Assets 8,316.00$ 8,533.68$ Investments in Noncontrolled Affiliates 4,484.00$ 4,892.34$ Other Assets 965.00$ 1,300.00$ Total Assets 39,848.00$ 44,287.03$ Liabilities and EquityCurrent LiabilitiesShort-term obligations 464.00$ 464.00$ Accounts payable and other current liabilities 8,127.00$ 7,314.30$ Use cash to reduce accounts payable by 10%Income taxes Payable 165.00$ 165.00$ Total Current Liabilities 8,756.00$ 7,943.30$ Long-Term Debt Obligations 7,400.00$ 7,400.00$ Other Liabilities 5,591.00$ 5,591.00$ Deferred Income Taxes 659.00$ 659.00$ Total Liabilities 22,406.00$ 21,593.30$ Commitments and ContigenciesPreferred Stock, no par value 41.00$ 41.00$ Repurchased Preferred Stock (145.00)$ (300.00)$ PepsiCo Common Shareholders' EquityCommon stock, par value 1 2/3 cents per share (authorized 3,600 shares, issued 1,782 shares) 30.00$ 30.00$ Capital in excess of par value 250.00$ 250.00$ Retained earnings 33,805.00$ 39,980.73$ Based on Income Statement - $31 million for purchasing of new brands and environmental groupAccumulated other comprehensive loss (3,794.00)$ (4,500.00)$ Repurchased common stock, at cost (217 and 229 shares,respectively) (13,383.00)$ (13,383.00)$ Total PepsiCo Common Shareholders' Equity 16,908.00$ 22,118.73$ Noncontrolling interests 638.00$ 575.00$ Total Equity 17,442.00$ 22,693.73$ Total Liabilities and Equity 39,848.00$ 44,287.03$

Evaluation

Balanced ScorecardArea of Objectives Measure of Target Time Expectation Primary

Responsibility Customers

1. Customer satisfaction Costumer Survey Webinars Quarterly Human Resources

Representatives 1. Improve production

efficiency Increase in production Biannually Supply chain

Operations

2. Offer employee trainings Employee surveys Production efficiency Yearly Human Resources

Community/ Social Responsibility

1. Eco-Friendly company

Increase in recyclable bottle Being involve in

more events regarding water contamination

Yearly CEO

2. Ethical Company

Number and success of charitable events UNICEF amount of

money donated

Yearly CEO

Operations/Processes

1. Innovation

New products

Product appearance Acquisition of new

brands

Yearly CEO

2. Brand expansion

Numbers of new countries entered

Number of sales in the International

Segment

Yearly CEO

Financial

1. Reduce cost of production Income Statement Quarterly Chief Financial Officer

2. Increase profitability Increase annual report Quarterly Chief Financial Officer

Future Ratios2009 Projected 2010

Liquidity Ratios

Current Ratio 1.44 1.85

Quick Ratio 1.14 1.41

Leverage Ratios

Debt-to-Total Assets Ratio 0.56 0.5

Debt-to-equity Ratio 1.33 0.97

Long-term debt-to-equity Ratio

0.44 0.33

Times-Interest-earned Ratio -17.1 -21.01

Activity Ratios

Inventory Turns 16.5 12.97

Fixed Assets Turnover 3.41 3.26

Total Assets Turnover 1.08 1.02

Profitability Ratios

Gross Profit margins 0.54 0.57

Operating Profit Margin 0.19 0.21

Net Profit Margin 0.14 0.19

Return on Total Assets 0.15 0.16

Return on Stockholders equity 0.35 0.36

Earning per share 3.36 3.43

Price-earnings Ratio 8.94 8.74

Growth Rations (yearly)

Sales -0.04% 5.00%

Net Income 15.74% 4.36%

Earnings per share -0.27% 15.79%

Fun Facts

http://www.buzzfeed.com/pepsi/the-10-most-iconic-pepsi-commercials-of-all-time-1q6t

Pepsi/Coke Rivalry

Questions?

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