Pepsico Analysis
Pepsico Analysis
PepsiCo, Inc.
Katherine Schryner
MBA5002 – Microeconomics And Decision-Making
James Slate
03/09/08
I. Executive Summary
In1898, Caleb Bradham created the Pepsi Company (PepsiCo). The Pepsi-Cola Company merged with other companies (Frito-Lay, Tropicana and Quaker Foods to list a few) between 1965 and 2001 and is now referred to as PepsiCo, Inc. PepsiCo, Inc. has many headquarters worldwide for the several different companies. The main world PepsiCo headquarters residing in New York. These mergers made PepsiCo, Inc. a refreshment and snack company ranking 5th in the world (Pepsi). PepsiCo, Inc. is listed on four stock exchange markets. In 2006, they reported over $35 billion in revenues and listed having 168,000 employees (PepsiCo2).

II. Table of Contents
III. Supply, Demand and Price Analysis………………………………..Page 5
Company Introduction
Page 5
Product description
Page 5
Factors affecting supply, demand and price of product
Page 6
Elasticity of demand and price for product
Page 6
Suggested initiatives to improve revenue
Page 7
IV. Cost Analysis………………………………………………………Page 7
Fixed Costs
Page 7
Variable Costs
Page 7
Life Cycle Costs
Page 8
Operating Costs
Page 8
Cost Considerations
Page 9
Revenue
Page 9
Strategies to Enhance Profits
Page 10
V. Market Structure………………………………………………….…Page 11
Pricing Strategies
Page 12
Maintaining and Improvement Measure
Page 14
VI. Comparative Advantage and Environmental Issues………………Page 15
International Trade
Page 15
Risk Management
Page 17
Comparative Advantages
Page 17
Environmental Concerns
Page 18
Company’s Overall Strategy and Decision-making Process……..Page 20
Mission Statement
Page 20
Business Opportunities
Page 22
Long Term Objectives
Page 22
VIII. References……………………………………………..…………….Page 24
IX. Appendices…………………………………………….…………….Page 30
III.
Supply, Demand and Price Analysis
Company Introduction
This large company is a mix of several other companies. PepsiCo, Inc. is made up of four subgroups. First is the Frito-Lay North America (FLNA), second is the PepsiCo Beverages North America (PBNA), third is the PepsiCo International (PI) and lastly is the Quaker Foods North America (QFNA) (PepsiCo3, pg.6). The PBNA (Pepsi) and the PepsiCo world corporate offices are located in Purchase, New York. Other locations around the world are found in Chicago, IL, Plano, TX, Mexico, Switzerland, Hong Kong and United Arab Emirates (PepsiCo3, pg. 9). PepsiCo, Inc. was created in 1965 when Pepsi-cola and Frito-Lay joined forces. Later, Tropicana was added in 1998 followed by the Quaker and Gatorade in 2001 (PepsiCo2). Net revenues totaled over $35 billion. They reported PI at 37%, FLNA at 31%, PBNA at 27% and QFNA at 5%. The total assets were $29,930. The total liabilities were $14,562. The stockholders equity totals were $15,447 (PepsiCo3, pg. 6). There are worldwide locations in North and South America, Europe, Asia, the Middle East and Australia.

Product description
PepsiCo’s companies cumulatively provide of several successful products. These

Get Your Essay

Cite this page

Pepsi Company And Inc. Pepsico. (April 2, 2021). Retrieved from https://www.freeessays.education/pepsi-company-and-inc-pepsico-essay/