ACC 557 Assignment 3 You Are an Investment Analyst
ACC 557 Assignment 3 You Are an Investment Analyst fin571
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Date Created: 11/11/15
Company Analysis 1 Running Head COMPANY ANALYSIS PepsiCo and Coca Cola Company Analysis 2 Introduction Various organizations around the world have a lot of share in the market Theses organizations try to make sure that they work in such a manner that they have a competitive advantage in the market Here in the present paper the discussion shall include two organizations The first organization is PepsiCo and the second organization considered here is Coca Cola These organizations are in the beverage industry and also provide various kinds of food products to the customers The organizations considered in the present paper have a major share in the market and these organizations try to ensure that they will continue to have a competitive position in the market in the future Here in the present paper various kinds of things shall be considered The things will include the financial performance of the organization the products stock prices and the impact of the few events on the stock prices of the organization In this way various kinds of things shall be taken into consideration Description of PepsiCo The organization considered in the present situation is PepsiCo The organization is an American multinational corporation which is engaged in the beverage and the food industry This organization is doing its activities in the field of food and beverage industry The organization provides to the customers by way of manufacturing marketing and distribution the grain based snacks It was established in the year 1965 by virtue of the merger between PepsiCo and Frinto Lay The organization has moved leaps and bounds since the date of its formation The organization should make sure that it enhances its profits to a continuous level Company Analysis 3 There are various kinds of products provided by the organization to its customers The products provided by the organization include soft drinks potato chips Quaker foods snacks lipton tea and various other kinds of products The organization is currently having its operations in around 200 countries The organization is the second largest food and beverage organization in the world For the organization the major customers are those who are living in the countries in which the organization is selling its products For the organization PepsiCo the form of leadership is said to be one of the most effective forms of leadership The organization is not using the same form of leadership at all the times There are two styles of leaderships used in the organization The styles of leadership used in the organization include democratic style of leadership and autocratic style of leadership The organization makes changes in the form of leadership according to the situation For example if the situation in the organization is of the kind that it is necessary to take the assistance of the employees in a proper manner then the organization will make sure that it adopts the democratic style of leadership On the other hand if the organization will have the situation in which a major decision has to be taken then the organization will definitely adopt the method of autocratic style of leadership In this way both the forms of leadership shall be used in different situations In relation to the actions of the organization it can be said that the organization has been able to perform its activities in a proper manner The organization is having certain product lines and regarding the product lines it has been provided that the organization has been able to generate the sales up to the level of 1 billion each for all its product lines The annual net revenue for the organization PepsiCo has been about 433 billion The Company Analysis 4 organization has been ranked as the best in terms of generation of net revenues The organization is also employing 297000 employees from around the world Description of Coca Cola The second organization considered here is Coca Cola This organization was established in the year 1886 Since that time the organization has come a long way and has achieved a lot of success The person responsible for the start up of the organization was Perberton The person died in the year 1888 and was not able to see the success of the organization The organization is not engaged in selling the drinks on its own Instead the organization produces concentrates and sells the same to the licensed Cola bottlers The organization tries to make sure that the final product is of the highest quality so that the image and the reputation of the organization is enhanced The bottlers then sell the drinks to the vending machines owners and the retail stores so that the drinks of the organization could reach the final customers The Coca Cola Company nd Coca Cola Enterprises is one of the bottlers of the organization The organization is also engaged in selling concentrates for the soda fountains for various restaurants and food service distributors The organization Coca Cola was termed as the most valuable brand by Interbrand s ranking There are a wide variety of products provided by the organization Coca Cola At the present time the organization sells around 3500 categories of beverages to the customers The organizational beverages have spread to around 200 countries in which the organizational operations are carried out Over a period of time the organization has been carrying out activities properly regarding the achievement of its objectives and having better revenues and profitability Company Analysis 5 The organization always looks forward to make sure that it adds value to its products The organization is engaged in providing the best level of nutritional value to the customers The organization has a quality management system available with it With the help of the quality management system the organization is able to make sure that the quality of the products provided by it to the customers is appropriate Like PepsiCo the organization Coca Cola also has its operations in various countries This organization is having its highest customers in the country of the Untied States of America In relation to the style of leadership the organization makes sure that it achieves the proper results regarding the same In relation to the style of leadership the organization Coca Cola also adopts the same strategy like the organization PepsiCo This organization is also having the two forms of leadership methods The leadership methods for the organization includes a democratic form of leadership and autocratic form of leadership Both these forms of leadership styles are used by the organization in different times The organization makes changes in the leadership forms according to its needs and requirements so that the results for the organization could improve in the future and the decisions made by the organization are also appropriate and proper for it in the future At the present time the organization is employing 146200 employees from all around the world This organization looks forward to ensure that the world is refreshed and it is inspired from the moments of happiness spread by the organization The organization is also very good in the case of giving dividends to the shareholders The organization is there in the business for a period of 126 years and this particular thing is a huge achievement on the part of the organization Stock Price Analysis Company Analysis 6 For a particular organization it is very important to make sure that it considers the stock price analysis Here in the present paper the stock price analysis of the organization shall be carried out In relation to the stock price analysis the analysis of the stock prices shall be carried out from January 1 2010 2011 and 2012 and in addition to this the stock price analysis for the organization shall also be considered regarding the stock price of the organization since the date of its incorporation The graph showing the changes in the stock prices of the organization is provided below Historical Prices nd Coca Cola Stock Prices 180 160 MD I39 120 100 All Elli lCIose 50 20 IE Qw hhh mmw mmmm FIFIFIFIFIFIFIFIFIFIFIFIFIFIFIFIFI EGQQQQQQQQQQQQQQQ amagsaaaaaaagaaag Based on this chart it can be said that the stock price of the organization has definitely gone down since the date of its incorporation till the present date There can be various reasons due to which the stock price of the organization might have gone down The reasons for the reduction in the stock prices will include bonus issues splitting of shares and various other kinds of corporate actions The chart given below shows the changes in the stock prices of the organization from January 12010 January 12011 and January 12012 These charts show the information that the organization has not been in a position to have enhanced in its stock prices for some time now In the month of movement in the year 2012 the stock price of the organization was at Company Analysis the level of 40 This stock price of the organization was sitting pretty at the level of 70 in the month of April in 2012 Stock Prices 90 3950 JD 613 50 510 30 20 113 U Uri012010 lCIose DEL112011 DEL1121312 I Seriele Stock Price Analysis of PepsiCo In relation to the organization PepsiCo also the stock prices of the organization shall be analyzed The time period for which the stock prices shall be analyzed will include the time from the date of incorporation of the organization January 1 2012 January 12010 and January 1 2011 In the years of 1970s the stock prices of the organization had seen a 7 Company Analysis 8 downfall At that point of time the stock prices were at the level of 25 Since that time the organization has definitely come hard strongly The organization PepsiCo has seen a satisfactory level of growth in the stock prices in the last 3 years The stock prices of the organization were at the level of 60 and the same has increased to the level of 70 at the present time This shows that the organization has tried to make sure that it does not get into any kind of problem or issues regarding the stock prices for some time Though the increase has not been very high but still the organization has made sure that it carries out its activities in the most appropriate manner without any kind of problem or issue for it Events having Impact on the Stock Prices There are certain economic events which might have some kinds of impact on the stock prices of the organization The organization PepsiCo and Coca Cola are very strong organizations and have been able to make sure that these organizations perform their activities to the highest possible level The organizations have a such good level of operations that it has been possible for them to make sure that even the events do not make any kind of impact on the prices of their stocks Petrow Food Industries nd One of the events which might have had some kind of impact on the stock price of the organization was the acquisition by Petrow Food Industry Limited It was likely that this event may have some form of impact on the stock prices of the organization but the organizations did not get into any kind of problem or issue The organizations were able to create a particular situation in which it was possible for them to continue to have the same level of share prices in the future The other events which might have had some kind of impact on the organizational stock prices included the recessionary conditions in the country of the United States of Company Analysis 9 America and the level of unemployment in the country In spite of both these kinds of situations the organization was in a position to make sure that there is no reduction in their stock prices at any point of time in the future In this way it can be said that both the organizations are carrying out their activities appropriately Review of Financial Data The organizational financial data can be said to be appropriate in the situation when the organization will have its data audited through one of the major auditors around the world Both the organizations can be said to be providing proper financial data to its shareholders The auditor of the organization PepsiCo are KPMG LLP On the other hand there is also a situation that the organization Coca Cola is also having its accounts audited by one of the major auditors around In this way it can be said that both the organizations are having reliability in their financial statements to a proper level Recommendations for Investment In order to make an investment in a particular organization it is necessary for the investors to make sure that the investors consider certain key things The points to be considered by the investors include earning per share net income and trend in movement of the price of the security of the organization Pogue 2010 The price of the stock of the organization Coca Cola Company is 3767 whereas the price of stock of PepsiCo is 7027 This shows that Pepsico has a better stock price in comparison to Coca Cola The earnings per share of PepsiCo is 376 whereas the earnings per share of Coca Cola Company is 191 PepsiCo has net income of 6443000 whereas Coca Cola Company has net income of 8572000 In this way it can be said that PepsiCo is better than the Coca Cola company in two of the above mentioned three years Therefore the investors should look forward to invest in this organization Company Analysis Stock Prices PepsiCn since January 1 BU ENC EU 5D 5H3 3U 2U M Di DlE l w jlEml 1 U LEUIE I Cl ge I Ser ie F2 ET 5 El n End 52 BIC SE I Eer iegi ll 10 Company Analysis 11 Conclusion The present paper was regarding two organizations The organizations were PepsiCo and Coca Cola The organizations are in the same industry and provide various kinds of products to the customers In relation to the financial analysis of the organizations it can be said that the organization Coca Cola is below the organization PepsiCo The investors should invest in PepsiCo in comparison to Coca Cola The organizational accounts are audited by one of the best auditors around the world PepsiCo also has a better level of earnings per share and better share value in comparison to the organization Coca Cola Company Analysis 12 References The Coca Cola Company nd Retrieved December 15 2012 from httnfinancevah00comqissKOInc0meStatementampannua1 PepsiCo Inc nd Retrieved December 15 2012 from httnfinancevah00comCIis sPEPInc0meStatementampannual Petrow Food Industries nd Retrieved December 15 2012 from httnwwwcipetrowc0ukab0ut ushtml Pogue M 2010 Corporate Investment Decisions Principles and Practice Business EXpert Press Historical Prices nd Retrieved December 15 2012 from httnfinancevah00comCIhn sPEPHist0ricalPrices Historical Prices nd Retrieved December 15 2012 from httnfinancevah00comCIhn sKOHist0rica1Prices Company Analysis 13
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