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2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
2 Pepsi Co
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2 Pepsi Co

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  1. PepsiCo
  2. MISSION <ul><li>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. </li></ul>
  3. VISION Focus on environmental stewardship, activities that benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.
  4. <ul><li>Headquarters: Purchase, NY </li></ul><ul><li>Symbol: PEP </li></ul><ul><li>Exchange: NYSE </li></ul><ul><li>Stock Price: $62.23 </li></ul><ul><li>Number of Employees: 198,000 </li></ul><ul><li>Industry: Snacks and Beverages </li></ul>COMPANY PROFILE
  5. COMPANY HISTORY <ul><li>1965 - PepsiCo, Inc. is founded by Donald M. Kendall President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. </li></ul><ul><li>1976 - Pepsi-Cola becomes the single largest selling soft drink brand sold in U.S. supermarkets. </li></ul><ul><li>1984 - PepsiCo is restructured to focus on its three core businesses: soft drinks, snack foods and restaurants. Transportation and sporting goods businesses are sold. </li></ul><ul><li>1990 - PepsiCo profits exceed $1 billion for the first time. </li></ul><ul><li>2001 - PepsiCo merges with The Quaker Oats Company </li></ul><ul><li>2008 - PepsiCo announces plans to invest $1 billion in China over next four years as part of the strategy to expand in emerging markets and broaden the portfolio of locally-relevant products </li></ul>
  6. BRANDS
  7. BRANDS
  8. FINANCIAL HIGHLIGHTS                   2008     2007     Chg Summary of Operations                 Total net revenue $ 43,251   $ 39,474     10 % Core division operating profit $ 8,475   $ 8,025     6 % Core total operating profit $ 7,824   $ 7,253     8 % Core net income $ 5,887   $ 5,587     5 % Core earnings per share $ 3.68   $ 3.37     9 % Other Data                 Management operating cash flow $ 4,651   $ 4,551     2 % Net cash provided by operating activities $ 6,999   $ 6,934     1 % Capital spending $ 2,446   $ 2,430     1 % Common share repurchases $ 4,720   $ 4,300     10 % Dividends paid $ 2,541   $ 2,204     15 % Long-term debt $ 7,858   $ 4,203     87 %
  9. INCOME STATEMENT Period Ending 12/27/2008 12/29/2007 12/30/2006 12/31/2005     Total Revenue $43,251,000 $39,474,000 $35,137,000 $32,562,000     Cost of Revenue $20,351,000 $18,038,000 $15,762,000 $14,176,000     Gross Profit $22,900,000 $21,436,000 $19,375,000 $18,386,000     Operating Expenses             Sales, General and Admin. $15,901,000 $14,208,000 $12,774,000 $12,314,000     Other Operating Items $64,000 $58,000 $162,000 $150,000     Operating Income $6,935,000 $7,170,000 $6,439,000 $5,922,000     Add'l income/expense items $41,000 $685,000 $173,000 $716,000     Earnings Before Interest and Tax $7,350,000 $7,855,000 $7,228,000 $6,638,000     Interest Expense $329,000 $224,000 $239,000 $256,000     Earnings Before Tax $7,021,000 $7,631,000 $6,989,000 $6,382,000     Income Tax $1,879,000 $1,973,000 $1,347,000 $2,304,000     Equity Earnings Unconsolidated Subsidiary $374,000 $0 $616,000 $0     Net Income-Cont. Operations $5,142,000 $5,658,000 $5,642,000 $4,078,000     Net Income $5,142,000 $5,658,000 $5,642,000 $4,078,000     Net Income Applicable to Common Shareholders $5,142,000 $5,658,000 $5,642,000 $4,078,000
  10. STATEMENT OF CASH FLOWS Management Operating Cash Flow** Period Ending: 12/27/2008 12/29/2007 12/30/2006 12/31/2005     Net Income $5,142,000 $5,658,000 $5,642,000 $4,078,000     Cash Flows-Operating Activities             Depreciation $1,543,000 $1,426,000 $1,406,000 $1,308,000     Net Income Adjustments $1,105,000 ($46,000) ($408,000) $50,000     Changes in Operating Activities             Accounts Receivable ($549,000) ($405,000) ($330,000) ($272,000)     Inventory ($345,000) ($204,000) ($186,000) ($132,000)     Other Operating Activities ($435,000) ($123,000) $32,000 $23,000     Liabilities $538,000 $628,000 ($72,000) $797,000     Net Cash Flow-Operating $6,999,000 $6,934,000 $6,084,000 $5,852,000     Cash Flows-Investing Activities             Capital Expenditures ($2,446,000) ($2,430,000) ($2,068,000) ($1,736,000)     Investments $1,282,000 ($356,000) $2,017,000 ($991,000)     Other Investing Activities ($1,503,000) ($958,000) ($143,000) ($790,000)     Net Cash Flows-Investing ($2,667,000) ($3,744,000) ($194,000) ($3,517,000)     Cash Flows-Financing Activities             Dividends Paid ($2,541,000) ($2,204,000) ($1,854,000) ($1,642,000)     Sale and Purchase of Stock ($4,106,000) ($3,204,000) ($1,816,000) ($1,932,000)     Net Borrowings $3,515,000 $1,194,000 ($2,447,000) $1,696,000     Other Financing Activities $107,000 $208,000 $134,000 $0     Net Cash Flows-Financing ($3,025,000) ($4,006,000) ($5,983,000) ($1,878,000)     Effect of Exchange Rate ($153,000) $75,000 $28,000 ($21,000)     Net Cash Flow $1,154,000 ($741,000) ($65,000) $436,000
  11. PERFORMANCE CHART
  12. SWOT <ul><li>Strengths </li></ul><ul><ul><ul><li>The company has its strong point in the 18 brands it owns, with sales over $1 billion each. These brands are leaders in their respective categories, second only, once again, to Coca-Cola. </li></ul></ul></ul><ul><ul><ul><li>Distribution network - The Company’s go-to-market systems like the direct store delivery gives an added bonus to the flexibility and power of the PepsiCo’s distribution network. </li></ul></ul></ul><ul><ul><ul><li>The almost non-stop ability to innovate and diversify, gives PepsiCo the cutting edge it most definitely needs in a company of its size and calibre. </li></ul></ul></ul><ul><li>Weaknesses </li></ul><ul><li>PepsiCo is far away from leader Coca-cola in the international market. </li></ul><ul><li>All PepsiCo products bear the company name </li></ul>
  13. SWOT <ul><li>Opportunities </li></ul><ul><li>There are increasing trend toward healthy foods </li></ul><ul><li>Noncarbonated drinks are the fastest-growing part of the industry </li></ul><ul><li>Food division should expand internationally </li></ul><ul><li>Threats </li></ul><ul><li>Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market </li></ul><ul><li>Competitors </li></ul>
  14. FIVE FORCE MODEL
  15. STRATEGY <ul><li>“ Power of One Alliance” </li></ul><ul><li>Development of Good-for-You and Better-for-You products </li></ul><ul><li>Pepsi and Frito Lay brands hold large market share in both domestic and international markets </li></ul>
  16. <ul><li>PepsiCo, Inc. has 18 mega-brands that generate $1 billion or more each in annual retail sales </li></ul><ul><li>$43 billion in revenues </li></ul><ul><li>185,000 employees </li></ul><ul><li>Product innovation </li></ul><ul><li>Acquisitions and partnerships </li></ul><ul><li>Environmentally, socially and economically responsible company </li></ul>KEY SUCCESS FACTORS
  17. WORKS CITED <ul><li>www.finance.yahoo.com </li></ul><ul><li>www.moneycentral.msn.com </li></ul><ul><li>www.pepsico.com </li></ul><ul><li>www.nyse.com </li></ul><ul><li>www.coca-cola.com </li></ul>

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