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Pepsico.. full


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ppt for pepsicorp. will be helpful for especially IIPM students...

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Pepsico.. full

  2. 3. About Pepsi co. <ul><li>PepsiCo offers the world’s largest portfolio of billion-dollar food and beverage brands. </li></ul><ul><li>It includes 19 different product lines that each generates more than $1 billion in annual retail sales. </li></ul><ul><li>Its main businesses — Frito-Lay, Quaker, Pepsi, Tropicana & aliva. </li></ul>
  3. 4. <ul><li>We have consumers having nourished food and elite drinks in more than 200 countries. </li></ul><ul><li>PepsiCo’s people are united by our unique commitment to sustainable growth, called “Performance with Purpose. </li></ul>
  4. 5. To All Our Investors…
  5. 6. Our Goals and Commitments… <ul><li>TOP line : </li></ul><ul><li>• Grow international revenues at two times real global GDP growth rate. </li></ul><ul><li>• Grow savory snack and liquid refreshment beverage market share in the top 20 markets. </li></ul>
  6. 7. Bottom Line <ul><li>• continue to expand division operating margins. </li></ul><ul><li>• increase cash flow in proportion to net income growth over three-years. </li></ul><ul><li>• deliver total shareholder returns in the top quartile of our industry group. </li></ul>
  7. 8. <ul><li>To the People of the </li></ul><ul><li>World…. </li></ul>
  8. 9. <ul><li>Products: </li></ul><ul><li>increase the amount of whole grains, fruits, vegetables, nuts, seeds and low-fat dairy in the global product portfolio. </li></ul><ul><li>reduce the average amount of saturated fat per serving in key global food brands by 15 percent. </li></ul><ul><li>reduce the average amount of added sugar per serving in key global beverage brands by 25 percent . </li></ul>Our Goals and Commitments..
  9. 10. <ul><li>display calorie count and key nutrients on our food and beverage packaging by 2012. </li></ul><ul><li>advertise to children under 12 only products that meet our global science-based nutrition standards. </li></ul>Market Place
  10. 11. <ul><li>To expand Pepsico Foundation and Pepsico corporate contribution initiatives to promote healthier communities. </li></ul><ul><li>To integrate our policies and actions on human health, agriculture and the environment to make sure that they support each other. </li></ul>community
  11. 12. <ul><li>To the planet we all </li></ul><ul><li>SHARE </li></ul>
  12. 13. Our Goals and Commitments <ul><li>WATER </li></ul><ul><li>Strive for positive water balance in our operations in water-distressed areas. </li></ul><ul><li>Provide access to safe water to three million people in developing </li></ul><ul><li>countries by the end of 2015. </li></ul>
  13. 14. land and Packaging <ul><li>create partnerships that promote the increase of U.S. beverage container recycling rates to 50 percent by 2018. </li></ul><ul><li>reduce packaging weight by 350 million pounds—avoiding the creation of one billion pounds of landfill waste by 2012. </li></ul>
  14. 15. <ul><li>improve our electricity use efficiency by 20 percent per unit of production by 2015. </li></ul><ul><li>reduce our fuel use intensity by 25 percent per unit of production by 2015. </li></ul>Climate change
  15. 16. <ul><li>apply proven sustainable agricultural practices on our farmed land. </li></ul><ul><li>Provide funding, technical support and training to local farmers. </li></ul><ul><li>Promote environmental education and best practices among our associates and business partners. </li></ul>community
  16. 17. <ul><li>To the associates of PepsiCo… </li></ul>
  17. 18. Our Goals and Commitments <ul><li>Career </li></ul><ul><li>become universally recognized through top rankings of the world for leadership development. </li></ul><ul><li>• create a work environment in organization. ( skills, talents etc) </li></ul>
  18. 19. community <ul><li>create local jobs by expanding operations in developing countries. </li></ul><ul><li>Support education through Pepsico Foundation grants. </li></ul>
  19. 20. What is Performance with Purpose ???? <ul><li>Performance with Purpose means that we will continue to bring together what is good for society and what is good for business. </li></ul><ul><li>It encourages to think globally while acting locally. </li></ul>
  20. 22. WHY THIS MOTTO ????? <ul><li>The Performance with Purpose initiatives are taken to showcase in 2009 year’s annual report to demonstrate that what’s right for society and also what’s right for business. </li></ul>
  21. 23. <ul><li>Q1. </li></ul><ul><li>Net Income for 2008 was $5,142 million, but Cash and Cash Equivalents increased only $1,154 million. Why is there such a difference between the company’s reported earnings and its net cash flow? </li></ul>
  22. 24. Asia’s situation <ul><li>In Russia ,China Net revenue grew 17%, reflecting. favorable effective net pricing and volume growth </li></ul><ul><li>Acquisitions contributed 7 percentage points and foreign currency contributed 2 percentage points to the net revenue growth. </li></ul>
  23. 25. Middle east situation <ul><li>In middle east and south africa </li></ul><ul><li>Net revenue grew 23%, reflecting volume growth and favorable effective net pricing . </li></ul><ul><li>Acquisitions contributed 2 percentage points and foreign currency contributed 1 percentage point to the net revenue growth. </li></ul>
  24. 26. <ul><li>Income  purpose with performance motto & large product line in middle east lead </li></ul><ul><li>Cash equi. Didn’t increase because they were into sustainable development so they coudnt create much of cash equivalent assets. </li></ul><ul><li>and cash equi. Assets  readily convertible into liquid cash. </li></ul>
  25. 27. <ul><li>Q2. </li></ul><ul><li>The “book value” of the company was $7.86 a share at the end of 2008. The “market value” of the shares at year end was $54.56 a share. Why are these two values so different? </li></ul>
  26. 28. <ul><li>Share prices increased in the market terms because </li></ul><ul><li>- they were going in loss due to purpose with performance motto </li></ul><ul><li>- they had to earn the revenues which was only possible by increasing the prices of the shares </li></ul><ul><li>- they coudnt increase the price of the products because it would effect their sales. </li></ul>