Pepsi Co Powerpoint

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  • Liked the presentation. I am doing my project on Pepsico. can u please email me this or updated presentation if you have on slfxpressn@gmail.com
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  • sir
    i m doing project on Pepsi co market research...
    can u please send me this PPT
    ree.nikam@gmail.com
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  • Pepsi Co Powerpoint

    1. 1. Roland Oltmann Vanessa Ochoa-Llamas Katie Schneider November 24th, 2008
    2. 2. Problem <ul><li>How will PepsiCo use its operating cash flows to maintain levels of increasing shareholder value as it continues to expand? </li></ul>PepsiCo's Future
    3. 3. Solutions <ul><li>Use research and development to introduce BFY and GFY snacks and beverages in other countries and increase health awareness </li></ul><ul><li>Explore Further opportunities in developing and emerging International markets </li></ul><ul><ul><ul><li>Product Innovation </li></ul></ul></ul><ul><ul><ul><li>Acquisitions </li></ul></ul></ul><ul><ul><ul><ul><li>“ Tuck-In” Acquisitions </li></ul></ul></ul></ul><ul><li>Value Chain Alignment. </li></ul><ul><li>Continue with share buyback program. </li></ul>
    4. 4. New Developments to PepsiCo’s Current Business Strategies for the International Marketplace <ul><li>Good for You (GFY) and Better For you (BFY) products </li></ul><ul><li>Countries interested to reduce consumption of saturated fats, cholesterol, transfats and simple carbs </li></ul><ul><li>Health & wellness demand increasing by 10-13% per year in Europe </li></ul><ul><li>Proven to work in the US: 15% of snack sales and 70% of beverage sales in North America </li></ul>
    5. 5. International Evaluation <ul><li>All sales grew by 14% in 2006 </li></ul><ul><li>Snack & Beverage Volume up by 9% </li></ul><ul><li>Fastest Growth in Beverage Volume occurring in: </li></ul><ul><ul><li>The Middle East </li></ul></ul><ul><ul><li>China </li></ul></ul><ul><ul><li>Argentina </li></ul></ul><ul><ul><li>Russia </li></ul></ul><ul><ul><li>Venezuela </li></ul></ul>
    6. 6. Value Chain Alignment <ul><li>Use established distribution channels. </li></ul><ul><li>Use popular products to cross market lesser known ones. </li></ul><ul><li>Quaker Oats savings </li></ul><ul><ul><ul><li>$160 million saved by 2005 </li></ul></ul></ul>
    7. 7. Share Buyback Plan <ul><li>Absorb repurchased shares reducing outstanding shares on the market. </li></ul><ul><li>Fewer claims on the earnings of the company. </li></ul>
    8. 8. SWOT ANALYSIS Business Source Premier
    9. 9. Financial Analysis Chart presented in $ Millions 8.91% 16.06% 12.52% 14.39% Net Income % .30 .20 .17 .18 Debt-Equity 1.85 3.42 2.43 2.47 Earnings Per Share 10.52% 38.01% 28.77% 33.17 ROE % 5.41% 18.35% 13.44% 15.84% ROA % 13.17% 18.33% 18.19% 17.97% Operating Profit % 34,356 35,137 32,562 29,261 Total Revenue 2006 2006 2005 2004
    10. 10. More Financial Highlights - 2007 <ul><li>Net revenue grew 12%, roughly three times the rate of global GDP growth </li></ul><ul><li>Division operating profit grew 10% </li></ul><ul><li>Earnings per share grew 13% </li></ul><ul><li>Total return to shareholders - 26% </li></ul><ul><li>Return on invested capital - 29% </li></ul><ul><li>Cash flow from operations - $6.9 billion </li></ul>
    11. 11. Competitors
    12. 12. Risks <ul><li>Change in Consumer Preferences </li></ul><ul><li>Inability to effectively innovate products </li></ul><ul><li>Unfavorable economic or environmental conditions </li></ul>
    13. 13. Recommendations <ul><li>Maintain close relationships with distributors </li></ul><ul><li>Continue to expand globally </li></ul><ul><li>Evaluate and pursue expansion of health products in new markets </li></ul>
    14. 14. Timeline <ul><li>BFY and GFY products </li></ul><ul><li>Global expansion </li></ul><ul><li>Distribution </li></ul><ul><li>Share buyback program </li></ul>

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