Question

In: Finance

PEPSI is struggling as a corporation. Many critics argue that it shouldn't have sold some of...

PEPSI is struggling as a corporation. Many critics argue that it shouldn't have sold some of its assets.

1- Post the latest PEPSI corporate earnings? How is PEPSI doing financially?

2- What assets are more profitable for the PEPSI corporation?

3- Is there any strategy that Coke is doing that PEPSI can use as well to improve its earnings?

Solutions

Expert Solution

1. PEPSI corporate earnings of last 5 years

It looks that 2019 has been a good years for the company as the net revenue growth % was better than it's previous years. But the EBIT has declined due to the high expenses of the company and acquisition of SODA STREAM and PIONEER FOOD which has led to the decline in the EPS.

2. in 2019, Food asset class was more profitable than the Beverage asset class by marginal percentage across the world. And, the reason for the same can be attributed to the orientation of the people towards healthy drinks such as juices and Green tea. For the same reason, the company has made a joint venture with Lipton tea.

3. Although with respect to revenue and diversification, PEPSI is far ahead than Coke. But, Pepsi can still adopt to the strategy of Coke to expand in across geography as the latter has wide presence in Europe, Asia and Africa whereas the former is mainly in US and its neighbouring countries.


Related Solutions

Pepsi is struggling as a corporation. Many critics argue that id shouldn’t have sold some of...
Pepsi is struggling as a corporation. Many critics argue that id shouldn’t have sold some of its assets . - post the latest Pepsi corporate earnings ? - how is Pepsi doing financially - what assets are more profitable for the Pepsi corporation ? - is there any strategy that Coke is doing that Pepsi can use as well to improve its earnings ?
Many critics argue that greed in the mortgage markets caused the credit crisis. Yet many market...
Many critics argue that greed in the mortgage markets caused the credit crisis. Yet many market advocates suggest that greed is good, as the thirst for profits by firms that participate in mortgage markets allows for economic growth. Write a short essay on how regulations can allow for greed while also ensuring proper transparency in the mortgage markets so that another credit crisis does not occur
Many critics argue that greed in the mortgage markets caused the credit crisis. Yet, many market...
Many critics argue that greed in the mortgage markets caused the credit crisis. Yet, many market advocates suggest that greed is good, as the thirst for profits by firms that participate in mortgage markets allows for economic growth. Write a short essay on how regulations can allow for greed while also ensuring proper transparency in the mortgage markets so that another credit crisis does not occur.
What is an artist’s intention? How have some critics used it to fix the meaning of...
What is an artist’s intention? How have some critics used it to fix the meaning of a work of art?
Some critics of freedom of trade between nations have argued that by allowing the imports of...
Some critics of freedom of trade between nations have argued that by allowing the imports of a foreign country into the market of your own country this can threaten the loss of jobs in your domestic economy. Advocates of free trade have responded to these criticizing by explaining why this is not necessary the case, since (a) imports must be paid for with exports; and, (b) that lower priced imports raise the standard of living and frees up resources and...
1. Critics of HMO’s say that : a) HMO members have too many choices of doctors...
1. Critics of HMO’s say that : a) HMO members have too many choices of doctors they can use and service they can receive. b) HMO doctors waste money because they have no incentive to control costs c) The 10 % deductible required for every producer is cost prohibitive for most citizens d) None of the above 2. Granny Mayberry ‘s health insurance policy has a $500 annual aggregate deductible, 80/20 cost sharing deductible, and a $ 5000 maximum annual...
Many experts argue the need for one global set of accounting standards. What are some of...
Many experts argue the need for one global set of accounting standards. What are some of the differences between International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP)? What are some advantages and disadvantages of adopting IFRS in the US? Do you personally think this is a good or a bad idea? Why? Your initial posting should be 250-500 words and must be submitted by Thursday, 11:59 pm, of this week. By Sunday of this week, respond...
Some critics of globalization claim that wealthy nations have benefited from free trade at the expense...
Some critics of globalization claim that wealthy nations have benefited from free trade at the expense of the poor. Using information from “The Choice,” provide a critique of this argument.
1. 1. While many argue that sweatshops must be shut down at all costs, many have...
1. 1. While many argue that sweatshops must be shut down at all costs, many have argued that the employees would be far worse off without the work. Banning Sweatshops Only Hurts the Poor and share your thoughts. Should sweatshops exist? Please be detailed in your post, using knowledge from our lecture and the article.   2.Planet Money makes a T-Shirt which takes the simple t-shirt around the world. Jasmine, the worker from Bangladesh who is featured in the film, stresses...
Many scholars note that democracy has positive effects on economic development. However, some argue that this...
Many scholars note that democracy has positive effects on economic development. However, some argue that this relationship may not necessarily be causal. Provide one reason for why the relationship between economic development and democracy might be spurious (a mathematical relationship in which two or more variables are associated but not causally related). Make sure you identify and defend a potential confounding variable in your answer. In addition, describe a controlled comparison you might perform to address this problem.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT