Pepsi Col Executive Summary

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Pepsi Cola’s main objective is to deliver sustained financial performance by offering to its consumers a variety of food and beverages from snacks to healthy options. This is essential in the company’s performance because there are many consumers who are now changing the way they consume drinks and finding better ways to be healthy. Pepsi differs from competition in this particular category because they have now expanded their product category to Gatorade, Tropicana, and Quaker Oats which generate about 31% of revenue through its healthy options. Pepsi Cola had also taken into consideration in expanding and investing into different areas around the world to not only gain business but also the flexibility to promote healthier food options. For …show more content…
As a group, we analyzed Pepsi Colas outsourcing has benefited the company but due to reconstructing charges the income statements demonstrate a slight decrease for the next several years. In comparison, Coca Cola’s income statement is higher due to one product segment in which the company focuses on. Coca-Cola had also seen higher returns because they cut costs in 2008 by integrating with 18 German companies for their bottling and distribution. What also differentiates Pepsi’s financial performance in comparison to Coca-Cola and its competitors, is that Pepsi’s business model is highly diversified with its products adding 25 new food and beverage lines in this upcoming year. The advantage that Pepsi has is when the beverage industry declines, Pepsi is situated that their food products make up 50% of its revenue, in comparison to Coca Cola who could falter. Pepsi has also concluded studies that many consumers who purchase snacks also purchased drinks. This gives Pepsi the competitive advantage because consumers are most likely to pair their snacks with food, in which Coca-Cola doesn’t offer to its

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