PepsiCo

By: Ashley Cleary, Sylvia LaBrie, Andrea Baril, Marie-

Michele Lachance
Overview
Company Overview
History of Pepsi
Growth
2009 Events and Issues
Existing Mission and Vision statement
New Mission and Vision Statement
SWOT Analysis
External Assessment
CPM
EFE
Positioning Map
Internal Assessment
Organizational Chart
Income Statement
Balance Sheet
Financial ratios
IFE Matrix

Strategy Formulation
SWOT Matrix
Grand Strategy Matrix
BCG
Space Matrix Data
Space Matrix
IE Matrix
Matrix Analysis
QSPM Matrix
Strategic Plan
Strategy
Objectives
Recommendations
Assumptions
Implementation
EPS/EBIT
Projected Financials
Evaluation
Balanced Scorecard
Key Future Ratios

History
In 1965: PepsiCo, Inc. is founded by Donald M. Kendall, President and CEO
of Pepsi-Cola and Herman W. Lay, Chairman and CEO of Frito-Lay, through
the merger:
1. Pepsi-Cola In 1898: Caleb Bradham, a New Bern, North Carolina,
pharmacist, created "Brad's Drink," a carbonated soft drink he created to
serve his drugstore's fountain customers.
2. Frito Company

3. H. W. Lay Company

The Major products of the companies are:
Pepsi-Cola Company
Fritos brand corn chips, Lay's brand potato chips, Cheetos brand cheese
flavored snacks, Ruffles brand potato chips, Rold Gold brand pretzels.
Mountain Dew

1966:
Doritos is introduced
Pepsi enters Japan and Eastern Europe.

1970:
PepsiCo moves from New York City to new world headquarters in Purchase, N.Y
Pepsi is the first company to respond to consumer preference with lightweight, recyclable, plastic
bottles.

1977:
PepsiCo acquires Pizza Hut, Inc

1978:
Taco Bell

1980:
PepsiCo Food Service International (PFSI) is formed to focus on overseas development of restaurants.

Growth
1982:
Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas, are introduced.
Inauguration of the first Pepsi-Cola operation in China.

1985:
PepsiCo is now the largest company in the beverage industry. The company has revenues of
more than $7.5 billion, more than 137,000 employees.
Pepsi-Cola products are available in nearly 150 countries and territories around the world. Snack
food operations are in 10 international markets.

1986:
PepsiCo purchases 7Up International, the third largest franchise soft drink operation outside the
United States.

1993:
Pepsi-Cola introduces Aquafina bottled water into test market.

1996:
Pepsi-Cola launches Pepsi World at www.pepsiworld.com

Growth Cont.
Pepsi products are in almost 200 countries
throughout the world
There are 22 different brand lines that account for at
least $1 billion per year per brand
Global
Celebrated 75 years in Canada
Was on the Best Food for Women list in Womens
Health magazine
Began a partnership with the NFL
Won U.S. EPA SmartWay Environmental Excellence
award
Became official beverage of Norwegian Cruise Lines

2009
Our mission is 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.
Mission Statement
PepsiCo's responsibility is to continually improve all
aspects of the world in which we operate -
environment, social, economic - creating a better
tomorrow than today."
Our vision is put into action through programs and a
focus on environmental stewardship, activities to
benefit society, and a commitment to build shareholder
value by making PepsiCo a truly sustainable company.

Vision Statement
Our mission is to be the world's premier consumer products company
focused on convenient foods and beverages through stores as well as
our website. (1,2.3,4) 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. (5,8,9) And in everything we do, we strive for honesty, fairness
and integrity. (6,7)

Proposed Mission
1. Customer
2. Products or Services
3. Markets
4. Technology
5. Concern for survival, profitability, and growth
6. Philosophy
7. Self-Concept
8. Concern for public image
9. Concern for employees
PepsiCo, in association with smaller brands, offers a
wide variety of products from beverages to snacks at
low cost.

Proposed Vision
External Assessment
1. Opening in market for less costly products
2. Growth opportunities in developed countries as well as
international nonestablished countries
3. Pepsi recently reacquired ownership of its two largest bottlers,
Pepsi Bottling Group (PBG) and PepsiAmericas (PAS)
4. Compete in more than one industry (non-alcoholic beverage
industry, the salty or savory snack food industry, and the breakfast
food industry)
5. Growth in the carbonated drink market is the largest in Asia and
Europe
6. The world's demand is experiencing a growth with the sports
drinks, bottled water, and energy drinks

Opportunities
1. Fierce competition from Coca-Cola, which owns the largest piece
of the market share
2. The downturn in economy, which lead customers to shift away
from bottles of water to tap water.
3. Because of the recession, customers are finding cheaper
alternatives to the national brands.
4. Customers are getting more conscious and concerned about
their eating habits and general health.
5. Campaign against plastic containers has impacted the sale of
bottled beverages
6. Highly dependent on supplies of clean water, to prevent
contamination

Threats
Critical Success factors Weights Rating Weighted Score Rating Weighted Score Rating Weighted Score
0.0 to 1.0 1 to 4 1 to 4 1 to 4
0 0 0
Advertising 0.12 4 0.48 4 0.48 3 0.36
Price Competitiveness 0.11 3 0.33 3 0.33 2 0.22
Product Diversity 0.1 4 0.4 4 0.4 3 0.3
Market Share 0.1 3 0.3 4 0.4 2 0.2
Company Image 0.12 3 0.36 4 0.48 3 0.36
Customer Loyalty 0.12 4 0.48 4 0.48 3 0.36
Financial Position 0.09 3 0.27 3 0.27 2 0.18
Sales Distrubution 0.08 2 0.16 4 0.32 4 0.32
Product Quality 0.09 4 0.36 4 0.36 3 0.27
Global Expansion 0.07 3 0.21 4 0.28 3 0.21
Totals 1 3.35 3.8 2.78
Dr. Pepper Snapple Group Pepsi Co. Coca Cola

CPM

Key External Factors Weights Rating
Weighted
Score
0.0 to 1.0 1 to 4
Opening in market for less costly products 0.05 2 0.1
Growth opportunities in developed countries as well as international unestablished countries 0.08 3 0.24
Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and
PepsiAmericas (PAS) 0.05 1 0.05
Compete in more than one industry (non-alcoholic beverage industry, the salty or savory snack food
industry, and the breakfast food industry) 0.13 4 0.52
Growth in the carbonated drink market is the largest in Asia and Europe 0.09 3 0.27
The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks. 0.13 4 0.52
Threats 0
Fierce competition from Coca-Cola, which owns the largest piece of the market share 0.12 4 0.48
The downturn in economy, which lead customers to shift away from bottles of water to tap water. 0.05 2 0.1
Because of the recession, customers are finding cheaper alternatives to the national brands. 0.1 3 0.3
Customers are getting more conscious and concerned about their eating habits and general health. 0.09 4 0.36
Campaign against plastic containers has impacted the sale of bottled beverages 0.05 2 0.1
Highly dependent on supplies of clean water, to prevent contamination 0.06 2 0.12
Totals 1 3.16
EFE
Positioning Map
High Prices

Pepsi Co.

Coca Cola


Dr. Pepper
Snapple Group
Low Prices
Diverse
Products

Limited
Products

14%
80%
6%
PepsiCo
Coca-Cola
Others
Market Share
Revenue Distribution
Stock Price History
Internal Assessment
1. Strong brand equity
2. Well-known worldwide
3. Innovating company
4. Ethical, socially responsible, and sustainable company
5. Strong advertising company with more than 40 slogans
and songs
6. PepsiCo as the largest part of the market share after Coca-
Cola
7. PepsiCo owns a wide variety of smaller brands which able
them to offer a large product range from beverages to
snacks

Strengths
1.PepsiCo production is really expansive because of the need
to constantly develop new products to meet the changing
customers demands
2. PepsiCo is experiencing a lack of focus towards Pepsi sodas
3. PepsiCo is experiencing product recalls
4. PepsiCo has a low employment productivity and a weak
distribution
5. PepsiCo depends too much on the US market
6. PepsiCo is far behind Coca-Cola in the international market

Weaknesses
Key Internal Factors Weights Rating
Weighted
Score
0.0 to 1.0 1, 2, 3 or 4
Internal Strengths 3 or 4
Strong brand equity 0.12 4 0.48
Well known worldwide 0.06 4 0.24
PepsiCo owns a wide variety of smaller brands which able them to offer a large product range 0.08 4 0.32
Innovating company 0.08 4 0.32
Ethical, socially responsible, and sustainable company 0.05 3 0.15
Strong advertising company with more than 40 slogans and songs 0.07 3 0.21
PepsiCo as the largest part of the market share after Coca-Cola 0.06 4 0.24
Internal Weaknesses 1 or 2
PepsiCo production is really expensive because of the need to constantly develop new
products to meet the changing costumers demands 0.05 2 0.1
PepsiCo is experiencing a lack of focus towards Pepsi 0.06 2 0.12
PepsiCo is experiencing product recalls 0.12 1 0.12
PepsiCo has low employment productivity and a weak distribution 0.08 1 0.08
PepsiCo depends too much on the US market 0.08 2 0.16
PepsiCo is far behind Coca-Cola in the international market 0.09 2 0.18
Totals 1 2.72
IFE
Income Statement
(in millions except per share amounts) 2009
Net Revenue $43,232.00
Cost of sales $20,099.00
Selling, general and administrative expenses $15,026.00
Amortization of intangible assets $63.00
Operating Profit $8,044.00
Bottling equity income $365.00
Interest expense ($397.00)
Interest income $67.00
Income before Income Taxes $8,079.00
Provision for Income Taxes $2,100.00
Net Income $5,979.00
Less: Net income attributable to noncontrolling
interests $33.00
Net Income Attributable to PepsiCo $5,946.00
Net Income Attributable to PepsiCo per Common
Share
Basic $3.81
Diluted $3.77
Balance Sheet
(In millions except per share amounts) 2009
Assets
Current Assets
Cash and cash equivalents 3,943.00 $
Short-term investments 192.00 $
Accounts and notes receivable, net 4,624.00 $
Inventories 2,618.00 $
Prepaid expenses and other current assets 1,194.00 $
Total Current Assets 12,571.00 $
Property, Plant and Equipment, net 12,671.00 $
Amortizable Intangible Assets, net 841.00 $
Goodwill 6,534.00 $
Other nonamortizable itangible assets 1,782.00 $
Nonamortizable Intangible Assets 8,316.00 $
Investments in Noncontrolled Affiliates 4,484.00 $
Other Assets 965.00 $
Total Assets 39,848.00 $
Liabilities and Equity
Current Liabilities
Short-term obligations 464.00 $
Accounts payable and other current liabilities 8,127.00 $
Income taxes Payable 165.00 $
Total Current Liabilities 8,756.00 $
Long-Term Debt Obligations 7,400.00 $
Other Liabilities 5,591.00 $
Deferred Income Taxes 659.00 $
Total Liabilities 22,406.00 $
Commitments and Contigencies
Preferred Stock, no par value 41.00 $
Repurchased Preferred Stock (145.00) $
PepsiCo Common Shareholders' Equity
Common stock, par value 1 2/3 cents per share
(authorized 3,600 shares, issued 1,782 shares) 30.00 $
Capital in excess of par value 250.00 $
Retained earnings 33,805.00 $
Accumulated other comprehensive loss (3,794.00) $
Repurchased common stock, at cost (217 and 229
shares,respectively) (13,383.00) $
Total PepsiCo Common Shareholders' Equity 16,908.00 $
Noncontrolling interests 638.00 $
Total Equity 17,442.00 $
Total Liabilities and Equity 39,848.00 $
Financial Ratios
2009 2008
Liquidity Ratios
Current Ratio 1.44 1.23
Quick Ratio 1.14 0.94
Leverage Ratios
Debt-to-Total Assets
Ratio
0.56 0.65
Debt-to-equity Ratio 1.33 1.86
Long-term debt-to-equity
Ratio
0.44 0.62
Times-Interest-earned
Ratio
-17.1 -24.3
Activity Ratios
Inventory Turns 16.5 17.15
Fixed Assets Turnover 3.41 3.71
Total Assets Turnover 1.08 1.2
Profitability Ratios
Gross Profit margins 0.54 0.53
Operating Profit Margin 0.19 0.16
Net Profit Margin 0.14 0.12
Return on Total Assets 0.15 0.14
Return on Stockholders
equity
0.35 0.41
Earning per share 3.36 2.9
Price-earnings Ratio 8.94 10.35
Growth Rations
(yearly)
Sales -0.04% 9.57%
Net Income 15.74% -8.89%
Earnings per share -0.27% -5.87%
Avg P/E
Price/
Sales
Price/
Book
Net
Profit
Margin
(%)
Book
Value/
Share
Debt/
Equity
Return
on
Equity
(%)
Return
on
Assets
(%)
Interest
Coverage
1-Dec-09 14.7 2.22 5.68 13.7 $10.74 0.47 35.4 14.9 20.3
1-Dec-08 20.6 2.02 7 11.9 $7.80 0.68 42.5 14.3 21.2
1-Dec-07 19.6 3.24 7.17 14.4 $10.74 0.24 33 16.4 32.1
1-Dec-06 18.3 3 6.67 16 $9.38 0.18 36.7 18.9 27.2
1-Dec-05 23.3 3.1 6.87 12.5 $8.61 0.37 28.6 12.9 23.1
1-Dec-04 21.2 3.07 6.45 14.2 $8.05 0.26 30.9 14.9 31.5
1-Dec-03 21.6 3 6.67 13.2 $6.96 0.19 30 14.1 29.3
1-Dec-02 27.7 2.96 7.53 11.8 $5.53 0.29 31.5 12.8 24.1
Financial Trends
Adapted from www.moneycentral.msn.com
Organizational Chart
Revenues and Profits
Strategy Formulation
SWOT
Matrix
SO Strategies ST Strategies WO Strategies WT Strategies
(O4, S1, S2, S6, S7)
Continue to offer
variety or product in
various brands.
(O5, O2, S2) Expand
and focus on the
carbonated drinks and
beverage segment in
Asia and Europe.
(O6, O4, S6, S7)
Respond to the
growing demand of
sports drinks, bottled
water, and energy
drinks by expanding
product market.

(T1, S1, S2, S3, S8)
Innovate Pepsi product
line with something
that is going to
differentiate us from
Coca-Cola.
(S1, S3, O4) Innovate
products by offering
healthier alternatives.
(T2, T3, S3) Offer more
promotions or
discounts to prevent
sales from decreasing.
(T5, S1, S2, S4)
Develop more
environmentally
friendly containers.
(T6, S6) Support
environmental issues,
such as pollution,
which causes water
contamination.
(W2, W5, W6, O2, O5)
Expand Pepsi sodas
product in Europe and
Asia.
(W1, O4, O6) Improve
their sales in the
beverage segment by
responding to the
increasing demand for
sports drinks, bottled
water, and energy
drinks.

(W1, T2, T5) Adjust
production of bottles
with downturn in
economy.
(W1, T3) Produce
bigger size of bottles
and sale them at the
same price as the small
one.
(W3, T6) Be
responsible and
cautious towards
supplies of water.
(W1, W4, T6) Increase
supply chain
production by
monitoring cautiously
employees and
improving workers
training.
(W5, W6, T1) Increase
presence in the
international market.


Grand Strategy Matrix
BCG
Division Revenue % Revenue Profit Profit % Market Share Market Growth
Frito-Lay North America $ 13,224.00 31% $ 3,258.00 38% 1 5.42%
Quaker Foods North America $ 1,884.00 4% $ 628.00 7% 1 -0.95%
Latin America Foods $ 5,703.00 13% $ 904.00 10% 1 -3.26%
PepsiCo Americas Beverages $ 10,116.00 23% $ 2,172.00 25% 0.8 -7.51%
Europe $ 6,727.00 16% $ 932.00 11% 0.4 -2.38%
Asia, Middle East & Africa $ 5,578.00 13% $ 716.00 8% 0.3 8.97%
Total $ 43,232.00 100% $ 8,610.00 100%
BCG Cont.
Financial Strength rating is 1 (worst) to 6 (best) Ratings
1 4.0
2 5.0
3 4.0
4 4.0
Industry Strength rating is 1 (worst) to 6 (best) FS Total 17.0
1 6.0
2 5.0
3 4.0
4 5.0
Environmental Stability rating is -1 (best) to -6 (worst) IS Total 20.0
1 -1.0
2 -1.0
3 -1.0
4 -1.0
Competitive advantage rating is -1 (best) to -6 (worst) ES Total -4.0
1 -2.0
2 -3.0
3 -3.0
4 -3.0
7
CS total -11.0
Product quality
Customer loyalty
Cotrol over suppliers and distributors
Demand variablity
Price range from competing products
Barriers to entry
Price elasticity of demand
Ease of entry
Growth potential
Financial stability
Profit potential
Market share
Cash Flow
Liquidity
Return on investment
Earnings per share
SPACE Matrix
SPACE Graph
1 2 3 4 5 6
1

2

3

4

5

6

6 5 4 3 2
The EFE
Total
Weighted
Scores
High 3.0 to
4.0
Medium 2.0
to 2.99
Low 1.0 to
1.99
Strong 3.0
to 4.0
Weak 1.0 to
1.99
The IFE Total Weighted scores
Average 2.0
to 2.99
PepsiCo
IE Matrix
Matrix Analysis
Alternative Strategies IE SPACE BCG GRAND Count
Forward Integration x x x 3
Backward Integration x x x 3
Horizontal Integration x x x 3
Market Penetration x x x 3
Market Development x x x 3
Product Development x x x 3
Related Diversification x x x 3
Unrelated Diversification x x x 3
Horizontal Diversification x x 2
Joint Venture x x 2
Retrenchement x 1
Divesture x 1
Liquidation x 1
QSPM
Key factors Weight AS TAS AS TAS
External 1 to 4 1 to 4
Opportunities:
Provide less costly products 0.05 1 3 0.15
Improve presence in established countries and increase international market where they are not already settled 0.08 3 0.24 4 0.32
Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) 0.05 0 0
Compete in more than one industry (non-alcoholic beverage industry, the salty or savory
snack food industry, and the breakfast food industry) 0.13 4 0.52 3 0.39
Growth in the carbonated drink market is the largest in Asia and Europe 0.09 1 0.09 4 0.36
The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks. 0.13 4 0.52 4 0.52
Threats: 0 0
Fierce competition from Coca-Cola, which owns the largest piece of the market share 0.12 3 0.36 3 0.36
The downturn in economy, which lead customers to shift away from bottles of water to tap water. 0.05 1 0.05 4 0.2
Because of the recession, customers are finding cheaper alternatives to the national brands. 0.1 1 0.1 4 0.4
Customers are getting more conscious and concerned about their eating habits and general health. 0.09 4 0.36 0
Campaign against plastic containers has impacted the sale of bottled beverages 0.05 0 1 0.05
Highly dependent on supplies of clean water, to prevent contamination 0.06 0 0
1
Innovate products with
healthier alternative
Improve international
segment
QSPM Cont.
Internal 1 to 4 1 to 4
Strengths
Strong brand equity 0.12 4 0.48 4 0.48
Well known worldwide 0.06 3 0.18 4 0.24
PepsiCo owns a wide variety of smaller brands which able them to offer a large product
range from beverages to snacks 0.08 4 0.32 2 0.16
Innovating company 0.08 4 0.32 4 0.32
Ethical, socially responsible, and sustainable company 0.05 2 0.1 3 0.15
Strong advertising company with more than 40 slogans and songs 0.07 3 0.21 3 0.21
PepsiCo as the largest part of the market share after Coca-Cola 0.06 4 0.24 3 0.18
Weaknesses: 0 0
PepsiCo production is really expensive because of the need to constantly develop new
products to meet the changing costumers demands 0.05 1 0.05 2 0.1
PepsiCo is experiencing a lack of focus towards Pepsi 0.06 0 0
PepsiCo is experiencing product recalls 0.12 1 0.12 1 0.12
PepsiCo has low employment productivity and a weak distribution 0.08 1 0.08 1 0.08
PepsiCo depends too much on the US market 0.08 2 0.16 1 0.08
PepsiCo is far behind Coca-Cola in the international market 0.09 2 0.18 1 0.09
1
4.68 4.96
Strategic Plan
Market development is a strategy that PepsiCo should
apply by expanding in countries that not already
established
Use forward integration to acquire smaller companies
in foreign markets to increase their market share
Product development and related diversification
should also be considered while trying to produce and
distribute healthier products
Strategy
In the next 3 years, PepsiCo should acquire 3 brands
per year in an international marketplace
One of these 3 brands per year must be healthy
Increase production and distribution of carbonated
drinks in Asian and European countries
PepsiCo will expand into Africa to make use of the
international market they are not part of
Recommendations
Spend $15 million on a healthier more eco-friendly
beverage brand in an already established country
Spend $15 million on a healthier more eco-friendly
snack brand in an already established country
Spend $10 million to acquire a smaller brand in Africa
Increase our revenues by 5% in 2010
Start our own environmental cause fund with $1
million

Objectives
Spend $40 million to acquire new brands
Spend $1 million to start an environmental cause
group
Revenue increase of 5%
Decrease short-term and long-term debt by using
some of our cash and cash equivalents as well as
retained earnings
Assumptions
Implementation
Projected Income Statement
(in millions except per share amounts) 2009 2010
Net Revenue $43,232.00 45,393.60 $ 5% increase
Cost of sales $20,099.00 21,549.09 $ Based on previous years %
Selling, general and administrative expenses $15,026.00 15,476.78 $ 3% increase based on new brands/territories
Amortization of intangible assets $63.00 63.00 $
Operating Profit $8,044.00 8,304.73 $
Bottling equity income $365.00 365.00 $
Interest expense ($397.00) (397.00) $
Interest income $67.00 67.00 $
Income before Income Taxes $8,079.00 8,339.73 $
Provision for Income Taxes $2,100.00 2,100.00 $
Net Income $5,979.00 6,239.73 $
Less: Net income attributable to noncontrolling
interests $33.00 33.00 $
Net Income Attributable to PepsiCo $5,946.00 6,206.73 $
Net Income Attributable to PepsiCo per Common
Share
Basic $3.81 3.98 $
Diluted $3.77 3.94 $
Projected Balance Sheet
(In millions except per share amounts) 2009 2010
Assets
Current Assets
Cash and cash equivalents 3,943.00 $ 3,264.63 $ -$10 million for purchasing of new brands also paid off some accounts payable
Short-term investments 192.00 $ 200.00 $
Accounts and notes receivable, net 4,624.00 $ 5,250.00 $
Inventories 2,618.00 $ 3,500.00 $
Prepaid expenses and other current assets 1,194.00 $ 2,500.00 $
Total Current Assets 12,571.00 $ 14,714.63 $
Property, Plant and Equipment, net 12,671.00 $ 13,938.10 $ More brands equal 10% increase
Amortizable Intangible Assets, net 841.00 $ 908.28 $ Based on previous years %
Goodwill 6,534.00 $ 6,750.68 $ Purchased 3 brands and their goodwill
Other nonamortizable itangible assets 1,782.00 $ 1,783.00 $ add $1 million for environmental group
Nonamortizable Intangible Assets 8,316.00 $ 8,533.68 $
Investments in Noncontrolled Affiliates 4,484.00 $ 4,892.34 $
Other Assets 965.00 $ 1,300.00 $
Total Assets 39,848.00 $ 44,287.03 $
Liabilities and Equity
Current Liabilities
Short-term obligations 464.00 $ 464.00 $
Accounts payable and other current liabilities 8,127.00 $ 7,314.30 $ Use cash to reduce accounts payable by 10%
Income taxes Payable 165.00 $ 165.00 $
Total Current Liabilities 8,756.00 $ 7,943.30 $
Long-Term Debt Obligations 7,400.00 $ 7,400.00 $
Other Liabilities 5,591.00 $ 5,591.00 $
Deferred Income Taxes 659.00 $ 659.00 $
Total Liabilities 22,406.00 $ 21,593.30 $
Commitments and Contigencies
Preferred Stock, no par value 41.00 $ 41.00 $
Repurchased Preferred Stock (145.00) $ (300.00) $
PepsiCo Common Shareholders' Equity
Common stock, par value 1 2/3 cents per share
(authorized 3,600 shares, issued 1,782 shares) 30.00 $ 30.00 $
Capital in excess of par value 250.00 $ 250.00 $
Retained earnings 33,805.00 $ 39,980.73 $ Based on Income Statement - $31 million for purchasing of new brands and environmental group
Accumulated other comprehensive loss (3,794.00) $ (4,500.00) $
Repurchased common stock, at cost (217 and 229
shares,respectively) (13,383.00) $ (13,383.00) $
Total PepsiCo Common Shareholders' Equity 16,908.00 $ 22,118.73 $
Noncontrolling interests 638.00 $ 575.00 $
Total Equity 17,442.00 $ 22,693.73 $
Total Liabilities and Equity 39,848.00 $ 44,287.03 $
Evaluation
Balanced
Scorecard
Area of Objectives Measure of Target Time Expectation
Primary
Responsibility
Customers
1. Customer satisfaction
Costumer Survey
Webinars
Quarterly Human Resources
Representatives
1. Improve production
efficiency
Increase in
production
Biannually
Supply chain
Operations
2. Offer employee trainings
Employee surveys
Production efficiency
Yearly Human Resources
Community/ Social
Responsibility

1. Eco-Friendly company
Increase in
recyclable bottle
Being involve in
more events
regarding water
contamination
Yearly CEO
2. Ethical Company
Number and success
of charitable events
UNICEF amount of
money donated
Yearly CEO
Operations/Processes
1. Innovation

New products
Product appearance
Acquisition of new
brands

Yearly
CEO

2. Brand expansion
Numbers of new
countries entered
Number of sales in
the International
Segment

Yearly CEO
Financial
1. Reduce cost of
production
Income Statement Quarterly Chief Financial Officer
2. Increase profitability
Increase annual
report
Quarterly Chief Financial Officer

Future Ratios
2009 Projected 2010
Liquidity Ratios
Current Ratio 1.44 1.85
Quick Ratio 1.14 1.41
Leverage Ratios
Debt-to-Total Assets Ratio 0.56 0.5
Debt-to-equity Ratio 1.33 0.97
Long-term debt-to-equity
Ratio
0.44 0.33
Times-Interest-earned Ratio -17.1 -21.01
Activity Ratios
Inventory Turns 16.5 12.97
Fixed Assets Turnover 3.41 3.26
Total Assets Turnover 1.08 1.02
Profitability Ratios
Gross Profit margins 0.54 0.57
Operating Profit Margin 0.19 0.21
Net Profit Margin 0.14 0.19
Return on Total Assets 0.15 0.16
Return on Stockholders equity 0.35 0.36
Earning per share 3.36 3.43
Price-earnings Ratio 8.94 8.74
Growth Rations (yearly)
Sales -0.04% 5.00%
Net Income 15.74% 4.36%
Earnings per share -0.27% 15.79%
Fun Facts
http://www.buzzfeed.com/pepsi/the-10-most-iconic-
pepsi-commercials-of-all-time-1q6t

Pepsi/Coke Rivalry
Questions?
"2010 Will be Changing for PepsiCo." Medill Reports Chicago. N.p., n.d. Web. 20 Apr. 2012.
<news.medill.northwestern.edu/chicago/news.aspx?id=157896 >.
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" Google Image Result for http://41minds.files.wordpress.com/2011/04/bcggrowthsharematrix.png."Google. N.p., n.d.
Web. 22 Apr. 2012.
<http://www.google.com/imgres?hl=en&sa=X&rlz=1C1LENN_enUS472US472&biw=1366&bih=677&tbm=isch&prmd=im
vnsa&tbnid=VtCOuMODso-oZM:&imgrefurl=http://41minds.com/tag/bcg-matrix/&docid=JDNK6PE50NlOOM&imgur
"Key financial ratios: Financial results - MSN Money ." Money: Personal finance, investing news & advice - MSN Money.
N.p., n.d. Web. 25 Apr. 2012. <http://investing.money.msn.com/investments/key-
ratios?symbol=PEP&page=TenYearSummary>.
"PEP: Summary for Pepsico, Inc. Common Stock- Yahoo! Finance." Yahoo! Finance - Business Finance, Stock Market,
Quotes, News. N.p., n.d. Web. 25 Apr. 2012. <http://finance.yahoo.com/q?s=PEP>.
"Pepsi History." Sirpepsi. N.p., n.d. Web. 25 Apr. 2012. <http://www.sirpepsi.com/pepsi11.htm>.
"PepsiCo 2009 annual report." PepsiCo. N.p., n.d. Web. 19 Apr. 2012. <www.pepsico.com/Download/PEPSICO_AR.pdf>.
"PepsiCo Brands | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 24 Apr. 2012.
<http://www.pepsico.com/Brands.html>.
"PepsiCo Investors | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 25 Apr. 2012.
<http://www.pepsico.com/Investors.html>.
"PepsiCo MORE | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 25 Apr. 2012.
<http://www.pepsico.com/Global-Sites/More.html>.
Reppo, Ilya, and Michelle Yan. "PepsiCo Valuation." Leeds-faculty Colorado. N.p., n.d. Web. 14 Apr. 2012. <leeds-
faculty.colorado.edu/madigan/4820/Presentations%202010/PepsiCo%20Report.pdf>.
segment. "PepsiCo Valuation." Google. N.p., n.d. Web. 23 Apr. 2012.
<http://webcache.googleusercontent.com/search?q=cache:egHCTRx43AYJ:leeds-
faculty.colorado.edu/madigan/4820/Presentations%25202010/PepsiCo%2520Report.pdf+PepsiCo+net+revenue+compar
ative+2007-2009&hl=en&gl=us>
Steve. " Global Cola: 10 Pepsi-Cola Flavors You Cant Get Here | WebUrbanist ." WebUrbanist | From Urban Art & 3D
Graffiti to Abandoned Cities . N.p., n.d. Web. 25 Apr. 2012. <http://weburbanist.com/2010/05/02/global-cola-10-pepsi-
cola-flavors-you-cant-get-here/>.



Sources