XACC280 - Week 9 Final - Financial Analysis

XACC280 - Week 9 Final - Financial Analysis - Financial...

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Financial Analysis 1 Financial Analysis Mark Spencer Axia College ACC 280
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Financial Analysis 2 Coca Cola and PepsiCo are both instantly recognizable companies around the world. Products from both companies are some of the most well-know products throughout most any country. Both companies have been creating, manufacturing, and distributing soft drinks and other products such as bottled water for years, and as the two companies have been competing customers in a very competitive market for most of their existence. Many refer to the rivalry between Coca-Cola and Pepsi as the Cola Wars. In the market of soft drinks there are many companies all competing for the same business, some are small local companies and some are large multinational companies but the primary competitor of PepsiCo, Inc is Coca-Cola, and vice versa. The operations of both companies extend well beyond the borders of the United States. Coca-Cola and PepsiCo, Inc both market to consumers around the globe, and of virtually all income segments. Each company produces similar products and services (Coca Cola Company, 2010). It is common knowledge that when a company makes the decision to venture beyond its domestic territory many challenges await, primarily the production and distribution of the merchandise becomes a concern. Will it be less expensive to manufacture it domestically and ship the product to the new markets, or is it less expensive to open a distribution facility in the new market. Both PepsiCo and Coca-Cola own and operate manufacturing facilities in numerous countries throughout the world. Each company closely watches the other and is typically quick to launch similar advertising campaigns and promotions to market their existing products or invent new products to meet the ever-changing demands of the worldwide consumer base to which they each market (Wikipedia, 2010). Because each of the companies is multinational, they frequently encounter risks when attempting to enter a new market; they must consider several issues such as legal risk, political risk, and business risk. The companies are constantly aware that not everyone will enjoy the
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Financial Analysis 3 same products. Tastes change from one country to the next and even from one state to the next. Each of the companies works to maintain a high level of ethical and moral standards. Both companies, along with most other major corporations, have public relation department, which has the primary function of ensuring the companies goals and visions are properly communicated with the targeted audience. Both companies are very active members of the communities in which they do business. From offering educational grants, money to support the arts, and housing and basic necessities for those in need, the welfare of their customer is a concern of both
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This note was uploaded on 12/13/2011 for the course ACCOUNTING ACC 280 taught by Professor Kenfredrickson during the Spring '09 term at University of Phoenix.

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XACC280 - Week 9 Final - Financial Analysis - Financial...

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