1. PepsiCo
By: Ashley Cleary, Sylvia LaBrie, Andrea Baril, Marie-
Michele Lachance

2. Overview
∗ Company Overview ∗ Strategy Formulation
∗ History of Pepsi ∗ SWOT Matrix
∗ Grand Strategy Matrix
∗ Growth ∗ BCG
∗ 2009 Events and Issues ∗ Space Matrix Data
∗ Existing Mission and Vision statement ∗ Space Matrix
∗ New Mission and Vision Statement ∗ IE Matrix
∗ SWOT Analysis ∗ Matrix Analysis
∗ ∗ QSPM Matrix
External Assessment
∗ Strategic Plan
∗ CPM ∗ Strategy
∗ EFE ∗ Objectives
∗ Positioning Map ∗ Recommendations
∗ Internal Assessment ∗ Assumptions
∗ Organizational Chart ∗ Implementation
∗ EPS/EBIT
∗ Income Statement
∗ Projected Financials
∗ Balance Sheet ∗ Evaluation
∗ Financial ratios ∗ Balanced Scorecard
∗ IFE Matrix ∗ Key Future Ratios

3. 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

4. Growth
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.

5. Growth Cont.
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

6. Global
∗ 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

7. 2009
∗ Celebrated 75 years in Canada
∗ Was on the “Best Food for Women” list in Women’s
Health magazine
∗ Began a partnership with the NFL
∗ Won U.S. EPA SmartWay Environmental Excellence
award
∗ Became official beverage of Norwegian Cruise Lines

8. Mission Statement
∗ 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.

9. Vision 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.

10. Proposed Mission
∗ 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)
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

11. Proposed Vision
∗ PepsiCo, in association with smaller brands, offers a
wide variety of products from beverages to snacks at
low cost.

12. External Assessment

13. Opportunities
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

14. Threats
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

15. CPM
Pepsi Co. Coca Cola Dr. Pepper Snapple Group
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

16. EFE
Weighted
Key External Factors Weights Rating 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

17. Positioning Map
High Prices
Limited Diverse
Products Products
Dr. Pepper Coca Cola Pepsi Co.
Snapple Group
Low Prices

18. Market Share

19. Revenue Distribution

20. Stock Price History

21. Internal Assessment

22. Strengths
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

23. Weaknesses
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

24. IFE
Weighted
Key Internal Factors Weights Rating 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

25. 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

26. (In millions except per share amounts) 2009
Balance Sheet
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

27. Liquidity Ratios
2009 2008 Financial Ratios
Current Ratio 1.44 1.23
Quick Ratio 1.14 0.94
Leverage Ratios
Debt-to-Total Assets
0.56 0.65
Ratio
Debt-to-equity Ratio 1.33 1.86
Long-term debt-to-equity
0.44 0.62
Ratio
Times-Interest-earned
-17.1 -24.3
Ratio
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
0.35 0.41
equity
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%

28. Financial Trends
Net Return Return
Profit Book on on
Price/ Price/ Margin Value/ Debt/ Equity Assets Interest
Avg P/E Sales Book (%) Share Equity (%) (%) 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
Adapted from www.moneycentral.msn.com

29. Organizational Chart

30. Revenues and Profits

31. Strategy Formulation

32. SWOT
Matrix
SO Strategies ST Strategies WO Strategies WT Strategies
(O4, S1, S2, S6, S7) (T1, S1, S2, S3, S8) (W2, W5, W6, O2, O5) (W1, T2, T5) Adjust
Continue to offer Innovate Pepsi product Expand Pepsi sodas production of bottles
variety or product in line with something product in Europe and with downturn in
various brands. that is going to Asia. economy.
(O5, O2, S2) Expand differentiate us from (W1, O4, O6) Improve (W1, T3) Produce
and focus on the Coca-Cola. their sales in the bigger size of bottles
carbonated drinks and (S1, S3, O4) Innovate beverage segment by and sale them at the
beverage segment in products by offering responding to the same price as the small
Asia and Europe. healthier alternatives. increasing demand for one.
(O6, O4, S6, S7) (T2, T3, S3) Offer more sports drinks, bottled (W3, T6) Be
Respond to the promotions or water, and energy responsible and
growing demand of discounts to prevent drinks. cautious towards
sports drinks, bottled sales from decreasing. supplies of water.
water, and energy (T5, S1, S2, S4) (W1, W4, T6) Increase
drinks by expanding Develop more supply chain
product market. environmentally production by
friendly containers. monitoring cautiously
(T6, S6) Support employees and
improving workers
environmental issues,
training.
such as pollution, (W5, W6, T1) Increase
which causes water presence in the
contamination. international market.

33. Grand Strategy Matrix

34. 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%

35. BCG Cont.

36. SPACE Matrix
Financial Strength rating is 1 (worst) to 6 (best) Ratings
1 Liquidity 4.0
2 Cash Flow 5.0
3 Return on investment 4.0
4 Earnings per share 4.0
Industry Strength rating is 1 (worst) to 6 (best) FS Total 17.0
1 Ease of entry 6.0
2 Growth potential 5.0
3 Financial stability 4.0
4 Profit potential 5.0
Environmental Stability rating is -1 (best) to -6 (worst) IS Total 20.0
1 Demand variablity -1.0
2 Price range from competing products -1.0
3 Barriers to entry -1.0
4 Price elasticity of demand -1.0
Competitive advantage rating is -1 (best) to -6 (worst) ES Total -4.0
1 Market share -2.0
2 Product quality -3.0
3 Customer loyalty -3.0
4 Cotrol over suppliers and distributors -3.0
7
CS total -11.0

37. SPACE Graph
6 5 4 3 2 1 2 3 4 5 6
1
2
3
4
5
6

38. IE Matrix
The IFE Total Weighted scores
Strong 3.0 Average 2.0 Weak 1.0 to
to 4.0 to 2.99 1.99
High 3.0 to
4.0
PepsiCo
Medium 2.0
The EFE
to 2.99
Total
Weighted
Scores
Low 1.0 to
1.99

39. 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 Diversific ation 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

40. QSPM
Innovate products with Improve international
healthier alternative segment
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

41. 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

42. Strategic Plan

43. Strategy
∗ 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

44. Recommendations
∗ 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

45. Objectives
∗ 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

46. Assumptions
∗ 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

47. Implementation

48. 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

49. 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

50. Evaluation

51. Balanced
Area of Objectives
Customers
Measure of Target
Costumer Survey
Time Expectation
Primary
Responsibility Scorecard
1. Customer satisfaction Quarterly Human Resources
Webinars
Representatives
1. Improve production Increase in Supply chain
Biannually
efficiency production Operations
Employee surveys
2. Offer employee trainings Yearly Human Resources
Production efficiency
Community/ Social
Responsibility
Increase in
recyclable bottle
Being involve in
1. Eco-Friendly company Yearly CEO
more events
regarding water
contamination
Number and success
of charitable events
2. Ethical Company Yearly CEO
UNICEF amount of
money donated
Operations/Processes
New products
Product appearance CEO
1. Innovation Yearly
Acquisition of new
brands
Numbers of new
countries entered
Number of sales in
2. Brand expansion Yearly CEO
the International
Segment
Financial
1. Reduce cost of
Income Statement Quarterly Chief Financial Officer
production
Increase annual
2. Increase profitability Quarterly Chief Financial Officer
report

52. 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
0.44 0.33
Ratio
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%

53. Fun Facts

54. Pepsi/Coke Rivalry
∗ http://www.buzzfeed.com/pepsi/the-10-most-iconic-pepsi-com

55. Questions?

56. Sources
∗ "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 >.
∗ "Coke vs Pepsi." Coke vs Pepsi. N.p., n.d. Web. 25 Apr. 2012. <http://cokevspepsi.net/>.
∗ " 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=imvnsa&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+comparative+2007-2009&hl=en&gl=us>
∗ Steve. " Global Cola: 10 Pepsi-Cola Flavors You Can’t 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/>.