1. CEO- Greg Bolton
COO- Elias Adepoju
CFO- Chanae Stout

2. Table of Contents
• Historical Analysis
• Mission
• Strategic Objectives
• Financial Objectives
• SWOT Analysis
• Financial Ratios
• Recommendations

3. Purpose
PepsiCo Inc. is a leading global snack and beverage
company. We manufacture, market, and sell a
variety of salty, convenient, sweet grain-based,
snacks, carbonated and non-carbonated beverages
and foods.

4. Historical Analysis
Founder Caleb Bradham
Current CEO is Indra Nooyi
Pepsi Co Inc. established in 1965 in North Carolina
Ceo of PepsiCo Inc. Donald M. Kendall
During first five years introduced new products such as Doritos
and Funyuns
Entered Japan and Eastern Europe markets
In 1992, expanded beyond carbonated beverages via a
agreement with Ocean Spray to distribute single-serving juices
Tropicana was acquired in 1998 and PepsiCo merged with the
Quaker Oats Company, including Gatorade, in 2001.
Implemented a number of acquisitions with Taco Bell in 1978,
Kentucky Fried Chicken in 1986 and Pizza Hut in 1977

5. Mission
To be the world's premier consumer products
company focused on convenient foods and beverages.
We seek to produce healthy 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.”

6. Values
PepsiCo Inc. reflects their values by their
commitments
Their committed to
Sustained Growth
Empowered people
Responsibility and Trust
PepsiCo Inc. commitment is to deliver sustained
growth, through empowered people, acting with
responsibility and trust.

7. Strategic Objectives
Strategic acquisitions Achieve Synergies
Product Reformations Close Relationships with
 To make snack foods and distribution allies
beverages less unhealthy International expansion
 By producing (GFY) good- Maintain Efficient
for-you or (BFY) better-for
distribution system
you products, that would
 Direct Store Delivery
create growth opportunities
 Broker Warehouse
 Related Diversification

8. Strategies
Realignment of their organization into three new
business units;
PepsiCo America Foods
 Includes FLNA ,QFNA and all of their Latin American food
and snack business LAF.
PepsiCo America Beverages
 Includes PBNA and all of our Latin American beverage
business
PepsiCo International
 Includes all PepsiCo business in the United Kingdom,
Europe, Asia, Middle East and Africa.

9. Financial Objectives
 Increase our investment in developing markets, make selective
investments to continue growing our global snacks business and
accelerate our global R&D initiatives to help secure our future
innovation pipeline.
 Produce $1.2 billion in pre-tax savings over the next three years
(Productivity for Growth Initiative)
 Investing to drive additional growth in key developing markets across
the world in both Snacks and Beverages.
 Targeted marketplace investments to further secure our competitive
position in developed Snack markets.
 Increase our investments in R&D, with particular focus on long-term
bets and innovation to sustain our long-term growth.
 Sustainable Growth

10. SWOT Analysis
 Strengths  Lays Chips
 Broad Product line  Quaker Oat granola bars
 Great reputation for their products  40% of company income from
 Increasing market share international companies
 3 different sectors to improve  Emerging markets contribute to
efficiency 60% of growth of international
 US food business
 India - will invested over 500
 US drinks
mil over next 3 years
 food and drinks abroad
 Russia - acquired Lebedyansky
 #1 company in snacks
juice company for 1.4 billion
 Doritos (800 mil in sales for 2007)

11. SWOT Analysis contin…
 Weaknesses
 Lack brand awareness with all products
 PepsiCo doesn't have all the products under one brand
 Frito Lay accounts for 1/3 of company sales
 Threats
 Weakened economy
 Pepsi blamed for pesticide residues in their products
 India
 1/3 of sales from Frito Lay
 US moving towards consumption of more healthier products
 Lawsuits
 Several competitors due to broad product line

12. SWOT Analysis contin…
 Opportunity
 Invest in healthier products
 Devote more focus to non carbonated healthy drinks
 Focus on international presence and recognition
 Invest in going green

14. Gross Profit Margin = Sales – Cost of Goods Sold = 39,474
,000 – 18,038,000 = 54.3%
Sales 39,474,000
Industry Average = 30.10%
Pepsi has 54.3 % of its revenue available to cover its total cost of goods
sold expenses and still have the ability to yield a profit. Compare to the
industry’s average that is excellent because Pepsi is 24.2% more than the
industry’s average.
Net Profit Margin = Profit after taxes = 5,658,000= $.1433
Sales 39,474,000
Industry Average = $.028
Pepsi makes .1433 cents in profit after taxes are deducted for every $1 it generates in sales.
Compared to the industry’s average, Pepsi is doing pretty well.

15. Current Ratio = Current Assets = 10,151,000= $1.31
Current Liabilities 7,753,000
Industry Average = $1.53
Pepsi has $1.31 in current assets available to pay off $1 in current liabilities it owes.
Compare to the industry’s average, Pepsi has to improve its current ratio
because its .22 cents less than the industry. Pepsi only has .31 after paying off its
current liabilities.
Quick Ratio = Current Assets – Inventory = 10,151,000 - 2,290,000 = $1.01
Current Liabilities 7,753,000
Industry Average = $0.9
Pepsi has $1.01 in current assets without the use of inventory to pay off $1 in current
liabilities it owes. Compare to the industry’s average, Pepsi is doing kind of okay
since it is only .11 ahead of the industry average.

16. Debt-to-assets Ratio = Total Debt = 17,394,000 = 50.2% (Hovers 20%)
Total Assets 34,628,000
Industry Average = 29%(Hovers)
Based on my calculation Pepsi has $.50 in debt to finance $1 in total assets or one can
say that Pepsi has 50.2% in debt. In my research, Hovers came up with a leverage
ratio of .20 (Pepsi) and .29 (Industry’s Average). In using Hovers’ results, compare
to the industry average Pepsi uses less debt to buy its assets.
Debt-to-Equity Ratio = Total Debt = 17,394,000 = 1.004 (Hovers .
48)
Total Shareholder’s Equity 17,325,000
Industry Average = .59 (Hovers)
Based on my calculation, Pepsi has $1.00 of debt for every dollar in equity to meets it financial goals. After
researching the industry’s average on Hovers online, the industry’s average is .59 and Pepsi is .48. Comparing
Hovers’ results among Industry’s average and Pepsi, Pepsi debt-to-equity ratio is looking good and I see no
need for improvements.

17. Inventory Ratio = Cost of Goods Sold = 18,038,000 = 7.88 times
Inventory 2,290,000
Industry Average = 6.5
Pepsi has the ability to turnover its inventory in sales by 7.88 times in one year.
Pepsi has a really good inventory turnover it’s able to turnover its inventory 1.38
times faster than the industry’s norm.
Total Asset Turnover = Sales = 39,474,000 = 1.14%
Total Assets 34,628,000
Industry Average = 1.1
Pepsi’s total asset turnover is 1.14, which basically means that for every dollar in
total assets, Pepsi has generated about $1.14 in sales. Compare to the industry’s
average, Pepsi has a reasonable asset turnover.

18. Recommendations
Lay-off about 3300 positions
 Savings from Productivity for Growth Initiative is
going to go into North America Beverages
Selected investments will be allocated into key
developing markets, and then Snacks in developed
markets from marketplace investments and then
R&D.
Introduce a wide-variety of Non-carbonated
beverages