By: Ian Michael Cicero
Accounting 4th Hour
19 April 2012

PepsiCo, Inc. was
founded by Donald M.
Kendall, President and
Chief Executive Officer
of Pepsi-Cola and
Herman W. Lay,
Chairman and Chief
Executive Officer of
Frito-Lay, through the
merger of the two
companies in 1965.
In 1966 Pepsi
enters Japan and
Eastern Europe.
 Also the slogan
becomes, “Come
alive! You’re in
the Pepsi
generation.”



PepsiCo sales pass
the $1 billion mark
in 1973.
PepsiCo moves
from New York City
to new world
headquarters in
Purchase, New
York.

Foods International,
later called PepsiCo
Foods International
(PFI) and subsequently
named Frito-Lay
International, is
established to market
snack foods around
the world in 1976.


The Pepsi Challenge,
introduced in Dallas,
Texas in 1975,
becomes a national
campaign. Around the
nation, consumers
select Pepsi-Cola as
the best tasting cola.
PepsiCo adopts Code
of Worldwide Business
Conduct.
PepsiCo acquires
Pizza Hut, Inc.
 Also acquire
Taco Bell.
 PepsiCo stock
splits three-forone.


In 1984 PepsiCo is
restructured to focus
on its three core
businesses: soft
drinks, snack foods
and restaurants.
Transportation and
sporting goods
businesses are sold.


By 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.


Pepsi reaches all time
highs in all categories
of the business.
The ever growing
PepsiCo takes on
numerous drinks,
snacks, and business
to add to it’s growing
empire.


In the year 2012,
Pepsi has over
285,000
employees.
Pepsi is the world
leader in
convenient snacks,
food, and
beverages with
revenue over $60
billion.


Today, Pepsi’s
headquarters is in
Purchase, New York.
The new corporate
headquarters feature a
building by one of
America's foremost
architects, Edward
Durrell Stone, set on a
campus of 144 acres
amid an outdoor
sculpture garden.


PepsiCo is in the
business of
producing,
distributing, and
buying beverages,
snacks, and other
businesses.
Pepsi’s main source
of income is the
snack and beverage
industry.






Pepsi Brands include Frito Lay, Tropicana Juice Products,
Quaker Brands, and Gatorade.
Frito Lay Products include Tostitos, Doritos, Lays Chips,
and Flat Earth Snacks.
Quaker Brands include Aunt Jemima, Rice-A-Roni, Near
East side dishes, Spudz snacks, and Crisp'ums baked
crisps.
Quaker Breakfast Cereal Brands include, Life, Puffed
Wheat, Harvet Crunch, King Vitamin, Quaker Oh's!,
Mother's Cereal, and Cap'n Crunch.
Gatorade Brands include G2, and Propel Fit Water.
Pepsi's SoftDrink Brands include Pepsi, Diet Pepsi, Pepsi
Max, Mountain Dew, Diet Mountain Dew, Mountain Dew
Voltage, Sierra Mist, and Diet Sierra Mist.




Today’s Price: $66.21
Historical High: In
2007 stock prices got
to $78.26 per share.
Historical Low: In 1990
the stock price was
$13.31
Dividend Amount:
3.11%

From what I have seen and read I have come
to the conclusion of what dividends are. I now
see that the earnings of a company must be
distributed to the stockholders. When a
company is doing well, the people who have
stock in that company also receive a financial
gain. When the company is doing bad, the
stockholders take a financial loss.

“S”, stands for strengths of the company.

“W”, stands for weaknesses in the company.

“O”, stands for opportunities for future
growth or areas that have not been explored.

“T”, stands for threats to the profitability and
growth of the business.
Three strengths of
Pepsi are:
1. Brand strength
2. Effective stride in
new markets
3. Strong existing
distribution
channels

1.
2.
3.
Pepsi has brand strength due to the vast
amount of products they have. They sell
snacks, beverages, and merchandise with
their logo on it.
Pepsi has a effective stride in new business
because of the empire they have built.
Pepsi has strong distribution channels
because they have a trusted name that has
been around for a long time.
Three weaknesses of
Pepsi are:
1. Reliant upon
carbonated drinks
2. Entrance into difficult
non care categories
3. Pepsi can cause
health problems

1.
2.
3.
Pepsi’s business is reliant upon carbonated
drinks. If those drinks go bad, they must be
thrown out and that is a financial loss.
Pepsi sometimes makes bad business
decisions and invests into products that do
not make it.
If a person drinks Pepsi every day for a long
time they can develop serious health
conditions.
Three opportunities for
Pepsi are:
1. New product
introductions
2. Brand is attractive to
global partners
3. With growing
business comes jobs

1.
2.
3.
Pepsi is a ever growing company that will
always be inventing and investing in new
products.
The brand is well known and attractive to
global partners which will increase revenue.
Pepsi’s growing business will always need
people to fill job positions.
Three threats of Pepsi
are:
1. Strong competition
2. Potential health
issues
3. Free trade

1.
2.
3.
Pepsi is a major company with many
competitors. In a field where there is many
competitors there will always be high
competition.
Drinking Pepsi on a regular basis for several
years can cause health issues.
Free trade is a problem among Pepsi
products because they are shipped all
around the world and are at risk of being
unprotected.

In my opinion I would not buy stock right now
in PepsiCo. The price per share is high right
now and it is steadily going up. I would
defiantly recommend waiting for the stock
price to come down and then buy. But, if you
have the money to spend now on the shares, I
would buy because it appears that the stock
of Pepsi is rising.




http://www.pepsico.com/Company/OurHistory.html
http://studio5.financialcontent.com/investplace/quote?Sy
mbol=PEP
http://www.docstoc.com/docs/10545397/Pe
psi-Marketing-Report
http://www.pepsico.com/Investors/StockInformation/Historical-Price-Lookup.html