Research Paper> Strayer University ACC 557 _ Assignment 3_INVESTMENT ANALYSIS OF PEPSICO VS. COCA-COLA CO.

Document Content and Description Below

Cola’s brand include Coca-Cola, Dasani, Fanta, Sprite and etc. They also own and or license Fuze tea as well as other teas and fruit flavored beverages. Coca-Cola’s major customers are convenien... ce stores, restaurants, wholesalers that would purchase their syrup and produce a beverage for consumption. Similar to Pepsi, Cola has a different number of suppliers with whom they assess in accordance to their supplier guiding principle. They stress the importance of these guidelines as it is their brand that is being distributed. Both companies have key executives that run the company. Coca-Cola’s chief executive officer is Ahmet Kent and PepsiCo chief executive officer is Indra Nooyi. In Chart A, a comparison of Pepsi and Coke stock price per share have been provided. Upon review of each company stock price, Coca-Cola’s stock price has increased greater than $4.00 per year. However, Pepsi stock increased $4.00 in one year and $0.65 the next year. From inception to year 2010, both companies stock price had drastically decreased. Chart AINVESTMENT ANALYSIS OF PEPSICO VS. COCA-COLA CO 3 0 22648 28128 40182 40546 40911 $120.00 PepsiCo vs. Coca-Cola stock price comparison Pepsi CO (NYS:PEP) Coca-Cola (NYS:KO) Stock Price Date Stock Price per Share Over the course of the years, both Pepsi and Coke were associated to various news events that had a potential impact on their stock prices. One event that had an influence on Pepsi investments was whether to keep their current chief operating officer Indra Nooyi. “Major change is never applauded until your numbers prove it” (Colvin, 2012, p. 148). Under Indra Nooyi control, the stock has decreased while Coca-Cola’s price increased (Colvin, 2012, p. 148). As we are living in an obese society, Nooyi’s aim is to promote healthy products, but investors feel that consumers would not buy these healthy options. However, the “total return to shareholders has exactly matched the S&P 500 over her tenure” (Colvin, 2012, p. 148). [Show More]

Last updated: 1 year ago

Preview 1 out of 16 pages