OUTLINE
Introduction ………………… 3
1. The business – economic setting a. The Business Strategy …………………. 4 b. Mission and Strategies …………………. 5
2. PepsiCo Strategic Positioning a. Industry Analysis …………………. 6 b. Company Background ………………… 7 c. Snack Food ………………… 7 d. Beverages ………………… 8 e. Company History – PepsiCo ………………… 9 f. PepsiCo Financial Analysis ………………… 10
3. Terms of the acquisition a. How large was the premium paid to the target ….. 12 b. PepsiCo's Acquisition of Quaker Oats ………… 12 c. Quaker boosts Pepsi’s results ………… 13
4. Merger transaction analysis ………………… 14 a. Target
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Also when a customer tends to see the same company products everywhere and that too at a slightly elevate rate, and then the element of ‘Buyers illusion’ comes into the picture. The customers tend to believe that the product is priced higher as it is superior in quality and better as compared to other similar products priced at a lower rate.
Any company prefers to diversify and systematically target and capture certain market segments in order to provide that segment superior quality service and kill all forms of competition from that segment. This seems to be the goal of PepsiCo too. It wants to diversify from being a supplier of just carbonated drinks and branch into fruit drinks. To do this the merger was the ideal option, because along with the Quaker company they are also buying its goodwill and market share. This way they can systematically cater to every possible need of the sports segment right from the choice of drinks to providing snacks.
This brings to the role of regulatory bodies, which are created to prevent the dealings between companies, which might prove detrimental to consumers in the long run. They prevent tie-ups between companies that would kill competition and also prevent price discrimination.
On a final note, acquisitions and mergers have their own positive as well as flip sides. On the positive side smaller firms with fewer resources could continue to thrive in the
Some challenge that the most efficient regulator is free-market competition among those seeking to attract the buying public. They argue that government regulation is intrusive with the marketplace and works to the disadvantage of both consumers and producers. Advocates of government regulation, however, see a better need to observe and guide the path of competition. They believe that an entirely unrestrained market will unavoidably lead to monopolistic practices, higher costs, underserved segments of society, and lower-quality goods and
With reference to your own research and the item above, do you think that takeovers and mergers inevitably improve the performance of the businesses involved?
There are different types of businesses, for example, some use monopolies, trust and pools, while other eliminate competition for higher prices. As stated in “Progressive reformers regarded regulation as a cure for all sorts of socioeconomic and political problems” , “The Sherman Act of 1890 attempted to outlaw the restriction of competition by large companies that co-operated with rivals to fix outputs, prices, and market shares, initially through pools and later through trusts” , meaning, competition is the
This occurs when a business charges the highest price for a product during the introduction stage of its lifecycle. This is typically used when introducing a new, unchallenged product into the market, ensuring high profits before the product has competition. For example, Apple set its price for its iPhone 6 plus exceptionally high due to its advanced features and lack of competitors. This ensured that Apple received high-profit levels before the iPhone 6 plus was challenged by other products. Additionally, this has seen Apple have a high product position and helped cement its brand image, as these higher prices are typically associated with a higher quality product. This has subsequently improved market share and profits.
The scope of this paper is to break down and define social regulation, industrial regulation, and natural monopolies by explaining how they have impacted society and why they exist. It is also the intent to summarize the Antitrust Laws, explain the major functions of the five primary federal regulatory commissions that govern social regulation, and identify three main regulatory commissions of industrial regulation.
Regulatory bodies are set up because there are laws and they ensure legislation is implemented. Some of the most prominent regulatory bodies would be OFSTED, Office for Fair Trading, Food Standards Agency, Advertising Standards, Financial Conduct Authority, Civil Aviation Authority, and General Medical Council.
The analysis of a company's financial statements helps in the determination of both the weaknesses and strengths of the concerned entity. Further, such an analysis helps in the determination of the future viability of firms. There are a wide range of techniques utilized in the analysis of financial statements. In that regard, it is important to note that the relevance of a horizontal, vertical as well as ratio analysis of a company's financial statements cannot be overstated. This is more so the case when it comes to the interpretation of the various dollar amounts presented in both the balance sheet and the income statement. In this text, I carry out a horizontal, vertical as well as ratio analysis of both The Coca-Cola Company and PepsiCo, Inc. The analysis' results will be critical in the evaluation of each company's performance. Findings will be used as a basis for recommendations on how each company can improve its financial status.
Coca-Cola was one of the earliest companies to adopt a cash-balance plan for their employees ever since Congress passed the Pension Protection Act in 2006.
1. The elimination of potential regulatory gap or overlaps arising from member regulation and market regulation
This is where industry regulations come. The regulations discourages the monopolies and oligopolies from charging unfair prices for their products.
Performing a financial analysis is very useful for any businesses to enhance the knowledge of performances, strengths and stability of their financial. This paper intends to compare and contrast the qualitative and financial statements of the past three years of the Multinational companies of soft drinks, Coca-Cola and PepsiCo. Currently, both companies are business competitors and they highly regard their customer’s base loyalty. To familiarize ourselves with these two successful companies, we have to focus on their differences. Coca-Cola was founded in 1886, nowadays is available in more than 200 countries being the most popular beverage with its 94% worldwide recognition and being world’s third valuable brand.
Whole Foods Market was involved in merger with Wild Oats in 2007 and has started to expand by purchasing small natural food chains, including North Carolina’s Wellspring Grocery, Bread & Circus out of New England, and Mrs. Gooch’s in California. The Federal Trade Commission tried to block WFM’s acquisition of Wild Oats, and the difficult process led WFM to lean more heavily on opening more stores instead of buying existing ones (Whole Foods takes over America).
PepsiCo’s corporate strategy had diversified, in 2008, the company into salty and sweet snacks, soft drinks, orange juice, bottled water, and ready-to-eat drink teas and coffees, purified and functional waters, isotonic beverages, hot and ready-to-eat breakfast cereals, grain-based products, and breakfast condiments. Strategies that kept their brands at the top were tied to new product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. A new element of PepsiCo’s corporate strategy was product reformulations to make snack
Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan .Pepsi cola is situated is an Industry that is dominator by two Competitors Coca