INTRODUCTION This report analyses the stock price of two companies; Pepsi and Coca Cola. The report uses the stock price movements of the two companies and then identifies which of these companies yields more returns and which of these companies is riskier…
The report at the end presents the summary of what has been learnt in the report. COMPARING THE STOCK PERFORMANCE OF TWO FIRMS Historical prices of Pepsi co Adjusted closing price has been taken for the calculation of returns and risk. The average stock returns are found to be negative (-0.08) (Yahoo! Finance, 2013a) Historical Prices of Coca Cola Company STDEV 0.0101 The Adjusting closing has been taken for calculating returns and risk. The average returns are negative (-0.15) (Yahoo! Finance, 2013b). Dow Jones Industrial Average NASDAQ Composite Index The latest price at which the Pepsi co Philippines traded is 6.19, it is 10.03% below its high 52 week of 6.88. The listing of Pepsi co products are primarily on Philippines Stock Exchange (Financial Times, 2013). (Financial Times, 2013) Market closed at 40.81, which is 6.03% below its high 52 week of 43.43. The listing of Coca Cola Company products are primarily on NYQ. Interest Rates: For the last four years wages are being flat and there is no hint of an increase in inflation rate. In 1980s, women began to enter labor force, but still the work force participation is at its low rate. After the financial crisis the financial system has improved a lot, capitalization of the banks are managed in a better way, balance sheets are being improved by both the corporations and households and all these factors can positively impact not only the two companies but Dow Jones index as well as NASDAQ. Industry News: Despite the continuation of Fed with the policy of buying bonds and accommodation, stocks were more than expected rallied on Monday. The Dow industrials were at a positive sign for the whole day despite the sharp rise in Intel and Merck. With a success of key drug trial, Merck was up 3.8% while with the introduction of new processors of fourth generation, Intel was up to 4 %. The Dow industrial average was increased by 138 points at the closing with 15,254 and NASDAQ was up to 9 points with 3465. 545 million shares were traded by NASDAQ; there was an increase in the volume on NYSE with 879 million shares being traded. Dow Jones industrials violated the moving average of 20 day. The support zone focused concentration on Monday with 15,115 from 15,000. The index of Dow Jones was on a lead till March. Therefore such factors can also impact companies like Coca Cola and Pepsi as they are also traded on similar stock exchange. Company News The Coca Cola Company has announced its investment in Myanmar on Tuesday 4th June. The production of the company will be in Myanmar with an investment of $200 million. This investment will lift its shares in the market and profits will be enormous. The coca cola company was given the investment permit for the foreign investment Law by Myanmar. It is the first production of Coca Cola in decades. The Dow Industrial Average secured an uneven recovery has led the 30 giants of America which includes Coca Cola Company, Microsoft etc to the most comprehensive event (Eavis, 2013) PepsiCo has started its joint venture with the Theo Muller Group, established a new art-state manufacturing of yogurt plant in Batavia, New York. There’s an employment capacity of around 180 people. PepsiCo is the leader in food and beverages it has no less than $65 billion of net revenues. With twenty two brands in the portfolio PepsiCo enjoys over $1 billion to in each brand in a result of its annual sales. With the joint venture with the Theo Muller group Pepsi co enjoys expansion in stocks. PepsiCo due to increasing its price on Feb. 2013, ...
Cite this document
(“Pepsi Co and Coca Cola Stock Analysis Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.net/marketing/96572-pepsi-co-and-coca-cola-stock-analysis
(Pepsi Co and Coca Cola Stock Analysis Essay Example | Topics and Well Written Essays - 1250 Words)
“Pepsi Co and Coca Cola Stock Analysis Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.net/marketing/96572-pepsi-co-and-coca-cola-stock-analysis.
The paper concludes by highlighting Coca-Cola’s three key strengths and three key weaknesses. Table of Contents Executive summary 1 Table of Contents 2 Introduction 3 Analysis 3 Resource and competency analysis 3 Value-chain analysis 5 Conclusion 6 References 7 Introduction The resource-based view of strategy posits that organizations use their internal capabilities and resources to develop strategies that will enable them achieve sustainable competitive advantage over their rivals.
Since its inception in 1886, the global market has been one in which Coca Cola has dominated while at the same time buying integral competitors and adding them to their total product range and offerings within given regions. As a function of this, the Coca Cola Company is represented in nearly every nation on earth and total drinks consumed per day are in excess of 1.7 billion.
PepsiCo Inc. is an American multinational company which makes food and beverages. It is headquartered in Purchase, New York, United States. It was first developed as Pepsi in 1880s by a pharmacist and industrialist based in New Bern, North Carolina named Caleb Brandham.
Coca-Cola has a strong market presence in the soft drink industry and has been continuously introducing various new products to satisfy the needs of their existing customers as well as attract new customers. Through acquisition of local soft drink products and their various marketing strategies, they have been strategically gaining competitive edge and strong local market presence.
The introduction, pursuit and manipulation of a strategy, of any strategy, for that matter, of growth and expansion of a company, of the extension of the existing and the conquest of new markets for its products, of finding new ways of doing old things, of scrapping old technology and adopting new, of forays into new territories abroad and overseas - the introduction and pursuit of strategies for these and related purposes - must be interrelated to the realization of the ultimate objective of the company concerned.
So analysis of the situations is quite important in greater functioning of the firm. This is can be supplemented with idea of profitability of the business venture. To understand the functioning of the firm with respect to market trends and analysis, industry analysis is very important and critical.
A lot of their marketing campaigns in the past are related with sports, many of which were individual sports. They had promotions that showed men living on the edge and doing risky stunts. This is certainly creating special images of their products in comparison to Coca-Cola.
his “Coca – Cola” grants the American culture to the rest of the world by being the largest ever brand name ever known to mankind with an excellent reputation in over 200 countries.
The very first formula of this Cola flavoured drink was created by John Stith Pemberton in
Based on the analysis, the companies are also compared from the investor’s point of view.
The company also generated an income attributable to the shareholder standing at 3.81/common share. The Total Assets of
The paper concludes by highlighting Coca-Cola’s three key strengths and three key weaknesses.
The resource-based view of strategy posits that organizations use their internal capabilities and resources
4 Pages(1000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Pepsi Co and Coca Cola Stock Analysis for FREE!