Pepsico Economics Case Study Essays

Words: 2882

Pages: 12

Open Document

Corporate Economic Conditions Report 17 April 2013 | PepsiCo | SECTION 1: EXECUTIVE SUMMARY

Economic Conditions Overview:

Overall economic conditions are expected to improve over the next two quarters. As part of the monetary policy (quantitative easing part 3), Federal Reserve continues to buy bonds to influence low interest rates in order to increase investments. A decrease in unemployment and an increase in private consumption will drive the economic growth for the next two years.

Expected direction of change in economic aggregates:

The drivers for the major changes in the economy will be steady growth in GDP and the decrease in unemployment. Additionally inflation rates are forecasted to remain unchanged and …show more content…
According to the data from Wall Street Journal (WSJ), inflation rates will flat at 2.1% through in 2013 and will gradually increase to 2.2% by end of 2014. Inflation has been low throughout the recession and recovery. Figure 3 shows the historical Inflation rates from year 2005 and the forecasted rates throughout 2014.

Figure 3: Inflation Rates Source: WSJ

INTEREST RATES

Interest rates in the United States are reported by the Federal Reserve and the benchmark interest rate was last recorded at 0.25%. Historically, from 1971 until 2013, the United States Interest Rate averaged 6.18% reaching an all-time high of 20% in March of 1980 and a record low of 0.25% in December of 2008.

Figure 4: US Interest Rate % Source: Federal Reserve

As interest rates increase, the cost of borrowing rises. Credit card companies will increase the rates they charge borrowers on amounts that are outstanding. A higher interest rate may mean an increase in monthly mortgage payments on variable rate mortgages and Home Equity Lines. In both

Essay about Case Study Analysis

A Case study On PepsiCo Burma connection Executive summary: The case mentions about how PepsiCo had to withdraw all its assets from Burma despite the fact that they were doing very well in this country. In July 1988, decline in economic conditions led to large-scale and bloody rioting in cities in Burma. In Sept 1988, the army under General U.Saw Maung replaced the Government with the State Law and Order Restoration Council (SLORC), a group of military officers. In 1990, SLORC proposed…

Words 876 - Pages 4

Pepsi: Coca-cola and Pepsi Essay

their commitment to consumers and the communities in which they operate is greater (PepsiCo 2008). Caleb Bradham looking for ways to attract people to his pharmacy invented the beverage now known around the world as Pepsi-Cola. After the first advertisement the sales of the new soft drink began to explode. Throughout its existence Pepsi adjusted its marketing strategies trying to keep up with the social and economic conditions of its consumers. The breakthrough move by Pepsi was made in the late…

Words 2240 - Pages 9

Nutrition and Healthy Snacks Essay

Bradham. Then in 1961 Pepsi-Cola merged with Frito-Lay, establishing an overall company called PepsiCo, Inc. PepsiCo is the world’s second largest carbonated soft drink manufacturer and the largest packaged foods product manufacturer. Some of the company's well-known brands include Pepsi Cola, Quaker, Tropicana, Naked, Mountain Dew, Doritos, and Lay's potato chips. Under Chairwoman and CEO Indra Nooyi, PepsiCo has categorized their brands into three types: Good For You, Better For You, and Fun for you…

Words 5006 - Pages 21

The Coca-Cola Company Essay

threatening union leaders in the South American country of Columbia and the second is pollution issues in India. The third is the challenges the company faces in Europe. In both of these case studies the managements strategy will be analyzed by determining the effectiveness and how it was executed. After every case study there will be an analyses of how the decision of the executives and their leadership style affected the company. Finally the report will close with three types of analyses of the company…

Words 3374 - Pages 14

Essay about Competitve Analysis

Coca Cola, to analyze. We have targeted the company’s introduction of stevia sweetened products. Stevia is a natural sweetener that contains zero calories and little to no documented negative side effects on consumer’s health. This analysis will study the central market forces in relation to the prevailing competition. Organizational History and Product Coca-Cola is a beverage company that was started 125 years ago. Coca-Cola was accidently invented by combining a syrup and carbonated beverage together…

Words 1754 - Pages 8

Coca-Cola Business Strategy Essay

1.0 Introduction Coca-Cola has sold more than one billion servings every day. More than 10,450 beverages are consumed every second. The company achieved earnings of $4,347,000,000 in 2003. It is present on all seven continents and is recognized by 94% of the world population. How did Coca-Cola grow from its humble roots as a home-brewed Georgia-based patent medicine to be the international soft drink powerhouse that it is today? Coca-Cola used numerous technologies to achieve its rise to the…

Words 8355 - Pages 34

Essay on Kfc: China's Favorite Chicken

Southeast University Term Paper KFC: China's Favorite Chicken - Analizyng a Company´s Success School of Economics and Management Name - Number: Mariana Osorio - 220123813 Supervisor: Dr. Qiu Bin September 10th, 2013 KFC: China's Favorite Chicken - Analizyng a Company´s Success Mariana Osorio, 220123813 School of Economics and Management, Southeast University, 210096, Nanjing, China marianaosorio1@gmail.com ABSTRACT Kentucky Fried Chicken generates more annual profits…

Words 2892 - Pages 12

Student Essay

Name: Chao Li, Sharon Stell Professor: Elias G. Rizkallah Class: MKTG 676 Advertising Management Group case study March-06-2013 1. Background: (1) History: Cadbury Beverages, Inc. is the beverage division of Cadbury Schweppes PLC, a major global soft drink and confectionery marketer, located in London, England; worldwide headquarters are in Stamford, Connecticut. Company is the…

Words 1640 - Pages 7

Swot Analysis Of Coca Cola Company

Coca-Cola (KO) Analysis Coca-Cola Corporation and its Competitors Coca-Cola was discovered as a result of an accident. In 1886 a pharmacist named John Pemberton cooked up medicinal syrup. When he was done, he figured he had created a fine tonic for people who were tired, nervous, or plagued with sore teeth. He and his assistant mixed it with ice water, sipped it, and proclaimed it tasty. They wanted some more, and the assistant accidentally used carbonated water to mix the second batch. Instead…

Words 2728 - Pages 11

Essay Starbucks Case Study

Continuing Case: Starbucks – Introduction Discussion Questions 1. What management skills do you think would be most important for Howard Schultz to have? Why? What skills do you think would be most important for a Starbucks store manager to have? Why? 2. How might the following management theories/approaches be useful to Starbucks: scientific management, organizational behavior, quantitative approach, systems approach? 3. Choose three of the current trends and issues facing managers and…

Words 2361 - Pages 10