Financial Analysis about PepsiCo Essay Example | Topics and Well Written Essays - 1500 words

Financial Analysis about PepsiCo - Essay Example Today the PepsiCo has a wide and diverse range of edible products and it is one of the largest multinational corporations of the world. As per the financial statements of the company for the financial year 2011, the company has more than 22 mega brands which accounts for more than $1 billion each in annual retail sales. The company has been working diligently on focusing on its strategic targets and has been able to add several brands in the last decade. During the financial year 2011 the company was able to post revenue of 14 percent through its food and average business. The global snack portfolio of the company accounts for around $34 billion. In this particular niche, the company has been able to diverse immensely and through active innovation, the company has been able to add new products such as bread snacks and refrigerated dips. In addition, Lays, one of the world’s leading brands is also owned by PepsiCo and accounted for $9 billion in sales during the financial year 2011.On the other hand, the global beverage portfolio of the company amounts for $34 billion which has shown an impressive increase of 5% growth from the previous financial year. Considering the current strategies and innovation, the company is actively working on brining new experiences to its customers all across the globe. The fact that the company is committed in expanding its operations all across the globe can be identified from the fact that during the 2011 financial year 50% of the revenue of the company came from outside of the America. The company has actively started marketing one of its major beverages Gatorade and Pepsi MAX outside of the America. ... rands is also owned by PepsiCo and accounted for $9 billion in sales during the financial year 2011.On the other hand, the global beverage portfolio of the company amounts for $34 billion which has shown an impressive increase of 5% growth from the previous financial year. Considering the current strategies and innovation, the company is actively working on brining new experiences to its customers all across the globe. The fact that the company is committed in expanding its operations all across the globe can be identified from the fact that during the 2011 financial year 50% of the revenue of the company came from outside of the America. The company has actively started marketing one of its major beverages Gatorade and Pepsi MAX outside of the America. No matter how strong the asset base of a company is and how prudent and effective the management of its resources is, there are always certain business risk lurking. As per the latest financial statement of the company, a great quantu m of its sales pertains to outside of America to countries such as Mexico, United Kingdom, China, India etc. However, the markets in these countries are still emerging and there is no certainty and surety that the products manufactured by the company will be accepted in the coming future. In addition, the political instability or severe economic meltdown can cause serious affect on the profitability of the company. Serious competition from any of the local brand in the aforementioned countries can also give difficult time to the company in achieving its desired sales target and revenue level. Change in the legal and regulatory requirement in any of the country can adversely affect the operations of the company. The overseas operations and conduct of the business including production,