Pepsico And Coca Cola Company Economics Essay

Pepsico And Coca Cola Company Economics Essay I chose these companies because I have an interest in the way that they are profitable in the global market. PepsiCo was founded in 1932 by the merger of the then known Frito-Lay Company. The founders of PepsiCo are Donald M. Kendall, President and CEO and Herman W. Lay, Chairman and CEO of Frito-Lay. However Pepsi-Cola was formulated in 1898 by a Caleb Bradham, a pharmacist. Coca-Cola was formulated in 1886 by Dr. John Pemberton. In downtown Atlanta Pemberton sold the syrup with carbonated water for five cents a glass. Both companies grew dramatically since their humble beginnings. Thesis Statement The purpose of this paper is to compare PepsiCo and Coca-Cola Companys financial standing between the two companies using ratios and financial analysis from five ratio categories. Liquidity The methodology used is the ratios for liquidity. Liquidity is the ability to quickly turn assets in to cash. Liquidity is also characterized by high levels of trading activity. Assets that can be easily obtained and sold are known as liquid assets. A business with a decent amount of liquidity can mean that the business can pay off its expenses. Current Ratio Calculation: Current Ratio = Current Assets/ Current Liabilities PepsiCo Current Ratio PepsiCo current ratio = 0.95 Coca-Cola Current Ratio Coca-Cola current ratio = 1.05 Conclusion: When comparing PepsiCo and Coca-Cola current ratio in 2011 both are successful at easily converting assets into cash. Coca-Cola has a greater ratio than PepsiCo by .10. It can be said that from this ratio that one can invest in either company and they will make a return if dividends are declared. Asset Turnover: Asset turnover shows how the amounts of sales that can are generated for every dollar worth of assets. The higher a firms asset turnover the more efficiently its assets have been turned in to cash. Investors went to invest in companies that can turnover assets easily. Asset Turnover Calculation: Asset Turnover = Total Revenue/ Total Assets PepsiCos Asset Turnover PepsiCo asset turnover = 0.9 Coca-Colas Asset Turnover Coca-Cola asset turnover = 0.7 Conclusion: In the comparison between PepsiCo and Coca-Cola; PepsiCo has a greater turnover than Coca-Cola. PepsiCo turnover is 0.2 higher than Coca-Cola. This means that PepsiCo is more successful in turning sales in dollars. Debt Ratios A debt ratio measures how well a firm can pay off its debt. The larger the debt ratio the more likely that a creditor was used to create a profit for the business. The greater the debt the greater the risk for the business to pay off its debt. Debt Ratio Calculation: Debt Ratio = Total Liabilities/ Total Assets PepsiCo Debt Ratio PepsiCo = 0.93 Coca-Cola Debt Ratio Coca-Cola = 0.41 Conclusion: The comparison with PepsiCo and Coca-Cola shows that Coca-Cola has a smaller debt ratio than PepsiCo. PepsiCo has a greater risk than Coca-Cola does by 0.52 or 52%. PepsiCo has a greater risk of not being able to pay back its debt. Profitability: There are different ways to measure the profitability of a business. Using Profit Margin is just one of the many measurements that can be used. Knowing how profitable a company is allows investors the chance that they will turn a profit from investing in that company. Investors may also want to look at the companys income statement to evaluate a companies profitability along with a companys profit margin. Profit Margin Profit Margin = Operating Profit/ Revenue PepsiCos Profit Margin: PepsiCo = 9.69% Coca-Colas Profit Margin: Coca-Cola = 18.42% Conclusion: In comparing Coca-Cola and PepsiCo One can see that Coca-Cola have more profitability than PepsiCo does by almost double. Investors would most likely invest in Coca-Cola based on these results. Marketability: Market ratios convey the market value of a firm. The valuation of a firms current share price compared to the firms pre-share earnings. High P/E proposes that investors are expecting a growth in earnings in the future. It shows how investors see the firm whether its a risk or reward. Price/Earnings Ratio Formula: P/E Ratio = Market Price per share/ Earnings per share PepsiCos P/E Ratios: Current P/E Ratio = 15.7 P/E Ratio 1 Month Ago = 16.4 P/E Ratio 26 Weeks Ago = 16.1 P/E Ratio 52 Weeks Ago = 16.3 Coca-Cola P/E Ratios: Current P/E Ratio =18.7 P/E Ratio 1 Month Ago = 18.4 P/E Ratio 26 Weeks Ago = 12.8 P/E Ratio 52 Weeks Ago = 12.7 Conclusion: It is clear that Coca-Cola has a higher price/earnings ratio that PepsiCo. Coca-Colas Ratio was a drastic change from a month ago to 26 weeks ago it jumped to 6.5. Investors would see a better turn out from this output of information from Coca-Cola. Conclusion: According to this information I would advise an investor to invest in Coca-Cola based on the information that was provided. I would however be reluctant to advice investors to invest in PepsiCo based on factors presented such as; lower profitability, lower Price/Earnings, and higher debt ratio than Coca-Cola.

Techniques Tools Used To Market Tourism Jamaica Tourism Essay

Techniques Tools Used To Market Tourism Jamaica Tourism Essay This project will be detailing the different type tools and techniques used by the Jamaica tourist board in the marketing of tourism Jamaica. The techniques that are shown in this project are; advertising, special events, brand ambassadors-which represents the marketed product all over the world, trade shows and familiarization trips which has all been explained in the project. An analysis was also developed for these five (5) marketing tools showing strengths, weaknesses, and opportunities that they offer and the threats that are being made towards each marketing tool. It also introduces you to some international tourist boards/CVBs that could very well help Jamaica in the development of a destination marketing plan. Techniques/tools used to market tourism Jamaica When marketing a destination a number of steps are required, one is coming up with a strategy which includes the marketing tools. Marketing tools are there to make marketing a destination easier. One of the CVBs main objectives it to use these marketing tools to market a destination such as tourism Jamaica. These are five marketing tools used by the our CVB- Jamaica tourist board (JTB) to market Jamaica as a tourism destination; Advertising- Advertising is a marketing tool used by the Jamaica tourist board (JTB) to market tourism Jamaica. Advertising media such as magazines, online/internet, billboard and global advertising are some of the most popular ones used to persuade users, viewers and listeners to take action on products and services and ideas. Familiarisation trips- this is an event planning marketing program typically scheduled during low season times. Example: the convention and visitors bureaus (CVB) invited meeting planners for a two day program to learn more about its available hotels, conventions centres, restaurants and other services. Special Events- This is when events are planned and used by the Jamaica tourist board (JTB) as marketing tool. Brand ambassadors- A brand ambassador is a person who represents and sells a brand in a very direct way. They create a positive image of the brand and bring out good customer services. Trade shows-these are organized meetings held only per year generally over the course of a few days where members of a certain industry can exhibit their product and service. SWOT Analysis of Techniques The S.W.O.T analysis speaks about strengths, weakness, opportunities and threats of each marketing tool. Strengths Weaknesses Advertising tool creates a brand name for the product. Increase/ upgrade facilities Trade shows enhances good will. A brand ambassador gives the company/product instant recognition. Advertising tool is costly Opportunities Threats Can be extended into more areas Cut Advertising rates The SWOT analysis was carried out to identify the key issues and successes in the marketing environment, to find out what is happening in the marketing industry both external and internal. The Value of a Tourism Marketing Plan Developing a tourism marketing plan is very important for a destination because it helps you to carefully analyse other competitors and to create a plan so that your tourism destination potentially makes it to the top 5 tourism destination. A tourism plan is needed before embarking on a major project to guide you through the processes of developing a tourism destination. The definition of tourism, which is what are the need for developing tourism and how it benefits the economy. Community support- Make sure that this community is onboard with the tourism thats being developed. Once you put the feelings of the people in the community first then they will later serve to identify potential problems. The legal environment-Make sure the laws and regulation of the country is considered in every marketing strategy. Here are three (3) processes in developing a tourism marketing plan; Goals- Define the goals that are to be achieved by the development of a marketing plan. This should include a clear and direct number of objectives. Marketed analysis- Five External organization that can assist a CVB The convention and Visitor beareau is responsible for encouraging tourists to visit and enjoy their destination; they encourage groups such as the JTB to use the marketing tools such as creating trade shows and special events. The CVB is also called a tourist commission and tourist and convention commission. Here are five external players which could the CVB in designing marketing a destination; Tourism Product Development Company (TPDCo) this company was designed for the enhancement and also the development of the tourism product. Cruise Jamaica (PAJ) This was built from the joining of the Port Authority of Jamaica and the royal Caribbean cruise lines (RCCL). Jamaica Hotel Tourist Association This was built for the promotion of the development of the hospitality industry and also the interests of its members in local, regional and international forums. Caribbean Tourism Organization- This was created to potentially increase the Caribbean has a choice of destination for travellers. Jamaica Information Service The Jamaica information service increases the knowledge of both locals and tourist about the policies and programs of the government by way of media. B. Two significance of the assistance These organizations will help to better publicise tourism Jamaica by putting their part in the marketing plan and to help develop new objectives and strategies which would make the destination marketing unique. Each organization plays a specific role in developing marketing plan for tourism destinations. Here are two (2) significance of the assistance of two of the players or organisation in helping the Jamaica tourist board in developing a destination marketing plan; The CTO will provide an important forum for those interested in developing, improving and promoting the Caribbean tourism product. This organization was designed to provide its members with the services and information needed for the development of tourism for the economy. It also provides the technical assistance and special support to other organizations in the marketing area. The JIS will provide your product or in this case your tourism destination with the proper advertising media and strategies that it needs to strive. This organization was created to provide information to locals and tourist about the new activities developed in Jamaica which will benefit the economy and any arising business or product development by a way of mass Medias, which are very popular in todays world. Recommendation or Conclusion Marketing provides an opportunity that a company or product such as tourism so that they can perform profitably. Without the planning of marketing developing and tourism destination would not be possible and/or successful in the modern world. Tourism is very interdependent and so the components of planning should be included in the developing of a destination for tourism attractions. Services in the hospitality industry depends on the employees and manager understanding the value of the customers, the cost of the product that is being offered should be economically structured and considerate to the customers welfare and the communication towards the customers should be at a good quality standard.

Experience in the Workplace :: Language Communication Essays

Experience in the Workplace During the many years of working in the IT (Information Technologies) field, I have dealt with hundreds of people from all over the world, from as far as Asia, to as close as Detroit, and although all the people I have dealt with can speak English to a certain degree, most have what Amy Tan, writer of â€Å"Mother Tongue† would call â€Å"Broken English†. By this meaning, the words they use are the primary words of a sentence that just barely make the sentence itself understandable. To make matters worse, most of those people I deal with are overseas, so the only way of voice communication is the telephone. Even when speaking with friends just across town that have been brought up the same as I, and speak the same â€Å"tongue† as I, there is problems understanding one another because of the phone devices themselves – sometimes having static in the line, the call just breaking up, and even sometimes calls being dropped in the middle of a thought. Now, you put into account all of these factors, then make a business call to someone overseas who speaks with â€Å"Broken English†, and there is defiantly going to be a bit of frustration, trying to understand one another†¦ This applies to people on both ends of the call! Now, when it comes to matters like this and dealing with business, I must agree with Thomas Bray, writer of â€Å"Memorial Day and Multiculturalism†, when he states â€Å"Bilingual education is a bad idea.† I refer to this meaning, if everyone was taught and brought up speaking one language, then doing business matters overseas over the phone would be much easier, because it would be easier to understand one another, in my opinion. There have even been some instances where after dealing with someone on the phone overseas for quite awhile and not being able to get much accomplished, I’ll ask if there is any chance that I can to speak to someone with better English, kind of like the instance where Amani Ammari, a classmate of mine, had to speak for her mother because her mother only had â€Å"Limited English† as Amani stated in one of our discussions online. To now turn this into a complete opposite direction, I agree with Maxine Hairston, writer of "Diversity, Ideology, and Teaching Writing" and all of her ideas on have classrooms being multicultural.

Animal Testing Essay -- Science Experiments, Animals, Guinea Pigs

Canary in the kitchen detects carbon monoxide! Animal testing must be banned for unnecessary tests. Animals should not be guinea pigs. Animals still feel the pain when they are injected with medicine just like humans. Humans can defend themselves and stop the pain, but the animals get strapped down and cannot move. It is better to have tests run on animals because animals will help find cures faster. Animal testing must be banned for unnecessary tests because a lot of animals are dying for no reason. Ninety-four percent of animal testing is done to determine the safety of cosmetics and household products (Animal Testing 1). That only leaves six percent for medical research (1). Ninety percent of all animals used in research are rats and mine (Animals Used in Experiments 4). Cosmetic testing is banned in Belgium, Netherlands, and the United Kingdom (1). The United States has many companies that continue to legally perform horrible tests on animals (1). The United States Food and Drug Administration and the Consumer Product Safety Commission do not require animal testing for cosmetics or household products (1). The Animal Welfare Act is the only federal law to require basic standards of care, housing and treatment to the animals that are kept in the labs for testing (4). The LD50 test is one of the worst tests that was developed back in 1927 and is still used today (1) . Groups of animals are dosed with different amounts of a test substance in order to determine the does which kills half of the animals (1)! Animals are force-fed this substance (1). Why would we want to put poor animals in this kind of pain for no reason? Animals to the society can be their world. Animal lovers in the society would probably g... ...and are just like humans (3). Scientists on the other hand feel like there is a need to endanger the animals because they are trying to find a cure for the human population to all the diseases that are out in the world(3). Animal testing should be banned for unnecessary tests because why would the government want to put human through the same thing that the animals go through. Animals should not be guinea pigs to the horrible tests that the scientists run on them. The animals should be able to be free and not have to be strapped down and forced-fed. Animals feel the pain just as well as a human would, but a human can walk away from the pain and say â€Å"no†. Sometimes it is better to run tests on animals to find a cure for cancer, HIV, and other diseases but the government and the scientists should find a different way to do this with out killing so many animals.

A Futuristic Interview With Romeo of William Shakespeares Romeo and Juliet :: William Shakespeare Romeo and Juliet

A Futuristic Interview With Romeo SCENE I: Setting: On the set of ‘Time Voyager', a new television series. Characters: ANN - Announcer ROMEO - Romeo ANN: Ladies and Gentlemen, welcome again to this week's edition of Time Voyager. In case this is the first time you have tuned in and are unfamiliar with the concept, let me explain it to you. Modern technology today allows us to go back in time, as you probably know already. We do just that - go back and visit those times and places that had so much mystery, so much darkness, and so little knowledge. Our current model of time machine is the best that money can buy and has been completely tested for safety so we will not... as they say... leave someone ‘behind the times.' So sit back, relax, and watch as the past becomes the present. (Lights dim, machine hums, beam of light appears center stage. Through the beam, people are visible, walking seemingly unaware of the new presence.) ANN: The place is Verona, Italy, and the year is 1523. To be precise, the third of May. (Romeo cautiously peers into light beam. It seems he is the only one aware of it.) ANN: (To Romeo) Do not be afraid, come forward. (Beckons with hand) ROMEO: What is this? ANN: Sir, I apologize for this sudden interruption of your day. Perhaps you would like me to explain? ROMEO: (Steps onto stage out of light beam. Beam dies) What has happened to me? Have I died? Is this the other world? What do you want of me? ANN: No, you are not dead, rather transported to another time... ROMEO: You talk no sense! Your head must be full of bugs and insects! And, if you do not mind, what are those strange machines in the corner? (Points at video camera) ANN: Those are recorders - recording you as you are currently here speaking to us. They can put the images - moving images - so that we may view them later. Right now, they are sending the images through the air to millions of people... ROMEO: What year is this? You have many strange devices, for example, lights that have no candles behind them, screens that record my movements, and all these strange new materials, it is rather... mind-boggling... that is, if you are telling the truth... ANN: The year is 2174. Yes, I am telling the truth. We have machines that tell if you are telling the truth now. ROMEO: How do I know you are telling the truth about machines that tell if you tell the truth?

Han vs Roman Attitudes Toward Tech

Kimberly Giron AP World history September 27, 2012 World History DBQ Han society had positive attitude towards technology as some saw it as beneficial to society and others considered it a gift. Roman society had more of a supportive yet demeaning attitude towards technology. There is no doubt that things that benefit people and gift are considered positive. A Han government official (Document 1) wrote to local officials in order to advise them on how to use their technology to prevent floods, showing his interests in maintaining the empire so that it doesn't fall.Not only that, Han Guan, another government official (Document 2) goes against the way the government is monopolizing the making of technology and that technology should be made by the people, since government made technologies are brittle and costing the government more money as not much salt is being produced. It is very interesting that an official would speak against the government, but it may be due to the fact that th e scarcity of salt is costing this official money.Both officials may also be looking to maintain their positions or get higher ones once the emperor sees how well they are looking after the empire, which can only be maintained with the help of technology. Others in Han society consider technology as a gift from enlightened leaders. Huan Tan, an upper-class philosopher (document 3) mentions that Fuxi invented some technology which was efficient and beneficial to society. Fuxi, is said to be a wise enlightened emperor which means that since Fuxi made it, it is no doubt a great gift.There is also some government sponsored history (Document 4) which characterizes Tu Shih as a just and commoner loving man who developed technology in order lift some of the burden of labor off the people. Technology was Tu Shih's gift to the people and Tu Shih, was considered a Fuxi. Therefore this government sponsored historian also considers technology a gift. Roman attitude towards technology was that i s was necessary but that it didn't take much intelligence to make such technology, or in other words, a demeaning attitude.Cicero, an upper-class politician leader (Document 5), considered technology as something for vulgar common folk,not gentlemen. He believed that skill wasn't required to use such thing but, he never mentioned that technology was useless. Seneca, a philosopher and adviser (Document 7) also believed that it doesn't take brains to come up with technology but never attacks it's use in society as he sees that it doesn't matter who made it, but its use that matters.Their attitude must be influenced by the fact that technology was made by the lower class and acknowledging lower class work would mean lowering their pride. Other Roman attitudes were that technology was needed to create beauty. Frontius, a Roman general (Document 8) gives a glowing report on how beautiful technology has been able to make the empire's aqueducts, far more superior than structures in Greece and Egypt. Plutarch, a high official in Rome (Document 6) gives another positive report on the beauty of Roman roads created by Gaius Gracchus which was built with the help of their technology.Therefore, technology is practical, is essential for making things beautiful, but looked down upon as it is used by the lower class. Despite the different societies, it is clear that in each empire government officials and upper-class philosophers tend to share attitudes towards technology. It would be interesting to see the attitudes of common workers and women towards technology as they are the ones who make more use of it.Workers may be most affected by technology as they are the ones whom upper-class Romans consider to be the vulgar people who work with it and brainless people who invent it. In Han societies they would be the ones who produce the salt and also need the protection given by technology. The opinions of women would also provide information on how women were involved in technol ogy and how it affected gender roles. The documents above only provide a view for one class in each society therefore not giving a clear overall attitude on technology in each society.

Exchange Rates Volatility and Risks Essay

There are a number of factors that could change the value of a currency with respect to another. If the inflation rate in a country is low with respect to the inflation rate in other countries, the prices of goods and services in the country with the low inflation rate become attractive for foreigners. However, increases in demand for the goods and services in the country with a low inflation rate are expected to appreciate the value of the country’s currency (Ana, FS 2004). Changes in interest rates tend to have a similar affect on exchange rates. Foreigners would like to invest in countries where the rates of return on investment are high. As the demand for investment in a particular country increases – because it enjoys a high interest rate in comparison with other countries – the value of its currency is expected to appreciate (Ana, FS). The exchange rates at a given time are also dependent on differences between the current account balances of countries. If a country is running a current account deficit, it generally means that the country is importing more than it is exporting, so therefore investments in the country may not be considered lucrative. A country with a current account surplus, on the other hand, is considered attractive for investment. As a matter of fact, the currency of this country is as attractive to foreigners as its products and services. By increasing their demand for the country’s products and services, foreigners are expected to appreciate its currency’s value. As its currency’s value appreciates, however, investing in the country becomes less affordable (Ana, FS). When a country is experiencing a current deficit, its government may decide to borrow money to finance the self same deficit. Inflation may ensue. Moreover, if the lenders believe that there is a default risk, they may decide to sell off the debt on the open market. In the United States, treasury securities may be used for this reason. In any case, the selling of the debt on the open market is expected to exert downward pressure on the foreign exchange rate (Ana, FS). Exchange rates are also affected by the political climate of a country at any given time. Political disturbance in a country may result in a loss of investor confidence in its currency. Conversely, countries that enjoy relatively stable political climates are able to attract investment and experience appreciations in the values of their currencies (Bergen, JA 2007). Undoubtedly, a firm must be able to manage the different kinds of political risks that it may have to face by investing in a particular country. There are three main types of political risks: firm-specific risks, country-specific risks, and global-specific risks. Of the three types of political risks, firm-specific risks include the volatility of exchange rates. These risks are expected to affect the multinational enterprise at the corporate and/or project level (Frenkel, M, Karman, A, & Scholtens, B 2004). For this reason, an exchange rate risk or currency risk – from the perspective of an American investor – is defined as follows: The risk that a business’ operations or an investment’s value will be affected by changes in exchange rates. For example, if money must be converted into a different currency to make a certain investment, changes in the value of the currency relative to the American dollar will affect the total loss or gain on the investment when the money is converted back. This risk usually affects businesses, but it can also affect individual investors who make international investments (Exchange Rate Risk 2007). There are three types of exposure to exchange rate volatility that an investor may have to confront. The firm faces translation exposure when its reported accounting profits must be adjusted as a result of foreign exchange rate fluctuations. Transaction exposure is the result of the firm’s agreement to undertake certain â€Å"foreign exchange transactions during the current period (Bolster, P 2006). † As an example, an importer may sign an agreement to purchase a specific quantity of goods from Country A and pay a certain amount of money to the country in ninety days. Through this agreement the importer is obligated to pay Country A by purchasing the units of Country A’s currency in ninety days. Seeing that the exchange rate may change in ninety days, the importer is exposed to currency risk (Bolster, P). Lastly, investors may have to face economic exposure to exchange rate volatility. This type of exposure to exchange rates volatility results from the need of the firm to conduct business activities in another country in future. Bolster, P describes economic exposure as â€Å"the need for foreign exchange transactions and exposure to exchange rate fluctuations that results from future business activities. † The experience of Toyota in the U. S. utomobile market helps to explain this type of exposure to exchange rate volatility. The company had managed to attain a sizeable market share in the United States. But, when the Japanese yen started to appreciate in relation to the U. S. dollar, the revenues of the company dropped significantly (Bolster, P). The good news is that it is possible for investors to manage the political risks, including the firm-specific risks that they may be exposed to. â€Å"Limiting, diversifying, and hedging† are all viable methods of managing political risks (Frenkel, M, Karman, A, & Scholtens, B p. 20). †