Wk7: Article Review & Wk7: Strategic Profile Analysis

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WK7 Pepsi Company Financial Data Plan

Trae Clavo

Doctor of Business, University of Trevecca

Cur Topics/ Business Strategy (BUS-8020-O06.2)

Dr. Rick Mann

April 29, 2022

WK7 Pepsi Company Financial Data Plan

Several factors influence the mode of running Pepsi's food and beverage firm. They entail the customer's satisfaction, the locality, the management of the store's operations, the ability to plan for the capacity, the arrangement of the inventory, and forecasting. Secondary information from various publications shows the presence of both environments, such as the internal and the external. Most of the operations of the organizations revolve between the two settings. Where the affecting factors are named above, it is critical to analyze how and why the documented factors entail the success of the organization's performance. A firm's data is ubiquitous due to the availability of various sources of data collection; thus, a great system of data management is needed to organize and consolidate it to the users and give a clue of the firms' behavior. A great merge between the business manager and the firms IT is critical for more effortless execution of the systems. The IT coordination should be of a good understanding of the information standards and should be in a way managers can easily interpret for implementation (Xiao & O'Neill, 2018). The IT organization should be able to design and match the firm's desires. Business managers of Pepsi company should address concerns regarding the given business system so that a piece of certain information should be gathered, organized, and spread within the firm. Quality of the information and handling any technicalities concerns by the business managers are critical. The paper explains the financial data plan for the Pepsi organization.

Financial analysis and design are the most critical dealings in a finance department—they aid in achieving the essential goals and objectives of the firm with a budget of the available resources. The most crucial role of the planning is to enable sound management and implementation of both long- and short-term goals to ensure the firm's targets and profitability are met as stipulated. Financial planning entails the part of the prediction, assigning for finances, communication, and analysis (Gomaa et al., 2018). The following aspects are contained in the financial plan:

1. Forecasting: The primary step of financial planning management entails formulating future sales plans and rating the financial needs to bring the project into action. Pepsi needs to research the present and the future internal businesses picture and expand on the external environments which affect the business. Prediction tools like the Hyperion tool used for planning its critical for achieving the duty. The tools aid in accessing the data that has happened in the previous financial years as well as segregate different elements of the cost function for future forecasting

2. Budgeting: For the excellent management of the stipulated goals. After getting the information about the previous happenings, the company can appraise the wave of the costs incurred and bring better monitoring every month. This will enable the financial need of the firm in a given financial year. The Hyperion tool brings a particular picture of the economic market for a given year.

3. Reporting: After every month. Reporting of the finances can be carried out to give specific information to carry out the organization's decisions for a given prion of time. Financial information is helpful to both internal and external users. The internal users entail the shareholders and the management of the firm. External users include the investors as well as the financial institutions. The financial information mart system gathers data from various accounting modules to establish monthly financial data.

4. Analysis: an analysis of the financial data. When there is a presence of the overspending picture, we must explore the root of the overspending and the factors involved (Ma, 2021, May). More analysis needs to be carried out to determine whether the elements of overspending can be minimized or not. Analysis of the finances requires excellent knowledge about long-term development and profitability (Langellier & Park, 2020). Financial proportions symbolize a tremendous economic role in the economic analysis of the significant performance of the firm in comparison with the other firms in the same area of operation. Programs have guidebooks for the present proportions, cash flows, and production expenses. Financial analysis surrounds the chief financial officers; thus, it is critical to develop a system that upholds the attention of executive decisions.

Projected Financial Plan for Pepsi Organization

	2020	2021	2022
Revenue	$121,494	$180,000	$280,000
Direct Costs	$3,645	$5,400	$8,400
Gross Margin	$117,849	$174,600	$271,600
Gross Margin %	97%	97%	97%
Operating Expenses
Salaries & Wages	$76,800	$78,336	$79,902
Employee Related Expenses	$15,360	$15,667	$15,981
Sales and Marketing	$1,200	$1,200	$1,200
Insurance	$1,800	$1,800	$1,800
Rent	$18,000	$18,000	$18,000
Startup Expenses	$900
Total Operating Expenses	$114,060	$115,003	$116,883
Operating Income	$3,789	$59,597	$154,718
Interest Incurred
Depreciation and Amortization	$456	$456	$456
Gain or Loss from Sale of Assets
Income Taxes	$833	$14,785	$38,566
Total Expenses	$118,994	$135,644	$164,304
Net Profit	$2,500	$44,356	$115,696
Net Profit/Sales	2%	25%	41%

Projected Profit & Loss

The financial system entails the most critical item that a business requires. It is a path, guidance, and a resemblance of the company's objectives, what the firm intends to acquire in the long or short run. It displays the expected costs and aims to bring to attention the sources and how to approach these costs. A firm's data is ubiquitous due to the availability of various sources of data collection; thus, a great system of data management is needed to organize and consolidate it to the users and give a clue of the firms' behavior (Ali, 2020). A great merge between the business manager and the firms IT is critical for more effortless execution of the systems. The IT coordination should be of a good understanding of the information standards and should be in a way managers can easily interpret for implementation. The IT organization should be able to design and match the firm's desires. Business managers of a given firm should address concerns regarding the given business system so that a piece of certain information should be gathered, organized, and spread within Pepsi company. Quality of the data and handling any technicalities concerns by the business managers are critical.

References

Ali, M. R. (2020). Prediction Accuracy of Financial Data-Applying Several Resampling Techniques.

Gomaa, M. I., Markelevich, A., & Shaw, L. (2018). Introducing XBRL through a financial statement analysis project. Journal of Accounting Education, 29(2-3), 153-173.

Langellier, B. A., & Park, S. (2020). Financial performance of Medicare Advantage contracts in 2014 and plan renewal, consolidation, and termination rates in the subsequent year. Medical Care, 58(8), 674-680.

Ma, R. (2021, May). Design and Implementation of Financial Information System for Mobile Devices. In Journal of Physics: Conference Series (Vol. 1915, No. 4, p. 042010). IOP Publishing.

Wahlen, J. M., Baginski, S. P., & Bradshaw, M. (2017). Financial reporting, financial statement analysis, and valuation. Cengage learning.

Xiao, J. J., & O'Neill, B. (2018). Propensity to plan, financial capability, and financial satisfaction. International Journal of Consumer Studies, 42(5), 501-512.

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