Week3_assignment.pptx

THE FINANCIAL SITUATION OF AN

INTERNATIONAL ORGANIZATION

•Student; N/A

•Course: BUS357/International Business

•Instructor: Kennedy Halams

•Date: September 22, 20202

PEPSICO

•PepsiCo

•World’s most-respected companies

•Products sold in more than 200 countries and territories

•22 brands that generate more than $1 billion annual retail

sales.

PEPSICO

•PepsiCo

•Made up of six divisions

•PepsiCo Beverages North America

•Frito-Lay North America

•Quaker Foods North America

•Latin America; Europe Sub-Saharan Africa; and Asia,

Middle East and North Africa.

PEPSICO

•In 2019 PepsiCo

•Adopted a new vision, to

•Be the Global Leader in Convenient Foods and Beverages

by Winning with Purpose. ”Winning with Purpose is the

next chapter in our purpose agenda and conveys our

belief that sustainability can be an even greater

contributor to our success in the marketplace” (PepsiCo).

THE FINANCIAL VIABILITY OF THE PEPSICO

IN THE LAST 2 TO 3 YEARS

•PepsiCo portfolio:

•Contains $22 billion-dollar brands spread across

•Beverages, Food and Snacks

•Diversification offers sufficient room for offsetting

declines in one product line with growth in others

(PepsiCo).

THE FINANCIAL VIABILITY - CONTINUE

•PepsiCo:

•PepsiCo operates through its six global divisions; depending on the

product portfolio and regional market.

•Various divisions work independently

•Many also offer licensed products from other brands and

operate with third parties

•They also have endorsements.

THE EFFECTS OF INSTABILITY IN THE

FOREIGN CURRENCY MARKETS

•PEPSICO

•Profit dragged down by weakening foreign currencies and

restructuring charges.

•Currency fluctuations - revenue fell 10 per cent.

•They've also increasingly turned to other beverages for

growth and worked on slashing costs to improve financial

performance (PepsiCo).

HOW PEPSICO MITIGATES THE INHERENT RISKS

IN INTERNATIONAL CURRENCY.

•Currency risk

•The risk that one currency moves against another currency,

negatively affecting your overall return.

•Product and regional diversification

•Dynamic business strategies enables it to be a regular

dividend payer and a leader in the cola market.

REFERENCES:

•Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2018). International business: Environments and operations

(16th ed.). Retrieved from https://www.vitalsource.com/

•International Monetary Fund. (n.d.). How we do it. Retrieved from

https://www.imf.org/external/about/howwedo.htm

•PepsiCo profit falls on weakening foreign currencies, but beats Wall Street estimates. (n.d.). Canadian Press,

The. Retrieved from

http://search.ebscohost.com.proxy-library.ashford.edu/login.aspx?direct=true&db=n5h&AN=MYO193272011715

&site=eds-live&scope=site

•PepsiCo About the Company. (n.d.). Retrieved from https://www.pepsico.com/about/about-the-company

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