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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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