K1ingsborough Community College Yaroslav Lyashchuk Opening Doors Learning Communities BA11; English 12; SD10

Final Linked Term Project on PepsiCo Inc. (PEP) – Term: Fall 2015

A. History / Type of Business

The main competitor of «Coca-Cola», and one of the most popular and largest food and refreshment beverage business in the world by net revenue, not only among youth, but also among adults and elderly, is «PepsiCo Inc.». Their mailing address is 700 Anderson Hill Road Purchase, NY 10577. Worldwide amount of employees is 198,000. (Staci Davidson, 141). A current CEO of PepsiCo Inc. is one of the most powerful women, Indian origin named Indra Nooyi. She ranks 15^th among the top-100 powerful women (Forbes, Web). Moreover, company uses PEP as a symbol for ticker to identify itself on stock market. Based on PepsiCo Stock Information, as of October 2, their price of stock is $94.16 (Morningstar, Web). As you may talk about Pepsi as a company, you may not even realize that they manufacture dozens of products including food. Today, PepsiCo Inc. operates all around the world; in Americas, Europe, Asia, Middle East and Africa selling the products such as Pepsi, Mountain Dew, Lay’s, Gatorade, 7 Up, Doritos, Lipton tea and so on (PepsiCo, Web). This is public type of business since the company informs shareholders about their operations, financial status, management and other staff. (PepsiCo, Web)

The PepsiCo is full of rich and interesting history as it will be mentioned in next several bullet form events.

· The story of Pepsi began long ago in 1893 in New Bern, North Carolina being called «Brad’s Drink» in honor of a founder named Caleb Bradham who was a pharmacist. Later on, Brad’s Drink was renamed to Pepsi-Cola. (Bob Stoddard, Web)

On the way of the company were success and prosperity until difficult times didn’t interfere it.

· Twice, in 1921 and 1929, as the U.S. plunged into the Great Depression, Pepsi-Cola was bankrupt. (Bob Stoddard, Web)

· The modern PepsiCo was born in 1965 when Pepsi-Cola and Frito-Lay companies combined together and started their business almost from the beginning. (Bob Stoddard, Web)

· From 1970 till today, PepsiCo headquarters are located in Purchase, New York. (PepsiCo, Web)

B. Net Income: 5 year

PepsiCo’s yearly Net Income, according to Morningstar, varies from $6, 178 to $6, 750 billion within last 5 years. The table below depicts this data (in billions) beginning from last year. (Morningstar, Web).

$6, 513	$6, 740	$6, 178	$6, 443	$6, 320

As you can see, PepsiCo’s Net Income remains stable and varies very little in such tremendous amounts of money. Also, we may notice interesting pattern where PepsiCo earned $6, 320 billion in 2010, then they did better next year. The following year they did poorer, and again next year, 2013, they did better. And again, the following 2014 year PepsiCo’s Net Income decreased. Is it going to be increased in 2015 year? We will see that in a couple of months. In conclusion, it seems that they do not have any massive progress and regress and the corporation remains on the same scale.

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