Analyze the Financial Performance of PepsiCo and Its Competitors

The assignment provides a comparison of four companies - PepsiCo, Coca-Cola, Nestle, and Tyson Foods - in terms of their financial performance, compensation structure, and market position. The data includes total asset value, liabilities, gross revenue, net income, market capitalization, book value, and number of shares outstanding. According to the matrix analysis, there is a significant difference in the performance of all companies, with PepsiCo performing best. The assignment also discusses the qualitative information and forecasts of the food & beverage industry, as well as the compensation structure of CEOs and employees. Finally, the conclusion suggests that the compensation structure of employees should be high, at least $30 million, to motivate them and ensure their success in the market.

Name of Company and CEO
Pepsi is considered as an American Carbonated soft drink producer who was established in 1893.
The CEO of the Pepsi is Indra Krishnamurthy Nooyi. She became the CEO of PepsiCo in 2006
(Moss Kanter, 2012).
CEO Background Information
Indra Nooyi is considered as an Indian-born American business executive. She is recently
serving as the Chief Executive Officer and Chairperson of PepsiCo, one of the largest food and
beverage organization in the world. Nooyi is known as one of the top female executives in the
United States and is continuously ranked among the top 100 powerful women of the world. She
was born on 28 October 1955, in Madras. She was graduated in 1974. She participated most in
social and other curricular activities. She was a brilliant student and got a seat in Indian institute
of management. She completed MBA in 1976 from IIM. The first job of Indra Nooyi was with
Total, and after that, she joined lots of organizations such as Johnson & Johnson, Boston
Consulting Group, Motorola, and Asia Brown Boveri (Colvin, 2012). This will make her more
experienced in developing various strategies. In 2006, Indra Nooyi became the chief executive
officer of the PepsiCo and currently working with it. She gains a lot of popularity in her life. She
was listed in Forbes and also received Padma Bhushan Award by the President of India in 2007.
Competitors Background Information
Muhtar Kent (Coca-Cola)
Muhtar Kent is known as the Turkish American business executive. He is the chief executive
officer and chairman of the Coca-Cola Company. He was born in 1952 in New York City. He

was completed his high school from Tarsus American College and MBA from Class Business
School, London. He was found a job in the Coca-Cola through a newspaper ad in 1978, and
today he is the CEO of the Coca-Cola. He became chairman of Coca-Cola in 2008 and became
chairman of the board in 2009. In 2014, he was awarded the honorary degree by the Georgia
Institute of Technology.
Donnie Smith (Tyson Foods)
Donnie Smith is considered as a famous American businessman from Tennessee. He was done
his graduate from the University of Tennessee. He was done Bachelor of Science in Animal
Science. He is also a member of Alpha Gamma Rho. He became the member of Tyson foods in
1980 and had served as CEO since 2009. He is known for his passion toward the hallmark of the
tenure, which began in 2009. He focused more to learn the every angle of Tyson Foods business.
In 1980, he was working in poultry operations of the organization. After seven years he was
transferred to the position of commodity buyer. This will provide a huge knowledge about the
working of the organization.
Paul Bulcke (Nestle)
Paul Bulcke is considered as a famous Belgian businessman. He graduated as a commercial
engineer from the Katholieke Universiteit Leuven. In addition, he also attended the program for
Executive development at the growing and popular school International Institute for
Management Development in Lausanne. In 1979, when he was still 25, become the member of
the Nestle group and worked in different countries such as Ecuador, Spain, Portugal, Germany,
and Belgium. Before starting his job as the CEO of the company he was the Head of America. In
2007, he became the CEO of the Nestle and started his new life as CEO in 2008.

CEO Compensation
The compensation package of Indra Nooyi is $22,189,307. It is a combination of Total Cash
Compensation and Total Equity. She is earning $ 15,567,308 as her total cash compensation and
$6,251,479 as her total equity. Pay scale of the organization depends on the skills of employees.
But basically, it pays 3, 95,829 per year package to its customer executives, 19,71,567 per year
package to its Territory Development Managers and 5k to 27k to its interns and lower staff.
Ratios and Comparisons for All companies
Elements PepsiCo Coca-Cola Tyson Foods Nestle
2015 2015 2015 2015
Number of
Employees
263,000 123,200 113,000 335,000
Total Asset
Value
$69,667 billion $90,093 billion $23,004 billion 133,45 billion
Total liabilities $29,213billion $23,709 billion $25,510 billion 21,413 billion
Gross Revenue $8.353 billion $8.728 billion $2.169 billion 88.8 billion
Net Income $5.452 billion $7.351 billion $1.220 billion 9.0 billion
Market
Capitalization
$151.75 million $179.81 billion $ 24.69 billion 223.69 billion
Book Value 12.08 6.896 2.521 3.870
Number of
Shares of Stock
Outstanding
1.452 billion 4.364 billion 3.674 billion 3.085 million
CEO- $22,189,307 $14,590,571 $10,180,700 $10, 650,700

Compensation
to Average
Salary
Multiplier
As per the matrix analysis, it can be said that there is a huge difference in performance of all
companies. Pepsi is performing very best. Yes, the difference between among companies is
favorable because it was only due to the efficiency of the management and their strategies
(Purcell, 2014). If I am a CEO of the organization, I am asking about the net assets and earning
capacity of the organization. This can provide me efficient direction about the profitability of the
organization.
Qualitative Information and Forecasts
Food & Beverages Industry

The food industry is known as a complex global collective of different businesses that supply the
most of the food items used by the overall world population. The food industry mainly contains
agriculture, manufacturing, marketing, food processing, etc. (Karnani, 2013). On the other hand,
beverage industry refers to the industry that produces drinks. Production of beverages depends
on the beverage being made. Beverage can efficiently bottle or canned, cold-fill, and hot-fill.
PepsiCo
PepsiCo is considered as a famous American Multinational food and beverage organization
whose headquarter is situated in Purchase, New York. The interests of the PepsiCo has in the
production, distribution, and marketing of beverages, grain-based snack foods, and other product.
It was established in 1965 with the merger of Cola and Frito-Lay organization.
Competitors Information
Coca-Cola
It is considered as a popular American multinational beverage organization, and retailer,
marketer or manufacturer of nonalcoholic beverages (Pendergrast, 2013). The organization
becomes famous due to its well-known product Coca-Cola which is developed in 1886. Coca-
Cola headquarters in Atlanta, Georgia.
Nestle
Nestle is known as a famous Swiss transnational drink and food company. Nestle headquarter
situated in Vevey, Vaud, Switzerland. It is considered as the largest food organization in the
world if evaluated by revenues. It deals with a various range of products such as Coffee and tea,
food, Maggi, snacks, etc.

Tyson Foods
It is a famous American multinational organization which is based in Springdale, Arkansas. It
operates in the food industry. The main feature of this organization is that it is the world's biggest
marketer and processor of beef, chicken, and pork.
Conclusion
After studying all this, we can conclude that all the organizations have positioned itself in the
market significantly. Compensation structure of CEO of all the organizations is different. It is
mainly based on earning structure and market position of the organization. Compensation
structure of the employees is too low. It is because they bear the high pressure and
responsibilities of the organization. So, their salary should be high. If an adequate amount of
efforts will pay to them, they motivated highly and considered themselves as the part of the
organization. It should be more than $30,000,000. With this, it can earn high success in the
market.

References
Moss Kanter, R., Khurana, R., Lal, R., & Baldwin, E. T. (2012). PepsiCo, Performance with
Purpose, Achieving the Right Global Balance. Harvard Business School Organizational
Behavior Unit Case, (412-079).
Pendergrast, M. (2013). For God, country, and Coca-Cola: The definitive history of the great
American soft drink and the company that makes it. Basic Books.
Karnani, A. G. (2013). Corporate Social Responsibility Does Not Avert the Tragedy of the
Commons--Case Study: Coca-Cola India. Ross School of Business Paper, (1210).
Colvin, G. (2012). Indra Nooyi’s Pepsi challenge. Fortune Magazine.
Purcell, S. D. (2014). Does CEO Pay Structure Matter? Research and Empirical Analysis on the
Relationship CEO Compensation Structure Has on the Financial Performance of the Firm.