MGT527: Instructions for Written Case Analysis Case analysis should be submitted as an individual word document and attached to a Blackboard course message. The document should contain your name on...

PEPSICO COMPANY
MISSION AND VISION
A company to be successful and to have a competitive position in the market should have a clear objective of what the company needs to be in the future, what are the plausible ways that it can use to be in such a position and how it should plan their behavior to attain their long term and short term goals. A mission and vision statements are those which aid this objective. A mission statement intends to provide an explanation of the business that the company is undertaking, what are its approaches, their objectives etc. On the other hand a vision statement states the desires of a company about its future, what position should it be in the near future. Management often combines the contents in a vision and the mission statements in order to formulate the goals, purposes and the company values. The visions of a company should always be future focused and should be flexible according to the rapidly changing external environment. A successful organization having a clear cut vision statement could always match the success strategy with its mission statement.
On an evaluation of the mission and vision statement of the PepsiCo it was found that the company has a well - developed and explained vision and mission. They have derived separate missions for its various stakeholders. Such a movement from the management could make the stakeholders under control and use them in the process towards the successful movement of the company. The company has used a tag line each for its vision and mission. These taglines could provide a better understanding of the missions and the company vision without many attempts to read the statement. It is clear and has a fair view that the management intends to provide to the general public. As per the studies it states that for a statement to be marked as ideal vision statement it should possess some qualities such as brevity, clarity, abstract and challenging. The statement of PepsiCo is such that it is succinct, as it makes easy for the management to give an easy explanation to the employees and to other members and also aids in communication.
The mission statement is also able to reflect the values, believes, norms and philosophy it follows in the operational processes of the company. The statement provides the goals that are attainable and realistic to the company. However over the critical examination it could be suggested to have a little more comprehensive statements that could match with this extremely gigantic business environment as it leaves no place for predication and forecasting. This could make the statements more appropriate as per the basic requirements of such statements.
INTERNAL ASSESSMENT
PepsiCo is one of the world’s largest MNC that have its operations around the world and having a gang of craving consumers for their products. The area of operation is food processing and beverages. The company has been able to beat and suppress the competition in the beverages market by its product innovation and the quality they manage over their products. It has over 22 brands that generate revenue of 1$ billion each year and the count increases by year. It is 29th most valuable brand in the world. The company was founded in 1965 and since then they have been able to capture the market and maintain a sustainable position in the market. The company has report $23000 in ordinary share capital for the year 2019. When having an overall view on the financial performances of the company they have been able to perform well over the years of its establishment and expansion. However in the recent years it have also noted some decline in the demand for products that are both inherent and external factors that could be discussed in detailed in the coming sections.
Financial Performance
A company’s profitability can be assessed by analyzing the changing trends in its income statement and the profitability ratios. The net income of the company that was reported in the recent year was $67,161 against the income reported in 2018 $ 64661 which is almost 4 percentage higher than the previous year. This shows that the company has been able to generate the revenue in spite of the changing lifestyles and the health conscious generation. However the core operating profit of the company has marked a decline of 2 percentages when compared with the previous year. The world has evolved much over a short span of time. First the people were in need for fast foods, cool drinks, aerated drinks and they have adopted it as a part of their lifestyle. But due to the break out of the modern lifestyle diseases the health consciousness campaigns has been wide spread and people has chosen to go for more natural drinks and home cooked foods. This is to be considered as one of the major changes that have marked a negative trend in the company’s operating profit over the recent years.
To have a better understanding of the cash inflow generated from various ways an analysis of the cash flow statement has to be conducted. For the purpose the cash generated from operating activities, investment activities and financing activities over the last three years that is for 2019, 2017 and 2018. The cash generated from the operating activities for 2019 was $ 9646, 2018 $9415 and for 2017 was $10030, this shows that the operating cash flow is having an irregular trend over the periods. However the latest reported figure represents a better performance when compared with the previous year’s operating cash...