The Analysis of Cola Wars - Essay Example

While the Equity/Assets ratio of PepsiCo has increased over the decades, it has remained nearly the same for Coke. Coke has experienced an increase in the Debt/Asset ratio while PepsiCo has seen a decline in this ratio. PepsiCo increased its popularity through diversification strategy and spending on advertising, though its ROE occasionally dropped because of the divided attention between the promotion of different products. Coke led the competition between the 80s and the 90s in terms of sales and profitability. The shift of customer preferences affected both companies in the 2000s, though Coke managed its indebtedness better than PepsiCo.

Nevertheless, PepsiCo took the lead starting from 2000. Both Coke and PepsiCo have been twisting their HR departments in response to external influences and changing preferences (Hitt, Ireland, and Hoskisson, 2012). The most important HR policy of Coke is the recruitment of talent globally. Both companies have a good reputation for rewarding their employees. Coke and Pepsi are the products of the two companies. Partnerships and diversification strategies have helped the two companies keep the price reasonable and be at the right places. Both companies have spent a lot on promotional campaigns, particularly on their new products.