Nobody downloaded yet

Pepsi Co bid for quaker oats - Case Study Example

Comments (0) Cite this document
A current ratio should exceed the 1.0 threshold to be considered sound. A company that has a low current ratio is at risk of defaulting of its debt. The formula to calculate current ratio is current…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92% of users find it useful
Pepsi Co bid for quaker oats
Read TextPreview

Extract of sample
"Pepsi Co bid for quaker oats"

Download file to see previous pages The quick ratio of Pepsi in 2000 was 0.89. Quaker had a quick ratio of 0.87 in fiscal year 2000.
Gross margin is a financial metric that measures the broad profitability of a company. Pepsi had a gross margin in 2000 of $8,595 million. Its gross margin percentage was 61.27%. Quaker in 2000 had a gross margin of $2,240 million with a gross margin percentage of 55.37%. Pepsi’s gross margin percentage is better than Quaker by 5.89% which implies that its broad profitability is superior. During 2000 Pepsi had a net income of $1,572 million, while Quaker had a net income of $309 million. The net margin measures the absolute profitability of a firm. The formula to calculate net margin is net income divided by sales. Pepsi’s net margin in fiscal year 2000 was 11.21%. Its net margin is better than Quaker’s 7.64% result. Return on assets (ROA) measures how well management has employed its assets (Garrison & Noreen, 2003). Pepsi’s return on assets of 8.90% is inferior to Quaker’s metric of 12.30%.
The ratio analysis performed on these two companies’ shows mixed results. The short term liquidity of these two companies is similar with Pepsi holding a minor edge of 0.01 and 0.02 in the current and quick ratio. The broad profitability of Pepsi is better, but the absolute profitability of Quaker is superior. The return on assets of Quaker is much better than Pepsi. Overall based on the ratio analysis Quaker had a better financial performance than Pepsi. The acquisition of Quaker by Pepsi makes sense from a financial standpoint. Buying Quaker will not impose any constraint in the liquidity position of the firm since both companies had similar current asset and quick ratio results. The profitability of Pepsi will be enhanced by the acquisition due to the fact that Quaker’s net margin and return on assets was superior to Pepsi. From a marketing ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Pepsi Co bid for quaker oats Case Study Example | Topics and Well Written Essays - 250 words”, n.d.)
Retrieved from
(Pepsi Co Bid for Quaker Oats Case Study Example | Topics and Well Written Essays - 250 Words)
“Pepsi Co Bid for Quaker Oats Case Study Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Merger between Huge Co. and Computers Co
Huge Co., an older company, has an older work force with benefits focused on long term investments and health-oriented benefits. Computers Co., on the other hand, is a younger company with a younger workforce, whose benefits are focused on vacation leaves, fitness centers, and the like.
1 Pages(250 words)Case Study
Operations Management, ABC & Co
The car was completely manufactured from the resources of the company. All parts of the body of the car were manufactured in the company's own plant. The reputation and market of the company has already been established very well. The customers were well aware of the services.
11 Pages(2750 words)Case Study
Hexin Toy Co. Ltd
Being the leading toy and games maker has allowed Hexin to introduce a diverse selection of toys and games. However, in recent years Hexin has been reluctant to adapt to current market trends. The company was focusing on producing new versions of existing products to make them more convenient.
9 Pages(2250 words)Case Study
Pepsi Strategies in 2008
Pepsi is using the celebrity status of some successful people and well designed packages to advertise these new brands. The packages indicates some themes such as digital technology, music and international travel that has light blue images on its normal dark blue packages.
2 Pages(500 words)Case Study
Aerated Concrete Industries, Co
Because of the diversity of its business units, ACICO employs a corporate strategy centered on cost leadership.ACICO employs the expertise of its multiple sub-units in order to efficiently manage costs and enhance its expertise.
4 Pages(1000 words)Case Study
Philip Morris Co
Its processes, procedures and operations are considered one of the best all around the world. When we talk about business ethics, we talk about the ways of operating the business in such a manner that fulfills the ethical and moral standards. It means conducting the business keeping in mind all your social responsibilities, be it related to production, marketing or any other department.
13 Pages(3250 words)Case Study
Pepsi Entry into india A lesson In globilization
The intimidating tone of the letter would tell what a kind of power a politician in a much regularised and non liberalized society wields. When a domestic company itself was ruled by red tapism because of the license raj, it wouldn't be difficult to surmise what kind of transgressions an American company would have endured to make its inroads into the unexplored Indian Soft drink Market.
7 Pages(1750 words)Case Study
The Pepsi Challenge
The report also tries to recommend additional measures which might help Pepsi to become a top performer in the food and beverage industry by directly affecting the bottom line of the organisation. These new measures are related to the use of open source software, extensive training in the pre-installation phase and the outsourcing of certain IT backed functions in the organisation.
8 Pages(2000 words)Case Study
Pepsi-Cola Public Relations
The case of Pepsi-Cola shoes that negative publicity is also possible. One case of unethical behavior and poor quality can lead to numerous problems and negative publicity for the company. It is possible to say that PepsiCo introduces effective communication strategies and tools but negative publicity is heated by new reports and messages concerning poor quality and threats of PepsiCo products.
5 Pages(1250 words)Case Study
This amount was to be distributed on the basis of ideas that these organizations and individuals had for making the globe a better region. This money was to be distributed in chunks of $5000 to $250,000. This case even focuses on the method of advertising the
3 Pages(750 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Case Study on topic Pepsi Co bid for quaker oats for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us