Strategy implementation - Assignment Example

Strategy Implementation There are guidelines for interpreting the above perceptual map. The relationship between the two ends of the horizontal axis is that the furthered end to the left represents the budget the other end represents premium. The vertical line shows the relationship between light and heavy brands of the beer. One can see the attributes in the different from their closeness to the axis. Those names on the vertical axis on the top corner show brands that are very high in their content.

Those down on the axis are light brands, cannot knock out someone quickly. The horizontal axis puts emphasis on class and time. The names on the left are pocket-friendly; they are cheaper the further the arrow goes. As one move, the opposite direction to the right brands gets more expensive prices rise. Across the vertical side on the horizontal axis brands are more expensive. The price increase so does the content of the brands.The arrows also mean that one can get expensive and yet light brands or heavy brands depending on the closeness to the axis.

All brands above the horizontal axis are heavy brands regardless of the price it costs. All those below the horizontal axis, there are brands that are light whether budget wise or are on the premium side.Above is a perceptual map for the shampoo market. Just like the beer perceptual map, the shampoo perceptual shows the different segments formed in the market for the products. There are different view and test that different people in the market will want. A Price of a product is always a critical factor to consider when purchasing a product.

In the case of different types of shampoos, have different scents.Question twoNet worth or the stockholders’ equityThe Net worth of a company shows how much a company would remain with is if it decided to end its business operations. When calculating the net worth of an entity or shareholders’ equity, sum up all assets both current and fixed and find the sum of all the liabilities the firm has. They include current liabilities and long-term liabilitiesTotal assets= $ 74638Total liabilities= $ 52 239Net worth= assets-liabilities = 74638-52239 =$ 22399The future value of PepsiCo EarningsFuture cash flows of a firm represent the amount the company will make if it invests its saving in a project.

It considers the rate it is using as well as the period to maturity.Price earnings ratioTo calculate the price-earnings ratio, one just finds the current price of the stock of a company and then divide it by earnings per share. In short, it is a ration of an organization’s stock price to that of the firm’s earnings per share. Market value of the share/earnings per shareEarnings per Share = Net income/number of shares of common stock outstanding =6171000000/1557000000 = 3.96Price-earnings ratio = price of the stocks/ earnings per share = 67.78/3.96 = 17.

11Outstanding shares methodsOutstanding shares are the common stock that a company authorizes to be issued and purchased by investors. Capital change will be the value in the equity column less the value in the increase of the company’s equity22399-20899= 1500Net income = 6214000000- 7000000 Increase in company’s equity= 6207000000 Owners’ equity =22399000000-6207000000= 16192000000ReferenceArnheim R. (1969). Perceptual maps. University of California Press