A comparative study of Coca Cola and PepsiCo

Welcome to WebQuest

WebQuests are activites using internet resources. This WebQuest is designed for senior students studying for stage 6 HSC. This WebQuest basically invovles a 'Comparative study of Coca Cola and PepsiCo. The Financial statements are provided together with the link. Students are expected  to carefully examine the financial reports of two global business and answer the questions as set out in the task. These tasks are linked to student learning outcomes.

Students are  expected and encourgaed to use higher order thinking skills to solve a real messy problem.  WebQuest also allows students to identify  problems, hence problem- based learning is also encouraged.

Company Information

The two global companies chosen for the comaprative study is Coca Cola and PepsiCo.

Refer the links below to understand company information  and  background before moving on to the real tasks.

Coca Cola  https://www.linkedin.com/company/the-coca-cola-company

PepsiCO     http://www.pepsico.com.au/company/

WebQuest developed by:

Sangita Narayan

18055708

INSTRUCTIONS

1. Time allowed for WebQuest is 4 hours

2. Time allocated for the activites are;

PART A - 1 hour

PART B   -30 min

PART C - 1 hour

PART D  - 1.5 hour

3.  The due date is Term 3, Week 2, Period 1.

4.  Students are expected to  access further readings if they have  finished the task well before 4 hours. Please refer additional readings under Process

5. Remember, this WebQuest has activites which is very similar to HSC standard questions.

PART A

Using the information provided in the finacial reports of Coca Cola and PepsiCo. Calculate the following ratios. Click on the link below to access the Annual Reports of Coca Cola and PepsiCo.

http://assets.coca-colacompany.com/d0/c1/7afc6e6949c8adf1168a3328b2ad/2013-annual-report-on-form-10-k.pdf

 http://www.pepsico.com/Assets/Download/PEP_Annual_Report_2013.pdf

(a)    Calculate the current ratio (current assets ÷ current liabilities) of Coca Cola and PepsiCo for 2012 and 2013  Show all working.

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(b)   Calculate the debt to equity ratio (total liabilities ÷ total equity) of Coca Cola and PepsiCo for 2012 and 2013. Show all working.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(c)    Critically evaluate why it is importance for any business to control its debt to equity ratio?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(d)   Explain the interdependence of finance and operations in a business. Support your answer with relevant examples.

_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

PART B

Using the information provided in the Revenue statement of Coca Cola and PepsiCo. Calculate the following ratios.

(a)   Calculate the gross profit ratio of Coca Cola and PepsiCo for 2012 and 2013. Show all working

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(b)      Explain ONE cost control strategy and  ONE revenue control strategy that Coca Cola  and PepsiCo  could use to improve its  profitability

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

PART C

Using the comparative ratio analysis, critically evaluate the the financial position of Coca Cola and PepsiCo terms of its solvency and profitability. 

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

PART D

Business report

You have been employed as a consultant by the owners. Write a report to the owners recommending financial management strategies to improve the performance of the Coca Cola and PepsiCo.  Identify which business should continue to operate in future in terms of achieving its better financial and profitability position. 

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Following are revelant links for each Questions. Students may use the link to access resources inorder to complete the WeqQuest

Simply right click your mouse then go to 'open link in new window'

PART A

(a) Current Ratio  

http://accountingexplained.com/financial/ratios/current-ratio

(b) Debt to equity ratio 

http://accountingexplained.com/financial/ratios/debt-to-equity

(c) http://www.miraeassetmf.co.in/uploads/TermofWeek/DebtEquityRatio-TermoftheWeek.pdf

     http://www.managementstudyguide.com/debt-to-equity-ratio.htm
     http://www.readyratios.com/reference/debt/

(d) https://www.google.com.au/?gfe_rd=cr&ei=RAcsVK- 8BqaN8Qfj4oDwBg&gws_rd=ssl#q=explain+the+interdependence+between+finance+and+operations+in+business
http://www.youtube.com/watch?v=6BDtZvNKQQ0

PART B

(a) http://www.grossprofitformula.com/2012/05/how-to-calculate-gross-profit-formula.html

(b) http://www.buzzle.com/articles/cost-control-strategies.html

      http://www.inc.com/encyclopedia/cost-control-and-reduction.html

    http://scholar.google.com.au/scholar?                    q=revenue+control+strategy&hl=en&as_sdt=0&as_vis=1&oi=scholart&sa=X&ei=eGorVKvQGNDU8gXItIKgDQ&ved=0CBoQgQMwAA

PART C

http://www.youtube.com/watch?v=leHo9emri6Q

http://www.selfgrowth.com/articles/Profitability_And_Solvency.html

PART D

http://www.mce-ama.com/strategy-execution-expertise/financial-management/

http://www.youtube.com/watch?v=f48Cb2kKhs0

ADDITIONAL READINGS

NOTE: THIS READING IS ONLY FOR  THOSE STUDENTS WHO HAVE FINISHED THEIR ACTIVITIES WELL BEFORE 4 HOURS

http://www.wiley.com/college/kieso/0470587237/gateway_ics/Financial_Statement_Analysis_Primer/analysis_primer.html

https://www.google.com.au/search?q=financial+ratio+analysis&biw=1148&bih=687&tbm=isch&tbo=u&source=univ&sa=X&ei=5xosVMGGIYS5igKJqYCQDA&sqi=2&ved=0CDoQsAQ&dpr=0.9

http://www.youtube.com/watch?v=6tKTLjRuhrQ

There is NO formal grading or  mark allocation for the activities. However, the activities  must be finished. The idea behind using WebQuest is allow students to  get familiarise with HSC types of questions using  technology and how hey can go about doing those  assessment using higher order thinking skills and deal with real life business problems.

Following are relevant outcomes from the HSC  Business Studies -Finance that has been highly demonstrated in the WebQuest

1. H8 organises and evaluates information for actual and hypothetical business situations
2. H9 communicates business information, issues and concepts in appropriate formats
3. H10 applies mathematical concepts appropriately in business situations

There is  NO formal grading for this tasks.

Guideline

1. All students MUST attempt WebQuest. Those who were absent will be allocated with time or can access  from home and do in their  own time

2. Inclusion is highlighted for students with disabiities and can access the WebQuest from home and do in theirown time.

3.  Those students who seriously seem to have problem with  WebQuest will be allocated with extra time for discussion and completion of the WebQuest