Case_In_Point_7th_Edition_Page001_183_2

+ PEPSICO
Case 13: This information was taken from the PepsiCo® Annual Report. PepsiCo is broken
down into four divisions: Frito-Lay North America (FLNA), PepsiCo Beverages North America
(PBNA), PepsiCo International (PI) and Quaker North America (QFNA). I’d like you to look it
over and let me know the highlights. Think out loud; I’d like to know how you approach this.
And do all the numbers in your head.
You’d like me to scan the numbers and the pie charts and let you know what has been going
on inside Pepsi over the last year. Besides my summary, is there anything else you’d like to
see?
– No.
Well, the pie charts help a great deal. I’m going to break it down much the way Pepsi did. We
know by looking at the chart that the Frito-Lay division net revenue for Y3 was 33% of total
revenues. In Y2, if we divide 9,000 by 27,000, we get 33%. And if we divide 8,500 by 25,000, we
get about ... 33% as well. So we know that the net revenue of Frito-Lay as a percentage of
Pepsi’s overall sales has remained constant. I’ll do the same for Pepsi North America.
According to the pie chart, PBNA net revenue was 28% in Y3. For Y2, I’ll divide 7,700 by 27,000,