Companies' Analysis and Comparison (Research Paper Sample)

Benchmark-Analytics Exercise: Comparing Companies Using Wall Street Efficiency Measures
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Benchmark-Analytics Exercise: Comparing Companies Using Wall Street Efficiency Measures
Introduction
The paper compares the operations of Coca-Cola Co., Pepsi Co., and Dr. Pepper Snapple Group. They are multinational soft drinks companies that also competes each other in various markets. All the three companies have their headquarters located in the US but different regions (Coca-Cola Enterprises, 2015). Coca-Cola has its location in Atlanta, Pepsi in New York while Dr. Pepper Snapple Group has its head offices in Texas.
Data for Key financials
Financial DetailsCoca-ColaPepsi Dr. Pepper Snapple GroupNet income per employee$46,693$24,059$37,000Revenue per employee$305,719$240,982$322,158Receivables turnover9.288.7610.89Inventory turnover 5.468.3711.95Asset turnover 0.490.890.74
Comparisons Based on Key Financials
The data above shows that Dr. Pepper Snapple Group has the most productive employees of the three companies. The company is considered to have the most afficient workers since it has the highest revenue of $322,158 per laborer (Dr. Pepper Snapple Group, 2015). Meanwhile, Coca-Cola has the second highest productive employee with the revenue per employee of $305,719, and Pepsi is the last with a revenue per employee of $240,982 (Coca-Cola Enterprises, 2015). Nevertheless, Coca-Cola has the highest net income per employee; meaning that it has the best cost minimization methods of all the three companies. Additionally, Pepper Snapple Group has the shortest time duration for collection of its debts as compared to Coca-Cola and Pepsi. Coca-Cola then has second shortest debt collection period followed by Pepsi (Jacobs & Chase, 2014). It means that Pepper Snapple Group has the best strategy to collect its debts before they can take a longer period unreasonably.
Pepper Snapple Group also registers the least inventory turnover among the three companies under study. Therefore, the company has its stock sold at a faster rate as compared to Coca-Cola and Pepsi. Even though the Pepper Snapple Group has the most desirable inventory turnover ratio, Coca-Cola and Pepsi are still more profitable given their large scale operations (Jacobs & Chase, 2014). On the other hand, Pepsi Company has the highest asset turnover of the three companies. However, Coca-Cola has the lowest asset turnover of the three (Jacobs & Chase, 2014). Therefore, it means that for each amount of dollar invested in each of the companies, Pepsi generates the highest income.
Operations and Supply Chain Processes
The companies’ reports indicate that they have their unique operations and supply chain processes. For example, Coca-Cola Company has its production activities take place in its production plants and then the products transferred to its sales outlets for distribution. It uses third party distributors and also sells directly to the wholesalers (Coca-Cola Enterprises, 2015). On the other hand, Pepsi also has third party distributors who also package their products before distribution to wholesalers. Apart from the sale to through the third party distributors, Pepsi also has company-owned outlets where they sell directly to small scale buyers (PepsiCo. Inc., 2015). Meanwhile, Pepper Snapple Group uses both the third party and employed company distributors to sell their products. The company also sells its products to the bottlers who then package their brand and sell to the retailers (Dr. Pepper Snapple Group, 2015). From the companies’ operations, Pepsi has the best operations and supply chain process. It manufactures its products and utilizes the highest number of methods of distributions to the final consumers (Jacobs & Chase, 2014). For instance, Pepsi uses the third party distributors, sell directly to wholesalers, and also has sales outlets that sell directly to the final consumers.
Use of Credit
Coca-Cola is the most efficient in using its loans to the three companies. It uses its credit facilities to establish more branches in potential consumption areas (Coca-Cola Enterprises, 2015). However, the rest of the companies uses the credit facilities to help pay for the day to day expenses before they can receive funds from their debtors.
Use of Facility and Asset Equipment
The company that makes the best use of its facility and equipment asset among the three is Pepsi. Pepsi makes the best use of its assets since it has the highest value of asset turnover of 0.89 (PepsiCo. Inc., 2015). It means that for every one dollar invested in assets, the company generates 0.89 dollars as income.
Insights From Analysis
From the analysis of Coca-Cola Co., Pepsi Co., and Dr. Pepper Snapple Group, it is clear that there is stiff competition in the soft drink industry. Every company tries to produce as many brands as possible to meet the demands of different consumers (Jacobs & Chase, 2014).. Additionally, Coca-Cola and Pepsi which are the largest companies also put a lot of efforts in generating revenues than in collecting the money raised through credit sales (Jacobs & Chase, 2014).. In fact, it takes them more than 40 days to collect their debts as compared to Dr. Pepper Snapple Gro...