cer for PepsiCo, took over he began to examine the corporation. Going on the belief that if you can't make diversification work, give it up. For nearly three years PepsiCo has been undergoing a major strategic transformation. PepsiCo's chairman, Roger A. Enrico, stated in his letter, "And while 1998 certainly offered its share of challenges, I'm very pleased to report that our strategy is beginning to payoff." Consumers around the world bought more snacks and beverages than ever before. They have gained market share in both snacks and beverages in the United States, their biggest market. Internationally snack and beverage units both posted healthy volume growth, even amid economic turbulence.In 1996 Coca-Cola began the jump on its competition by sponsoring the Summer Olympic Games. This event was a marketing gift. Not only because it was globally televised, but it also projected the idea of countries coming together to compete, but also promoting sportsmanship, wholesomeness, and goodwill. Additionally, in November the Minute Maid Company, a division of Coke, put forth a campaign aimed to compete in the fruit juice division against Tropicana. These factors coupled with the continued expansion of worldwide operations, helped the soft drink company sell 6 percent more throughout the world, and obtain 43% of the United States market (Steinriede 32). The boost from 1996 turned 1997 into one of the best years on the books for Coca- Cola. Sales of the ownership of Schwepps beverages plants as well as other bottling subsidiaries in New York and elsewhere added a dramatic boost to the companys financial statements in other income. The soft drink company used the money to reduce debt and continue plans for overseas expansion. While this sale looks good, the act cannot be repeated in subsequent periods. The only real way to make money is increase sales or reduce costs. Also, the investor must consider if earnings are within a co...
