Coca-Cola and Pepsi Co. EVA [1994-2000]
Exhibit 1 shows that between 1994 to 2000, Coca-Cola has a relatively stable EVA as compared to Pepsi Co. despite the fact that Coca-Cola’s EVA is declining from the said period. On the other hand, Pepsi Co. has acquired negative EVA in the past but has been steadily increasing and surpassed Coca-Cola’s EVA in 2000.
The trend in Pepsi Co,’s EVA was the direct impact of its CEO, Roger’s Enrico’s decision to sell off KFC, Taco Bell and Pizza Hut in 1997 as part of a move to overhaul the company and focus on snack and beverage. Business mistakes of its CEO, Doug Ivester, largely contributed Coca-Cola’s low EVA more than the global economic environment during that period.
Coca-Cola and Pepsi Co. EVA [1994-2000]Exhibit 1 shows that between 1994 to 2000, Coca-Cola has a relatively stable EVA as compared to Pepsi Co. despite the fact that Coca-Cola’s EVA is declining from the said period. On the other hand, Pepsi Co. has acquired negative EVA in the past but has been steadily increasing and surpassed Coca-Cola’s EVA in 2000.The trend in Pepsi Co,’s EVA was the direct impact of its CEO, Roger’s Enrico’s decision to sell off KFC, Taco Bell and Pizza Hut in 1997 as part of a move to overhaul the company and focus on snack and beverage. Business mistakes of its CEO, Doug Ivester, largely contributed Coca-Cola’s low EVA more than the global economic environment during that period.
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