Tamara Sparby

MGT 655
November 19, 2014
Module 1
Analytics Exercise: Comparing Companies Using Wall Street Efficiency Measures
The three companies chosen are Coca-Cola, PepsiCo and Monsters Beverage Corp.
Coca-cola Co - KO
Data 3rd Q 2014:
Income per employee 53,333, #2 industry
Revenue per employee 305,938 #3 industry
Receivable turnover 8.77 Q #2 industry
Asset turnover - .49 Q #4 industry

PepsiCo Inc - PEP

Data 3rd Q 2014:
Income per employee 25,343 #4 industry
Revenue per employee 243,989 #4 industry
Receivable turnover 8.61 Q #3 industry
Asset turnover - .85 Q #2 industry

Monster Beverage Corp - MNST

Data 3rd Q 2014:
Income per employee 161,536
Revenue per employee 1.072M
Receivable turnover 1.738 Q
Asset turnover 7.512 Q

Which company appears to have the most productive employees?

Monster Beverage Company has gone beyond typical soft drinks with their energy
drinks. They were 33% higher than Coca-Cola products and 15.7% higher than PepsiCo
products.
Which company has the best operations and supply chain processes?
Coca-Cola main goals of the supply chain arm of Coca-Cola is to have every customer
receive tailored services from the system. They have 16 million retail outlets around the world.
Even though Coca-Cola is a global company, its products never travel far to reach the final
consumer, making it a local company in each market where it operates. Coca-Cola works with its
customers in what it calls brand, pack, price, channel architecture, determining what packages
to order, what equipment to use and what service requirements to help clients succeed.
They have different types of supply chains within our local operations called Segmentation, so
different platforms and products have different supply chains. There is efficient supply chain, a
responsive supply chain and an agile supply chain which is used to implement best practices and
meet the customers needs.
Which company is most efficient in its use of credit?
Monster Beverage Corp has a huge asset turnover, they cant keep their stock on the
shelves. Coca-Cola has very strong cash position, pays high dividends to stockholders and buys
back stock to reinvest into the company.

Which company makes the best use of its facility and equipment assets?

Coca-Cola has the best facilities as in as much as they change with the times and
upgraded recently to more automated systems to keep up with the demands. There facilities are
located globally so that customers receive their product locally, which means fast and fresh.
They are a global leader in sustainable water, vending machines, Monster has the foresight to
know how well Coca-Colas distribution is and has piggy backed on Coca-Cola to gain
momentum in their distributions.
What insights can you draw from your analysis?
Coca-Cola who is my favorite soft drink company has been in business since 1919 and is
the number 1 company in the United States and number one globally. PepsiCo has long since
been the number 1 rival of Coca-Cola as seen on all those commercials in the 1980s. Pepsi in
2005 did surpass Coca-Cola in market value, but only because they also have food, snake
products. Coke is strictly soft drinks. I however, predict that Monster is an up and coming
company that will take over the industry for energy drinks and beverages. They have bi-passed
Coke and Pepsi in many areas already, but they are still relatively a small corporation as yet.
What could your companies learn from benchmarking each other?
Monster has benchmarked Coca-Cola by using their distribution channels to market their
product. Coca-Cola has bought over 16% of the Monster Beverage Corporation. I can see Coke
purchasing Monster in the near future and making them soar with their knowledge, R&D, best
practices and distribution supply chains. Coca-Cola purchasing their own bottling business
helped cut costs, which in turn allowed for more R&D. PepsiCo has the best bottling practices
since they have been at it a lot longer, have incorporated snacks and restaurants into their
portfolio, have the top three health and wellness brands.

References
http://csimarket.com/stocks/singleEfficiencyrt.php?code=KO
http://csimarket.com/stocks/singleEfficiencyat.php?code=PEP
http://ycharts.com/companies/MNST/fixed_asset_turnover
http://scw-mag.com/index.php/sections/distribution/143-the-coca-cola-company
http://www.zackspro.com/zrs50/ReportPDFs/KOvsPEP.pdf