Business Cycle of PepsiCo

What is Business Cycle?

National Bureau of Economic Research

Relevance of Business Cycles

Graphical representation of a companies performance

Features and Types of Business Cycles

The Short Kitchin Cycle (40 months)

The Long Jugler Cycle (9 ½ years)

The Very Long Kondratieff Cycle (50 years)

Building Cycle (18 years)

Kuznets Cycle (16-20 years)

RETAIL MARKET SHARE OF BEVERAGE PRODUCTS

Colas66%

Fruit Drinks16%

Teas3%

Sports Drinks2%Bottled Water

13%

Expansion

Growth

Launched in India in 1988

Consistent Growth

Boom

Waves of optimism

Highest point of Expansion

Rise in profits, investment, sales, employment etc.

Recession

Uncertain downfall

Controversies

Outcome- Decline in profits, sales etc.

Depression

Growth turns negative

Lowest level of Business activity

An atmosphere of pessimism and despair

General decline in economic activity-income, demand, goods and services

Revival

Turning point from depression into expansion

A result of New Innovation

S- Strong brand name, corporate identity,

Global distribution, New innovations

W- Health Issues, misleading

advertisements

O- Growing demand, Expansion into new

markets, faster growth.

T- Competition from coke, legislation

health scares like France and Belgium