Gatorade Sport Drinks Essay Example for Free

Gatorade Sport Drinks Essay Gatorade is a brand of flavored non-carbonated sports drinks manufactured by PepsiCo and distributed in over 80 countries. [1] It was first developed in 1965 by researchers at the University of Florida, as a means of replenishing the fluid, carbohydrates and electrolytes that are divested from the body during physical exertion. Its name was derived from the school’s football team, the Gators. Originally produced and marketed by Stokley-Van Camp, the Gatorade sports drink brand was purchased by the Quaker Oats Company in 1983, which was acquired by PepsiCo in 2001. As of 2009, Gatorade is PepsiCo’s 4th-largest brand, on the basis of worldwide annual retail sales. It primarily competes with Powerade and Vitaminwater worldwide, as well as Lucozade Sport in the United Kingdom. Within the U. S. , Gatorade accounts for approximately 75 percent market share in the sports drink category. [2] PepsiCo Inc. (NYSE:PEP) is a global manufacturer, distributor, and marketer of food and beverages, owning many well-known brands including Pepsi, Frito-Lay, Tropicana, Gatorade, and Quaker Oats. [1] PepsiCo operates in over 200 countries, with its largest markets in North America and the United Kingdom. [2] In 2009, the companys revenues were $43. 23 billion with net income of $5. 95 billion. [3] Unlike its major competitor, the Coca-Cola Company (KO), the majority of PepsiCos revenues do not come from carbonated soft drinks. [4] In fact, beverages account for less than 50% of total revenue. [4] Additionally, over 60% of PepsiCos beverage sales come from its key noncarbonated brands like Gatorade and Tropicana. [5] PepsiCos diverse portfolio can mitigate the impact of poor conditions in any one of its markets. Strong demand growth in international markets the company serves 86% of the worlds population and international sales account for 48% of revenue is helping to offset a sluggish domestic market and provided the company with opportunities for continued expansion. [6] [7] PepsiCo is highly exposed to raw materials costs. Prices for the most important input materials, aluminum, PET plastic, corn, sugar, and juice concentrates fluctuate widely. For example, aluminum prices have fallen nearly 60% from their 2008 highs of $1. 50/pound to less than $0. 90/pound. [8]. PepsiCo has benefitted from lower input prices after the collapse of the commodities super spike of 2008. Contents 1 Company Overview 1. 1 Quarterly Earnings 1. 2 Bottlers 1. 3 Operating Segments 2 Trends Forces 2. 1 PepsiCo Must Survive a US Slowdown While Capturing International Growth 2. 2 Commodity Costs are Pressuring Margins 2. 2. 1 Pepsi Must Face a Declining Demand for Carbonated Soft Drinks 2. 2. 2 The Dollar Affects International Performance 3 Competition 3. 1 Beverages 3. 2 Snacks and Convenient Foods 3. 3 Coke vs. Pepsi 3. 3. 1 Global Footprint 3. 3. 2 Diversified Product Offering 4 References On April 20, 2009, PepsiCo made an offer to acquire its two largest bottlers, Pepsi Bottling Group (PBG) and Whitman (PAS), for $6 billion in a combined cash and stock deal. The deal was turned down, forcing PepsiCo to make a sweetened $7. 8 billion offer on August 4, 2009. PepsiCo hopes to streamline manufacturing and distribution through the acquisitions, allowing it to bring new products to market more quickly and efficiently. The company expects to gain full control of 80% of its North American market and increase pre-tax profit by $300 million, increasing eps by $. 15. [9] The deal adds $4 billion in debt to PepsiCos balance sheet. According to PepsiCo CEO Indra Nooyi, the acquisition is necessary to consolidate profit as there is not enough total profit in the North American beverage industry to support investments in several different companies. [10] The acquisition closed on March 1, 2010. [11] With the purchase of Pepsi Bottling Group (PBG) and Whitman (PAS) in 2010, company executives have said that it will lead to increased joint marketing that will bundle the companys snack and beverage offerings together. [12]. In December 2010, PepsiCo announced the purchase of 66% of Wimm-Bill-Dann Foods, a Russian food and beverage company, for $3. 8 billion. After completing this acquisition, the company is planning to buy the remaining 34%. [13] Wimm-Bill-Dan is the leading producer of dairy products in Russia and they also have a large market share for juice; the purchase significantly expands Pepsis presence in Eastern Europe and Central Asia. The addition of Wimm-Bill-Dann moves Pepsi closer to their goal of creating a global nutrition business worth $20 billion by 2020. [14] The acquisition comes three months after the Coca-Cola Companys purchase of Nidan Juices, a leading Russian juice manufacturer. [15] Company Overview PEP Revenues by Segment[16] PepsiCo is the largest snack and non-alcoholic drink producer in the United States, with 39% and 25% of the respective market shares. [16] Although the carbonated soft drink market in the US has gradually declined since the mid-2000s, PepsiCo has been able to grow revenues and net income through product diversification and international expansion. In 2008, the company posted revenues of $43. 3 billion, a 9. 6% increase from 2007; net income fell by 9% to $5. 1 billion. [17] The increase in revenues was primarily driven by higher sales volumes in the key European and Asian markets as well as company wide price increases. [18] The fall in net income was attributable to two reasons. First, PepsiCo recognized a $346 million mark-to-market loss on derivatives used to hedge its commodity exposure. [19] Next, the company incurred restructuring costs of $543 million in relation to its Productivity for Growth program. [20] PepsiCo expects to record another $30-60 million charge in 2009 to complete the program, which will close six plants in an effort to streamline PepsiCos global supply chain. [20] Quarterly Earnings Q1 2009 In the first quarter of 2009, PepsiCo posted revenues of $8. 263 billion, a 1% decrease from Q1 2008 figures; net income fell less than 1% to $1. 135 billion. [21] Although net pricing across PepsiCos product line increased by 7% during the quarter, the company was negatively impacted by a 7% foreign exchange loss due to the strengthening US dollar, as well as a 2% net decrease in sales volume. [22] Q2 2009 In the second quarter of 2009, PepsiCo posted revenues of $10. 592 billion, a 3% decrease from Q2 2008 figures; net income fell less than 1% to $1. 66 billion. [23] PepsiCos volumes remained roughly constant between the quarters, with snack gaining 1% and beverages losing 1%. The decrease in net revenues was due to a weakening of the companys US beverage operations, which decreased by 9%, in addition to the strengthening dollar, which adversely affected revenues by 8. 5%. Ignoring these changes, revenues would have grown by 5. 5%, driven by gains in the the Latin America Foods and Asia/Middle East/Africa divisions. Net income remained roughly constant as input costs fell in line with net revenues. Ignoring currency fluctuations, Earnings Per Share (EPS) would have grown by 8%. [23] Q3 2009 In the third quarter of 2009, PepsiCo had revenues of $11. 08 billion, a 1. 5% decrease from Q3 2008; net income increased 12% to $2. 23 billion. [24] The increasing value of the US Dollar negatively affected net income by 7% and the company had $9 million in costs associated with its merger with PBG and PAS, its two largest bottlers. [25] Worldwide, beverage volume increased 0. 5% while snack volume increased 2%. Frito-Lay North America, the largest division of PepsiCo, grew net revenue by 5% and increased volume by 3%. [26] Through the first three quarters of 2009, Frito-Lay was the fastest growing consumer goods company in North America. [27] The second largest division, PepsiCo Americas Beverages, saw net revenues decline by 9% and total volume decline of 6%. [28] Both Gatorade and Aquafina had double-digit volume declines; discussing Gatorade, executives attribute the decline to casual consumers budget worries and insist that the core consumer, athletes, are still buying the brand. [29] In Latin America and Europe, net revenue declined 10% and 2% respectively, driven primarily by foreign currency weakness compared to the US Dollar. [30] Q4 2009 In the fourth quarter of 2009, PepsiCo had revenues of $13. 3 billion, a 4. 7% increase from Q4 2008; net income increased 99% to $1. 43 billion. [31] Operating income for the quarter was $2 billion. [32] Pepsi American Foods net revenues increased 4%, with a 5% revenues decrease for Quaker Foods being offset by 2% revenue growth for Frito-Lay and 10% revenue growth for Latin American Foods. Pepsi American Beverages net revenues decreased 2% as a result of a 5% decrease in volume. Pepsi Internationals net revenues increased 5%, supported by 4% revenue growth in Europe and 7% growth in AMEA. Volumes for AMEA increased 13% in the quarter while volumes for Europe decreased 3%. [33] AMEAs strong quarter was based on a 13% increase in snack sales and 5% increase in beverage volumes, with 21% growth in beverage volume in India. [34] However, Chinas beverage volume decreased, which implies a market share loss to Coca-Cola Company (KO), whose China volumes grew 29% during the same period. [35] Q1 2010 In the first quarter of 2010, PepsiCo had revenues of $9. 4 billion, a 13. 4% increase from Q1 2009; net income increased 26% to $1. 4 billion. Operating income for the quarter decreased 47% to $840 million. [36] On February 26, PepsiCo completed the acquisition of its two largest bottlers for approximately $12. 6 billion; charges related to the merger in this quarter were approximately $282 million . [37] Worldwide snack volume for the quarter increased 1% while beverages volume dropped 0. 5%. Frito-Lays operating profit increased 10%, primarily as a result of increased sales of variety product packs and the decreased cost of cooking oil. [38] Quaker Foods revenue decreased 1% because of declines in ready-to-eat cereals and oatmeal, which were partially offset by substantial growth in the Roni brand; operating profit declined by 12% mainly as a result of insurance recoveries related to last years flood at Cedar Rapids. [39] In Latin America, favorable net pricing and a 1% increase in volume resulted in a 13% increase in revenues; however unfavorable currency exchange rates in Venezuela (19% decrease) accounted for a 12% decline in operating profit. [40] In Europe, favorable currency exchange rates offset 4% declines in snack and beverage volumes, for net revenues increase of 5% and operating income increase of 16%. [41] Double-digit growth in snacks and beverages volumes for India and China drove net revenues up 23% and operating income up 17% for the Asia, Middle East, and Africa segment. [42] The companys Americas Beverages segment saw volumes slip 4% (despite a 2% gain from a recent distribution agreement with Dr Pepper Snapple Group (DPS)) with a double-digit decline in Aquafina volume. However, net revenues increased 32% while operating income decreased 83% as a result of the completed merger with PepsiCos two largest bottlers. [43] The merger makes comparisons to previous quarters very challenging, however the Americas Beverages segment is in the process of de-emphasizing less-profitable products in favor of higher end offerings, such as Gatorade, which saw nearly 10% volume gains in the quarter. [44] Q2 2010 In the second quarter of 2010, PepsiCo had revenues of $14. 8 billion, up 40% from Q2 2009; net income decreased 3. 4% to $1. 6 billion. Operating income increased 12. 3% to $2. 46 billion. [45] The primary reason for the discrepancy in revenues and net income was the ongoing costs associated with the companys purchase of its primary bottlers. In Q2 2010 charges related to the restructuring decreased income by $155 million. [46] Worldwide volume increased 7% with an 11% increase in beverages and 1% increase in snacks. Frito-Lay pound volume fell 3% but net income increased 2%. The segment also benefited from lower commodity costs, in particular lower prices for cooking oil. Quaker Foods North Americas revenue fell by 4% with a 2% decline in volume that was primarily attributable to a decrease in cereal volume. [47] Latin America Foods net revenue increased 12% with a 2% increase in volume. However, operating profit fell by 5% after an unfavorable court settlement decreased profits by 5% and unfavorable currency exchange rates added another 5% to the decrease. The companys Americas Beverages increased revenues by 112% as a result of the merger with its major bottlers; volume for the quarter increased 13% with 8% coming from the acquisition of bottling operations in Mexico and 6% from PepsiCos contract with Dr. Pepper Snapple Group. [48] In Europe, net revenues increased 47% with snack volumes growing at 2% and beverage volume growing at 10%. Sales improved in most of Western Europe and Russia but declined slightly in Eastern European countries such as Romania and Ukraine (with the one exception of double-digit beverage growth in Turkey). [49] In Asia, Middle East, and Africa, where the company has recently invested significant funds in increasing manufacturing capabilities, net revenue grew 22%. Snack volume grew 16% and beverage volumes increased by 8%. India saw double-digit growth in both categories, while snack volume in the Middle East and China grew more than 10%. [50] Q3 2010 In the third quarter of 2010, PepsiCo had revenues of $15. 5 billion, up nearly 40% from Q3 2009; net income increased more than 11% to $1. 9 billion. Operating income increased by 25% to $2. 8 billion. [51] The companys volume and revenues increased worldwide for both food (+2. 5%) and beverages (+11%). Quaker Foods was the companys only division that failed to grow its operating income from 2009 with the largest gains posted by North American beverages, Europe, and Latin America Foods. [52] PepsiCo Americas Beverages operating profit grew nearly 80% for the quarter with the majority of this growth related to the companys purchase of its main bottlers in Q1 2010. However, volume grew by 13% during the quarter reflecting 8% growth in Mexico (operations in Mexico were included in the bottling merger), 6% volume growth due to the companys new contract with Dr Pepper Snapple Group (DPS), and a 4% decline in carbonated beverages in North America that was more than offset by a 5% increase in non-carbonated beverages. The success of the latter was due primarily to a double-digit increase in volume for Gatorade; water sales continued to fall during the quarter. [53] In Europe, volume growth related to the bottling merger accounted for a 7% increase, while double-digit growth in Russia, the UK, and Turkey pushed volume up 17% in total. Snack volume for the quarter grew by 3%, again supported by Russia, the UK, Turkey, and France. Both beverages and snack volume fell by more than 10% in Romania during the quarter. [54] Latin America Foods operating profit grew by 22% as a result of a double-digit volume increase in Brazil and nearly 10% increase in volume for the Sabritas brand in Mexico. [55] Operating profit for Quaker Foods decreased by more than 5% as a result of a 1% decline in volume, especially for Roni and Oatmeal brands. For Frito-Lay North America, pound volume declined 2% as a result of overlap with the companys 20% More Free promotion; sales of Sun Chips fell by more than 10% forced the company to abandon its compostable, albeit noisy, packaging. [56] In the Asia, Middle East, and Africa segment snack volume grew by 16% and beverage volume grew by 4%. Snack volumes grew significantly in the Middle East, China, India, and Australia while only China exhibited strong single-digit beverage growth. [57] Bottlers *Note Pepsis acquisition of Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) was completed on March 1, 2010 PepsiCos beverage division manufactures concentrated syrup forms for all of Pepsis beverage brands. PEP sells these concentrates to bottlers for production, packaging, and distribution of the final products. PepsiCo grants bottlers the use of Pepsi trademarks and other brand rights within certain geographic regions. In August 2009, Pepsi made a $7 billion offer to acquire Pepsi Bottling Group (PBG) and PepsiAmericas (PAS). As the US carbonated beverage market shrinks from 60% of all nonalcoholic beverages in 1999 to 35% in 2009 PepsiCo hopes to consolidate the earnings of the three companies for shareholders. [9] Additionally, PepsiCo believes the acquisitions will streamline company-wide distribution through economies of scales. Three companies distribute 60% of PepsiCos North American beverage volume:[58] The Pepsi Bottling Group (PBG) is the largest of PepsiCos bottlers. PepsiCo has a 33% stake in Pepsi Bottling Group (PBG), and claims its share of income under the equity method of accounting. [59] PepsiAmericas (PAS) is the second-largest bottler in the Pepsi system. PepsiCo has a 43% stake in PepsiAmericas (PAS), and claims its share of income under the equity method of accounting. [60] Pepsi Bottling Ventures is the third-largest domestic bottling company within the Pepsi system. The company was formed in 1999 when five of Pepsi’s bottling companies consolidated to form PBV. Operating Segments PepsiCo operates in six divisions: Frito-Lay North America (29% of Revenue, 43% of Operating Income)[61] manufactures, markets and sells branded snacks. Popular products include Lays Potato Chips, Doritos Tortilla Chips, Cheetos, Rold Gold Pretzels, and SunChips. [1] Following the companys purchase of Pepsi Bottling Group (PBG) and Whitman (PAS), company executives have said that it will lead to increased joint marketing, bundling the companys snack and beverage offerings. [62] Quaker Foods North America (4% of Revenue, 8% of Operating Income)[61] manufactures, markets and sells cereals, rice, pasta and other branded products. Popular products include Quaker Oatmeal, Aunt Jemima mixes and syrups, Cap n Crunch cereal, Rice-A-Roni, and Life cereal. [1] Latin America Foods (14% of Revenue, 13% of Operating Income)[61] manufactures, markets and sells a number of leading salty and sweet snack brands. Popular products include Gamesa, Doritos, Cheetos, and Ruffles. [4] PepsiCo Americas Beverages (25% of Revenue, 29% of Operating Income)[61] manufactures, markets and sells beverage concentrates, fountain syrups and finished goods, under various beverage brands. Popular products include Pepsi, Mountain Dew, Gatorade, Tropicana, and Izze. [4] United Kingdom Europe (15% of Revenue, 10% of Operating Income)[61] manufactures, markets and sells a number of leading salty and sweet snack brands. Popular products include Lays, Walkers, Doritos, and Cheetos. [4] Middle East, Africa, and Asia (13% of Revenue, 8% of Operating Income)[61] manufactures, markets and sells a number of leading salty and sweet snack brands. Popular products include Lays, Smiths, Doritos, and Cheetos. [63] Trends Forces PepsiCo Must Survive a US Slowdown While Capturing International Growth Soaring food and energy prices[64], the housing slump[65] and a weakening job market[66] are putting the breaks on consumer spending in North America, even in the typically recession proof drinks and snacks market. Emerging markets such as China, India, Eastern Europe and Latin America present strong growth opportunities for Pepsico. In December 2010, Pepsi announced their purchase of Wimm-Bill-Dann Foods, a Russian food and beverage company, for $5. 4 billion[67]; the purchase followed Coca-Colas purchase of a Russian juice company for $300 million in summer 2010. [68] Wimm-Bill-Dan is the leading producer of dairy products in Russia and they also have a large market share for juice; the purchase significantly expands Pepsis presence in Eastern Europe and Central Asia. The company had sales of $2. 6 billion in 2010 and serves approximately 280 million customers in Eurasia. [69] In addition to making international acquisitions, PepsiCo is investing significant resources in expanding their manufacturing capabilities in developing markets. The company has pledged to invest $3. 5 billion in China through 2013, mainly through the construction of 10 to 12 new manufacturing facilities (in addition to the 27 it currently operates). In China, Pepsi is also pursuing a strategy of buying back stakes in its Chinese operations from local partners. These acquisitions will give the company greater control over its operations while increasing profits. Unlike the saturated North American market, Chinas carbonated drink market is growing at almost 20% annually. [70] In late August 2010, PepsiCo announced its plan to invest $250 million in new manufacturing plants in Vietnam further expanding its footprint in the region. In the past two years, the company invested in two other manufacturing plants in Vietnam, and it currently operates five plants in the country. [71] In Latin America, the company has pledged $3 million over the next three years to create an agriculture research center in Peru, which will focus on the discovery of new potato and other vegetable varieties. [72] Pepsis expects their global nutrition business will be worth $20 billion by 2020. [73] Commodity Costs are Pressuring Margins 2007-2009 PET resin prices, ? /pound [74] PepsiCos profitability can be affected directly and indirectly by the costs of various production inputs. PEP is responsible for purchasing the raw materials used to make its products in all its markets and also acts as an agent for the purchase of its bottlers raw materials. Some of the raw materials used by PEP include grains such as corn, wheat flour, oats and rice; fruit and vegetable products like oranges, potatoes, and juice concentrates; sugar; and vegetable and essential oils. For example, aluminum prices have fallen more than 60% from their 2008 highs of $1. 50/pound to less than $0. 65/pound. [8] Changes in the prices of such raw materials could impact total production costs and the company’s profit margins. Changes in bottlers production input costs can also indirectly impact PEPs profits. If a bottlers raw materials become more expensive, it might pass on the increase to customers, which could lead to a loss of market share as customers switch to more affordable alternatives. The primary raw materials used by bottlers are high fructose corn syrup, which is used as a sweetener, aluminum, used to make cans, and PET Resin, used for plastic bottles. In an effort to insulate itself from market forces, PepsiCo has invested $29. 3 million in five farms in China, making it one of the countrys largest agricultural companies. [75] The farms primarily produce potatoes for the companys potato chip brands and by 2005, the company was the largest private potato grower in the country. [76] In her 2008 visit to China, CEO Indra Nooyi said that the company is planning to invest $1 billion in China by 2012. [77] In addition to its farms in China, Pepsi has 12,000 contract farmers in India growing potatoes on 16,000 acres of land. In addition to potatoes, the company is hoping to expand its contract farming initiative to include oats in the near future. [78] Pepsi Must Face a Declining Demand for Carbonated Soft Drinks Consumer demand for CSD has been negatively affected by concerns about health and wellness. Since 1999, carbonated soft drinks have dropped from 60% to 35% of total US beverage volume. [9] Rising health and wellness concerns can be attributed to increasing concern for obesity as well as education campaigns on the part of the FDA as well as non-profit groups. Public campaigns to ban sales of soft drinks and fatty snacks in schools have also negatively impacted demand for sugary sodas. These factors have driven a shift in consumption away from CSD to healthier alternatives, such as tea, juices, and water. Even within the CSD segment, consumers have been moving away from the sugared drinks, opting instead for diet beverages, which do not generally contain any sugar or calories. In response to this shift in consumer demand, PEP has increased its development of both diet CSD and non-CSD beverages. With its popular Tropicana and Gatorade brands, PepsiCo is much better situated than Coca-Cola Company (KO) to react to these changing trends. Facing lower Gatorade sales in 2010, Pepsi developed a social marketing department to track the brands performance and online reputation. By tracking user discussions online and Gatorade groups on Facebook, the company has been able to quickly respond to consumer demands. The results of Pepsis new marketing initiative is inconclusive because the brand rose 2. 4% during the first half of 2010 but this is compared with low sales in 2009. [79] The Dollar Affects International Performance Changes in the strength of the dollar compared to foreign currency could impact the company by decreasing both costs and revenue in dollars. As the strength of the dollar increases, all sales made in foreign currency end up being worth less because the amount of US dollars the company gets per sale decreases. On the other hand the cost of foreign inputs (food and other commodities that go into PepsiCo products) sold in foreign currencies would decrease with the strengthening dollar. Since over half of PepsiCos sales are in international markets, the increasing value of the dollar could be a significant factor driving revenues down overseas. Specifically the company primarily deals with the British Pound, Euro, Australian dollar, and Canadian dollar. Between July and December 2008, the dollar regained nearly all its 2007 losses against foreign currencies, and has continued this trend through 2009. [23] Competition 2008 U. S. non-alcoholic beverage market by volume[80] Beverages In the domestic beverage market, the Coca-Cola Company (KO) is PepsiCos main competitor. In 2008, Coca-Cola had a 23% share of the U. S. non-alcoholic beverage volume, while PEP held a 25% share. Coca-Cola Company (KO) has a higher worldwide share of carbonated soda beverages, but PepsiCo has a more diverse product line and leads the industry in non-carbonated soft drink innovations. [81] PepsiCos revenues are also substantially higher than Coca-Colas, due to PepsiCos snack and convenient foods business, a market in which KO does not participate. PepsiCos presence in the snack and convenient food industries, as well as its industry-leading innovations in the non-carbonated soft drink segment, gives it a somewhat more balanced portfolio than Coca-Cola and provides the company with some protection against further declining demand for CSD. Pepsi also pays the Dr Pepper Snapple Group (DPS) for the rights to sell its products, along with Coca-Cola Company (KO). In December 2009, Pepsi agreed to pay Dr Pepper Snapple Group (DPS) $900 million for the continued rights to sell Dr. Pepper products following the companys acquisition of its North American bottlers. [82] This deal was similar to a contract signed by Coke and Dr. Pepper in June 2010, worth $$715 million, that gave Coke similar distribution rights following their acquisition of Coca-Cola Enterprises (CCE). [83] Snacks and Convenient Foods 2008 U. S. Snack Market by volume[80] PepsiCos Frito-Lay and Quaker brands compete in various parts of the larger food industry. Its snack foods manufactured by the Frito-Lay segment hold a commanding share of the U. S. market, accounting for around 39% of domestic snack food sales in 2006. PepsiCos main competitor in the food market overall is Kraft Foods (KFT). Krafts products include snacks, cheese, diary, and cereal products, which puts it in competition both with Frito-Lay and Quaker products. Much like the Coca-Cola Company (KO), Kraft does not participate in both the food and soft drink markets, giving PEP the advantage of having a more diverse offering of products. Coke vs. Pepsi For decades now, Coke and Pepsi have battled for our hearts and minds but what about our capital? Which company will add the best flavor to your investment portfolio? Although both companies share powerful brand names and global franchises, there are two important distinctions between Pepsico and Coca-Cola that any investor should consider before choosing between these comestible titans: Global Footprint When it comes to international presence, Coca-Cola easily trumps Pepsico. In 2009, Coca-Cola generated 74% of its revenue overseas compared to 48% revenue for Pepsico. [84][85] Coca-Colas impressive global footprint puts it in a better position to benefit from strong growth across the globe, particularly in the developing world. Furthermore, because Coke generates so much of its revenue abroad, it stands to benefit greatly from the continuing weakening of the dollar as sales denominated in foreign currencies are suddenly worth more dollars back home. At the same time, Pepsicos heavy dependence on North America makes it much more susceptible to a slowing US economy. Diversified Product Offering. Another important distinction between the two companies is their product offering. While KO is essentially a one-product company that focuses on beverages, Pepsico has a much broader product base that includes beverages, foods and snacks. Coca-Colas heavy dependence on beverages, particularly carbonated beverages, makes it more susceptible than Pepsico to a growing aversion to soda which is perceived as fattening and unhealthy. On the other hand, Pepsicos extensive portfolio of beverages, foods and snacks puts it in a better position from the trend to healthier eating.

Contrasting Shakespeares Richard with the Historical Figure Essay exam

There are two Richards: the Machiavellian monster created by Shakespeare and the historical figure who many historians claim is a much-maligned innocent man. So is Richard the sinner or the one sinned against? How can we decide? Is a decision even possible? In Shakespeare's play Richard III, Richard describes himself as a deformed malcontent in the opening soliloquy. (Shakespeare often uses physical deformity to mirror an evil mind.) I, that am curtail'd of this fair proportion, Cheated of feature by dissembling nature, Deformed, unfinish'd, sent before my time Into this breathing world, scarce half made up, ... And therefore, since I cannot prove a lover, To entertain these fair well-spoken days, I am determined to prove a villain And hate the idle pleasures of these days. (1.1.18-31) Many historians, on the other hand, have a different view of the man. For instance, in the 1956 biography Richard the Third, Paul Murray Kendall describes Richard based on contemporary writings and two well-known portraits of the King. Most contemporary descriptions bear out the evidence of these portraits that Richard had no noticeable bodily deformity, and establish him as a thin, frail man of a little less than normal height. (537) The most heinous crime that the Tudors (the kings who succeeded Richard to the throne) accused Richard of committing was the murder of his nephews-Edward V and Richard, Duke of York-the sons of his brother, the former king, Edward IV. How seriously should we take this accusation? What evidence supports it? Kendall writes, "If we take 'evidence' to mean testimony that would secure a verdict in a court of law, there is no evidence that he [Rich... ...ing skills that will lead to success both in school and in life. Works Cited Fields, Bertram. Royal Blood: Richard III and the Mystery of the Princes. New York: ReganBooks, 1998. Kendall, Paul Murray. Richard the Third. New York: Norton, 1983. - - - . Richard III: The Great Debate. New York: Norton, 1992. Looking for Richard. Dir. Al Pacino. Perf. Al Pacino, Alec Baldwin, Aidan Quinn, Winona Ryder, and Kevin Spacey. Videocassette. Fox, 1996. The Missing Princes of England. Dir. Melissa Jo Peltier. Narr. David Ackroyd. Videocassette. New Video Group, 1998. Shakespeare, William. Richard III. Ed. Barbara A. Mowat and Paul Werstine. New York: Washington Square Press, 1996. Tey, Josephine. The Daughter of Time. New York: Scribner, 1988. Weir, Alison. The Princes in the Tower. New York: Ballantine Books, 1995.

Organizational Management and Operations Paper

ORGANIZATIONAL MANAGEMENT AND OPERATIONS PAPER Juan Malfavon CJA/484 v2 July 13, 2012 Gregory Baugh * Criminal Justice Trends Paper * The Policing component is only one part of the criminal justice system (triad of justice) that includes Policing, Courts, and Corrections, and it is the primary tier that generates criminal arrests, prosecutions, restraints, criminal activity, and protects the peace. * This paper will review the policing function of the criminal justice system and will identify, compare, and contrast the policing function at the local, state, and federal organizational levels of the criminal justice system.An analysis of the organizational, management, administration, and operational functions at these three organizational levels will be assessed for similarity of leadership and differences. * According to â€Å"Police Crunch† (2012), â€Å"To be an effective police/law enforcement officer, one must understand where we (law enforcement) has been, where society believes we are and what the heck is going to happen in the future† (Para. 1). For society to continue a policing effectiveness, one must also understand the leadership aspects associated with managing personnel, and equipment at all levels of law enforcement.Keeping the peace; be it local or national requires tremendous resources, and an acutely instinctive leadership base. * Police Function Comparison Defining law enforcement capability also requires identifying agencies that work in the same capacity of law enforcement; that is, protecting the pace, enforcing laws, and combating crime. In the article Trends and Practices in Law Enforcement and Private Security by the Law Enforcement-Private Security Consortium (2009).The Consortium defines law enforcement as the following agencies; Public law enforcement agencies, including local, state, and tribal police departments; sheriffs’ departments, and federal agencies, such as the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U. S. Secret Service, the Drug Enforcement Administration, and many others. The purpose of identifying these agencies is to support the reader’s perspective of what law enforcement agencies are; be they local, state or federal.Policing at any level of civil capacity requires an arduous amount of time, resources, and most important; dependable personnel, and quality leadership. Technology and all its capabilities not only, but also help the law enforcement community to track and prevent possible crimes, and with the implementation of the county, state, and federal policing system, have arisen many positive attributes, one in particular is that policing agencies should model the same common goal.The prevention of crime and protection of life, to uphold and enforce the law, to combat public fear of crime, to promote community safety, to control traffic, to encourage respect for the law, and to protect the civil rights, and liberties of individuals (Heath & Terry, 2008). However; Costs associated with policing communities, educating police officers and keeping in line with the policing functions as depicted by Sir Robert Peel, are skyrocketing in the face of ever increasing criminal activity.To add to the decreasing structure of law enforcement, the lack of uniformity of leadership within these legal communities is a remarkable forfeiture in manpower development, and leadership continuity, which only serves to strengthen the criminal community. There are many varieties of police department operational functions that include: diversity in the hiring of the police officers as well as the type of training received.Many police agencies develop their own forum for training their officers in accordance with local policies. Unfortunately; not all police departments maneuver the same, and in most cases do not even operate under the same principles of policing or leadership development, thus the locale, state, and federal policing agencies have some policing similarity, but operate under completely diverse training, and operational standards, which account for operational mistakes, and unnecessary costs.One theory in relation to how some agencies are controlled is called the organizational theory, this theory argues that; a police officers’ conduct and deportment is shaped by his or her fellow officers and the culture of policing in that area. This can be true for all levels of law enforcement, and leadership at any regional setting. Some of these models are very rigid, and orderly, such as the quasi-military style model, where the organization functions much like a ilitary unit, such as the swat teams do, where battle dress uniforms are worn and military style tactics are employed for all training, this style of policing is more widely accepted at the local and state level of policing. During the authors tenure as a United States Marine, and acting in the capacity of a Military P olice Officer; training is based on military structure and much ridged, even when handling civilian personnel on or off base, the training was directive and demanded absolute aggressiveness, be it verbal or physical.There are also other less rigid programs of leadership such as the dominant style of policing model, the task force policing model, and the zero tolerance policing models (Walker & Katz). These models gravitate to a more civil capacity in handling personnel and civil issues and are more widely used by small town police forces or federal agencies. Just as people are different; so too are supervisory roles, mission statements and leaderships. Every policing organization has its common goals to adhere to such as, crime prevention, traffic, crime control, safety, and education, to name a few examples.The values and principles of policing are largely dictated by the area’s leading director, and the types of crimes that are associated with the local precinct. This uncan ny process of regional legal factors should serve to re-enforce, or to strengthen possible gaps in policing agencies, their logistics, training, and personnel issues through information sharing and innovative leadership, which is more commonly used and practiced nationwide. Organizational Similarities * With the aid of technology, and new law enforcement relationship’s established throughout the continental United States.Policing programs such as, the Federal Bureau of Investigations (FBI) and several other American agencies have established joint partnering programs with local law enforcement agencies (Fact Sheet: The USA Patriot Act – A Proven Homeland Security Tool,  2005). * This new form of joint policing has been made possible in large part because of the 911 terror attacks, and the signing of the USA Patriot act, authorizing law enforcement agencies to share information across state lines.This policing program structure has brought a significant punch to the w orld of policing at the national and international crime fighting arenas. * Although the law enforcement community has had a financial boon with the passage of the USA Patriot act, budgetary and management issues continue to have an impact on the policing community at all levels of legal enforcements, and the other tiers of the criminal justice system are also feeling the manpower, and financial pinch. It is for this reason that training programs like that of the Law Enforcement-Private Security Consortium. (2009), have established literature to support the uniformity training standards from which all law enforcement agencies can retrieve training guides, ideas, support, and assistance in improving the programs in their community and in their fight to combat crime, and secure the peace within their region or policing level, be it local, state, or federal.This program handbook is available to every policing agency and is published by the department of justice to ensure a uniformity s tructure among all policing agencies. Although there is a distinct difference between the uniforms that local, state, and federal agencies wear, there is little distinction in the mission of each agency, which is to maintain civil compliance with local, state and federal laws and to ensure the safety of its citizenry, but the underlying fact is that all agencies operate differently in leadership and with different goals. Leadership Characteristics * The federal level of law enforcement, which for the most part operates on the same level as the lower level agencies is tasked with bringing higher levels of criminals to justice such as, interstate drug traffickers, human trafficking as well as serial killers, and internationally wanted criminals. This type of program requires more funding, intelligence gathering, better equipment, and resources as well as leadership, intellect, discipline, and experience.An officer at this level should be thoroughly equipped and supported by all other agencies within the judicial system. * The state and local level leadership programs should focus on internal issues and implement programs to support the federal level agencies and to learn from the programs, and leadership characteristics that enable national and international enforcement agencies to handle such varied criminal traffic. * Close The future of law enforcement at the local, state, and federal level will have to convert to a more strategic in environment for law enforcement organizations because of the overwhelming amount of cybercrimes, human smuggling, drug trade and increased egregious crimes against humanity that are emerging within the United States and other countries. Information sharing will becomes easier and strategic in combating all crimes for law enforcement agencies, and will be the spear head to eradicating potential crimes at local, state and federal agencies. As law enforcement organizations at the local, state and federal level learn to compare, adju st, and recalibrate leadership responsibility, connect with information sharing programs and learn to work in unison to facilitate a uniformity style leadership programs, criminals and their factions will eventually start to follow a systematic shut down. * This study reviewed the policing functions at the local, state, and federal levels.An analysis of the organizational management, administration, and operational functions of these three regional law enforcement agencies revealed how law enforcement agencies at all levels have the same mission yet carry it out it in varied ways. * A view of the leadership characteristics and responsibilities showed how agents at the federal level require more training, funds, equipment and communication with lower level programs to adequately accomplish the mission of national and global policing. * * * * * * ReferencesLaw Enforcement in the 21st Century, Second Edition, by Heath B. Grant and Karen J. Terry. Published by Allyn & Bacon. Copyright à ‚ © 2008 by Pearson Education, Inc. * Law Enforcement-Private Security Consortium. (2009). Trends and Practics in Law * Enforcement and Private Security Collaborations . : U. S. Department of Justice. Police crunch. com. (2012). Retrieved from http://policecrunch. com Walker, S. , & Katz, C. M. The Police In America: An Introduction (6th ed. ). New York, New York: McGraw Hill. *

Corporate Crime Definition Example For Free - Free Essay Example

Sample details Pages: 9 Words: 2767 Downloads: 3 Date added: 2017/06/26 Category Law Essay Type Review Tags: Criminology Essay Did you like this example? Why has the analysis of crimes of the powerful been such a growth area in criminology over the past century? It is tempting to give a simple or even simplistic answer to the above question: it is tempting to say that analysis and theory of crimes of the powerful have grown so quickly in the last century because the quantity and diversity of such crimes have themselves exploded outwards. As the number of crimes committed by the powerful have risen exponentially across the years and continents, so the police forces, crime-prevention agencies and legislators of the governments charged with halting these crimes have had to evolve into larger and more complex organizations also. For instance, amongst myriad forms of organized crime that developed in the twentieth century, one pertinent recent example is the efflorescence of high-tech and internet crime, where professional and international gangs manipulate technology to extort or steal large sums of money from the public. High-tech crime is of course a recent phenomenon; it did not exist at the turn of the last century. Therefore analysi s of such activities by law agencies has grown to respond to this new threat; moreover, the analysis and prevention of such crimes has had to grow in sophistication and size just as the crimes themselves have done. Organized crime be it narcotic trafficking, prostitution rings, corporate crimes and so on has become a massive international business, and it has required larger agencies equipped with better criminal theory and technology and international cooperation between agencies to deal with it. Moreover, the clear lapse between the professionalism and techniques of many criminal organizations and the law agencies that pursue them will require these agencies to catch-up to the advances of these criminals in the next decades. Meaning, of course, that this catch-up will depend heavily upon advances in criminal theory and analysis. Crimes of the powerful are not exclusively concerned with illegal activities of the above description, but also with crimes committed by corpo rations, by governments, by dictators and even, in an interesting new perspective, by patriarchal gender structures that sanction crimes of power against women. The attention of law agencies and legislators upon these crimes has led to a mass of new analysis and theory by criminologists on the nature of such crimes. Likewise, several theories compete to describe the causes of organized crime and crimes of the powerful. One such theory points to social change as the most profound catalyst in the spread of organized crime and the detection of organized crime. This theory assimilates the teachings of sociology, psychology, anthropology and history to produce a detailed sociological critique of these causes. In the eighteenth or nineteenth centuries, many acts committed by the powerful that would today be classified as criminal were then merely pseudo-illegal or socially disapproved of; they carried no specific criminal offence. But social and legislative advances have made the pr osecution of crimes of the powerful easier. For instance, the prosecution of corporate crime is, theoretically at least, far easier to identify and prosecute than it was in the early twentieth century. Moreover, greater media exposure of the life of corporations and governments has magnified their crimes whenever they are committed. A moment of this essay might be given to discuss exactly what is meant by the phrase crimes of the powerful. Indeed, a person unfamiliar with the literature of criminology might be forgiven for regarding the term as somewhat amorphous and nebulous: he might argue that nearly any criminal phenomenon could be termed a crime of the powerful. The dictionary defines a crime as an act punishable by law, as being forbidden by statute or injurious to the public welfare. An evil or injurious act; an offence, as in; esp. of grave character (Oxford, 1989). It is difficult to see how the word power could not be inserted into any part of this definit ion and for it still to make sense. There is therefore in the pure black letter interpretation of the law a huge shaded area that allows for misinterpretation of the term crime of power. Can, for instance, a crime of the powerful be a physical act? Or must it the top levels of an organization? Moreover, the use of the word crime is itself ambiguous. The trafficking of drugs or children is clearly illegal and criminal according to the principles of law; but we also speak of corporate crimes against the public withholding medicines from the dying, adulterating foods etc., as crimes even though they have no explicit recognition as such in law. There is then a near infinite possible extension of the word crime when one uses the word in the sense of something that ought to be illegal rather than something that is presently illegal. In Smiths words: If a crime is to be understood simply as law violation, thenno matter how immoral, reprehensible, damaging or dangerous an act is , it is not a crime unless it is made such by the authorities of the state . There is moreover often the paradoxical situation where a government that commits crimes of power against its people can only be legally recognized as doing such if it passes legislation against itself. This is obviously extremely unlikely to happen and so many such crimes go unnoticed. It is often directly against the interests of certain groups or interests to recognize the existence of certain crimes because they then have to recognize theory legal existence also. Recently however, one growth of criminal analysis of the powerful has come from greater international laws that allow for the international legal recognition of crimes committed by dictators or despots when they would never do this themselves. For instance, Saddam Hussein is near universally thought to have committed crimes of power against his people; such things were never legally recognized as crimes as such until a body such as the United Nations had the international authority to declare the illegal actions of heads of states. Sociologists and psychologists amongst other groups (Chesterton, 1997) have argued that the moral, sociological and psychological aspects of crimes of the powerful should be recognized by criminologists to a far greater extent. By using approaches such as these criminologists can add the activities of environmental pollution, insider trading, and tax evasion to the public consciousness of what constitute crimes of the powerful. In Sellins (2003) words if the study of crime is to attain an objective and scientific status, it should not allow itself to be restricted to the terms and boundaries of enquiry established by legislators and politicians . According to scholars authors like Chesterton and Dupont the intense interest in by criminologists in the analysis and prevention of crimes of the powerful is due to the massive growth and myriad new forms of these crimes. Perhaps the most powerful criminals whose crimes are explicitly illegal are international drug trafficking organizations. In 2004, according to Smith (Smith, 2004) 550 billion of cocaine and other illegal substances were transported illegally internationally. This trade is therefore lager than the GDP of many African and other third-world countries. Faced with this massive business and with its catastrophic social consequences traditional law agencies and their democratic legislators have had to radically alter the way they investigate and prosecute these crimes. The extreme complexity and ingenuity of international drug cartels have meant that governments have had to build equally complex systems of criminological analysis and technique to limit these crimes. Complex intelligence agencies like the MI5 and MI6 in England and the CIA and FBI in the United States now have innumerable specialist intelligence groups of scientists, field-officers and so on investigating the crimin al nature and consequences of organized crime such as drug trafficking, the shipping of illegal weapons and so on. Perhaps the only organizations on earth with greater power than the above organized crime syndicates are the international corporations of Western countries like Britain, America and soon. Many critics of these organizations (Chomsky, 2003) allege that the secret crimes of these corporations exceed even those of the drug barons. For instance, everyone will be familiar with the recent scandals of Enron, Anderson and Paramalat where billions of pounds were swindled by these massive companies. This white-collar crime was half a century ago hardly investigated and such crimes went essentially unnoticed. But greater public consciousness of the activities of these companies through the media has theoretically at least imposed a greater accountability and potential punishment for companies who exploit either their shareholders or their customers. This increased intere st in corporate crime has led in turn to the need for a vast number of criminologists to produce theories to explain the causes of such crimes and then strategies for their prevention. A further consequence of the media revolution of the past century and the changed social assumptions of our society has meant that the crimes of governments as crimes of power are now open to far greater than public and professional scrutiny and analysis than they ever have been before. Twenty-four hour television and instant access to news stories and the daily events of our political life have meant that the public can therefore criticise the crimes of their governments with greater ease than before. For instance, the vociferous protests in 2003 by citizens of Western democracies against the invasion of Iraq were due to the belief of those citizens that their governments had acted illegally and criminally in invading that country. Traditionally, such crimes do not fall into the sphere of cr iminology because of the numerous problems identified in the definition paragraph of this essay. However, criminologists, at least theoretically, and urged by famous opponents of the war like Noam Chomsky and Michael Moore, are coming to analyse and investigate the issues and theoretical difficulties of holding entire governments to account for committing crimes of power. Many of the principles used by criminologists to analyse the techniques and structures of organized crime indicates are being suggested to be transferred to an analysis of the crimes of government. The analysis of government crime may prove to be one of the most fruitful of the coming decades for criminologists. In this essay then, the term crimes of the powerful refers to such crimes as are carried out by organized criminal gangs (either national or international), by corporations, by governments, by powerful individuals such as corrupt magnates, businessmen and so on. Such crimes might include: corporate fraud, corporate mal-practise, illegal narcotics or arms; high-tech crimes such as computer fraud. It is necessary for the student of criminology to know something of the state criminal affairs at the end of the 19th century if he is to find a clear answer for the growth of analysis of crimes of the powerful in the twentieth century. One strong reason why analysis of such crimes was less in say 1900 was that many organized crimes did not exist at all. For instance, the use of narcotics like opium and heroin were widespread amongst all levels of society but legal also; the trade of these drugs were controlled by legally registered companies and there existed no illegal market for their production or importation. Accordingly, since these acts were not understood as crimes, British police did not need to analyse the behaviour or causes of these. Moreover, the size of the police force as well as its technical and theoretical know-how were far smaller than they are today in Brit ain, America, France and so on. Similarly, whilst many companies exploited the Victorian workforce, none did so in the systematic and pre-determined fashion that is characteristic of Anderson, Enron or Parmalat in the past ten years. Other crimes of the powerful like high-tech computer fraud obviously required no analysis or theory of criminology since they did not exist at all. Similarly, in James Smiths (Smith,1999, p44) memorable phrase At the dawn of the twenty-first century the Western world faces a plethora of organised criminality of the like that it has never known before. From the mass trafficking of illegal narcotics, to whole-scale prostitution, to high-tech computer fraud, to corporate offences on a giant scale, the police forces and criminal prevention agencies of the new century will meet challenges as they have never glimpsed in the past. And, a little further on, They will no longer compete against petty or isolated crimes of individuals, but against the sophisticated and organized attempts to make vast fortunes by systematically breaking the law. In this contest between law officer and criminal former is now far behind; it remains to be seen whether he will catch-up in the near decades (Smith, 1999, p44). Another area of rapid growth in crimes of the powerful has been the feminist critique of domestic violence committed against women by dominant males. Feminists of the last few decades have argued cogently that the term crimes of the powerful should include also these domestic abuses because of the patriarchal structures within our society that promote such abuses. The explosion of such feminist critiques flows from the fact that before this century there was no feminism as such, and domestic abuse was either not considered a crime or it was publicly invisible or ignored. The changing social philosophies such as liberalism and attitudes of the twentieth century gave birth to a greater consciousness for women and the refore greater demands for them for social and legal equality. This, in the 1960s and 1970s, leading feminists like Germane Greer campaigned for recognition of the domination of women by societal institutions and conventions that are massively weighted in favour of men. Feminist scholars and theorists argue that the vast majority of these structures and the crimes they inflict upon women are unreported; marital rape is the most frequent abuse, and nearly 80% of women in this predicament are abused repeatedly (Painter, 1991). A whole host of crimes committed by men supported by social institutions go unreported and unprosecuted. Some feminists therefore describe a fundamental imbalance in the power structures of Western society, and that agencies and organizations should be set up to combat and prevent this crime. In S. Griffins words: Men in our culture are taught and encouraged to rape women as the symbolic expression of male power (Griffin, 1971) and Brownmiller says eloqu ently that rapists are the shock troops of patriarchy, necessary for male domination. Some men may not rape, but only because their power over women is already secured by the rapists who have done their work for them (Brownmiller, 1976). This feminine critique therefore demands a considerable extension of the definition of the term crimes of the powerful to include all those thousands of incidents of unseen violence issued from an entire gender that has power over another. In this sense, arguably feminists have uncovered the crime of the powerful of all. According to feminists, the truths of this oppression has been recognised partially by criminological theorists by the tides of social legislation that have been passed in recent years to protect women from domestic violence. Nonetheless, say that criminologists yet lack a complete or detailed analytical theory of such violence; this itself being reflected by the dominance in criminology of males. In the final analysi s, the growth of the analysis of crimes of the powerful may be attributed principally to the growth of the number and types of such crimes and the subsequent need to investigate and prevent them. Some crimes of the powerful such as drug trafficking are nearly entirely new to our age, and criminologists have had to develop wholly new theories and techniques to combat it. On the other hand, entirely new academic critiques like those of feminism, sociology and psychology have identified and produced theories to describe invisible crimes of power against groups who before the last century had to suffer in silence. Criminologists too have had to swallow these theories and then learn methods and techniques to apply them to our modern world. Similarly, the rise of mass media and the extension of democratic institutions have enabled citizens with far better information about the behaviour of their corporations and governments; this awareness has in turn led to a consciousness of the s imilarity of nature between illegal crimes like drug-smuggling and corporate crimes like deliberately withholding medicines from the sick or the invasion of a foreign country. These new fields of investigation have given the criminologist much to think about. The student of criminology should not forget that the subject he studies had itself evolved over the last century to become a highly professional and international and therefore capable of greater levels and specializations in analysis than it could ever have been before. Don’t waste time! Our writers will create an original "Corporate Crime Definition Example For Free" essay for you Create order