Pepsico, Inc. spans more than 190 countries, representing around a quarter of the world’s soft drinks. The vice president of finance for Pepsico East Asia, the collection of data about the company proposed equity joint venture in Changchun, People’s Republic of China was (PRC). Although PepsiCo has been involved in seven joint ventures in the PRC, this proposal would be one of the first two greenfield equity joint ventures with Pepsico control manag be both on the board and day-to-day … Read more »

Pepsico, Inc. spans more than 190 countries, representing around a quarter of the world’s soft drinks. The vice president of finance for Pepsico East Asia, the collection of data about the company proposed equity joint venture in Changchun, People’s Republic of China was (PRC). Although PepsiCo has already been in seven joint ventures in the PRC are involved, this proposal would one of the first two greenfield equity joint ventures with Pepsico control over both the Board and day-to-day management. Each investment project at Pepsico had to go through a systematic evaluation process of capital budgeting tools, proceed as involved such as new net present value and internal rate of return. The vice president of finance needed to decide whether the proposed joint venture Pepsico Changchun to meet the required return on investment. He was also concerned about what they think the local partners of the project. The final decision would be made after a presentation to the President of PepsiCo Asia Pacific.
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from
Geoff Crum,
Larry Wynant,
Claude P. Lanfranconi,
Peter Yuan
Source: Ivey Publishing
15 pages.
Release Date: 1 January 2000. Prod #: 900N16-PDF-ENG
Pepsico Changchun Joint Venture Investment Analysis HBR case solution

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