Pepsico Changchun Joint Venture: Capital Expenditure Analysis Harvard Case Solution & Analysis

PepsiCo, Inc spanned more than 190 countries and accounted for about one quarter of non-alcoholic beverages in the world. Vice president of finance for Pepsico Asia was to collect data on the proposed joint venture stock company in Changchun, People's Republic of China (PRC). Although, Pepsico is involved in seven joint ventures in China, this proposal will be one of the first two green fields equity joint venture with Pepsico control over both the board and the day-to-day management. Each investment project at Pepsico had to go through a systematic process of evaluation, which involves the use of capital budgeting tools, such as the new present value and internal rate of return. Vice President of Finance to decide whether the proposed Changchun joint venture will be responsible Pepsico required return on investment. He was also concerned that the local partners are thinking about the project. The final decision will be made after the presentation of the President of Pepsico Asia-Pacific region. "Hide
by Jeff Cram, Larry Wynant, Claude P. Lanfranconi, Peter Yuan Source: Richard Ivey School of Business Foundation 15 pages. Publication Date: January 1, 2000. Prod. #: 900N16-PDF-ENG

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