PepsiCo’s vice president for finances in East Asia was gathering data on the company's projected equity joint venture in the Chinese city of Changchun. On the other hand, PepsiCo was already involved in seven joint ventures in the People’s Republic of China, this suggestion would be one of the first two greenfield equity joint ventures with PepsiCo control over the board and day to day management.
Every investment endeavor at PepsiCo had to go through a systematic evaluation process consisted of the use of tools in order to budget the capital; for instance, NPV and IRR. He needed to determine if the planned Changchun joint venture would match with the necessary return on investment of PepsiCo. He was also concerned what the local associates would think of the endeavor. The final decision would be made to the president of PepsiCo Asia-Pacific after a presentation.
Publication Date: 02/02/2001
This is just an excerpt. This case is about Finance
Related Case Solutions & Analyses:
Dows Bid For Rohm And Haas
Medfield Pharmaceuticals
Arbor City Community Foundation (B): Managing Good Fortune
Danfoss Motion Controls Acquiring Holip (B)
Desso (A): A Cradle-To-Cradle Business Model
Disney In China (A)
Dr. Reddy’s Laboratories: Realizing An Ambitious Vision
EDAP: Promoting The Adoption Of An Innovative Prostate Cancer Therapy
National Electric Corp.
Maschinenbau Arrau AG (A)
