STOCK MARKET GAME

Section

1. I) choose a method for picking stock
2. a) Method:

             “Buy what you know”

1. b) Favorite product and its manufacturer

FAVORITE PRODUCT/SERVICES	PARENT COMPANY
Beverages	Coca-cola
Oral B	Proctor & Gamble (P&G)
Dairy products	Nestle
Snacks	PepsiCo
Personal care products	Uniliver

 

1. II) Research these companies
2. a) The coca-cola company

The coca-cola company is a multinational beverage company and manufacturer, retailer as well as the ultimate marketer of.  The company was founded in 1886. This to say that has been in business for 130 years. It has for long remained to be the leader in the beverage industry because of its flagship product Coca-Cola. Despite of the above products, the company is in the position of introducing other new products for instance nonalcoholic beverages concentrates and syrup (Smith 202). As a means of remaining to be the leader of their industry, the company always offers customer value through the production of high quality products at an appealing price. The main competitor of Coca-Cola Company is Pepsi Company.

1. b) Nestle company _ this is a Swiss transnational company which produces both food and drinks. By considering is revenue, it is noted that it is the largest food company in the world. Such products include things like medical food, baby food, and dairy products and so on (Wilkins 229). It was founded in 1866 and it has lasted for 150 years. Because of its large revenue base, it remains to be the leader of the industry. Despite of the listed products the company still concentrates in the production of new cosmetic products. Although it continues to offer customer value in terms of high quality products at an appealing price, its main competitor is Uniliver Company.
2. c) P&G Company _ this is worldwide multinational industry which deals with the production of consumer goods and was founded in the late 1837. This means it has lasted in the business for 178 years. Its main products include food and beverages (Tung 34). On the other hand, it should be noted that it also manufactures new products like personal care and cleaning agents. Moreover, it continues to provide customer value through the production of goods of high quality which are at affordable prices. Despite that it is enjoying the economies of scale; its main competitor in the industry is Avon Company
3. d) PEPSICO Company _ this is an American multinational beverage, snack, and food company. Its main interest is the manufactures, marketing, as well as the distribution of beverages, all kinds of grain-based snack foods and other products (Balakrishnan et al 140). It was founded in the late 1965 and it has lasted for 118 years. Since then it has expanded to a wider range of beverage brands and food. The acquisition of Tropicana and Quaker Oats makes it to be leader in the industry. Although it does not concentrate in the production of new products, it also deals with supporting of charitable activities. Its main competitor is the Coca-Cola Company.
4. V) Uniliver Company _ this is an Indian consumer goods corporation which is based in Mumbai, Maharashtra. It produced a wide range of products for instance beverages, foods, water purifiers, personal care products, and cleaning agents. It was founded in the late 1932 and it has lasted for about 83 years. Although it is not the leader in the industry, it is one of the top 100 companies which produce goods which meets the consumer demands (Sherrow 282). Its main competitor is Proctor and Gamble (P&G) Company.

III. From the five stocks you’ve researched, choose your THREE favorite companies

1. b) Coca-Cola Company
2. b) Nestle Company
3. c) Pepsico Company
4. Look up the stock symbols and the current stock price

COMPANY	STOCK SYMBOL	CURRENT STOCK PRICE
Coca-Cola Company	KO	$45.38
PEPSICO Company	PEP	$108.27
Proctor and Gamble (P$G) Company	PG	$85.77

 

1. V) Buy your stock

DATE	COMPANY	SYMBOL	PRICE	NO.OF SHARE	VALUE
5/7	Coca-Cola Company	KO	$45.38	318.67	$14500
5/7	Pepsico Company	PEP	$108.27	447.4	$48500
5/7	Proctor and Gamble (P$G) Company	PG	$85.77	321	$27600

 

1. IV) EXPLANATION FOR CHOOSING THESE STOCKS
2. a) Coca-Cola Company stock – The reason for choosing this company’s stock is due to the fact that it has a long dividend history. Currently, the company has recorded more than fifty track record of progressive growth. What mainly led to the choosing of this stock is because it certain that shareholders have the possibility of receiving generous additions to the company’s dividends as time progresses. The current economic trends and conditions which majorly entail strong competition will have the possibility of resulting into the production high quality and affordable products.
3. b) Nestle Company stock – the reason for selecting this stock is because of the efforts of the company which have paid off hence experiencing a steady increase in returns and margins over a decade of time. As much is like majority of their products what led me into this stock is because of the earnings of the company are extremely of high quality. Moreover, the current economic conditions and trend in the industry is likely to force all the companies in this industry to produce goods which will enable them to compete favorably.
4. c) PEPSICO Company stock- Commonly, PepsiCo stocks are the most attractive to own at this period. Typically, what led into the selection of this stock is also the existence of a more attractive and efficient valuation of their stock. Nonetheless, as much I am in the position of consuming one of their products, the current trend and condition in the can force the company to come up with newer products or improve the existing ones so as to remain in the industry or enjoy the economies of scale.

On the other hand, the prime reason for not choosing the other two stocks is because they do not have a more diversified business base unlike the other three. Moreover, their cash inflow is not perceived as being efficient hence making their dividends not to be paying adequately as the others.

 

 

 

Work cited

Wilkins, Mira. The History of Foreign Investment in the United States, 1914-1945. Cambridge, Mass: Harvard University Press, 2004. Internet resource.

Balakrishnan, Melodena S, Ian Michael, and Immanuel A. Moonesar. Actions and Insights-Middle East North Africa: East Meets West. Bingley: Emerald Group Publishing Limited, 2013. Print.

Smith, Andrew F. Food and Drink in American History: A "full Course" Encyclopedia. , 2013. Internet resource.

Sherrow, Victoria. Encyclopedia of Hair: A Cultural History. Westport, Conn: Greenwood Press, 2006. Print.

Tung, Rosalie L. Learning from World Class Companies. London: Thomson Learning, 2001. Print

Introduction to the Stock Market

 "KISS"--Keep It Simple, Stupid! 

The Ten Parent Companies That Make Your Favorite Brand

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