Why are companies like Pepsi and Coke so successful?
It’s all about where they have invested their profits, and how much comes back to them. Diversity is the key. For example think of Sara Lee. Sara Lee is a parent company who is involved in much more than simply desserts. Did you know Sara Lee has a small controlling interest in a major petroleum company, and at least one major cosmetic company? The petroleum company supplies petroleum by-products to many big name cosmetic companies. When you pay $15.00 for a Revlon lipstick, about 5% of the profit Revlon makes goes to the petroleum company, who in turn pays abour 5% of their profits to Sara Lee. Thus Sara Lee is a very successful company.
