Pepsico

Table of Contents

Executive Summary 2

Question 1 3

Why was PepsiCo essentially organised into North American and international divisions? 3

Why were there some variations in this structure? 3

Examining the organisation structures outlined in this chapter, in which category would you put PepsiCo? 3

Question 2 4

What benefits was the company seeking from its acquisitions? If so, what? 4

How did the change in organisation structure contribute to such benefit? 4

In order to achieve such benefits, what actions would have to be taken? 5

Would they have any human consequences? 5

Question 3 6

What lessons, if any, on strategy and organisation structure can be drawn from the approach of PepsiCo in developing its new organisation structure? 6

Bibliography 7

Executive Summary

This document will show how PepsiCo developed its strategy and structure to increase sales and remain a competitive organisation.

PepsiCo was particularly strong in North America in virtually every product category. The idea was to use this strength of PepsiCo in North America as the strategy of the company. It bought Tropicana and Quaker which were popular in North America. Therefore, it made sense to be strong where the company had some following. It seems the strategy was to strengthen the company where it had a base. Additionally, Pepsi was the main product that brought huge returns to the company (US$17 billion). Thus, these factors influenced the way the company structured itself.

The company had to make variations in the structure to build on the company’s different international strengths in different markets. It also exploited its strengths in non-carbonated and healthy fruit drinks across a wider range of outlets. Thus, the variations catered for the various branches and their different strengths. As, the document states it, the strategy was to utilise the brands that were strong to support the weaker brands.

The company had to relook at its...