It employs approximately 168,000 people worldwide, and its products are sold in more than 200 countries. The major product portfolios include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 17 brands that generate $1 billion or more each in annual retail sales (PepsiCo unveils new organizational structure, 2007).
Operating in most of the continents and countries, the American company Pepsi has a substantial market share in the software industry all over the world. PepsiCo is the leader in software industry at some regions whereas they are at the second spot in other regions (Second only to the arch rival Coca Cola). One of the major strengths of PepsiCo is its sustainable business practices in countries where they operate. For example, in India is providing seeds, fertilizers and agricultural equipments to the traditional farmers in order to encourage farming in India.
Because of the huge size and diverse portfolios, PepsiCo has adopted a peculiar organizational system. It is impossible for Pepsi to control all its operations across the world under a centralized organizational control system. So they have divided the entire organization into three different units under the leadership of Indra Nooi as the chairman and CEO. PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), and PepsiCo International (PI) are the three major operating units of PepsiCo at present. This paper briefly analyses the PepsiCo organizational design, structure and its effectiveness.
As mentioned earlier, the new CEO of Pepsi Indra Nooyi has divided the company into three different units in order to control the operations more effectively. Indra Nooyi when took charge, realized that considering the huge growth PepsiCo achieving not only in America, but across the world, it is necessary to divide the company into convenient regional units in order to