PepsiCo's Organizational Structure

Paper Summary:

This paper discusses PepsiCo's organizational structure and describes how it has used this structure effectively in the past. It describes how their organizational structure is solid enough to manage its massive food and drink empire. It also looks at the way in which PepsiCo's organizational structure is dynamic enough to take advantage of new opportunities, such as emerging markets, resource availability and acquisitions.

From the Paper:

"When it comes to physical assets there are three ways PepsiCo's dynamic structure can be of benefit. First, PepsiCo has the ability to bring their white collar job openings to where the talent is rather than recruiting employees to come to them. PepsiCo has recently taken advantage of this ability in Chicago. As Julie Johnsson and Greg Hinz (2005) write, "After losing thousands of white-collar jobs during the last recession, downtown Chicago is seeing a resurgence in brain power as big companies open splashy offices designed to attract professionals in their 20s and 30s who don't want to trek to the burbs" (p. 1). The resurgence Johnson and Hinz are talking about includes PepsiCo moving its Gatorade Sports Science Institute from Texas to Chicago. By doing this PepsiCo is taking advantage of an abundant professional workforce and underutilized, therefore affordable, office space."

Sample of Sources Used:

• Bush, Jason. "WOOING THE NEXT PEPSKI GENERATION; PepsiCo is building a potato chip factory in southern Russia and eyeing a deal to take the lead in beverages." Business Week 4056 (Oct 29, 2007)
• Datamonitor. (2007). "Company Overview - PepsiCo". Retrieved January 6, 2008.
• Johnsson, Julie, and Greg Hinz. "R&D centers seek downtown talent; Major firms evoking dot.com era to attract young tech workers." Grain's Chicago Business 28.18 (May 2, 2005)
• Just-Food.com (2006). "US: Frito-Lay to consolidate operations, cut jobs." (Oct. 23, 2006). Retrieved January 6, 2008.
• Progressive Grocer. (Nov. 7, 2007). "PepsiCo Unveils New Organizational Structure". Retrieved January 6, 2008.

More papers on PepsiCo's Organizational Structure:

• Essay # 7710 : "Strategic Development for Pepsico"
• Case Study # 147125 : "The Case of PepsiCo's Strategic Challenge"

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