Strategic Management

Question 1: Why was PepsiCo essentially set up into spousal relationship American and international divisions? Why were there round variations in this structure? Examining the organisation structures outlined in this chapter, in which category would you put PepsiCo?

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

Pepsi Co is the worlds largest snack and crisp manufacturer with a series of brands in regions of the world.  PepsiCo was very famous and boffo in almost every product category in North America, therefore it was decided to realign its organisational structure, in score to position the company for continue growth and simultaneously supplement the talents of senior leaders. (Lynch 2009:450).   

PepsiCos strategy to build on its strengths in different markets resulted in their decision to combine its international and drunkenness operations. (Lynch 2009:451).    This strategy was clearly highly successful as PepsiCo is ranked (by net revenue) as the largest nutrition and beverage business in North America.  (www.drinks-business-review.com 2007 Online).

By restructuring the North American business PepsiCo ensures that its assets in the continuous developing of non-carbonated drinks market could be exploited crossways its full range of drinks.  (Lynch 2009:455).

By creating units that span North American and international markets, as well as veritable and developing markets, allows PepsiCo to:

·         Share crush practices among North America and international businesses,

·         Providing valuable development opportunities for trouble who will deliver the organisational strategy, 


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·         Introduce the brands which are largely unknown outside the American continent by combining these product areas internationally with separate known product groups,

·         Deliver strong top-line performance and consistent profit growth. (www.drinks-business-review.com 2007 Online).

PepsiCo was aiming to build on its strong competitive resources which included its major network of contacts with supermarkets across North America and to a lesser extent early(a) countries. To achieve this aim, the decision was made to develop a invigorated organisational structure for PepsiCo.

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