What Type of Organizational Structure Does Pepsico Have?

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PepsiCo is well known for its Pepsi beverage products. This multinational corporation is also responsible for the production of Frito-Lay, Gatorade, Tropicana and Quaker products. November 2007 marked a change in the company's organizational structure from two units to three.

Pre-November 2007

  • PepsiCo is comprised of PepsiCo North America and PepsiCo International. PepsiCo North America consists of Frito-Lay North America, PepsiCo Beverages North America and Quaker Foods North America.

Current Structure

  • PepsiCo consists of three units: PepsiCo Americas Foods, PepsiCo Americas Beverages and PepsiCo International. PepsiCo Americas Foods encompasses Frito-Lay North America, Quaker and all Latin American food and snack businesses. PepsiCo Americas Beverages oversees Pepsi-Cola North America, Gatorade, Tropicana, and all Latin American beverage businesses. PepsiCo International is responsible for PepsiCo business in Europe, Asia, and Africa.

Type

  • PepsiCo is an adaptive organization, as they are continuously seeking constant improvement and keeping new ideas in the marketplace while its products progress along their life cycles. PepsiCo has a decentralized organizational structure, with operational decisions made within the separate business units while being governed by policies at the corporate level.

Who

  • PepsiCo's chairman and CEO is Indra Nooyi. The Americas Foods, Americas Beverages and International divisions are headed by John Compton, Massimo d'Amore and Michael White, respectively.

Why Change?

  • According to Chairman Nooyi, "PepsiCo's robust growth has enabled the company to manage three units instead of two." The realignment enables PepsiCo to focus more resources on emerging international markets, especially in Asia, decreasing its dependence on domestic revenues. Furthermore, PepsiCo will be able to better focus marketing efforts of lower calorie and less sugary products on the increasingly health-mindful United States market.

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