Organization

 

PepsiCo is a flexible organization, as they are continuously looking to find room of improvements and keeping new ideas in the marketplace while its products progress along their cycles. PepsiCo has a decentralized organizational structure, with operational decisions made within the different business branches while being governed the common/the same policies. PepsiCo has a Code of Conduct that is universal which mean that it would apply to all businesses owned by PepsiCo.

 

PepsiCo announced a strategic realignment of its organizational structure to position the company for continued strong growth and more fully leverage the talents of its senior leaders.

 

"Given PepsiCo's robust growth in recent years, we are approaching a size which we can better manage as three units instead of two," said Indra Nooyi, chairman and chief executive officer. "Creating units that span North American and international markets, as well as developed and developing markets, allows us to better share best practices among our North America and international businesses, while providing valuable development opportunities for our senior executives."

 

These management changes are effective immediately. PepsiCo expects to complete the transition of all responsibilities and changes in management reporting as of the beginning of our fiscal year 2008.

 

PepsiCo achieved decentralization by creating and dividing units that the called divisions. They are diffrienceted by the types of goods and services that they provide for the company. PepsiCo spun it's bussiness to the restaurant divisions as a result the Pepsi-cola drink has hit the ikes of Pizza Hut, Taco Bell and KFC. Because it is a decentralization organization PepsiCo has a high interdependence