QXS project
Company structure and organization
The structure occupied by PEPSI is majorly centralized though dynamic to acquire local characteristics so as to ensure that the business is operated in the best way possible. The whole structure of the company that incorporates the global realm has a dynamic technique which makes the company to optimize the talents of the staff in all categories.
PEPSI being a multinational company which manages over 100, 000 in staff, has to be in possession of a centralized structure monitoring every point of the business so as to adapt and tolerate local conditions to optimize the talents of its employees (Blurt it 2012). Its mode of operation in one country has to be different from how it operates in another company.
PEPSI being the global company that it is is composed of a Chief Executive Officer who is backed up by a board of directors and executives tasked with being in control of varied areas like sales & marketing, research & development, human resources and operations. In the varied departments, there is a sense of freedom making local managers to make resolutions and manage their areas of control in the manner they find best suiting.
Structuring the company to observe the varied aspects of the company’s achievement and offers an exchange of information and analysis of the manner to optimize resources. This makes it possible for pilot schemes to be undertaken, that successfully checks before putting in place a change across the whole brand. Monitoring offers movement of information for the structure, this makes decision making at the executive level to be passed to the whole company and the initiative and innovations at the lower levels to be passed to the top level.
Main Products and Services
Pepsi Company manufactures and markets a wide variety of food and beverage products composing soft drinks, fruit juices, sport drinks, non-carbonated beverages, chips and oatmeal etc. It has nineteen brands that bring over $ 1 billion in yearly sales. It is composed of business units; Pepsi Americas Beverages; Americas Foods; Europe; Asia, Middle East and Africa. It owns two big bottlers and recently took possession of the biggest dairy product manufacturing located in Russia.
Areas of Operation and Main Trading Links
Pepsi is composed of; Pepsi Company Americas Foods which encompasses Frito-Lay and Quaker in North America and other foods and snacks businesses in Latin America; Sabritas and Games in Mexico. There is the Pepsi Company Americas Beverages composed of Beverages in North America and several businesses in Latin America. Finally there is the Pepsi Company International that is based in the UK, Europe, Asia, Middle East and Africa. Its brands are based in over 200 countries and acquire sales in retail is almost $100 billion (Pankaj 2012). This also composes of the India Holdings Private Limited.
Pepsi Company History
The Pepsi drink was invented by Caleb Bradhamin 1890 calling it PEPSICOLE. In 1902 he introduced the Pepsi Cola Company in a pharmacy and used it as a trademark. The business developed and in 1993 the trademark was registered (Pankaj 2012). Marketing was undertaken for the reason of making the company successful; Bradham used $1900 in promotion after selling 40, 000 liters of syrup. In 1905 bottling plant is made and other three following suit, two years later the litres sold were 50, 000 annually.
Trouble brewed with stocking sugar expensively, which then fell in 1920, two years later it became insolvent and a year later it was bankrupt hence going back to pharmacy. In 1931 it was again bankrupt, Charles Groth, president was successful in issuing 12-ounce bottle at 5cent which was cheaper. In 1936, Pepsi has $ 2 million in net income.
Currently, customers used approximately $31 billion in Pepsi-Cola Beverages. Brand Pepsi and other products for a third total sale of drinks in the US, a client marker summing $56 billion (Pankaj 2012). In 1992 the company created a joint relation with Thomas J. Liption Company, presently, the largest selling ready tea to the US. External to US the Pepsi-Cola beverage is in over 170 countries. Pepsi-Cola started selling its products globally in 1934 based in Canada. It developed very fast from 1950s. Currently, Pepsi-Cola products result to a fraction of the soft drinks sold globally. Moreover from the brands promoted in US, the main products involved Mirinda and Pepsi Max.
Pepsi-Cola issues promotion, marketing, sales and promotional backing to the bottling company and food service clients. This promotion makes it young. In 1940 the first jingle was publicized in the whole country; “Nickel Nickel” which set a record and was translated into 55 languages. And in 1964, the Diet Pepsi was created.
Financial Structure
In 1996, the products of Pepsi-Cola had 23% of the global market for soft drinks. However, considering a 30-year record development being around 14% yearly, the incomes dropped abruptly in 1996 (28%) in comparison to the initial year leading to a most important reorganization in 1997. Since 1988 to 1994, Pepsi Company has invested in about $7 billion so as to maintain its great growth rate. Most of this was met through addition of restaurants to what was initially a beverage and food company. With a sluggish growth in the 1990s, management saw it hard to operate a great number of restaurants successfully. Consequently, in 1995 Pepsi sold the ownership of its restaurants to franchisees. Local owners were near the clients and were attributed to having a great opportunity of operating the business in a profitable manner. The end of 1996 the financial structure of the company was steadied. Even with this enhancement, Pepsi management decided to review the company by dividing into two parts – Pepsi Company and Tricon Global Restaurants.
Tricon was turned to Pepsi Company shareholders as private public corporation in 1997. The remaining lesser restaurant chains and their supply allocation business were sold to external investors (Stock Analysis on net 2012). In the financial year 2010-2011 Pepsi Company inventory increased form the initial year from 16.50 to 17.38, while its receivables turnover decreased from 09 to 10 year and later elevated from 2010 to 2011.
Training Provision
Pepsi Company has a training and development provision, dabbed the real world leadership. The company has hired approximately 300, 000 entrepreneurs, shakers and doers among others. These people are engaged each day and time in work, they are motivated to bring out the best in what they do and what they are (PepsiCo 2011). The trainees are involved in stretch assignments, early tasks, work cycle and great mentorship programs that create a wonderful world at Pepsi Company being an unbeatable training place. This is evident by eighty percent of the trainees being promoted to the executive group. The company also offers training summits where individuals do network and show varied maintainable and energy efficient products and service like the One Stop Green Training Summit and Trade Shows.
Future of Pepsi
Pepsi’s is looking forward to sustain its growth and put to work its food and beverage business globally. It attributes this commitment to be a Performance with Purpose. It desires to motivate people to love healthier and attend to client expectations, better taste; the products are focused to be more nutritious.
Interview with personnel
An interview with the staff of Pepsi Company has brought to light the need for keeping in touch with the livelihoods of the staff. Some of the staff accredits the good performance to have had to good management. The management team has grown due to the endless efforts of the staff and well-thought of decisions. The staff however calls for more consideration of the standards of living of some of them, as even with the good growth and bright future, some of the staffs are not well off.
Bibliography
Blurt it, 2012, What Type of Organizational Structure Does Pepsi Have and Are They Centralized or Decentralized? Acquired on 19th April 2012 from < http://www.blurtit.com/q758011.html >
Pankaj, P., 2012 “ANALYSIS OF ANTI PEPSI BEHAVIOUR OFRETAIL OUTLETS” Acquired on 19th April 2012 from < http://www.scribd.com/pradeepblsim/d/21863328-Pepsi-Project-report>
PepsiCo, 2011, Training and development, Careers, Acquired on 19th April 2012 from <http://www.pepsico.com/Careers/Why-Work-at-PepsiCo/Training-and-Development.html>
Stock Analysis on net, 2012, PepsiCo Inc. (PEP), Short-term (Operating) Activity Analysis, and Acquired on 19th April 2012 from < http://www.stock-analysis-on.net/NYSE/Company/PepsiCo-Inc/Ratios/Short-term-Operating-Activity >
