IQRA UNIVERSITY

PEPSI COMPANY STRUCTURE AND DESIGN

Made By:

Nida Siddiqui (4501)

Sheikh Waleed (4240)

Huzaifa Tariq (4107)

Report on PepsiCo Design and Structure

Organization Design and Structure

The company we choose for the organizational design analysis is PEPSICO. PepsiCo is an adaptive organization, as they are continuously seeking constant improvement and keeping new ideas in the marketplace. PepsiCo is an American multinational organization which was previously comprised of two units Pepsi American Beverages and Pepsi International. But 2007 marked a change in their structure as they introduced the third unit, i.e. Pepsi American Foods.

a. What kind of design or structure exists in PepsiCo?

PepsiCo has a tall structure, with many hierarchical levels. Most of the major decisions and policies are made from the top which are followed downward in the hierarchy. Therefore, there is centralization in this organization. But centralization does not mean that the organization decisions are not flexible. In PepsiCo the decisions are flexible enough to adapt to local characteristics in order to operate efficiently in various diverse countries/cultures.

b. How the particular design/structure has helped PepsiCo become what it is now?
Due to growth and development of PepsiCo, the company can manage better as three units instead of two. As the dollar rate was depreciating, the more business the company did outside the USA, will benefit the company revenue. The change in structure helped to manage the firms healthy growth.

c. Any 5-10 distinguished features of the design & culture of that organization. Read through mission and vision statement. Core values and corporate strategies to find out.

Report on PepsiCo Design and Structure Features of Culture: 1. Drive local market success: Pepsi always try to compete locally just to grow their business for long term purposes.they wants to capture the market of daily use consumer products. 2. Adaptive to change: New markets mean new ways of doing business, and new ways of addressing health concerns, cultural differences and environmental challenges. 3. Act Now. Do it today. Get Results. Pepsi had a strategy to resolve all their problems before there occurrence. 4. Set Targets. Keep Score. Win. Pepsi always makes their goals clear and free of ambiguity to leave no space for errors and excuses. 5. Respect Each other. It focuses on employees behavior within the company and in their routine work as it is a people oriented company. 6. Inspiring working environment: Every day is an adventure, and an opportunity for personal and professional growth. Features of Design:

Formalization: PepsiCo is a highly formalized organization with written rules for all departments. Roles and functions are specifically defined.

Empowerment: They are committed to delivering sustained growth through empowered people acting responsibly and building trust

Departmentalization: The Company is divided into departments on the basis of functions performed and also products.

Work specialization: Advanced work specialization is to be required for PepsiCo because the culture is very competitive.

D. What is the overall culture of an organization, any key indicators?

Report on PepsiCo Design and Structure The culture of PepsiCo is unique, with a community of talented people having shared principles. They are committed to provide their people with a supportive and empowering work place. Diverse corporate culture: To encourage workers bring new and creative ideas Pepsi encourage diverse corporate culture it welcomes its employees to share their views freely as Pepsi believes in employees empowerment. Maintain mutual respect integrity and safety: Pepsi respects the rights of its stake holders both internal and external. They believe in team working, therefore they work with mutual respect and integrity for others so that everyone could work in a safe environment it inspires a collaborative culture, PepsiCo aims to recruit and retain world-class talent through employee satisfaction. They believe in respecting others and succeeding together. Ethical programs: PepsiCo has set a code of conduct for addressing various ethical issues like bribery and conflicts of interest. They have also employed a chief compliance officer to make the employees familiar with this code. The company also organize different ethics training program for their employees. Sell only products which can be proud of. Pepsi never compromises on the quality of the products they sell. They monitor all the ingredients that are used in their products and only after approving their quality it is forwarded to the final consumers. Speak with truth and candor. We tell the whole story, not just what's convenient to our individual goals. In addition to being clear, honest and accurate, we are responsible for ensuring our communications are understood. (PepsiCo cultural values) Inspiring campaign: Pepsi have started a campaign to empower women and have provided them with a platform where they can communicate and share their stories like songs, movies recipes etc through a website: pepsiweinspire.com the aim of this website is to inspire women by powerful women who act as role models.

E: How do they maintain their culture?

PepsiCo do have centralization in their organization, but when it comes to making decision related to environment of workplace, then they also considers their employees views about it. This approach is mostly used by the managers and leaders. Leadership is highly valued in this company. Managers in PepsiCo effectively perform the leadership function 4

Report on PepsiCo Design and Structure which motivates their employees. There is a very deep level of trust between management and workers. This has played a major role in creating a hard working and innovative culture keep them committed to the goals and objectives of the company. Companys code of conduct has also resulted in maintaining a culture with less internal conflicts.