ORGANIZATION STRUCTURE

An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.[

TYPES OF ORGANIZATION STRUCTURE

 LINE ORGANISATION Line organisation is the simplest form of organisation structure. The line structure is based on the scalar principle, which states that authority and responsibility should flow in a direct line vertically from the highest level of the organisation to the lowest level. The primary emphasis in the line organisation is upon the superior-subordinate relationship. Every person in the organisation is in the direct chain of command.

One of the advantages of the line organisation is that it facilitates decision making and execution because there is a definite authority at each level of the hierarchy. However, the disadvantage is that if a wrong decision is made at the top level, the same is carried out simply without anybody down the line venturing to point out its deficiencies

LINE AND STAFF ORGANISATION Most business organisations, except the very small, have this type of structure. As the organisations have grown complex, the problems of line executives have become sufficiently complicated. The line executives being generalists, need the advice of personnel with specialised knowledge and functions to tackle these problems. For this purpose, the staff positions are created in the organisation. In line and staff organisation, the line authority remains the same as it does in the line organisation i.e. the authority flows from top to bottom; and the line executives perform the major functions; the staff functionaries support and advise the line executives. For example, for sound management of human resources, the line managers are provided specialised assistance through personnel/Human Resource managers. As staff functionaries are employed to perform supportive role, they do not have any power of command in the organisation

The main advantage of line and staff organisation is that the staff specialists relieve the line executives of the botheration of concentrating on specialised functions like selection, training, development, wage and salary administration, accounting, public relations etc. However, the disadvantage of this structure is that since functionaries are not accountable for the results, they may not be performing their duties effectively.

 FUNCTIONAL ORGANISATION STRUCTURE This is the most widely used form of organisation structure because of its simple logic and commonsense appeal. Here the tasks are grouped together on the basis of common functions. So, all production activities or all financial activities are grouped into a single function which undertakes all the tasks required of that function. A typical chart of a functional organisation is presented in Figure 3. The functional structure suits best to the small to medium organisations producing one or a few products, where the goals of the organisation emphasise functional specialisation, efficiency and quality.

IMPLICATIONS TO MCS

 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.

What Type of Organizational Structure Does Pepsico Have?

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.

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 PepsiCola North America, Gatorade, Tropicana, and all Latin American beverage businesses. PepsiCo International is responsible for PepsiCo business in Europe, Asia, and Africa.

OVERALL ORGANISATION STRUCTURE OF PEPSICO

IMPLICATIONS
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. PepsiCo will be able to better focus marketing efforts of lower calorie and less sugary products on the increasingly health-mindful United States market. Pepsico recognised and added new senoir level workforce to take advantage of an opportunities wordwide. As the doller rate is depriciating, the more buisness the company does outside the USA,will benefit the company revenue. The structure will help to manage the firms robust growth. Will help them to reach to the sky.

STRATEGIES

PepsiCos Indra K. Nooyi is on a new realisation about the land of her birth as she leads the board of her global food and beverage empire at a meeting in Mumbai this week. We feel that solutions which have been devised by us around the world, cannot be imposed here. The company needs to find unique solutions for India, Nooyi, chairman and CEO of PepsiCo told a news conference in Delhi. PepsiCos brands such as Lays are already being complemented by local tags like Kurkure and lemon drink Nimbooz in a market in which its mainstay business, soft drinks, has faced a tough battle with traditional rival Coca Cola, which made waves in the rural hinterland with its Rs. 5-rupee bottle that attracted attention. For Coca-Cola, which entered India in 1993, four years after its rival, sales volumes have grown for more than three years. Nooyi said PepsiCo plans to customise its food and beverage products to suit the requirements of the Indian market. Atul Singh, president and CEO of Coca Cola India said he would not discuss strategy. Coke has introduced local products such as Aam Panna as it eyes an investment plan of $250 million for India. We do not devise our marketing strategies according to any companys plans. We continuously evaluate our options and our products are a result of continuous research initiatives, said Singh. PepsiCos three-day board meeting, scheduled to begin on Wednesday, is also aimed at creating awareness about Indiasculture and product needs.