What Type of Organizational Structure Does Pepsico Have?
Long, long ago, PepsiCo was once a single division with a hierarchical structure where power ran from the top down. As the company has grown and purchased an increasing number of brands over the years, it has had to break up into multiple divisions based both on geographical considerations as well as product lines.
The current Pepsi organizational structure is particularly complex as it's broken into six divisions, each with their own divisional CEO. Company operations are then handled in functional corporate group offices divided by function.
As the over 120-year-old company has continued to expand and add additional product offerings, such as Pepsi, Quaker, Gatorade, Tropicana, Frito-Lay and more, the Pepsi company structure has been reorganized multiple times. In 2008, it was broken into three divisions, one covering the company's North American food offerings, one covering its North American beverage offerings and one that handled its international operations. Now that it has over 22 brands and operates in over 200 countries and territories, it has been broken into three divisions to cover its product offerings in North America and three divisions covering specific geographic regions:
- PepsiCo Beverages North America (PBNA): Manages all North American beverage offerings including Gatorade, Tropicana, SoBe, Pure Leaf Iced Tea, Naked Juice, Aquafina, Dole Juice and more.
- Frito-Lay North America (FLNA): Handles all Frito-Lay foods available in North America, such as Cheetos, Doritos, Lay's and Ruffles.
- Quaker Foods North America (QFNA): Oversees all Quaker Foods products available in North America.
- Latin America: Handles operations in over 34 countries for international brands from Pepsi, Frito-Lay and Quaker as well as local brands such as Toddy, H2OH!, Tortrix and Kero Coco.
- PepsiCo Europe and Sub-Saharan Africa (ESSA): Manages international offerings from Pepsi, Frito-Lay and Quaker as well as local brands such as Alvalle soups, Walkers crisps, Duyvis Nuts and Copella juice.
- PepsiCo Asia, Middle East and North Africa (AMENA): Distributes international products from Pepsi, Frito-Lay and Quaker and local brands such as Kurkure and Chipsy.
A PepsiCo organizational structure chart wouldn't be complete if it didn't include the company's basic business functions, which are handled by specific corporate offices. The objective of using these functional corporate groups is to help ensure the company is in full control of its offerings around the globe and that its policies and strategies are properly and rapidly implemented throughout the global company. Each group is headed by an executive vice president or senior vice president.
The seven main functional corporate groups at PepsiCo are:
- Global Categories and Operations.
- Global Research and Development.
- Government Affairs and Legal.
- Human Resources.
- Talent Management, Training and Development.
The final feature of the PepsiCo organizational structure is the hierarchy that covers the entire corporation. This hierarchy applies to every aspect of the company, including the six product and geographical divisions, as well as its seven functional corporate groups. It involves monitoring, control and governance from the very top of the company to the bottom, utilizing a top-down structure for communications, monitoring and control at every level of the business.
This is how Pepsi ensures that everything and everyone working for the company upholds the company's policies, standards and strategies, whether it involves the financials of Ruffles products in Egypt, product quality in a bottle of Kero Coco in Brazil or a beverage distributor handling Naked Juice in Los Angeles.