PepsiCo Research Paper

PepsiCo is a food and beverage industry created in 1965 after merging the Pepsi-Cola industry and Frito-Lay Inc. Its founder was Caleb Brabham who foresaw it expanding into a multinational industry with a net worth of 7.353 US dollars as of 2019. It has approximately 267,000 employees and annual net revenue worth 43.3 billion US dollars. Caleb wished to duplicate the success of Coca Cola, so he named his sweet beverages Pepsi-Cola (Bose, 2017).


PepsiCo’s organization’s structure characteristics are based on the company’s approach to maximizing its control of the business while continuing to grow internationally. The organization structure is divided into three: market divisions, the prominent feature based on two variables; business and geography. The business maintains a global division for Frito-Lay and Quaker, while the geography maintains its divisions in America, Europe, and other regions. The second division is Corporate Groups whose objective is to ensure the company has full control around the globe and its principles and strategies are properly implemented. Then, the global hierarchy, which typically supports monitoring, control, and governance at the global level and provides means through which the company minimizes deviations from its policies and strategies.

PepsiCo has a board of directors comprising of one Executive Director and thirteen independent directors who make up the four board committees. It is headed by Chairman Ramon L. Larguarta who, together with the board of directors oversee the smooth running of the organization. The employees are guided by a code of ethics which they are expected to observe in their respective workplaces. The principles of the code include respect in the workplace, trust in the marketplace, fairness in their business relationships, honesty in business conduct, and executing their purpose in the world. The company has gone bankrupt twice but still managed to thrive. The first time it went bankrupt in 1920 due to a sugar shortage, and Caleb B refused to raise the price of the product, while the second time it went bankrupt when the US stock market crashed in 1931.




Bose, M. (2017). A Blueprint for Businesses Engaging with the Indian Government. Kennedy School Review17, 83-86.


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