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Issue:

Business

 

Written by:

George M

 

Date added:

October 5, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

8 / 2233

 

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Each company performs a separate, yet important role for the Pepsi Company. However, due to culture clashes and misaligned goals between the three companies, a reorganization of the company's business lines is required to ensure continued strong performance into the future. Pepsi-USA, considered the flagship branch of PepsiCo, has an elitist attitude in regards to the other divisions of PepsiCo, which leads to an inefficient competitive environment and results in ineffective cost decisions...
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The overall company objectives have become secondary to the goals of the individual divisions. This competitive environment, however, also leads to increased efficiency and innovation which offsets some of the inefficiencies. The separation of PBG and bottlers at the local level also means that decisions must go up through the entire organizational chain of command, which leads to slow and unproductive decision-making...
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