Pepsi Cola Company was first established by Caleb Bradham in 1893 under small scale production. The company was registered in 1902 and later incorporated in 1919. However, with the increased competition from the Coca-Cola Company, the organisation became bankrupt in 1931 and sold some of its recipes to other firms in the industry. Under the leadership of Alfred Steele, the company later stated its operation in 1952 and adopted a different strategy of doing business that would enable an increase in its overall sales to 40% (PepsiCo, 2017). In 1965, the firm merged with Frito-Lay Inc. which was a snack making company in the United States and had substantial market control. The new corporation, PepsiCo, later purchased businesses including the Pizza Hut Inc., Taco bell Inc. and Kentucky Fried Chicken Corp (KFC) that increased the market control of the company (PepsiCo, 2017). Additionally, PepsiCo acquired Dole Juice brand and Tropicana in 1998 and later in 2001 merged with Quaker Oats Company.
Subsidiaries and Strategic Business Units
With the increase in activity and the level of competitiveness, the company has increased its operational base to enable ease of product distribution. Some of the strategic business units of the organization include Taco Bell, Pizza Hut, Frito Lay, Lipton tea brands, KFC and Mountain dew. The business units operate as separate entities with each of them having its objectives, mission, managers, resources, competitors and marketing plan (PepsiCo, 2017). Moreover, the company has over 1000 subsidiaries all over the continent that help in marketing and distribution of different products.
Scope of Business
With the diversified portfolio and the strategic markets the company has a variety of goods that increase its market base. The company’s mix of products consists of 53% foods and 47% beverage products. Globally, the current products are estimated to generate an average of $1.8 billion annually from the retail sales (PepsiCo, 2017). Some of the products include Mirinda, Duke, mug root beer, Pepsi jazz, Diet Pepsi, Pepsi jazz strawberry and cream
Scope of Market Distribution
The range of operations of the company has been growing over the years and that has forced the company to adopt different strategies. Notably, the structure of the firm has shifted drastically as a result of their global expansion. As of 2006, the company had six main divisions including Frito-Lay north America, North America beverages, and the Quaker foods North America, Europe, Latin America, sub-Saharan Africa and in the middle east. Additionally, the financial statements of the organization in 2015 indicated that 73% of PepsiCo’s revenues came from the south and North America, 17% from the Sub Saharan Africa and Europe while 10% from the Middle East and Asia (PepsiCo, 2017). Also, the company has employed over 263000 people in more than 50 countries around the world. With the high number of employees and more than 1000 subsidiaries around the globe, PepsiCo is one of the leading international companies that have over the years revolutionized the dynamics of international businesses.
Leadership and Management Structure
PepsiCo’s organizational structure has been reform several times of over the last two decades to address the dynamics of the market conditions. The business thus has adopted different leadership strategies that would enable it to expand its corporate structure and limit decisional errors in management. These strategies are also a manifest of how the company can use its structure to enhance international growth and its competitiveness in the market. PepsiCo’s organizational structure is divided into market divisions, global hierarchy, and functional corporate groups that enable the firm to increase operational efficiency and accountability (PepsiCo, 2017).
PepsiCo (2017). Our History – PepsiCo. Pepsico.com. Retrieved 13 September 2017, from http://www.pepsico.com/company/Our-History
PepsiCo (2017) PepsiCo Announces New Global Structure and Leadership to Drive Continued Growth. (2017). Pepsico.com. Retrieved 13 September 2017, from http://www.pepsico.com/live/pressrelease/PepsiCo-Announces-New-Global-Structure-and-Leadership-to-Drive-Continued-Growth03122012