case study Pepsico Corporation

             To: Chief Executive Officer, PepsiCo Restaurants
             Subject: Report of PepsiCo 's Restaurants
             Over the years PepsiCo has adopted an entrepreneurial management principle which granted decision-making authority to organizational units with little intervention. Many of our organizational units have operated as stand alone businesses.
             A closer look at operations reveals that cross-business collaboration and achieving tight coordination of related value chain activities would reduce cost across operations. Organizational units may not retain total autonomy but the firm performance will increase.
             I recommend we take the following actions:
             1. Centralize and coordinate selective value chain activities across the firm implementing systems and
             processes that create the desired degree of integration at minimal cost.
             2. Incorporate strong executive level insistence on teamwork and cross department cooperation including removal of obstinate or difficult mangers that stonewall collaborative efforts.
             Evaluation of Current Objectives and Current Strategy:
             PepsiCo's current objectives are:
             1. To expand soft drink, snack, and restaurant operations, doubling sales every five years and boosting
             2. Devastate and outperform the competition
             PepsiCo encourages an entrepreneurial management principle, which allows organizational units to craft their own unit's strategy and also lead the decision-making on how to execute it. This decentralized structure empowers business heads to act on their own in their areas of responsibility.
             Current Environmental Opportunities and Threats: Delegating greater decision making authority to managers creates a more horizontal organization structure with fewer management layers. Managers develop their own answ
             ...

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case study Pepsico Corporation. (1969, December 31). In MegaEssays.com. Retrieved 04:09, April 23, 2024, from https://www.megaessays.com/viewpaper/21895.html