The paper "Bureaucratic Organization: PepsiCo" is a good example of a management case study. PepsiCo is a multinational beverage, snack and food corporation that has its headquarters in New York. Other activities the company understands includes marketing manufacturing and distribution of grained based beverages, foods and snack and other products. PepsiCo has continuously expanded since its inception including participating in mergers and acquisitions in organisations such as Quaker Oats in 2001, Tropicana in 1998, and Frito-Lay in 1965 resulting in widening of products provision and span of control. The numerous products PepsiCo offers are available across the world meaning that is easier to know about the organisation and partial research enables understanding of the products.
PepsiCo provides numerous information through marketing, which makes it easier to be analysed, and understood in the market. The aim of the essay is to analyse PepsiCo, which employs the bureaucratic structure of the organization, through analysing factors such as structure, in terms of complexity, centralization and formalisation, reasons linking the bureaucratic aspects with the organisation, and PepsiCo coordination mechanism. Bureaucratic Organization Purpose PepsiCo does research and development, manufactures, markets and distributes different products across the world (PepsiCo, 2016).
PepsiCo produces the common Pepsi drink, which competes with Coca-Cola for the market and ensures the products are distributed across the world (Perrott, 2014). The goals and objectives for PepsiCo include refining the food and beverage choices to reflect the requirements and needs of the consumers, create a healthy and safe working environment, champion and sustain the shareholder, address the requirements of effective financial performance and environmental sustainability (PepsiCo, 2016). Structure PepsiCo has continued to metamorphose as it grows meaning the organisational structure keeps reforming to reflect the global market conditions and associated dynamics (Bennett and Parks, 2015).
The current structure incorporates variables of leadership and global expansion, with concern for international growth (Krishnan and Narayanakumar, 2010). The organisational structure enables the company to manage and satisfy the different market requirements and conditions (Mortara and Minshall, 2011). The main organisational structure of PepsiCo characteristics includes market divisions, global hierarchy and functional corporate offices/groups (PepsiCo, 2016). To accomplish these requirements, the dimensions employed are formalisation, centralization and complexity. These dimensions are integrated into the management of the organisation and it influences the product and developments of the products and services (Fink, 2010).
For example, the market division aspect, the structure is divided into PepsiCo Europe, PepsiCo Asia, Middle East & Africa, Latin America Foods, Quaker Foods, Frito-Lay and PepsiCo Americas Beverages (PepsiCo, 2016). In the case of functional corporate offices, Pepsi divides its operations into communications, talent development, training and management, government affairs and legal, finance, human resource, global operations and categories, and global research and development (PepsiCo, 2016). PepsiCo operational structure incorporates the features of management and determination of strategic implementation of processes and actions.
The hierarchal structure is aimed at controlling monitoring and governing the corporate and global framework (Bennett and Parks, 2015). The PepsiCo hierarchy structured is influenced by the divergent needs of the organisation including control, monitoring and communications (Mortara and Minshall, 2011). The hierarchal structure, which infers the authority and duty, is aimed at minimising the deviations from its strategies and policies (PepsiCo, 2016). It also brings into focus the aspect of complexity because the hierarchy defines the roles and responsibilities of different activities within the organisation.