Centralization in Pepsico

The Pepsi structure is mainly centralized, but is flexible enough to pick up on local characteristics to
ensure that the business is run as efficiently as possible. Within the overall structure of the company,
which covers every comer of the globe, there is a flexible approach that allows the company to
maximize the talents of employees at all levels. While a multinational company the size of Pepsi, which
directly employs around 100,000 people, has to have a centralized structure monitoring every aspect of
the business it has to be able to adapt and allow local conditions to maximize the talents of its
workforce. Clearly the way that the company operates in areas like China has to be different from how it
works in the United States,
Power and Politics
Power and politics within an organization can have a significant impact on the decision-making and
operations of the company. In PepsiCo Pakistan, the distribution of power and politics within the
organization likely follows a similar pattern as in any other large multinational corporation. Some key
elements of power and politics in PepsiCo Pakistan could include:

Hierarchical structure: PepsiCo Pakistan likely has a hierarchical structure, with a clear chain of
command and decision-making authority. The highest-level executives, such as the CEO and Board of
Directors, have the most power and decision-making authority within the organization.

Departmental politics: Each department within PepsiCo Pakistan likely has its own goals, objectives, and
priorities, which can lead to competition and politics among different departments.

Political behavior: Some employees within PepsiCo Pakistan may engage in political behavior, such as
building alliances, networking, and lobbying, in order to advance their own goals and interests within
the organization.

Power struggles: Conflicts and power struggles may arise within PepsiCo Pakistan between different
individuals or groups within the organization, such as between employees and management or between
different departments.

External influences: PepsiCo Pakistan is likely influenced by external factors, such as government
regulations and policies, political stability, and economic conditions in Pakistan. These external factors
can affect the power and politics within the organization.

Power of culture: PepsiCo Pakistan is likely influenced by the culture of the country, which can affect the
power and politics within the organization, such as the communication style, the way of negotiation, the
way of decision making and the way of dealing with the customers.

It is important to note that the distribution and use of power can change over time and can vary
depending on the specific context and situation. Also, PepsiCo has a robust compliance program and a
code of conduct that are in place to ensure that the company and its employees, suppliers, and
contractors comply with all relevant laws and regulations and conduct their activities in an ethical way.