Case | HBS Case Collection | May 1994 (Revised November 1994)

PepsiCo: A View from the Corporate Office

by Lynda M. Applegate and Leonard A. Schlesinger

Abstract

Describes the three business segments of PepsiCo (beverages, snack foods, and restaurants). It then explores the competitive environment within each segment and the response of PepsiCo's businesses. It seeks to show how PepsiCo CEO, D. Wayne Calloway, in a very "hands-off" and decentralized manner, achieves high growth rates in each segment through a process of "continual transformation." Calloway strives to hold together a fast-growing and rapidly changing business through shared values (instead of implementing tighter controls and increasing supervision).

Keywords: Business Divisions; Change; Governance Controls; Management Style; Organizational Structure; Situation or Environment; Competitive Strategy; Value; Food and Beverage Industry;

Citation:

Applegate, Lynda M., and Leonard A. Schlesinger. "PepsiCo: A View from the Corporate Office." Harvard Business School Case 694-078, May 1994. (Revised November 1994.)