PepsiCo Inc, Essay Example

The article to be summarized concerns the earlier managerial operations of the PepsiCo Inc. beverage giant. PepsiCo lead negotiatians with it’s top bottler the Pepsi Bottling Group Inc. concerning the attainment of the bottler, making PepsiCo a major single-unit with complete ownage of a combined North American bottling unit. The key point of this article was about the CEO and Chairman of the former Pepsi Bottling Group Inc. Eric J. Foss, and his candidacy of being the executive in the PerpsiCo’s bottling department. This article also brings out an important question of whether the new integrated PepsiCo business model would be more efficient than the Coca-Cola Co.’s franchising model of management.

It took three months for PepsiCo’s CEO Indra Nooyi to negotiate the price and terms of the acquisition of it’s bottlers, in the end PepsiCo bought the remaining shares of the Pepsi Bottling Group, that did not already belong to it, for $7.8 billion. The argumentation of rolling the bottler into the corporation was because by this Pepsi would be able to save costs on their beverages and would have the perspective to dominate Coca-Cola with a greater lead. At the same time Coca-Cola hoped on difficulties occuring through the negotiations, achieving benefits from Pepsi’s troubles. Indra Nooyi picked Eric Foss to be the executive of the bottling unit because he has already had a 27 year experience in working in PepsiCo and their entities. He is highly experienced  and is the perfect candidate for this position, having a great reputation in dealing with various details. His tasks at this position would be to execute the deliveries with major retailers and to modify the once-popular Gatorade line, as well as small juice and tea lines.