Chapter 24, Problem 24.1TIATC

Tying It All Together Case 24-1

Before you begin this assignment, review theTying It All Together feature in the chapter. It will also be helpful if you review PepsiCo's 2015 annual report

(https://www.sec.gov/Archives/edgar/data/77476/000007747616000066/pepsic

o201510-k.htm).

PepsiCo, Inc., a leading global food and beverage company, organizes itself into six reportable segments or divisions: Frito-Lay North America (FLNA),Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America (LA), Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA).

Requirements

1. Review the 2015 annual report for PepsiCo and provide a brief summary about each of the different segments. See Part I, Item 1, Our Operations.
2. What are some advantages that PepsiCo has from decentralization?
3. What are some disadvantages that PepsiCo has from decentralization?
4. Review the 2015 annual report for PepsiCo, and determine the amount of operating profit in each of the different segments for 2015. Use Notes to Consolidated Financial Statements, Note 1.
5. Review the 2015 annual report for PepsiCo, andcalculate the return on investment (ROI) for the 6 segments for 2015. Use Notes to Consolidated Financial Statements, Note 1.
6. In terms of ROI, rank the 6 segments from most profitable to less profitable. How does this ranking compare to the ranking by operating income?