PepsiCo, Inc., a leading global food and beverage company, organizes itself into six reportable segments or divisions:

Question:

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, and calculate 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?