Case Study: Mastering the Economics of Complex Systems

For PepsiCo, alignment across its franchise bottling system was essential - but hard to achieve in practice. If either party prioritised its own profit, the whole system suffered.

To address this, PepsiCo relaunched its Mastering System Economics initiative after 30 years - anchored on a “North Star” of sustainable profit split. To make this real, they partnered with ProfitAbility Business Simulations (PBS) to create an immersive experience that forced leaders to practise finding win–win solutions under pressure.

“This is not so much about just a financial exercise. It is about building capability for system economics in a way that drives a GM mindset. A simulation makes it real and people learn by being put in real situations.”
- Sabine Selos, Senior Director, PepsiCo International Beverages Franchise

Leaders took on the roles of both PepsiCo and bottlers in a multi-round simulation. They tackled real-world challenges like sugar regulations, energy drink launches, and packaging shifts - navigating uncertainty, incomplete data, and market shocks.

The goal wasn’t just profit - it was how closely teams aligned to the North Star. That mindset shift changed how they negotiated and made decisions.

“The simulation really showed how money flows through the system and the consequences of running specific strategies.”

“You never have perfect information. Sometimes you have to decide faster, take the 80/20 view, and trust the system.”

PBS’s approach gave leaders space to rehearse, reflect, and reset, strengthening four key franchise capabilities:

- GM Mindset
- Beverage Strategist
- Win–Win Solutioning
- Capability Champion

The simulation had immediate impact. Leaders reported sharper commercial thinking and more collaborative behaviours across the system.

“It has brought theory to practice - it changed how I see full P&Ls and competition strategy.”
“It was exciting to see how quickly teams aligned when forced to balance trade-offs.”
“Very engaging, good learning and stimulating content. The time flew by.”


The results are extending beyond the session, too:
“The mindset has changed and it is top of mind now within people’s thinking frame. People are also asking for the materials from the simulation and using them in annual planning with bottlers. That is the tangible impact we expect to see over the next year.”

By simulating the human and financial reality of the PepsiCo–bottler relationship, PBS turned theory into lived experience—ensuring alignment was practised, not just preached.