Leadership - The Indra Nooyi Way
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Case Code : LDEN058
Case Length : 15 Pages
Period : 1994-2008
Pub Date : 2009
Teaching Note :Not Available
Area: Leadership Style
Organization : PepsiCo Incorporated
Industry : Food and Beverage
Countries : US
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
In 2006, Nooyi became the fifth CEO of PepsiCo. As CEO, she continued to steer PepsiCo based on the vision of "Performance with Purpose."
She implemented a number of measures to improve the sustainability of the company's operations and image by focusing on improvements in the health implications of PepsiCo products.
Measures such as removing trans-fats from PepsiCo snacks, product innovations in the Quaker Oats brand to come out with a range of consumer perceived healthy snacks, categorization of its snacks into three categories named fun for you, good for you, and better for you were undertaken under her leadership.
Nooyi's strategic measures to tackle the slow-down in the
beverages and snack food industry included a productivity improvement program,
the benefits of which were expected to the tune of US$ 1.2 billion over the next
three years beginning 2009.8 Other measures under her leadership included
aggressive expansion into the emerging markets of Brazil, Russia, China, and
India and product and process simplification across the organization.
When Nooyi was SVP, the strategic measures that she
planned and implemented resulted in a growth in PepsiCo's sales and
The company's overall sales increased from US$ 20,337 million in 1996 to
US$ 26,935 million in 2001 and net profit doubled from US $ 1,149
million to US$ 2,662 million in the same period.
After she became the CFO and President, sales recorded a further growth
from US$ 25,112 million in 2002 to US$ 35,137 million in 2006 when she
was promoted as the CEO.
However, Nooyi also had her share of critics, who found fault with what they called her lack of operational skills, her mercenary handling of the PepsiCo pesticide content issue in India, as also her portraying PepsiCo products as healthy while according to the health experts, they were not...