Indra Nooyi: A Transcultural Leader

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Case Details:

Case Code : LDEN076
Case Length : 16 Pages
Period : 2006-2011
Pub Date : 2011
Teaching Note : Available
Organization : PepsiCo.
Industry : Consumer Packaged Goods
Countries : Europe; US; Global

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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.

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Rise at Pepsico

PEP was going through a difficult time - its restaurant business was not doing well in the saturated fast-food market and its revenues from the international markets were lagging far behind archrival Coca-Cola Company (Coca-Cola). Nooyi was instrumental in the spinning off of the restaurant chains -- KFC, Pizza Hut, and Taco Bell -- in 1997, a difficult move that shrank the company by a third...

A New Corporate Vision

Nooyi continued to be a major change agent at PEP after taking over as CEO. Observers said that the earlier acquisitions of Tropicana, Quaker Oats, and Gatorade pointed to the direction that PEP would take in the future - toward 'better-for-you' products, away from junk foods. At the World Economic Forum in Davos in 2008, Nooyi remarked that it was essential that "we use corporations as a productive player in addressing some of the big issues facing the world"...

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Leadership and Management Style

Nooyi had the good fortune of being guided by three former PEP CEOs - Reinemund, Enrico, and Don Kendall. Observers noted that her mix of South Asian heritage and mentoring at PEP had given her a strategic view of world markets. Though critics held that Nooyi might not treat everybody the same way as she did White, they agreed that she was ready to take help from others in whatever areas she felt there was a need. Nooyi admitted that even after retirement, Reinemund continued to reply to her emails within seconds and was ready to be at her side if she needed advice...

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