Leadership - The Indra Nooyi Way

            
 
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Case Details:

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.



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Excerpts

Nooyi as A Strategist

Within two months of Nooyi joining PepsiCo as SVP, the company's restaurant business, which it had acquired a decade earlier and in which it had invested billions of dollars to build up, entered a sluggish phase with lower sales, volumes, and profits. Nooyi worked with Roger Enrico (Enrico), Chairman and CEO of Frito-Lay, who had been asked to take charge of PepsiCo's restaurant business as Chairman and CEO of PepsiCo Worldwide Restaurants, and turn it around. Together, they investigated the problem and made efforts to analyze what was wrong with the business . They concluded that the problem was with PepsiCo trying to adopt a management and distribution model that was more suitable for a packaged goods industry rather than a restaurant chain in the services industry...

Leadership and Entrepreneurship Case Studies | Case Study in Management, Operations, Strategies, Leadership and Entrepreneurship, Case Studies

Nooyi Becomes CFO

Nooyi was promoted as the Chief Financial Officer at PepsiCo in February 2000. A year later, she was promoted as the President and also provided a seat on the Board of Directors. As a CFO, she was responsible for innovation, finance, procurements, investor relations, strategy, and information technology functions...

Nooyi as CEO

In October 2006, Nooyi was promoted as PepsiCo's CEO. Analysts felt that her diverse knowledge of global markets and ethnic background were the reasons for her becoming CEO. On her appointment as CEO, Reinemund said, "She not only co-authored our vision and drafted...

Response To Global Economic Slowdown

PepsiCo faced a number of economic challenges in 2008. Spiraling fuel and energy prices, rising costs of raw materials and other commodities, and increased packaging costs across economies had become a cause for concern.

The Criticism

Notwithstanding her successful stint in PepsiCo, Nooyi also had to face criticism on several fronts. She was criticized for her lack of operational experience. Nooyi had joined PepsiCo after six years in consulting and at PepsiCo too, had worked as a strategist before becoming CFO and later CEO...

Exhibits

Exhibit I: Awards and Recognitions Received by Nooyi
Exhibit II: PepsiCo's Organizational Structure (2008)
Exhibit III: Financial Highlights of PepsiCo and its Subsidiaries (2000-2005)
Exhibit IV: Financial Highlights of PepsiCo and its Subsidiaries (2006-07)

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