Re: Indra Nooyi-Pepsico
From the PEPSICO case study, I learnt the important for
an effective strategic leadership to make profit. In business, the rule for profit is to continually make as much profit for
the shareholders. Therefore, Shareholders can gauge the success of the
leadership based on increasing or decreasing profits. This can determine if the
leader, or other top executives, should be replaced. That is why in PepsiCo, shareholders are unhappy with the way Indra
Nooy is running the company. As the result, Nooy`s job is on the line and from
the shareholders standpoint she is not effective at all.
Furthermore, being
profitable and responsible are equally important because it is indispensable for
the continuity of any business. It is generally
held that corporate social responsibility (CSR) could increase company profits
and thus most large companies are actively engaged in it. When a company
chooses to be socially responsible they are not only helping out the community,
environment etc. They are also helping themselves in the long run. Companies
are effectively learning how to attract customers through being socially
responsible. Customers tend to avoid selfish companies whose only goal is to
maximise profit and economic power. Most leaders believe that CSR can improve
profits. They understand that CSR can promote respect for their company in the
marketplace which can result in higher sales, enhance employee loyalty and
attract better personnel to the firm.
PepsiCo
strategic leadership approach is different to other case studies. First, the firm`s leadership (PepsiCo) has
created multiple brands business strategy. For example, they have many successful
brands such as Tropicana, Quaker Oats and so on. Second, they are the only one from
the other case studies, who incorporated CSR to their business strategy. Finally,
they understood the culture difference between nations and as a result they are
able to target different countries with specific product (effectively).
DJ......