Abstract

This case examines the importance of strategy and leadership in the transformation of a company. It highlights the strategic vision and leadership style of PepsiCo’s CEO Indra K. Nooyi (Nooyi). Nooyi started her career at PepsiCo in 1994 as senior vice president (strategic planning). She rose to the post of CFO in 2001 and later became the CEO in 2006. During her tenure at PepsiCo, she undertook a number of strategic initiatives. Nooyi recommended spinning off Taco Bell, KFC and Pizza Hut, arguing that PepsiCo couldn’t bring enough value to the fast food industry with restaurant businesses as it required dedicated services industry management. Nooyi also led the acquisition of Tropicana in 1998 and merger with Quaker Oats Company in 2001. When Nooyi became the CEO of PepsiCo, the primary goal advocated by her was to achieve “Perfor-mance 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’s products. She expanded PepsiCo’s business into developing markets worldwide and focused on increasing the composition of healthy foods in PepsiCo’s product portfolio.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the role of strategic and transformational leadership in management
• Compare and contrast different styles of leadership
• Appreciate the strategic vision of Indra Nooyi
• Study and comment on the leadership style of Indra Nooyi
• and Understand the importance of sustainability in the management of a company.

Keywords

PepsiCo Incorporated, Indra K. Nooyi, World's 100 Most Powerful Women, Performance with Purpose, Leadership, Transformational Leader, Nooyi as a Strategist, Nooyi as CEO, Fun for you, Good for you, and Better for you, Sustainability, Frito-Lay, Tricon-Restaurants, Product Portfolio Categorization, Tropicana, Pepsi Bottling Group, Quaker Oats, SoBe, Frito-Lay, Spin-offs and Divestitures, Distribution Model, Reorganization, Global Economic Slowdown