Indra Nooyi transformed PepsiCo during her time as CEO from 2006-2018 by shifting the company's focus to healthier products and establishing a vision of "Performance with Purpose." She redirected PepsiCo's portfolio to include "fun for you," "better for you," and "good for you" options. Nooyi also grew Frito-Lay, expanded PepsiCo's international presence, and avoided splitting the company's beverage and snack businesses. Her leadership emphasized strong communication, relationship building, and operating with a moral compass.
2. Indra Nooyi
Indra Nooyi was born in Madras (now called Chennai), Tamil Nadu, India, to a
Tamil-speaking family
Nooyi began her career in India as a product manager at Johnson & Johnson and
Mettur Beardsell as a fabric company
Nooyi entered the Boston Consulting Group (BCG) as a strategy advisor in
1980
Later worked as vice president and manager of corporate strategy and planning
at Motorola
In 1994, Nooyi entered PepsiCo and in 2006 was appointed CEO, replacing
Steven Reinemund
Nooyi guided the global strategy of the company and led the reorganization of
PepsiCo
Nooyi also took the lead in the purchase of Tropicana in 1998, and the merger
with the Quaker Oats Company
Nooyi was named on the list of 50 women to watch in Wall Street Journal in
2007 and 2008 and was listed among the 100 Most Influential People in The
World of Time in 2007 and 2008
Nooyi ranked 2nd in Fortune's Most Powerful Women List on September 15,
2015
3. PepsiCo
PepsiCo, Inc. is an American multinational food, snack, and beverage
corporation
Founded on August 28, 1898; 121 years ago in New Bern, North Carolina,
United States by Caleb Bradham
PepsiCo reported earnings of US$5.557 billion, with an annual revenue of
US$64.66 billion, an increase of 1.2% over the previous fiscal cycle
Products: Pepsi, Diet Pepsi, Mountain Dew, Lay's, Gatorade, Tropicana,
7 Up, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina,
PepsiCo is one of the most respected businesses in the world with
products sold in more than 200 nations and regions and 22 brands
The Coca-Cola Company has historically been considered as PepsiCo's
primary competitor in the beverage market
Mission - “Create More Smiles with Every Sip and Every Bite”
Vision - “Be the Global Leader in Convenient Foods and Beverages by
Winning with Purpose”
4. Journey at PepsiCo
In 1994 Indra joined PepsiCo as Senior VP,
Strategic Planning which she handled for almost
2 years
Later she served as PepsiCo’s Senior Vice
President for Corporate Strategy and
Development from 1996 until 2000
Indra was widely known to be a lead negotiator
on the high-level deals
She was the brain behind PepsiCo’s global
strategy of expansion for more than a decade
She was the one to bring about the
diversification of the company into new healthier
products
She was promoted as Chief Financial Officer in
2000, which made her the highest-ranking
Indian-born woman in Corporate America
5. Continued…
Her vision for the company as the President and
CFO was to bring the company on track and to
have a snack in the market for every part of the
day
On October 2006, Indra was made the CEO of the
PepsiCo
The first task that hit her desk was reducing the
water usage in India
Indra succeeded in redirecting and reclassifying
the business and its products into three
categories:' fun for you,'' better for you” and
“good for you”.
6 August 2018, PepsiCo Inc confirmed
that Nooyi would step down as the CEO
6. Strategic Changes Made By Indra
Nooyi
Focusing on healthier food options
Design and Innovation
Growth of Frito lays unit
Expanding distribution network
Avoided a demerger
Doubling down on emerging markets
Global acclaim
7. STRATEGICASPECTS UNIQUE TO THE SITUATION
Indra Nooyi has successfully changed the face of beverage major PepsiCo with her agenda of “performance with purpose”
by offering more nutritious products.
Indra Nooyi is responsible for transforming PepsiCo’s product portfolio from ‘’ fun-food to Healthier-food “ with a agenda
of “Performance with purpose”
“Performance with Purpose” vision born when Nooyi figured out consumer preferences, reflecting a growing shift towards
a healthier lifestyle in the US and around the world and with Millennials entering the workforce in large numbers.
8. Initiatives Taken In The Direction
Reformulating some of our existing products to improve their nutritional profile
Engaging employees in health and wellness programs and also making them participate in
community service activities
Partnering with governments, health officials and non-governmental organizations to help
address obesity concerns
Reusing water from processing, working with local communities to provide access to clean
water, and supporting local farmers to deliver quality crops
Investment in R&D, advanced technology key In Portfolio transformation, to identify new
ingredients, recipes, and sweeteners which can help improve its products
9. In 2017 design team helped drive successful
launches of new products such as LIFEWTR
Pepsi Spire, new touchscreen fountain machine
was designed by the design team which is very
user interactive
10. Leadership Style
She always held to her 5 C model leadership – Competency,
Courage, Confidence, Communication & Compass
Leadership Qualities:
Communication
She has received communication training to improve her
abilities and flexes those communication muscles every
time she makes a public appearance
She maintains a blog at Pepsi where she talks to her
employees via posts every other week
Relationship Building
She writes letters to employee’s parents to thank them for
their children
In maintaining a company relationship with the public,
Indra has been in-tune with consumers needs for healthier
snack and drink options
Moral Compass
She lives by moral codes and she feels every corporation
owes society care
Organizations need to help society reach goals and solve
problems