Pepsico is the second largest food and beverage company in the world, from cream sodas to oats to cookies. They have a 19 product line that generates about $1b+ annually.
They get in about $60b in revenue yearly and over the years they have racked about $105b in revenue.
They even have partnerships with companies like starbucks and are operating in over 200 countries
This has given them the ability to acquire a strong work force, employing about 285000 people world wide
Indra Nooyi, a business executive who is the current chairman and chief executive officer (CEO) of PepsiCo, the second largest food and beverage business in the world according to reliable source forbes.
As a leader, she has decided to change their business strategies. they have a big mission by trying to increase their revenue from $10b-$30b.
By thinking about the consumer, they are changing their strategies to 'fun-for-you' 'better-for-you' and 'good-for-you'.
In addition to that, they are also diving into the dairy products industry, as they want to get a foothold there too. this is something they can do baring in mind that they own the greatest portfolio of brands.
They have evaluated their social responsibility and are willing to take the step of not only making profit but also being socially responsible, by tackling issues such as obesity, under nourishment and over nourishment.
A brave and wise decision was to take out sugary products from schools. They are regulating nourishment by not ignoring the under nourished and also monitoring the over nourished.
Also, they intend on breaking into the chinese market, by adopting a new strategy, which is using a new model that suits the chinese economy rather than adopting or using the model they used in the american market. Eg. They will make chips, grown and chipped in china, but with chinese flavours. This will suit the chinese people rather than imposing what the americans eat or like on the chinese market.
Their balance in portfolio is socially responsible as they are looking at how consumers can eat healthily. Eg tackling obesity.
Being profitable and responsible are equally important, In this way, they are balancing out both their profit and responsibility in the long and short term. This social responsibility helps both the organisation and the individual.
As henry ford said, "a business that makes nothing but money is a poor kind of business".
Pepsicos long term self interests lies with the acceptance of their strategy from the society. consumers these days are all trying to be responsible health-wise. Eating right is definitely one way to go about it.
Pepsicos strategic leadership approach is very similar to the Madonna and IDEO case study as they are not only willing to take risks, but at the same time they are open to change.
Unlike the CARREFOUR case study where lars olofson did not give chance to change in his leadership style.
As I said in my NASA blog, Ineffective strategic leadership can result to loss, Either monetary wise or health wise.
PepsiCo's leadership and management style seems to be very well structured and organised, in comparison to NASA's. They are following and observing protocols, and are showing signs of moral, ethical and social responsibility. In this case, I can say that pepsiCo have put on their ethics/morals hat and also worn their money/profit shoes. Meaning that they are dressed for the economic situation/occasion.
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