Name: Aiseosa Sharon Ediae
Student No: 4298292
My ultimate manager is Indra Nooyi,
INDRA NOOYI
INDRODUCTION:
Indra Nooyi Krishnamurthy is an Indian American business executive and the current chairperson and
chief executive officer of PepsiCo, the second largest food and beverage business in the world by net
revenue. Indra Nooyi was born on 28th October 1955 to a Tamil-speaking family in Madras, Tamil Nadu,
India. She is consistently ranked among World’s 100 most powerful women. In 2014, she was ranked at
number 13 on the list of Forbes World’s 100 most powerful women and was ranked the 82nd most
power woman on the fortune list in 2016.
QUESTION 1: Why do you think they are the ultimate manager?
Indra Nooyi joined PepsiCo in 1994 and was named CFO in 2001 and the president and CEO in 2006.
Considering the bad press soft drinks and snack foods has been getting, this has made Indra Nooyi to
restructure PepsiCo. Since she became the CEO in 2006, Nooyi has more than doubled PepsiCo’s
Revenue. The company’s global revenue has increased from $40 billion in 2007 to more than $63 billion
last year while also diversifying the company’s product portfolio as demand for healthier foods toppled
the industry. Indra Nooyi is a leading voice on leadership, business and diversity. Noting that
Management is a process designed to achieve an organization’s objectives by using its resources
effectively and efficiently in a changing environment. (Business a changing world, Ferrell, Hirt, Iskander,
Mombourquette Ch 6 page 140)
Indra Nooyi has a hands-on management style, this gives the employees of PepsiCo a sense of
fulfillment, as they know they are trusted to manage their own work. It helps foster creativity and
growth in employees as it allows them to come up with solutions rather than being told what to do. This
hands-on management style has served Nooyi well at a time of great turmoil for the broader beverage
and snack food industry. Navigating PepsiCo toward a healthier and more diversified mix of products
required that Nooyi gain the support of employees throughout the company. Certainly, Nooyi views the
ability to inspire people as one of the most important qualities of a leader. As she said “leadership is
hard to define and good leadership even harder. But if you can get people to follow you to the ends of
the earth you are a great leader”. Leadership is the ability to motivate employees to work toward
organizational goals. (Business a changing world Ferrell, Hirt, Iskander, Mombourquette Ch 6 page 152)
Nooyi has managed to deal with the health crisis issue of obesity surrounding PepsiCo, Nooyi has faced
the issue head on. Since Nooyi can not change the sugary products to which PepsiCo owes its roots,
instead she decided to bring in other options, she introduces different variety of products for PepsiCo,
as she says, “some of which are fun for you and some of which are good for you”. She believes the pace
of innovation has accelerated, the way you do business and deal with customers need constant
reinvention. Nooyi also invests heavily in research and development as well, Nooyi has doubled PepsiCo
budget for research and development. One product to come out of that effort is a 3D– printed potato
chips other products include a Gatorade pod to help athletes get the nutrients they need immediately, a
Naked Juice Gale Blazer for juicing fans and a low-Calorie Mountain Dew. Nooyi began emphasizing
products that are a bit healthier then the traditional chips and soda a decision some observers thought
could sink the company. Now shoppers are proving her right. Nooyi as only the 5th person to run
PepsiCo amidst being a woman, a foreigner and a onetime strategy consultant has outlasted all but one
of her predecessors, at least for now. Nooyi has a slogan which is “Performance with Purpose” Nooyi
has pursued policies in line with those principles for example in 2007 Nooyi announced the company will
cut water use by 30% a target the company met 3 years earlier. Nooyi reclassified her company’s
products into three categories: “fun for you” (such as potato chips and regular soda), “better for you”
(diet or low-fat versions of snacks and sodas), and “good for you” (items such as oatmeal). She put
money behind her proclamation, shifting resources from junk foods into the healthier alternatives and
vowed to improve the healthiness of even the “fun” offerings. the PepsiCo acquired three other healthy
food and beverage companies. And that is why Nooyi invested more than $ 1 billion to develop its
potato farms in the half-desert areas of China, such as Inner Mongolia. These actions did not decrease
the company’s profit or slow down its development. First, the PepsiCo used a special potato breed that
can grow well in such area with a high productivity and quality, it decreased the cost of main ingredient.
China is a central powered country, anyone who wants to run a business, must build a good relationship
with the government. And because the Chinese government spoke highly of the PepsiCo’s such
