Indra Nooyi Leadership Case Study - Paper Example

Indra Nooyi is the CEO of the largest food and beverage company that is situated in the North America. She manages a cooperate family that holds over 300,000 employees. She is a valued and influential leader in the world of business. With her level of competency going beyond any reasonable doubt, she has succeeded in making the company thrive through the leadership model of 5Cs. The 5Cs of leadership stands for competency, courage, confidence, communication skills and compass. During her time in leadership, she has indicated various characteristic that made her successful.

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Indra has made it her approach to having effective communication skills which support her other qualities like courage, confidence and moral compass. She establishes a strong relationship with the employees by being in tuned for healthier snacks and drink options which have made Pepsi product to be build up and be strongly established. It has been reported that her leadership has enabled the PepsiCo to achieve double the sales after she was handed over the company in 2000.

Indra believed in the strength of conviction whereby she claims that unless one becomes an expert in the chosen field, then there is nowhere one can go or is going. She strongly advises people that they should never wave on their decision but instead send out a message on how brave they are and strong enough to believe that they are right.

There has been numerous issue that Indra as the CEO of PepsiCo has done to the company and should consider doing in the future without relenting. With the issue of mergers and acquisition, a decision should be made wisely so that the company can grow. With the rate of earnings that 22 brands of PepsiCo are getting, Pepsi should not have to rely on a couple of brands to make more revenue. The overall income of the company can be covered with the many brands that the company has.

The dependence of PepsiCo on Wal-Mart can also be improved because 13 % of the revenues and more are generated by the sales in the Wal-Mart stores. If Wal-Mart can demand certain prices, then PepsiCo would be left with small profit margins, and it would not be the kind of growth that Indra has worked for over 17 years.

The CEO should consider reviewing their pricing decisions since when PepsiCo is compared to its competitors, its prices are usually low. Low prices can be interpreted to the low-quality product by the customer. In the future decision regarding prices, the level should be able to match the competitors because when it comes to brand quality, most consumers are convinced that the brand with low price could not be worth compared to the expensive one.

With the questionable practices in a place of the incident where the customer noticed that the company was using tap water in their bottled water and its source was from the mountain springs should be improved. Transparency to the consumer is paramount since the customer not only need promises but assurances and action. If the customer realizes that the management is unfaithful in what they give out as a product, they can be short in loyalty and trust thus leading to recession and reputational crisis.

With the opportunities that surround PepsiCo, the CEO can use these opportunity to invest in the emerging markets where the beverages and snack consumption is increasing day by day out. If the investment should thrive, then they should have increased revenues and market share making the organization to thrive. With more revenues making, the Company would have to rely less on the United States sales and instead find rescue on the increasing consumer demand for healthier food and beverage options. With the expansion in mind, PepsiCo can opt to produce drinks and food with a few calories and sugar which is most people preference in the market.

With the health craze on the lookout, PepsiCo management especially the CEO should come up with a particular kind of water like vitamin water that would lure peoples attention into trying the best healthy option. The CEO is making much progress, but it is high time she should realize how people are desperate in avoiding the products that cause obesity like sodas. If the introduction of healthy options like vitamin water is introduced, then the consumer would be loyal to the organization.

With the strong competition from the counterparts Coca-Cola, the CEO of PepsiCo should start focusing on the best marketing strategy which involved focusing on the areas that Coca-Cola does not have popularity. Franchising in countries that lack cooperation is also not comprehensible but instead should focus on the countries that are loyal to PepsiCo. Research should be increased as well while the marketing tactics should be improved making sure that PepsiCo is one step ahead of its business competitors.

The CEO Indra is a strong leader who has persevered the changing trends in the PepsiCo organization and remain unwavering due to her 5Cs strategies. With careful market analyze and research, the company should be able to know the needs and wants of the consumers and slowly but wisely dominate the marketing championship that has been taken by Coca-Cola over a period now. I recommend that the CEO should make wise decisions on mergers and acquisitions while successfully operating the brands and having effective campaigns.