PepsiCo’s Indra Nooyi: “Performance with a Purpose”

Kiara Lyn S. RoblesBA 190 - Strategic Management

University of the PhilippinesProf. Mita Angela M. Dimalanta

“Performance with a Purpose”

Indra Nooyi• Current CEO of PepsiCo.• With Bachelor’s degree in Physics, Chemistry and Mathematics and took her MBA in Yale University.• Mastermind in Tropicana, Gatorade & Quacker Oats acquisions.• Believes that corporations are “little republics” in their own ways and firms should not only focus on earnings cycle because it could lead to greater cost to society.• Wants big & influential PepsiCo to play an important and significant role in society.• In 2001, declared PepsiCo’s Vision to be “Performance with a Purpose”.

“PERFORMANCE WITH A PURPOSE”Human

Sustainability• Providing

healthier product portfolio (reducing fat and salt in Doritos and Frito Lay & adding Tropicana and Quacker Oats as their products)

Environmental Sustainability

• Corporate Social Responsibility

• Programs to reduce water and energy use

• Promoting sustainable Agriculture

• Recycling

The whole Person at Work

• Trainings and seminars to unleash the full potential of each employee

Vision Statement Mission Statement

• “To deliver top-tier financial performance over the long term by integrating sustainability into our business strategy, leaving a positive imprint on society and the environment.”

”To provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats. We are committed to investing in our people, our company and the communities where we operate to help position the company for long-term, sustainable growth.”

Guiding Principles• Care for our customers, our

consumers and the world we live in. 

• Sell only products we can be proud of.

• Speak with truth and candor.• Win with diversity and

inclusion. • Balance short-term and long-

term.• Respect others and succeed

together.

FIRST STEP IN STRATEGY PROCESS

• Identifying the goal of the company

• Formulating the action to achieve the goal/s

• Listing the values the company needs as they pursue the vision and mission

“Leaders need to begin with the end in mind”.

Strategic Leadership Concept where leaders and managers use their power and influence to direct activities and motivate its employees Nooyi demonstrated it by defining the goal of PepsiCo and the incentives in place to achieve the vision.

Strategic Commitments Actions to back up the mission and vision of the company. Costly, long-term-oriented and difficult to reverse.

Human Sustainability

• Refining the food and beverage choices to meet consumer needs

• Clear nutrition information on their products

• DAILY TABLE (low - cost one -stop shop)

Environmental Sustainability

• Innovating products’ packaging

• Comprehensive approach to Water Stewardship

• Support sustainable agriculture

• LITER OF LIGHT PROGRAM

The whole Person at Work

• CEBSD which aims to help youth in Myanmar through trainings, career development and counseling

• PepsiCorps , a month - long corporate volunteering

Upper-Echelons Theory

Organizational outcomes including choices and performance levels reflect the values of the leader or the top management.

Even though financial performance of PepsiCo is lagging relative to Coke, Nooyi didn’t do anything about it. She believes that as long as the company is concerned about its people, the environment, and its consumers, nothing should be changed.

Indra Nooyi’s goal is also the company’s goal - not mainly to generate profits but to create a positive impact to society.

“On the surface, profit is a word that is easily defined: to make money. In reality, however, that definition is incomplete. In a world that is being radically reshaped by sweeping forces of change - from technological innovation and globalization to resource scarcity, climate change and public health challenges - how companies make money is just as important as how much money they make.”

“Without question, profits are the engine that propels a corporation forward. But the blind pursuit of profit at all costs is untenable. It is essential that we make money the right way. “

INDRA NOOYICEO of PEPSICO

References:

Emaze. (n.d.) The Iron Lady of PepsiCo: Indra Nooyi. Retrieved on https://www.emaze.com/@ATOFIWO/Indra-Nooyi:-Iron-Lady-of-Pepsi-Co. Accessed on August 22, 2016. PepsiCo. (2016). Who We Are- PepsiCo. Retrieved on http://www.pepsico.com/company.

Accessed on August 22, 2016. Rothaermel, F. (2015). Strategic Management. 2nd ed. McGraw-Hill Education: New York, USA.