Research Paper about Management 2022

Running head: MANAGEMENT
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Name of the Student:
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Introduction
Leadership skills are the groundwork of a leader’s achievement and a resilient
foundation is required to build up a company vision. Without robust leadership techniques,
many good businesses tend to decline. Many of the world’s most valued leaders constitute
several personality attributes in common. Some of the high distinguishable traits are the
competence to initiate change and motivate a shared vision and knowing ways to ‘encourage
the heart’ and model the expertise and skills which are essential to attain the desired
objectives [1]. Contemporary leaders in recent times have exhibited the ability to illustrate an
understanding of the business setting and way it impacts on the organization’s strategy. The
system objectives require being attuned with this strategy and establishing at relevant levels
within the organization. The aim of the following research paper is to analyse Indra Nooyi, an
Indian American business executive leadership styles and the way she implemented her
strategic decisions during global financial crisis as a leader.
Discussion
Indra Nooyi’s Decision Making Attribute changed the face of PepsiCo
Indra Nooyi entire life has appeared to have encircled her for the position of the CEO
at the Pepsi Co. Indra Nooyi became the chief strategist and initiated to stimulate Pepsi Co in
order to reshape its brand reputation and possessions [2]. As per the reports of Kumar, and
Deoki (2014) in 1997, Pepsi Co has been profoundly influenced by Nooyi to develop as
distinctive entities from its restaurant unit, as KFC, Pizza Hut, Mc Donald and Taco Bell
have been under the same division. Nooyi persistently indicated Pepsi Co in the right
direction and negotiates as well as acquired $3.5 billion procurement of Tropicana orange
juice along with $ 15.5 billion purchase for Quaker Oats. “The success of an enterprise
usually comes down to one thing: the team’” However, to develop this vision into realism,

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Pepsi Co CEO employs her conceptual skills to shed light on sustainability and explaining
true meaning of her strategies.
Nooyi is positioning PepsiCo to attract new talent through its ethics and standards, as
well as retain its existing talent by meeting the employees at their value level. In addition,
Nooyi makes sure that her employees and followers feel challenged, appreciated, invested
and upright regarding their daily activities within the company. “In the end, transformational
leadership results in employees developing enhanced ideas and their contributions to the
greater common good” [3]. This sentiment is consistent to Nooyi’s vision of Performance
with Purpose. The company applied the proceeds of the sale to reduce its $8.5bn debt by
more than half, a move that also allowed the business to accelerate its share buyback strategy,
giving it the financial flex to invest in further business development.
Transformational theory accentuates leadership effectiveness
Transformational theory of leadership sheds light on the efficacy of leadership that is
reliant on aligning leaders’ approach of the right situation. With transformational leadership
attributes Nooyi coincided with the global financial crisis by setting about transforming
PepsiCo into consumer goods brand which is profoundly grounded in the company’s
‘performance with purpose’ philosophy along with the aim of changing consumer
inclinations towards healthier snacks and beverages. Reports of Tillberg-Webb and Collier
(2019) have revealed that under the leadership, PepsiCo total revenue increased from $US
35.5 billion in 2006 to $ US 64.5 billion in 2017 along with the stakeholder’s returns which
increased by 163% over the same period [4].
Delegation and Empowerment
Whether bank failures have been caused by highly complex financial instruments,
misguided policies and misinterpreted systemic risks or outright insatiability, leadership
inadequacies, US consumers developed as a fundamental cause. By following short-term self-

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interest, senior leaders have shifted from core business fundamentals regarding first serving
clients and for long-term. However, it has been distinct that contemporary leaders necessitate
extensive skill sets in comparison to former leadership strategies. Leaders in recent times
requires varied mind set in order to balance the performance-led demands of stakeholders
with prudential focus of regulators. Serving as a CEO currently implies to decisively
managing relationships with regulators and reforming business models in order to deliver
sustainable results to a low interest rate environment [5]. Studies of authors have mentioned
that in 2006, when Indra Nooyi acquired the CEO position of PepsiCo, she with her strong
determination broke the glass ceiling for immigrants as well as women. Such an
empowerment and robust determination has led PepsiCo to direct an economic recession,
endured challenges from activist investors as well as augmented public and policy
responsiveness on issues concerning obesity and environmental protection. Under Nooyi’s
leadership, PepsiCo revenues raised from $35 billion to over $65.5 billion along with an
increase of share price by around 80%. Toh (2017) has found that Nooyi’s robust leadership
traits of entrustment and delegation have led the company to environmental accountability by
reducing water consumption, carbon footprint in addition to the increase in recycling [6].
Leadership Accountability Attributes
Global economic growth strong prior to the 2008 financial crisis had remained quite
slow. With severe foreign currency demands and intensifying regulatory pressures, high level
of uncertainty and aggression posed impacts on global organizations. However, regardless of
these challenges, under Nooyi’s stewardship, PepsiCo adjusted its sales and exceeded full-
year financial targets in addition to continuing their multiyear track record of achievements
[7]. Report of Toh (2017) have mentioned that core gross margin raised by 140 basis points
in 2015, while core operating margin improved by 30 basis points. Over the past three years,
the core gross margin has increased by around 285 basis points, with core operating margin

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up 100 basis points. Furthermore, in 2015, core net return on invested capital (ROIC)
increased by 210 basis points to 19.6%. PepsiCo has maintained capital expenditures below
5% of sales since 2012 and gross net ROIC has dynamically increased by 430 basis points
during the global financial crisis [8].
Creativity and Innovation Skills of Indra Nooyi
Nooyi drives her business strategies in PepsiCo by involving technical conversation
and comprehending the granular development. Furthermore, she drives uprightness within the
company by maintaining accurate claims on products for instance, eliminating Liquid
Liposuction” from the SoBe Lean product that is currently under PepsiCo ownership. Reports
of Mortimer (2015) claimed that during global financial crisis period in 2008, to make
cognizant company level decisions on thriving markets, product supports and new initiatives
Nooyi recognized the technical aspects. Meanwhile, to sustain revenues of PepsiCo during
period of economic recession, Nooyi endorsed vision of ‘Performance with Purpose’ by
being responsive to her subordinates and need for sustainability [9].
With varying values of individuals to be more conscious of their impact on the
environment as well as public, PepsiCo sustains these values at front position with its
‘Performance with Purpose’ focus on products, environment and people. Previously, most
people in PepsiCo considered process of packaging while focusing on system thinking. But
under Nooyi’s stewardship and her creativity skills, the company encountered new user
experience or the way consumers use as well as interact with products. Nooyi understood the
changes which people have been undergoing recently which has further altered the process of
brand recognition and product representation. In the view of Ignatius (2015), the significant
financial downturn in the equity market besides the valuation of assets occasioned by
financial emergency and financial system instability posed imspact on the pension plan
assets’ value [10]. The lower pension plan assets base could destructively disturb the return

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and consequently upsurge the costs of pension. However, Nooyi with her design thinking
strategy maintained the financial stability of PepsiCo unlike Coca Cola which showed
incompetence in accessing credit markets on favourable terms and increased the charge of
borrowing [11]. Nooyi with the help of Porcini led a novel approach to innovation through
design in order to categorize new opportunities for its product platforms and brands in a
“society of the future” shaped by social media and digital communications.
Commitment and Passion
Nooyi through commitment and utmost passion developed a growth strategy
developed Pepsi private to its audience and further made the consumers personal to Pepsi.
With the introduction of ‘Performance with Purpose’, the idea of soda beverages faded away
as the principal point of the beverage giant [12]. The brand on the other hand embraced
healthier choices, thus shifting its focus away from healthy, fatty snacks and beverages and
introduced healthier options to consumers. Taking benefits of their acquired brands, PepsiCo
initiated developing Gatorade with lesser quantity of calories and oatmeal with higher fibre
thus making consumption of juice more prominent in their brand compared to non-alcoholic
beverages.
Conclusion
Hence to conclude, Nooyi has been recognized for her exceptional way of showing
employee appreciation. It has been noted that individualized consideration is regarded as a
way to authorize an organization by letting each individual develop feeling of appreciation
and being responsive. An enthusiastic workforce has greater potential to work towards a
improved goal related to sustainability at PepsiCo as recognition can efficiently nurture a
sense of determination and delegation towards work.

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