PepsiCo Leadership Case Study Analysis

This case study examines PepsiCo Mexico under Jorge Rubio's leadership. It analyzes his inspirational ideas, strategic execution, and the impact on productivity. The focus is on identifying essential leadership qualities like planning, flexibility, and innovation, supported by the contingency theory of leadership.

Principles and Practises of
Leadership and Management
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TABLE OF CONTENTS
TABLE OF CONTENTS...................................................................................................................
INTRODUCTION................................................................................................................................
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CONCLUSION....................................................................................................................................
REFERENCES.....................................................................................................................................

INTRODUCTION
The consequences of good leadership can be experienced in the form of quick
achievement of goals and objectives, organisational harmony or balance, etc. this report consists
of information regarding case study of PepsiCo’s director. He has applied an innovative
approach in managing work stress and increasing employee efficiency. The report shall help in
understanding basic qualities which are essential for a leader to manage his activities and the
subordinates without losing the essence of leadership. Moreover, a supportive assessment shall
also be provided in this section which will be derived from the theories like trait and contingency
or even behavioural (22 Qualities that make a great leader, 2017). Basic attributes that are
desired by individuals who are going to be leaded in an organisation like PepsiCo are inspiration,
patience, vision and focus. These characteristic traits and their evaluation will help in
understanding leadership practises and principles in modern day business organisations.
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2) Requirements for leading and managing
The role of a leader is to provide help or guidance to his followers at every point while
working in an organisation. Every organisation that has to fulfil its purpose of functioning
requires a leader who will help in providing a path that will lead in achieving this purpose.
PepsiCo was able to achieve such a strategic position in the world due to efforts engaged by
individuals who were leaders and managers of the company. It is important that there are certain
techniques and principles adopted by the organisational heads in leading individuals so that any
sort of distractions or diverging activities are prohibited (Tyssen, Wald and Spieth, 2013).
The requirement for leading and managing newer forms of organisation in current
business environment can be understood using an example which is given further. An
organisation of 20 individuals belonging to diverse culture and educational backgrounds is
formed. The aim of this organisation or say group of individuals is to earn maximum profits in
just few months. Gradually as their contacts are building and they started earning something by
selling their product, a formation of informal teams or groups takes place (Van Wart, 2013). This
group-ism becomes so dominant that actual essence for which the organisation was formed is
lost. There was no single person who would adhere to objectives and make other focus on the
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same. Hence, lack of responsible leadership and management lead to quick failure and
dissolution of the company. When a leader comes in the scenario, there are chances that informal
groups that were formed won’t lose orientation and finally institutional objectives are meant. It
would be unjust to say that company could turn one like PepsiCo or better than the latter one if
effective and efficient leadership with appropriate management is applied (Western, 2013).
Newer forms of organisations are more aggressive, fierce and competitive. This depicts
that chances of clashes and conflicts in different functioning groups is highest. The absence of
leader and manager means there is no chance of recovery from failure. These individuals will
function to adhere individuals with organisational goals and eliminate diversities and
discrimination. As a result, productivity and performance is not hindered. Hence, it is quite
essential to lead and manage newer forms of organisation.
3) Theory and practicalities of competencies
The case study on PepsiCo helps in understanding the important qualities and capabilities
which are necessary in a leader. The director Jorge Rubio is a great example to understand
concept of effective leadership and the techniques through which strategies can be managed and
implemented in the company. Being the head of Customer Strategic Insights (CSI) i.e. the
marketing research department of the company, he had a vision of creating a workspace that
functions with greater abilities other than being an information collection desk. This basic quality
of having a vision makes and the desire to achieve this vision separates an ordinary individual
and a leader (22 Qualities that make a great leader, 2017). This vision of the director is
demonstrated when he stated that he wanted his company to be something like Google’s
corporate creativity centre. A leader who has clear vision and a purpose for doing what is best for
the company is more effective than the one who takes on the spot decisions.
Planning and scheduling is part of the strategy development process. Management is not
possible without an efficient plan. Jorge Rubio developed his strategy with support of the
obtained vision which was to give a flexible and discontinuous approach of working to his
employees. His strategic planning steps involved establishment of vision, defining of important
tactics and strategies which was followed by proper designing of team (Economy, 2017). This
team was assigned specific tasks and duties that helped in achieving the proposed vision. After
the entire collection of operations was implemented strategically, final execution was done
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which involved monitoring and supervision. Furthermore, this description helps in understanding
that proper planning and management of organisational activities supports leaders and his
followers. It reduces chaos and confusion which is often created when strategic planning is not
considered (Chakarabarti, 2017).
Another important quality that was detected in Jorge’s leadership is innovative approach
with flexibility in working. When leaders are self-motivated and inspired by different
perspectives then an atmosphere of positivity is developed in the workplace. For gaining fast
results and extracting more of the skills and talents from the workforce, director of PepsiCo
created a different workspace that was deflective from ordinary workspaces. Today’s
competitive atmosphere and business environment is so fierce that companies or organisations
that do not have innovative leaders will definitely face failure or lack of growth. Hence, it is an
essential characteristic of a leader to be innovative and creative (Leadership Theories, 2017).
This not only helps in bringing better changes in the working atmosphere but also motivates
other employees to develop themselves innovatively and be profitable to the company.
The traits theory of leadership depicts that basic qualities and behavioural attributes
which are depicted by an individual are neither inherited nor imbibed. But modern day business
organisations do not focus on this aspect of the traits theory (22 Qualities that make a great
leader, 2017). It is believed that if effective training and supervision is given to a person with a
possibility to become future leader, then these qualities can be developed. Henceforth, Director
of PepsiCo has given his employees and subordinates an opportunity to develop and become
more creative. He has given an open provision for employees to freely tell about their queries
and legitimate needs which can be fulfilled by the company.
The basic leadership qualities that are demonstrated in this case study include planning,
innovation and developing a vision. Generally, transformational leadership style is the one where
individuals develop a work place which is comfortable for not only the leader but also his
subordinates (Petan and Bocarnea, 2016). The transformational leaders have long term vision
and aspiration for the company or organisation they govern. PepsiCo will require these basic
skills so that current functioning is not hindered. Productivity levels are entirely dependent on
the skills and competencies of employees or the human resource. A leader helps in managing and
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implementing these capabilities of the workforce so that desired results are obtained (Salahuddin,
2010).
The company requires innovation and vision as one of the most important leadership
skills because growing competition can hamper growth and development of the company
(Schyns and Schilling, 2011). It is possible that competitors might develop better products and
services which PepsiCo won’t be able to produce due to lack of innovation and creativity. The
significance of innovation is more in eyes of customers. People are less attracted to products that
are repetitive or continuous in nature. Discontinuity always helps in bringing changes and if
creativity is added to these changes then innovation takes place. Director of PepsiCo developed
this approach and came up with the idea and concept of brain spa as a creative block of
marketing research. If the leaders of this company adapt this approach of innovative strategic
planning then PepsiCo will address sustainable competitive advantage with greater customer
share and better profit margins.
Competencies are the basically abilities of an individual to implement or effectively
perform certain tasks or activities. Leaders are considered as the most important part of a team or
organisation. Future leader of the company shall have competencies like dedication and ability to
inspire other individuals by applying flexibility in working techniques. Such capabilities are
significant to an enterprise that wants smooth functioning (Tyssen, Wald and Spieth, 2013).
Marketing research is a function that operates to collect information from customers regarding
products and services of the company. This profile can become mundane and less interesting if
individuals do not have a creative approach. Henceforth, it can be termed that essential
competencies and leadership skills which are required in the future leader who is going to
replace Jorge Rubio include creativity and innovation as highly important. Rest of the operations
can be smoothly executed if the leader has ability to plan and analyse current market situation.
Apart from being able to perform his organisational role and duty, a leader should be able to
motivate and encourage employees who are working with him/her. For instance, if Director
Jorge Rubio would have developed a working area where no flexibility in approaching the leader
was given to employees then necessary changes could not be implemented so efficiently.
Moreover, a drift is created when communication channels are not efficient (Van Wart, 2013).
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On the other hand, employees could not perform well in their respective operational areas as
compared to their current performance.
Behavioural theory of leadership helps in understanding the impact a leadership can have
on human relations in an organisation (Leadership Theories, 2017). For instance, an effective
leadership will strengthen corporate bonds while an ineffective leadership is not acceptable. It
can create differences amongst employees and also in the relation between employees and
leaders. This scenario is not at all favourable or feasible for the company. In such cases,
behavioural theory helps in analysing self-beliefs and deeds so that decisions can be taken with
more effectiveness. The leadership skill that is required in future leader of Consumer Strategic
Insights is appropriate strategy planning. No vision and objective can be achieved unless there is
planned process involved. Just like the current director Jorge Rubio, one has to strategically plan
his/her actions with a deep analysis about the impact every step can have on organisation,
employees and customers who are involved with the company (Chakarabarti, 2017). This skill
and competency shall help the leader to be more beneficial for the company and develop better
bond with his employees.
Inspiration is an attribute that helps in getting self-motivated and work with more
enthusiasm. A leader who is inspired can develop a vision and efficient strategies that will
automatically be helpful for the organisation (Western, 2013). This quality can be used by the
future leader of PepsiCo for gaining certain learning aspects from Jorge’s leadership. This shall
help him in coping with the current atmosphere and developing a better strategy for future.
Employees’ motivation and encouragement is entirely dependent on leader’s capabilities and
skills. Henceforth, the essential qualities and competencies that are required by the leader of
PepsiCo are innovation, strategic planning and an ability to develop a vision or mission which
will automatically help in devising a path. There is a deep routed interconnectivity amongst all
these qualities. If vision is provided then roadmap for functioning can be strategically developed
and once this development process is complete then, innovation adds value to performance
(Economy, 2017).
To judge the practicalities of aforementioned competencies and leadership qualities
which are required by modern day organisations, it is important to consider contingency theory
of leadership. It helps in understanding the qualities and behaviour of individual in varying
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situations. Planning, flexibility and innovation are the three important qualities which have been
considered for the new leader who is going to replace Jorge. All these qualities are practical and
valid according to the given theory.
CONCLUSION
The case study on PepsiCo is a great example of effective leadership with valuable
learning. One can easily understand the suitable qualities that are required in an individual who
aspires to become a leader of his/her team or organisation. The director Jorge Rubio’s
inspirational idea and strategic implementation of the same has helped the organisation in
Mexico to develop and produce more productive results as compared to previous governance.
This also depicts that focus, vision and patience in applying and formulating a strategy shall help
in delivering effective leadership in an organisation.
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REFERENCES
Journals and Books
Nahavandi, A., 2016. The Art and Science of Leadership -Global Edition. Pearson.
Petan, L. and Bocarnea, M., 2016. Follower Perceptions of Authentic Leadership: A Comparison
between Respondents from Romania and the United States. Procedia-Social and
Behavioral Sciences, 221, pp.142-150.
Salahuddin, M.M., 2010. Generational differences impact on leadership style and organizational
success. Journal of Diversity Management, 5(2), p.1.
Schyns, B. and Schilling, J., 2011. Implicit leadership theories: Think leader, think
effective?. Journal of Management Inquiry, 20(2), pp.141-150.
Tyssen, A.K., Wald, A. and Spieth, P., 2013. Leadership in temporary organizations: A review of
leadership theories and a research agenda. Project Management Journal, 44(6), pp.52-67.
Van Wart, M., 2013. Lessons from leadership theory and the contemporary challenges of
leaders. Public Administration Review, 73(4), pp.553-565.
Western, S., 2013. Leadership: A critical text. Sage.
Online
22 Qualities that make a great leader. 2017. [Online]. Available
Through:<https://www.entrepreneur.com/article/270486>. [Accessed on 24th February,
2017].
Chakarabarti, B., 2017. 6 Leadership Theories to define Effectiveness of Leaders. [Online].
Available Through:<https://prepforum.wordpress.com/2014/12/06/6-leadership-theories/>.
[Accessed on 24th February, 2017].
Economy, P., 2017. The 9 Traits that define Great leadership. [Online]. Available
Through:<http://www.inc.com/peter-economy/the-9-traits-that-define-great-
leadership.html>. [Accessed on 24th February, 2017].
Leadership Theories. 2017. [Online]. Available
Through:<http://www.leadership-central.com/leadership-
theories.html#axzz4ZYkH4PWY>. [Accessed on 24th February, 2017].
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