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on 9 September 2014

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Transcript of Backgroud

"Nooyi was the best negotiator I’ve ever seen in my life”.
-- Enrico

Indra Nooyi :
A Transcultural Leader

Question 1, 2&3
Question 4
Early Years
Nooyi was born on October 28, 1955 in Chennai, India.
She was heavily influenced by her mother and grandfather.
Though she had a conservative South Indian upbringing, she went to a Roman Catholic School.
She graduated from Madras Christian College in Chemistry, Physics, and Mathematics.
She got an excellent scholarship at Yale, where she pursued her Master’s in public and Private Management.

A New Corporate Vision
"We use corporations as a productive player in addressing some of the big issues facing the problem".
“Performance with Purpose” is only a marketing ploy.
Ignoring marketing and product positioning, while giving too much emphasis on “performance with purpose”.
Shareholders: to improve the market share of Pepsi’s flagship brands.

A strategic view of world market.
Corporate sustainability
= social performance+ financial performance
Difficult to find the proper system to pursue sustainability trade-offs
(Epstein, M. J., & Buhovac, A. R. , 2014)
Eg. Pepsi Refresh project VS marketing

Question 3: Do you think Nooyi has a life outside of PepsiCo.?
Q4: Which leadership style is being used by Nooyi at PepsiCo?
Autocratic-participative behaviors of leaders

“Never hide what makes you”
Nooyi learned to be herself the hard way. When she wore the ill-fitting Western suit and orange snow boots to the interview, she was rejected. Her professor advised her to wear a sari for the next interview, and she got a job from Boston Consulting Group (BCG).
After a stint in strategy with telecom major Motorola Inc and with ABB, Nooyi made a move to PEP as its chief strategist in 1994.
Rise at PepsiCo.
Pep was going through a difficult time when its restaurant business was lagging far behind archrival Coca-Cola Company.
Nooyi was instrumental in the spinning off the restaurant chains-KFC, Pizza Hut and Taco Bell in 1997. After that, PEP acquired Tropicana in 1998 and Quaker Oats in 2001 as a part of the strategic view Nooyi vindicated her mettle in 1998, and after that, Coca-cola began sliding and PEP pushed up its earnings, also grew Nooyi’s stature in the company. Nooyi was elevated to president during the subsequent tenure of Steven Reinemund.
Nooyi progressed fast in her career and was eventually declared as CEO in 2006.
"We are confident that we will reinvent the cola business the right way.”

-- Indra Nooyi
Nooyi is striking a balance between family and the company. She summed up that it was not easy when she reached that kind of position. There are so many tradeoffs and sacrifices. She has a husband and 2 daughters, and also a mother in India.
Nooyi admitted that, between the roles of being a mother and a CEO, it was the role of the mother that came first.
She said that she would take a call from her daughters any time, even during work hours. During long trips, Nooyi called up her family to keep in touch.
She also calls her mother in India twice a day.

Question 1:
What were the factors that shaped Indra Nooyi as a leader?
Question 2: What are the factors that could make Nooyi change her decision about corporate sustainability?
How leaders view
their subordinates

Theory X
Theory Y
Theory Z



Transformational leaders:
visionary agents with a sense of mission and who are
capable of motivating their followers to accept new goals and new ways of doing
Transactional leaders:
individuals who exchange rewards for effort and performance and work on a “something for something basis.
(Bass, 2009)

Charismatic leadership:
leaders who inspire and motivate employees through their
charismatic traits and abilities.
(Conger, 1989)

Authentic leadership:
leaders who are deeply aware of how they think and behave …
aware of the context in which they operate; and who are confident, hopeful, optimistic,
resilient , and of high moral character.
(Cooper, C. D., Scandura, T. A., & Schriesheim, 2005)

Ethical leadership:
the demonstration of normatively appropriate conduct through
personal actions and interpersonal relationships, and the promotion of such conduct to
followers through two-way communication, reinforcement, and decision-making.
(Brown, M. E., Treviño, L. K., & Harrison, D. A., 2005)

Servant leadership:
listening, empathy, healing, awareness, persuasion, conceptualization,
foresight, stewardship, commitment to the growth of others, and building community.

Bass, B. M., & Bass, R. (2009). The Bass handbook of leadership: Theory, research, and managerial applications. Simon and Schuster.

Brown, M. E., Treviño, L. K., & Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational behavior and human decision processes, 97(2), 117-134.
Conger, J. A. (1989). The charismatic leader: Behind the mystique of exceptional leadership. Jossey-Bass.

Cooper, C. D., Scandura, T. A., & Schriesheim, C. A. (2005). Looking forward but learning from our past: Potential challenges to developing authentic leadership theory and authentic leaders. The Leadership Quarterly, 16(3), 475-493.

Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.

Thanks for your time!
Ke Guo - 25323784
Fan He - 25008927
Ruihan Fan - 26297701

MGX 5310 International Management
Fun for You
Better for You
Good for you
Various products in PepsiCo's core food and beverages business.
Foods and beverages have levels of total fat,sodium,and sugar that are in line with global dietary intake recommendations.
Products offer positive nutrition.
Food Portfolio of PepsiCo Inc.
To leverage on PEP's formidable distribution system to tackle the under-nutrition issues facing the world.
The most important issue was the linkage of performance
a sense of purpose in the sense of "a very closely linked ecosystem" and not performance
purpose or performance
Components of "Performance with Purpose" Initiative
Human Sustainability
Ensuring that products ranging from treats to health foods allow customers to make balanced, sensible choices.
Ensuring that the company replenishes the planet and leaves the world a much better place than it was before.
Ensuring that the employees of PEP also have a life while they earn their living with the company.
Inductive thinking.
The ability to draw on their previous experiences while having an enduring commitment to the learning process.
"Five Things that would Change the Workings of a CEO"
1. A long-term outcomes rather than a short-term outcomes.
2. Emphasis on strong public -private partnerships.
3. To exist a strong ability to think local while acting globally.
4. Opened minded.

5. Increased requirements of emotional intelligence for leaders.
Nooyi's Leadership Philosophy into the Five C's
Competency :
being an expert in your filed.
Courage and Confidence :
Establish the knowledge base and be confident.
Communication Skills :
Good communication skills are critical for progress.
Consistency :
Being steady, reliable, and determined.
Coaching :
Being surrounded by mentors that enable change.
Having a Moral Compass:
Having the desired strength and courage to do what is right and not what may be expedient.
Participative leadership
According to Nooyi, a great leader was one who could get people to follow her to the ends of the earth. She remained tough on herself and set high standards for everyone.
Employees remembered the time when they were asked to find an alternative to the use of palm oil. Nooyi pushed them hard until they came up with a solution.
“Don’t try to delegate up, because she will bounce it right back in your face.”

Nooyi is a deeply caring person…who can relate to people from the boardroom to the front line.”
However, Nooyi nurtured the employees at the same time, so that her followers aspired to be like her in the future.
Nooyi always seemed comfortable with her leadership presence, as she often moved around in the office barefoot, singing in the halls.
She preferred wearing
, and attended board meetings in a sari. Her attire showed her deep connection with India.

Contingency Theories
different styles and different leaders are more
appropriate for different situations.

Transformational leaders:
Nooyi believed that there had to be an emphasis on long-term outcomes rather than a focus on short-term earnings.

Charismatic leadership
: Nooyi was known to be highly charismatic. She could inspire employee to take on monotonous and difficult tasks.

Authentic leadership:
Nooyi wanted CEOs to be more open minded, so that they not only understood better leadership principles but also the needs of the newer technologies and the younger generations.

Servant leadership
: Nooyi became a mother figure at PRP, looking after the company as if it were her family.

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