case study lcm

8/6/2019 Case Study Lcm

1/6


2/6

Summary

In the era of 2006 a lady named Indira

Krishnamurthy Nooyi, became the first CEO of

PepsiCo. At the age of 50 she was listed among

100 women in world most powerful women in times

magazine. As per Forbes she was 3rd most powerful

women. in fortune magazine she was ranked 1st for

three consecutive year.

Nooyi joined PepsiCo as a (SVP) senior vice

president, strategic planning, as we know PepsiCo

was world largest portfolio of billion dollar food

and beverage brands including 19 different product

lines with more than $ 1 billion in annual retail

sales.

As a strategist she took the charge, worked a lot

with the PepsiCo restaurant business and find out

the suitable solution of it. Nooyi concentration

toward her job and her delightedness made her as

PepsiCo Chief Financial Officer (CFO) in year 2000.

In year 2006 she became the Chief executiveofficer (CEO) of PepsiCo with a vision

performance with purpose as a leader she

implemented many strategies in the company such

as fun for you, good for you and better for you. In


3/6

her leadership company undergo many economic

challenges but she handled all the challenges and

helped the giant company to grow and develop in a

sustainable manner. The company saw several

improvements in her leadership and the turnover

increased from $ 1 billion to $1.2 billion in such

shorter period of time.

As a leader she was criticised also for her lack of

operational skills, mercenary handling and issue in

India etc.

1.The leadership traits of president of PepsiCo, Indiranooyi was as follows;

VisionaryProblem solverMotivationPlannerCooperativeAdjustable

2.The progress under the leadership of nooyi are;Change in strategic planningGrowth in salesIncrease in profitWorked on the loss making sector of the PepsiCo

and changed the situation


4/6

As a leader well managed the company andmade profit of $1.2 billion

Improved the brand name of PepsiCo by takinseveral steps such as fun for you, good for you,

better for you

Handled the company in economic slowdown andmade profit

3.Responsibilities she followed as a CFO to a CEO;FinanceStrategyBusiness-process optimizationInformation technologyAs a member of board of directors

4.Growth of PepsiCo as during the leadership of Indiranooyi are;

In August 2001 PepsiCo purchased the QuakerOats Company. On the morning that the

acquisition was announced, Nooyi went to

temple and prayed. During the arduous

negotiations, she demanded a limit on the stock

price of no more than $105 a share for Quaker

shareholders. According to Steven Baronoff , co

head of mergers at Merrill Lynch, which

represented PepsiCo, "Throughout the whole

process, she was disciplined and held very firm"

( Contra Costra Times , December 10, 2000).


5/6

Adversaries underestimated Nooyi at their peril.Financial professionals greatly admired her

strengths and focus. Andrew Conway, a

beverage analyst with Morgan Stanley Dean

Witter, noted that "Indra is extraordinarily

financially detailed. With Tropicana, she was

willing to take a lower-return-on-asset business

because she saw a way to improve it to get

strong margin growth. Her ability to find value in

an acquisition is very high" (Contra Costra

Times , December 10, 2000).

Boosting the company's annual revenue growthover its historical 6 percent growth rate. In 2003

the company announced that it was on track to

realize its goal of achieving $400 million in

synergies by the end of fiscal year 2004. Nooyi's

next move was unclear as of early 2004. Some

industry insiders predicted that she would be

moved to another area of the company to gain

experience running her own business division.

Rather than a step down, the move could

ultimately catapult her to a takeover at the top.

Even as one of the few women in corporate

America's highest echelons, and the only Hindu

woman in 2004, Nooyi had an unbeatable

attitude: "I'm sure a glass ceiling exists, but it's

both transparent and fragile so you can break it"

(Business India, January 8, 2001).


6/6

case study lcm

Documents