PepsiCo Indra Nooyi’s is a highly intelligent leader that

PepsiCo Inc. CEO Leadership
Traits, Behaviors, and Operational Style(s)

      Indra Nooyi’s
is a highly intelligent leader that leads with emotional intelligence when
interacting in all business operations. She believes in not trying to pretend
to be American, but to stay true to her personal belief in being moral and
ethically considerate of others. CEO Indra Nooyi is loyal to her organization
and highly respectful to leadership. She exudes confidence, integrity, and
trust that makes engaging in developing valuable relationship easy to establish
and maintain. She respects authority and demands that others return the same.
On the basis of the leadership grid, CEO Indra Nooyi is definitely a team
player and manager. She had established credibility throughout the world as a
leader and follower in so many positions that she has held successfully and
desires that her organizational members will continue to follower her
leadership in that manner.

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      Her ability to strategically
think and implement plans that will be beneficial to herself, the employees,
investors, and the company’s consumers. She is highly motivated, humble,
trustworthy, nonbiased, determined, hardworking, and has a keen ability to
resolve conflicts in any situation. She has grown from a modest upbringing to
the third highest paid Chief Executive Officer in the country. Her business
acumen has earned her approximately eight honorary doctorate degrees across the
nation, a medal of honor, the CNN India award, and an award from the Padma
Bhushan Indian award, which was awarded by the president of India.

Organizational Circumstance:
Indra Nooyi in the News

      What has
currently gotten the Chief Executive Officer, Indra Nooyi into the news of the Wall
Street Journal once again, is her drive and determination. In a recent
article published in May 2017, Female CEOs earned more capital than their male
counterparts. Out of the top ten highest paid S&P 500 companies, the first
three top earners were women Chief Executive Officers (Lublin, 2017). Indra K.
Nooyi was among those that achieve this success for the first time in the Wall
Street Journal compensation report in its twenty-eight year history. 
Although approximately 5 percent of the position of CEO in S&P companies are
held by females. While being outnumbered by 95 percent, Indra Nooyi, earned
25.2 million in compensation, which landed her in the number three position for
top female executive earner in an S&P 500 company in 2016, up 13 percent
from the previous year (Lublin, 2017).

      Indra became PepsiCo Inc.’s CEO
in 2006. During her first six year tenure as the organization’s top leader, she
had done a pretty decent job ensuring that PepsiCo’s numbers were steadily
increasing since she took over (Colvin, 2012). Even though the organization’s
numbers looked good statistically, he investors of the company were giving
Indra a great deal of heat. Because she was taking such a hit, she decided to
meet with the company’s top shareholders to see exactly what they were not
pleased with the company’s performance. PepsiCo had experienced growth, had
paid attractive returns to their shareholders, and had earned high-profit
margins during this period of time under the direction of her leadership. With
all of the heat that also came from the media and the Wall Street Analysts, it
was a time in Indra’s career that she resented (Colvin, 2012).

      PepsiCo’s CEO was in the process
of transforming the organization from what she called a “North American
fun-for-you company” into a globally recognized food and beverage giant that
she felt could prosper the world (Clovin, 2012). During this phase in the
company, this was a time where the nation was experiencing an increase in
obesity, where the condition was making it way to being the number one health
issue not only in America but worldwide. Indra Nooyi thought that the abrasion
that she was receiving from their shareholders had to be one of the most
difficult times she’s had to experience. Even in the midst of the transition,
the company was delivering in the financial realm, but all in all, it seemed as
though the company was experiencing trouble. 

      What PepsiCo was experiencing
was gradual growth that the shareholders were not accustomed to. Prior to Indra
Nooyi taking over the company, previous leaders would make unfavorable bold
changes that went against popular belief that just happens to be what the
company needed at the time the changes were made. The shareholders were used to
seeing the statistical numbers soar instantaneously. When Indra took over, she
did deliver steady growth each year, but it was not what the investors were
used to seeing. For example, when PepsiCo acquired Frito-Lays the investors saw
exponential increase immediately (Clovin, 2012). Indra Nooyi’s strategy was
working in the way that she envisioned it to work. She desired to transition
the company into an uncommon, but much needed direction and yet maintain the
steady profit margin increase simultaneously. Though the organization results
reflected a positive outcome, the company’s investor’s patience had grown short
and they wanted to see Indra moved out of the top leadership portion. Her
predecessor was the only one that could understand her position and up until
this point, he had chosen to remain silent. He supported every decision Nooyi
had made.

      Remaining unmovable in her
belief and vision for PepsiCo in the midst of a situation that seemed
disparate, she knew that she had to work hard, long, and be more innovative
with the profitable result than her male counterparts. Indra recalled leaving
the investor’s meeting somewhat baffled because even though she had produced
tremendous results for the organization, it still was not good enough. The Wall
Street Journal Analysts had published an article stating that Nooyi’s
decision not to separate the company’s food and beverage lines were a mistake
(Clovin, 2013). Now that Indra has been the CEO of this organization for
over ten years, she has not fallen short of aggressively implementing her vision
for the company which is attributed to 63 billion dollars in revenue increase
in 2016 for PepsiCo Inc. This is in comparison to the 40 billion dollars that
the publicly traded company experienced in the first year of her take over in
2007 (Snyder, 2016).

Leader, Follower, and
Situational (LSF) Framework

      Indra Nooyi’s
vision was to address one the largest health issue in the world, which is
obesity. When she took over the organization as the CEO, she desired to
positively attack this concern that the Obama Administration had expressed, as
well as find PepsiCo Inc.’ place in globalization. Because Mrs. Nooyi
understood that snack foods and soft drinks do not receive the best media
attention in the world due to the increase of obesity globally, her vision what
to refrain from splitting of the world largest food and beverage company. She
wanted to implement more healthy food options into the organization’s already
extensive product line in order to take into considering what our National
leaders desired for the health of our country (Snyder, 2016). From all of the
aforementioned positions that CEO Indra Nooyi had the opportunity to serve in,
she is no stranger to following those that are appointed over her, to include
the President of the United States.

      She has always been a
respectable follower. Some of her managerial behaviors come from being true to
herself and trusting what she believes in. As a leader that is responsible for
making strategic decisions that affect herself, staff, shareholders, stockholders,
and the customer as the end user of PepsiCo’s products, she makes it a point to
never forget that she is still a consumer (Snyder, 2017). She makes investments
in the company’s portfolio by being a lifelong student, one that always puts
herself in the position to learn more. Finding the right balance between short
and long-term goals means that all things do not always get her attention, but
my implementing a balance between short and long initiatives, she has to
distribute the right amount of energy to by prioritizing her affairs. Indra is
careful to conserve the personal affairs of the organization versus
broadcasting controversial media. She attributes this ability to the
conservative upbringing in which she was raised (Snyder, 2017).

      One of the hardest times that
Indra Nooyi had to endure in PepsiCo Inc. is when she had to go against the
majority decision and stick with her strategic plan and vision. By trusting the
vision that she had for the company, she understood that she could not play nice
to appease her colleagues. That meant, she had to choose to deliver some hard
“Nos” over some easy “Yeses.” Indra overrode conventional thinking while
implementing the new direction for PepsiCo (Snyder, 2017). She explained, that
there were times that she made decisions on the basis of trying to please the
staff members that had been with the organization for many years. In expanding
PepsiCo Inc. into its global dynasty, she had to get to the point where she had
to break ties with the past in the company and embrace the new way of
thinking. Mrs. Nooyi had the challenge of changing the members and investor’s
old ways of thinking, in order to break down the wall of hindrances that kept
the company from being exceedingly great (Snyder, 2017).

      Now Indra Nooyi exudes with
confidence at the age of 59. She has fallen in love with her organization and
the products that they have to offer to the world. She incorporated her design
thinking into a successful business strategy, which proved to her staff members
and investors that she had the company’s best interest in mind (Ignatius,
2015). At this point, she knew that she had every team member’s attention and
that they were ready to follow her into a competitive battle in the food and
beverage industry. (Ignatius, 2015). By learning how to follow leadership, such
as President Donald Trump and former President Barrack Obama, she knew the
importance of being a follower despite whether or not she agrees with all of
their views (Kell, 2016). This is one of the reasons she became one of the only
three third executive female leaders that was invited to attend a business
forum with the new administration. She accepted the invitation to show the
leaders at her company that leaders should know how to come together to achieve
the greater cause in any situation (Kell, 2016).

      In role theory, the situational
factors affect the leader’s behavior (Hughes, Ginnett, & Curphy, 2015).
Although Nooyi, had to endure the period where her investors and staff members
were not supportive of her abilities to run PepsiCo Inc. with the vision she
had for the organization, she stayed true to herself and trusted her own
ability. This proved to be a success instead of her stance becoming her public
demise. In 2007, Indra’s ability to successfully lead PepsiCo Inc. was evident
in the company’s performance and financial reports. Her behavior during this
situation was very conservative, but it causes her to put in long demanding
hours in order to get the team members to trust her abilities. CEO Nooyi has a
history of being ethical in business, which has contributed to the ethical
climate in the company (Hughes,, 2015). She places the ability to
communicate effectively exceedingly high, and the CEO attributes her ability to
communicate to winning so many of the company’s acquisitions through her
strategic ability to think and negotiate effectively. Because of her ethical
character, her organization wholeheartedly respects her decisions and ability
to lead the company in the midst of globalization as it continues to succeed as
one of the world’s largest food and beverage companies in the industry.

My advice for the Indra Nooyi

      To give advice to such an
inspirational leader as Indra Nooyi is unimaginable! If I did have the
opportunity to offer my advice to the CEO of PepsiCo, I would recommend that
she continue to hold fast to her belief of being herself. In the face of
adversity when most of the investors of the organization wanted to split the
company, Indra was one of two people in the company who thought that the idea
was a horrible idea at the time. She remained fixed on her vision of keeping
the beverage and food company under one umbrella, as well as pursuing her
mission of taking PepsiCo Inc. into a new direction. I would advise Indra Nooyi
to continue on innovating and dominating the food and beverage industry.

      In a time where the world was
not focused on healthier snack options, she refused the let the vision die
despite the odds that were against her. I would also advise her to seek out the
potential employees that could possibly be in the position that she use to be
in when her co-workers did not believe in her abilities. Groom these
individuals to carry PepsiCo. Into the company’s next phase of innovation by
allowing them opportunities to be coached by such an amazing leader, that she
is. Although Indra has soared to heights and achieve things that only some
business leaders can only dream of. I would advise her to always be willing to
be as honest and down to earth, as she is today, by continually taking the time
out of her hectic schedule to share her story in order to inspire the world,
especially women in the workplace.