LEADERSHIP STYLE
ANALYSIS:
INDRA KRISHNAMURTHY NOOYI
Team Members:
Vritika Chauhan LIT2015009
Ankita Nasipuri LIT2015012
Puja Kumari LIT2015017
Samriddhi Niranjan LIT2015021
Kajol LIT2015022
WHO IS A LEADER ?
A leader is a person who does the following:
1. Creates an inspiring vision of the future.
2. Motivates and inspires people to engage with that vision.
3. Manages delivery of the vision.
4. Coaches and builds a team, so that it is more effective at achieving the
vision.
WHAT IS LEADERSHIP ?
● The ability to influence the behavior of individuals or groups.
● Leadership improves the performance of the employees.
● Leaders can motivate the followers to work and thereby increase their
performance level.
● With continuous support and guidance, leaders are able to build
confidence among the followers, thereby increasing speed and accuracy
and decreasing wastage of time .
● With friendly and cooperative efforts the leader is able to build
employees’ morale which in turn contributes to higher productivity.
WHO IS INDRA NOOYI?
Indra Nooyi is an Indian-born
American business executive who
served as the Chairperson and
Chief Executive Officer of
PepsiCo, one of the largest food
and beverage businesses in the
world. Nooyi is one of the top
female executives in the United
States and is consistently ranked
among the World's 100 Most
Powerful Women.
BACKGROUND
● A brilliant student, she earned a seat in one of India’s premier institutions,
Indian Institute of Management Calcutta, from where she completed a Post
Graduate Diploma in Management (MBA), in 1976.
● She moved to the United States to join Yale School of Management in 1978
and pursued a master's degree in Public and Private Management. She
thoroughly enjoyed her learning experience at Yale and graduated in 1980.
● After getting her degree, she joined the Boston Consulting Group as a
director of international corporate strategy projects. In this position, she
worked on a variety of strategy projects for the next six years.
● In 1986, she moved to Motorola as a senior executive in the automotive
division development team. She quickly rose through the ranks and was
promoted to vice president and director of corporate strategy and
planning in 1988.
● Indra Nooyi joined PepsiCo in 1994 as senior vice president of corporate
strategy and development.
● In recognition of her impressive work with the company, Nooyi was
promoted to chief financial officer in 2000 and the president in 2001. In
2006, PepsiCo CEO Steve Reinemund retired and Nooyi became the fifth
CEO in PepsiCo's 44-year history.
ACCOMPLISHMENTS
● Ranked 4th in Forbes magazine on the list of The World’s 100 Most
Powerful Women ( 2008 & 2009).
● Fortune magazine named #1 in Most Powerful Women in business
(2006-10).
● In 2008, elected to the Fellowship of the American Academy of Arts and
Sciences.
● In Jan 2008, elected Chairwoman of the US-India Business Council
(USIBC).
● Named 2009 CEO of the Year by Global Supply Chain Leaders Group.
● In 2009, one of “The TopGun CEO’s” by Brendan Wood International.
Leadership Lessons from Indra Nooyi
● Everyone needs a vision
○ Her initiative called ‘Performance with Purpose’ gave her company a
vision that helped them scale new heights.
○ She advises that a leader must come up with a vision that motivates
people to give their best.
● Think long term
○ She stresses on the plans that would benefit the organisation and
the individual in the long run.
○ She advises to plan strategies that balance both the level and the
duration of returns.
● Importance of persuasion
○ Nooyi talks about how she had to persuade her team to
follow ‘Performance With Purpose’.
○ Her critics told her to focus on selling chips and soda and to
forget about nutrition. But, it was due to her persuasion that
Pepsico was able to remove 6.4 trillion calories from its food
and beverage products.
● Always listen more and talk less
○ Nooyi narrates an incident where her dance instructor gave a
very valuable lesson to her. “If you learned to follow, you’d be
a better leader.
● Keep learning
○ Despite being a CEO, Nooyi likes to learn things that don’t fall in her
expertise.
○ She likes to talk to customers, field salespeople and all her
employees.
● The team and its people are everything
○ Keep her team happy and motivated, Nooyi sends out a thank you
letter to the parents of her employees, saying that how proud the
company is for their children’s contributions. She asks people to
handout handwritten letters to appreciate team members and their
efforts.
● You’re A CEO in the office, but not at home
○ She tells us to ‘leave the crown in the garage, when it comes
to interacting with family and friends. No matter how higher
your position is at work, you are not the boss at home.
THE 5 C’s MODEL
● Competency: Nooyi states that one is never really done with
studying and the process of educating one's self. Continue
learning and developing your skill set, stay up to date, and
become known and reputed for your chosen skill.
● Courage/Confidence: These traits facilitate strong decision
making skills and will also let fellow colleagues know that you
have an opinion and are not afraid to come forward with it.
Procrastination and silence will get you nowhere in a field which is
competitive and cutthroat.
● Communication: To be able to communicate effectively with one's
team will serve to help them understand the plan of action,
motivate them to meet goals, facilitate team building and will put
you across as a strong leader.
● Consistency: Consistency should guide the manner in which you
conduct business. Maintaining a consistent plan of action will
build your employees confidence in you, and will allow them to
trust your instincts.
● Compass: Nooyi recommends maintaining integrity despite all
temptations. The act of not straying from the path of honesty will
strengthen your professional credibility, which is of utmost
importance.
Charismatic Leadership
● An enthusiastic, self-confident leader whose personality and actions
influence people to behave on certain ways.
● According to Nooyi, vision, persistence, persuasion, listening,
learning, collaborating and humility are the keys to being a great
leader.
● Characteristics:
○ Have a vision: Nooyi came up with the vision ‘Performance with
Purpose’.
○ Ability to articulate the vision: She was able to persuade her
team to follow that vision due to which Pepsico was able to
remove 6.4 trillion calories from its food and beverage products.
○ Willing to take risks to achieve the vision: Pepsico dumped Taco
Bell, KFC, and Pizza Hut, and spent over $17 billion collectively to
acquire Gatorade, Quaker Oats, and Tropicana. Pepsi had been
dwindling in popularity and, most important, in profits, but the move
saw a return great enough to prove Nooyi’s unique judgement and
insights were a good horse to bet on.
○ Sensitive to the environment and follower needs: Nooyi drove a
shift in PepsiCo’s snacks and drinks business towards healthier items.
As a part of a company pledge to reduce obesity rates, she reduced
the sizes of chips packets and soda bottles, culled salt, fat and sugar
content and introduced diet brands as aspirational alternatives.
Democratic Leadership
● This leadership style works best in creative businesses, design firms and
corporations driven by research and development. It is also known as
participative leadership or shared leadership, in which members of the group
take a more participative role in the decision-making process.
● Nooyi, has endeared herself to employees. She takes an interest in the
personal lives of employees and has a vision of the company’s future.
● Nooyi made news when she sent letters to the parents of direct reports
to let them know how proud they should be of their executive
adult/children.
● When one recruit was undecided about joining the company, Forbes
magazine reports, Nooyi called the candidate’s mom and subsequently
landed the executive.
● She has also made fans of investors with smart divestitures and
acquisitions, such as Tropicana, Quaker Oats and Gatorade.
TAKING PEPSI TO MAX
● Over the course of Nooyi’s tenure as CEO, the company’s net revenue grew
at an annualised rate of 5.5%, reaching $63.5 billion last year.
● $79.4 billion was returned to shareholders in the form of dividends and
share repurchases.
● To achieve this level of financial success, a number of large strategic
changes had to be made. Here is what Nooyi changed about the company’s
strategy in the last 12 years.
Pivot to healthier foods
● One of Nooyi’s most controversial initiatives has been to redirect Pepsi’s
considerable corporate spend away from junk foods and into healthier
alternatives.
● She reclassified Pepsi’s wide-ranging products into three categories :
○ ‘fun for you’ (such as potato chips and regular soda),
○ ‘better for you’ (diet or low-fat versions of snacks and fizzy drinks)
○ ‘good for you’ (eg: Quaker Oat oatmeal).
Growth of Frito Lays Unit
● The Frito Lay unit has now grown to comprise of 46% of the company’s
operating profit and around a quarter of its sales.
● With brands like Doritos, Lays and Smartfood, the unit has become a global
leader in the snacks category and command a 66% share of the domestic
market.
● Frito Lay North America has fast become PepsiCo’s most valuable product
segment. Around 90% of its sales come from brands that have the first or
second position in their respective categories.
Doubling down on emerging markets
● Nooyi had made international expansion a priority.
● The company has expanded its distribution network and increases sales by
targeting the middle classes in developing regions of the world like Asia and
Africa.
● Nearly 21% of PepsiCo’s net revenues came from Asia, North Africa, the Middle
East and Latin America in 2017.
● In 2013, PepsiCo announced a plan to invest $5.5 billion in India by 2020, directly
taking on Coke for the top spot in the country’s beverage market by doubling its
manufacturing capacity.
Avoided a demerger
● Nooyi successfully thwarted off an attempt in 2014 by Nelson Peltz, an
activist investor, to split the company’s sluggish beverages and
fast-growing snacks business and have them managed differently.
● She argued that retaining both Pepsi and Frito Lay under one roof was
vital to maintaining a competitive advantage over other food retailers,
especially for cross-promotion opportunities.
● The public argument over the split ended in 2016, when Peltz sold his $2
billion stake in the company.
Leadership is hard to define and good leadership even
harder. But if you can get people to follow you to the
ends of the earth, you are a great leader.
-Indra Nooyi
THANK YOU
