INDIVIDUAL TEST
NAME: LE HUYNH HUE CHI
STUDENT ID: QS190026
CLASS: IB19B
SUBJECT: INTRODUCTION TO MANAGEMENT – MGT103
LECTURER:
SUBMISSION DATE:
"Business is about making the world a better place." It's one of Indra Nooyi's business philosophies
that I love very much. Indra Nooyi - the first woman of color and immigrant to run a Fortune 50
company — and one of the foremost strategic thinkers of our time. She made a bold impression,
especially as CEO of PepsiCo from 2006 to 2018.
Before becoming CEO of Pepsico, Nooyi worked as CFO and also made a strong impression. With a
shortcut strategy, she used the $14 billion acquisition of Quaker Oats (2001) with an 8 percent
market share of the Gatorade brand for sportsmen, and its pastry products, and before that the
acquisition of Tropicana (1998). Not only implemented according to the relevant diversification
strategy , but also combined with unrelated diversification. The acquisition of companies in other
sectors such as Quaker oats is a manifestation of unrelated diversification in order to achieve stable
performance over time, expand and enhance competition in the market. Successfully covering
products to the world market.
In 2001-2002, it grew tremendously when its scale and revenue surpassed Coca-Cola. In 2002, the
stock price reached 53.5 USD. That's the highest number in the company's 100 years. It is that
resounding success that has contributed to leaving many impressions on her. It wasn't until after
Steve Reinemund resigned as CEO that there were winged compliments for the "dedicated woman"
Nooyi. She has also successfully become CEO of Pepsico since 2006. In the following years, Nooyi
continued to implement the principles of competitiveness and the principles of marketing and sales
when confronted by large and caliber brands.
Nooyi does not strictly follow the classical management model or the bureaucratic model , but is a
pioneer in the philosophy of "Purposeful Performance" at PepsiCo. Accordingly, the aim is to bring
financial efficiency and at the same time create sustainable growth, leaving a positive impression on
society. Supply chain management methods have helped her reduce costs and optimize capital
interest rates. Improve Pepsico's overall performance.
Accordingly, she will divide existing products into 3 product groups: Fun for you, Better for you and
good for you. She has adopted a product innovation and diversification approach that integrates
specialization by product. The idea and strategy of "staying ahead of the times" has helped Pepsico
occupy more than 75% of the food market share in the US, has products in 200 countries and
territories, owns 22 brands, and brings in revenue of 6.5 billion USD per year. Success in risk
management principles and global brand strategy. Contributing greatly to the company's success.
Nooyi is also a manager with a clear awareness of the role of diversity and sustainability in an
organization. Especially when in the natural growth cycle, past successes cannot be maintained for a
long time and people tend to choose healthy but still convenient foods. She has set specific goals to
increase diversity within PepsiCo, ensuring that the company's decisions and actions reflect diverse
values and include people from all cultures and resources. Pepsico's use of sustainability practices in
its operations promotes the use of renewable energy sources, reduces waste and strengthens the
company's social responsibility.
Indra nooyi always pursues the "5C" leadership model, which is: Competence, Confidence,
Communication, Compass, Compassion. Pepsico's vision statement states: "We want to be the most
beloved food and beverage company in the world. We want to be known for our high-quality
products, bring value to our customers and contribute to a better world." In this way, she has helped
PepsiCo orient its vision, create a supportive and motivating work environment for all employees,
thereby enhancing performance and creativity in the organization.
In addition, Indra Nooyi is also known for her respectful and encouraging leadership. And this is the
magic key to her leadership at Pepsico. The human factor is an extremely important factor in
business. She wrote to the parents of employees at Pepsico's branches to express their gratitude and
their great contributions to the company. And those parents themselves also responded and felt the
enthusiasm of the female CEO. In this way, she has built a foundation for collaboration and
consensus within the organization, which helps to promote personal and organizational growth.
Indra nooyi always says, "The company is about people, not about products." Through interviews and
observations, I have noticed that Indra Nooyi is not only a talented and strategic manager, but she is
also a dedicated and passionate leader. She always adheres to the principle of leadership with a
broad vision. She always takes the time and effort to understand the people who work under her,
and always puts them first in every decision and action. In her book My Life in Full, after all, the
business message in her book is "government to prioritize the care ecosystem, paid leave and work
flexibility, and a convincing argument for how improving company and community support for young
family builders will unleash the economy's full potential.
Under her leadership, PepsiCo has not only expanded in size and scope of operations, but also
promoted corporate sustainability and corporate social responsibility programs at PepsiCo, including
the "Performance with Purpose" program. From the moment the campaign was launched, there
were mixed reactions, they advised Indra Nooyi to forget about nutrition and focus on selling chips
and soda. However, that has left another memorable lesson, which is about negotiation skills to help
businesses solve many problems.
In conclusion, Indra Nooyi is one of the world's leading managers, with a strategic vision, excellent
leadership, and a commitment to innovation and diversity. During his 12 years at the helm, Nooyi has
done a good job of increasing Pepsi's revenue by 80%. In addition, she pushed for Pepsi's shift to
become a more environmentally friendly company. Her success in leading PepsiCo is a clear
testament to the great talent and influence of a great manager.
