- Book Options and Supplements
- About the Authors
- Acknowledgments
- Dedications
- Preface
- Chapter 1: Organizational BehaviorPrint Chapter|
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- College Textbook Revolution: The Case of Flat World Knowledge
- Section 1: Understanding Organizational Behavior
- Section 2: Understanding Your Learning Style
- Section 3: Understanding How OB Research Is Done
- Section 4: Trends and Changes
- Maintaining Core Values: The Case of Nau
- Section 5: Conclusion
- Section 6: Exercises
- Chapter 2: Managing Demographic and Cultural DiversityPrint Chapter|
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- Chapter 3: Understanding People at Work: Individual Differences and PerceptionPrint Chapter|
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- Advice for Hiring Successful Employees: The Case of Guy Kawasaki
- Section 1: The Interactionist Perspective: The Role of Fit
- Section 2: Individual Differences: Values and Personality
- Section 3: Perception
- Section 4: The Role of Ethics and National Culture
- Using Science to Match Candidates to Jobs: The Case of Kronos
- Section 5: Conclusion
- Section 6: Exercises
- Chapter 4: Individual Attitudes and BehaviorsPrint Chapter|
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- Chapter 5: Theories of MotivationPrint Chapter|
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- Chapter 6: Designing a Motivating Work EnvironmentPrint Chapter|
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- Motivating Steel Workers Works: The Case of Nucor
- Section 1: Motivating Employees Through Job Design
- Section 2: Motivating Employees Through Goal Setting
- Section 3: Motivating Employees Through Performance Appraisals
- Section 4: Motivating Employees Through Performance Incentives
- Section 5: The Role of Ethics and National Culture
- Motivation Key for Success: The Case of Xerox
- Section 6: Conclusion
- Section 7: Exercises
- Chapter 7: Managing Stress and EmotionsPrint Chapter|
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- Facing Foreclosure: The Case of Camden Property Trust
- Section 1: What Is Stress?
- Section 2: Avoiding and Managing Stress
- Section 3: What Are Emotions?
- Section 4: Emotions at Work
- Section 5: The Role of Ethics and National Culture
- Getting Emotional: The Case of American Express
- Section 6: Conclusion
- Section 7: Exercises
- Chapter 8: CommunicationPrint Chapter|
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- You’ve Got Mail…and You’re Fired! The Case of RadioShack
- Section 1: Understanding Communication
- Section 2: Communication Barriers
- Section 3: Different Types of Communication and Channels
- Section 4: The Role of Ethics and National Culture
- Employee Satisfaction Translates to Success: The Case of Edward Jones
- Section 5: Conclusion
- Section 6: Exercises
- Chapter 9: Managing Groups and TeamsPrint Chapter|
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- Teamwork Takes to the Sky: The Case of General Electric
- Section 1: Group Dynamics
- Section 2: Understanding Team Design Characteristics
- Section 3: Management of Teams
- Section 4: Barriers to Effective Teams
- Section 5: The Role of Ethics and National Culture
- Green Teams at Work: The Case of New Seasons Market
- Section 6: Conclusion
- Section 7: Exercises
- Chapter 10: Conflict and NegotiationsPrint Chapter|
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- Negotiation Failure: The Case of the PointCast
- Section 1: Understanding Conflict
- Section 2: Causes and Outcomes of Conflict
- Section 3: Conflict Management
- Section 4: Negotiations
- Section 5: The Role of Ethics and National Culture
- Avoiding Conflict at WorldCom: The Case of Bernard Ebbers
- Section 6: Conclusion
- Section 7: Exercises
- Chapter 11: Making DecisionsPrint Chapter|
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- Chapter 12: Leading People Within OrganizationsPrint Chapter|
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- Taking on the Pepsi Challenge: The Case of Indra Nooyi
- Section 1: Who Is a Leader? Trait Approaches to Leadership
- Section 2: What Do Leaders Do? Behavioral Approaches to Leadership
- Section 3: What Is the Role of the Context? Contingency Approaches to Leadership
- Section 4: What’s New? Contemporary Approaches to Leadership
- Section 5: The Role of Ethics and National Culture
- Leadership Development: The Case of Starbucks
- Section 6: Conclusion
- Section 7: Exercises
- Chapter 13: Power and PoliticsPrint Chapter|
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- Focus on Power: The Case of Steve Jobs
- Section 1: The Basics of Power
- Section 2: The Power to Influence
- Section 3: Organizational Politics
- Section 4: Understanding Social Networks
- Section 5: The Role of Ethics and National Culture
- Getting Connected: The Case of Social Networking
- Section 6: Conclusion
- Section 7: Exercises
- Chapter 14: Organizational Structure and ChangePrint Chapter|
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- Chapter 15: Organizational CulturePrint Chapter|
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- Building a Customer Service Culture: The Case of Nordstrom
- Section 1: Understanding Organizational Culture
- Section 2: Characteristics of Organizational Culture
- Section 3: Creating and Maintaining Organizational Culture
- Section 4: Creating Culture Change
- Section 5: The Role of Ethics and National Culture
- Clash of the Cultures: The Case of Newell Rubbermaid
- Section 6: Conclusion
- Section 7: Exercises
There are no key terms for this page.
Taking on the Pepsi Challenge: The Case of Indra Nooyi
Figure 12.1.
She is among the top 100 most influential people according to Time magazine’s 2008 list. She is also number 5 in Forbes’s “Most Influential Women in the World” (2007), number 1 in Fortune’s “50 Most Powerful Women” (2006), and number 22 in Fortune’s “25 Most Powerful People in Business” (2007). The lists go on and on. To those familiar with her work and style, this should come as no surprise: Even before she became the CEO of PepsiCo Inc. (NYSE: PEP) in 2006, she was one of the most powerful executives at PepsiCo and one of the two candidates being groomed for the coveted CEO position. Born in Chennai, India, Nooyi graduated from Yale’s School of Management and worked in companies such as the Boston Consulting Group Inc., Motorola Inc., and ABB Inc. She also led an all-girls rock band in high school, but that is a different story.
What makes her one of the top leaders in the business world today? To start with, she has a clear vision for PepsiCo, which seems to be the right vision for the company at this point in time. Her vision is framed under the term “performance with purpose,” which is based on two key ideas: tackling the obesity epidemic by improving the nutritional status of PepsiCo products and making PepsiCo an environmentally sustainable company. She is an inspirational speaker and rallies people around her vision for the company. She has the track record to show that she means what she says. She was instrumental in PepsiCo’s acquisition of the food conglomerate Quaker Oats Company and the juice maker Tropicana Products Inc., both of which have healthy product lines. She is bent on reducing PepsiCo’s reliance on high-sugar, high-calorie beverages, and she made sure that PepsiCo removed trans fats from all its products before its competitors. On the environmental side, she is striving for a net zero impact on the environment. Among her priorities are plans to reduce the plastic used in beverage bottles and find biodegradable packaging solutions for PepsiCo products. Her vision is long term and could be risky for short-term earnings, but it is also timely and important.
Those who work with her feel challenged by her high-performance standards and expectation of excellence. She is not afraid to give people negative feedback—and with humor, too. She pushes people until they come up with a solution to a problem and does not take “I don’t know” for an answer. For example, she insisted that her team find an alternative to the expensive palm oil and did not stop urging them forward until the alternative arrived: rice bran oil.
Nooyi is well liked and respected because she listens to those around her, even when they disagree with her. Her background cuts across national boundaries, which gives her a true appreciation for diversity, and she expects those around her to bring their values to work. In fact, when she graduated from college, she wore a sari to a job interview at Boston Consulting, where she got the job. She is an unusually collaborative person in the top suite of a Fortune 500 company, and she seeks help and information when she needs it. She has friendships with three ex-CEOs of PepsiCo who serve as her informal advisors, and when she was selected to the top position at PepsiCo, she made sure that her rival for the position got a pay raise and was given influence in the company so she did not lose him. She says that the best advice she received was from her father, who taught her to assume that people have good intentions. Nooyi notes that expecting people to have good intentions helps her prevent misunderstandings and show empathy for them. It seems that she is a role model to other business leaders around the world, and PepsiCo is well positioned to tackle the challenges the future may bring.
Discussion Questions
-
Indra Nooyi is not a typical CEO. How does she differ from your idea of what a typical CEO is like? How do you think your current image of CEOs was created?
-
Indra Nooyi is touted as being “unusually collaborative” for someone in charge of a Fortune 500 company. Why do you think her level of collaboration is so unusual for top executives?
-
Do you think Nooyi’s story represents a transition of American companies to a different type of leader or simply a unique case?
-
Pepsi-Cola dates back to 1898 and officially became PepsiCo after merging with Frito-Lay in 1965. What are some challenges the CEO faces today that were not an issue at that time? What are some aspects that make the position easier in modern times?
-
If you were in Indra Nooyi’s shoes, what direction would you take the company, given the success you have had thus far? What are some challenges that could arise in the near future for PepsiCo?
Citation Information
APA Format:Erdogan, Berrin., and Bauer, Talya., Organizational Behavior V1.1. Retrieved Apr 5, 2011 from http://www.flatworldknowledge.com/node/122425 .
MLA Format:Erdogan, Berrin, , and Talya Bauer. Organizational Behavior V1.1. 1969 . Flat World Knowledge. 5 Apr, 2011. <http://www.flatworldknowledge.com/node/122425> .
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