Reference no: EM133025657

Question:

From a 'behavioral perspective' do you think Nooyi appears to be more democratic or autocratic in her approach? Give evidence to support your argument

Text from which to derive answer:

Indra Nooyi is a leader who appears to demonstrate that being guided by a strong ethical lens is not a weakness, but indeed a key strength of a leader. Previously CEO and chairperson of PepsiCo, a company ranked second in the world in terms of its net revenue, she also consistently ranks in the lists of the world's 100 most powerful women. Born in Madras, she completed her MBA at the Indian Institute of Management Calcutta (now Mumbai) before moving on to study a Masters in Public and Private Management at Yale. After holding a number of notable positions (including in Motorola), she joined PepsiCo in 1994, moving on to being Chief Financial Officer (2001) and then named CEO in 2006. Since she commenced as CFO, PepsiCo's net profit has risen from $2.7 billion to about $6 billion in 2014, falling slightly to $5.5 billion in 2015. In 2017, she was also announced as a member of the President's Strategic and Policy Forum, a group of CEOs from leading corporations that provide perspectives to help inform the White House's economic agenda. Nooyi's strategic direction since taking over the helm at PepsiCo has been particularly enlightening as to her personal as well as her business values. Beyond her clear focus on the financial viability and profitability of the company, she also clearly has a personal ethical direction that comes through in her vision for the company. From the moment she took on the role as CEO, she had a clear vision that the future of the company lay outside its traditional offerings. She recognised that people were switching off 'junk food' and wanted the company to move toward offering healthier options. She has broadened the company's product portfolio, reducing the company's focus on the eponymous soft drink that has been the bedrock of its image and heavily investing in a more diverse, and healthier, portfolio. PepsiCo's purchase of brands such as Quaker Foods reflects this, as does her decision to remove aspartame from Diet Pepsi in 2015. Such a move was generally considered as potential corporate suicide for a business that was already in a precarious position, with falling market share of its flagship brand. However, time has proven Nooyi right, with Pepsi in a clearly stronger position now than it was 10 years ago, and most importantly with its stock comfortably outperforming its main rival, Coca Cola. However, it took Nooyi's commitment to her vision to make this happen. Throughout her career, Nooyi has stayed consistent with what she has outlined as her 'Five Cs of Leadership', five qualities she advocates as essential for effective leaders: competence, courage/ confidence, communication skills, consistency and one's compass, or integrity. Competence. Nooyi states that to be a successful leader, you need to be seen and known in your field; in other words, become the 'go to' person. That occurs by standing out as highly competent in your field. She argues that this requires lifelong learning, to upskill and stay ahead of the curve in your area. Courage/confidence. Confidence may come from competence, but it is also having courage in your decisions and confidence in your convictions.