A) The objective of this paper is to illustrate Indra Nooyi`s innovative qualities and give a brief description of her character and career as an entrepreneur.
B) I chose Indra because of her unique methodology in her managerial and intrapreneurship techniques. She aligns these techniques with her moral-compass and it sets her apart from other CEOs of the corporate world.
C) The structure of this paper is as follows:
Brief Introduction and Background
Early Career (pre-PepsiCo)
1.Brief Introduction and Background
Indra Nooyi is the former Chairman and CEO of PepsiCo ltd. She served as chairman from 2006 and is planning to resign in 2019. Throughout this time period she has been instrumental to the success and growth of the company. This is a result of her entrepreneurial characteristics and skills. The aim of my essay is to outline Indra`s entrepreneurial qualities and give an interesting account of her career. I chose Indra for this project because I believe she is unique in terms of the methods she used to develop PepsiCo ltd and the ethical way in which she operates. She has been a regular feature on Fortunes top 100 most powerful women and was ranked the 2nd most powerful woman in 2015 (Fortune, 2019). What I find fascinating about Indra is how she operated in the company`s 4th development phase being the stable growth and maintenance phase. Her investment in R&D and innovative qualities allow PepsiCo ltd to continue being the 2nd largest food and beverage business in the world (Forbes.com, 2019). Throughout this essay I will elaborate on her entrepreneurial talents and give examples of where she applied these talents! Websites, Books and Journal articles such as Pepsico.com/Forbes.com/Fortune.com/ Entrepreneurship and Innovation/ Entrepreneurship, Innovation and Business Clusters are all referenced within this essay to enhance my personal account of Indra Nooyi`s innovative qualities.
Born on the 28th of October 1955 to a middle-class family in Chennai, Indra refused succumb to the expected societal-norms of those times. During this time period women were expected to stay at home to raise children from an early age. However, Indra had a desire to participate in further education and enter the corporate world. She received her undergraduate degree in Physics, Mathematics and Chemistry from the University of Madras in 1974 and completed her Post Graduate Diploma in the Indian Institute of Management in 1976. She applied to Yale School of Management in 1978 and moved to the United States. This was a major decision as it put financial strain on herself and her parents. This decision would also render her unmarriageable at this time in India. Here she received her MBA degree in Public and Private Management in 1980. I admire Indra`s resilience particularly in her youth, this is a trait seen amongst all entrepreneurs. Resilience is defined as capability to anticipate risk, limit impact, and bounce back rapidly through survival, adaptability, evolution, and growth in the face of turbulent change (Emeraldinsight.com, 2019). It would be very hard to comprehend the social struggles of a female trying to progress in the corporate world in India during this time period and for this reason I admire her greatly.
3.Early Career (pre-PepsiCo)
Intrapreneurship is defined as the practice of entrepreneurial activities within an already established organization. Indra is no stranger to intrapreneurship having spent the early stages of her career in management positions at Johnson & Johnson. From there she moved to textile firm Mettur Beardsell, Boston Consulting Group and later progressed to strategic management positions in Motorola and Asea Brown Boveri. These firms vary in the goods and services they provide. Indra has shown how adaptable she is to different work environments through her workplace history. I believe we see a degree of adaptability within Indra`s work history. This is a common managerial characteristic that allows Indra to thrive within different market sectors. I believe we also see a hint of self-efficacy in her personality! Self-efficacy is the belief in one`s own abilities to achieve a desired goal. Through climbing the corporate ladder over years and constantly progressing in terms of her roles within organizations we see her determination to achieve her goals. Adaptive competence and self-efficacy are two traits which have allowed her to have a diverse career. Adaptability is the third major component of Savickas Career Development Theory. From my research of Indra`s career I believe this theory applies to her. It states that careers do not unfold, they are constructed as individuals make choices that express their self-concepts and fulfil personal goals (Savickas, Mark L.2013).
In 1994, she joined PepsiCo as senior vice president of corporate strategy and development. She was targeted by PepsiCo for her innovative qualities which would prove in time to be very beneficial for the company. Named CEO in 2001 she was given more freedom to direct the company. Her innovation aligned with her moral compass as she decided to direct the company to healthier alternatives. This was met with criticism from investors and activists that believed her ideas were wrong. From 2006 onwards she was named as Chairman and CEO, her direction and innovative ways would show positive in the company`s figures. Revenue has grown from $35 billion in 2006 to $63.5 billion in 2018, while the company`s share price has nearly doubled in that time (Nytimes.com, 2019). Net income has also grown drastically within this time frame. Net income was $5.631 billion in 2006 and grew to $12.515 billion in 2018 (Macrotrends.net, 2019). These major improvements in the company were done through expansion and innovation.
The time period in which Indra operated within PepsiCo was and still is a revolutionary period of E-Commerce. Part of the third wave of Globalization (1980 onwards), Indra took control of a company that was formed when the internet didnt exist. Innovation and adaptation are vital to any company in this time period (Daft, 2010). She believed investing and expanding into emerging economies would be the path PepsiCo should follow. For example, PepsiCo has begun catering to local tastes and preferences. This is evident with the company`s strategic alliance with Tingyi Holding Corporation in 2012. Under this new alliance PepsiCo made Tingyi it`s new franchise bottler in China. Tingyi has a strong network and volume of information in the Beverage industry, of course Indra saw this as an opportunity to expand into one of the BRIC countries. Indra shows her innovative qualities in her expansion methods while at PepsiCo. She took the lead in the 1998 acquisition of Tropicana and Quaker Oats in August 2001. Acquisitions can be viewed as a form of entrepreneurial corporate strategy that aims to exploit profitable business expansions (Madhok and Keyhani, 2012).
There are many types of innovation. Product innovation differs to Organizational innovation as Management innovation differs to Production innovation (O`Dwyer, 2007). Across the many levels of PepsiCo ltd we see the different types of innovation Indra has applied. Indra`s shift to heavy investment in R&D was an important move for Pepsico`s product portfolio (Piperopoulos, 2012). The demand for healthier alternatives is ever increasing since the 1980s. Indra intended to exploit this market demand. Evidence of this shows in Pepsico`s products in China, where reports of illnesses such as obesity are increasing. Between 2005 and 2009 the wellness foods and beverages market in China increased by 28%, reaching $1.5 billion in 2009. PepsiCo now plans to continue its expansion into China with a $2.5 billion investment over the next 3 years.
After a 24-year long career at PepsiCo, leaving behind her a company that responds quickly to customer demand and change, Indra has found herself at Amazons Board of Directors. On Feb/25/2019, the Board of Directors of Amazon elected Indra Nooyi as a director of the Company. I believe this shows Indra`s never ending desire to achieve new goals. At the age of 63 and having earned a yearly salary of $29.8 million (2016 figure), a normal person would be content and perhaps retire. However, Indra decides to work with the most dominant online sales company with $232.887 billion (2018) worth of revenue. This shows her need to excel and achieve which is a common characteristic amongst entrepreneurs.
Indra`s innovative qualities have allowed her to have a successful career as an Intrapreneur within firms such as Johnson & Johnson, Mettur Beardsell, Boston Consulting Group, Motorola, Asea Brown Boveri and PepsiCo. Her expansion techniques and style of management prove to be beneficial at every stage of her career. Evidence of this is predominantly seen in the growth of PepsiCo while she was CEO and Chairman. Her innovative methods used in product R&D are evident in the broad selection of products within PepsiCo`s range of brands. Her resilience is evident in all stages of her life and allowed her to follow through with her goals and aspirations.Bibliography
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