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Entrepreneurship Management Indra Nooyi PepsiCo.
Chp 1. INTRODUCTION
Entrepreneurship:
Entrepreneurial development today has become very significant; in view of its being a key to
economic development. The objectives of industrial development, regional growth, and
employment generation depend upon entrepreneurial development.
Entrepreneurs are, thus, the seeds of industrial development and the fruits of industrial
development are greater employment opportunities to unemployed youth, increase in per
capita income, higher standard of living and increased individual saving, revenue to the
government in the form of income tax, sales tax, export duties, import duties, and balanced
regional development.
Concept of Entrepreneurship:
The word entrepreneur is derived from the French verb enterprendre, which means to
undertake. This refers to those who undertake the risk of new enterprises. An enterprise is
created by an entrepreneur. The process of creation is called entrepreneurship.
Entrepreneurship is a process of actions of an entrepreneur who is a person always in search
of something new and exploits such ideas into gainful opportunities by accepting the risk and
uncertainty with the enterprise.
Characteristics of Entrepreneurship:
Entrepreneurship is characterized by the following features:

1. Economic and dynamic activity:
Entrepreneurship is an economic activity because it involves the creation and operation of an
enterprise with a view to creating value or wealth by ensuring optimum utilisation of scarce
resources. Since this value creation activity is performed continuously in the midst of
uncertain business environment, therefore, entrepreneurship is regarded as a dynamic force.
K.E.S Shroff College - Mcom II Sem - IIIPage 1
2. Related to innovation:
Entrepreneurship involves a continuous search for new ideas. Entrepreneurship compels an
individual to continuously evaluate the existing modes of business operations so that more
efficient and effective systems can be evolved and adopted. In other words, entrepreneurship
is a continuous effort for synergy (optimization of performance) in organizations.
3. Profit potential:
Profit potential is the likely level of return or compensation to the entrepreneur for taking on
the risk of developing an idea into an actual business venture. Without profit potential, the
efforts of entrepreneurs would remain only an abstract and a theoretical leisure activity.
4. Risk bearing:
The essence of entrepreneurship is the willingness to assume risk arising out of the creation
and implementation of new ideas. New ideas are always tentative and their results may not be
instantaneous and positive.
An entrepreneur has to have patience to see his efforts bear fruit. In the intervening period
(time gap between the conception and implementation of an idea and its results), an
entrepreneur has to assume risk. If an entrepreneur does not have the willingness to assume
risk, entrepreneurship would never succeed.
Importance of Entrepreneurship:
Entrepreneurship offers the following benefits:
Benefits of Entrepreneurship to an Organisation:
1. Development of managerial capabilities:

The biggest significance of entrepreneurship lies in the fact that it helps in identifying and
developing managerial capabilities of entrepreneurs. An entrepreneur studies a problem,
identifies its alternatives, compares the alternatives in terms of cost and benefits implications,
and finally chooses the best alternative.
This exercise helps in sharpening the decision making skills of an entrepreneur. Besides,
these managerial capabilities are used by entrepreneurs in creating new technologies and
products in place of older technologies and products resulting in higher performance.
2. Creation of organisations:
Entrepreneurship results into creation of organisations when entrepreneurs assemble and
coordinate physical, human and financial resources and direct them towards achievement of
objectives through managerial skills.
3. Improving standards of living:
By creating productive organisations, entrepreneurship helps in making a wide variety of
goods and services available to the society which results into higher standards of living for
the people.
Possession of luxury cars, computers, mobile phones, rapid growth of shopping malls, etc. are
pointers to the rising living standards of people, and all this is due to the efforts of
entrepreneurs.
4. Means of economic development:
Entrepreneurship involves creation and use of innovative ideas, maximisation of output from
given resources, development of managerial skills, etc., and all these factors are so essential
for the economic development of a country.
Types of Entrepreneurs:
Depending upon the level of willingness to create innovative ideas, there can be the
following types of entrepreneurs:
1. Innovative entrepreneurs:
These entrepreneurs have the ability to think newer, better and more economical ideas of
business organisation and management. They are the business leaders and contributors to the
economic development of a country.
Inventions like the introduction of a small car Nano by Ratan Tata, organised retailing by
Kishore Biyani, making mobile phones available to the common may by Anil Ambani are the
works of innovative entrepreneurs.
2. Imitating entrepreneurs:
These entrepreneurs are people who follow the path shown by innovative entrepreneurs. They
imitate innovative entrepreneurs because the environment in which they operate is such that it
does not permit them to have creative and innovative ideas on their own.
Such entrepreneurs are found in countries and situations marked with weak industrial and
institutional base which creates difficulties in initiating innovative ideas.
In our country also, a large number of such entrepreneurs are found in every field of business
activity and they fulfill their need for achievement by imitating the ideas introduced by
innovative entrepreneurs.
Development of small shopping complexes is the work of imitating entrepreneurs. All the
small car manufacturers now are the imitating entrepreneurs.
3. Fabian entrepreneurs:
The dictionary meaning of the term fabian is a person seeking victory by delay rather than
by a decisive battle. Fabian entrepreneurs are those individuals who do not show initiative in
visualising and implementing new ideas and innovations wait for some development which
would motivate them to initiate unless there is an imminent threat to their very existence.
4. Drone entrepreneurs:
The dictionary meaning of the term drone is a person who lives on the labor of others.
Drone entrepreneurs are those individuals who are satisfied with the existing mode and speed
of business activity and show no inclination in gaining market leadership. In other words,
drone entrepreneurs are die-hard conservatives and even ready to suffer the loss of business.
5. Social Entrepreneur:
Social entrepreneurs drive social innovation and transformation in various fields including
education, health, human rights, workers rights, environment and enterprise development.
They undertake poverty alleviation objectives with the zeal of an entrepreneur, business
practices and dare to overcome traditional practices and to innovate. Dr Mohammed Yunus of
Bangladesh who started Gramin Bank is a case of social entrepreneur.
Functions of an Entrepreneur:
The important functions performed by an entrepreneur are listed below:
1. Innovation:
An entrepreneur is basically an innovator who tries to develop new technology, products,
markets, etc. Innovation may involve doing new things or doing existing things differently.
An entrepreneur uses his creative faculties to do new things and exploit opportunities in the
market. He does not believe in status quo and is always in search of change.
2. Assumption of Risk:
An entrepreneur, by definition, is risk taker and not risk shirker. He is always prepared for
assuming losses that may arise on account of new ideas and projects undertaken by him. This
willingness to take risks allows an entrepreneur to take initiatives in doing new things and
marching ahead in his efforts.
3. Research:
An entrepreneur is a practical dreamer and does a lot of ground-work before taking a leap in
his ventures. In other words, an entrepreneur finalizes an idea only after considering a variety
of options, analyzing their strengths and weaknesses by applying analytical techniques,
testing their applicability, supplementing them with empirical findings, and then choosing the
best alternative. It is then that he applies his ideas in practice. The selection of an idea, thus,
involves the application of research methodology by an entrepreneur.
4. Development of Management Skills:
The work of an entrepreneur involves the use of managerial skills which he develops while
planning, organizing, staffing, directing, controlling and coordinating the activities of
business. His managerial skills get further strengthened when he engages himself in
establishing equilibrium between his organization and its environment.
However, when the size of business grows considerably, an entrepreneur can employ
professional managers for the effective management of business operations.
5. Overcoming Resistance to Change:
New innovations are generally opposed by people because it makes them change their
existing behavior patterns. An entrepreneur always first tries new ideas at his level.
It is only after the successful implementation of these ideas that an entrepreneur makes these
ideas available to others for their benefit. In this manner, an entrepreneur paves the way for
the acceptance of his ideas by others. This is a reflection of his will power, enthusiasm and
energy which helps him in overcoming the societys resistance to change.
6. Catalyst of Economic Development:
An entrepreneur plays an important role in accelerating the pace of economic development of
a country by discovering new uses of available resources and maximizing their utilization.
To better appreciate the concept of an entrepreneur, it is desirable to distinguish him from an
entrepreneur and promoter. Table 4.1 outlines the distinction between an entrepreneur and
entrepreneurs, and Table 4.2 portrays basic points of distinction between an entrepreneur and
promoter.
Objective Of The Study
The objective of the study is as under:1. To study meaning of Entrepreneurship Management .
2. To understand the evolution of Entrepreneurship Management .
3. To analyse Entrepreneurship Management of Indra Nooyi Pepsico - CEO
Scope Of The Study

The Indian entrepreneur Mrs. Indra Nooyi selected for study is based on the conditions that
she had started her career either as low level employee of some organization or started her
venture with her own meagre investments. She in her own masters, in the sense that she did
not had back up from her family members either in the form of financial support or
inheritance of family wealth. She started her career with a humble beginning, and slowly and
steadily picked up her business purely due to her entrepreneurship qualities. She faced
hardships in course of her growth, but never gave up. The ingenuity and the spirit of
entrepreneurship always kept up her hopes and confidence and eventually proved to be
successful entrepreneur.
Research Methodology
Secondary Research: Secondary data was collected form articles from newspapers,Internet, articles and magazines, etc. are referred too.
Data Collection
Mode of Data Collection:
1. Data collection mode is through Internet and Newspaper Research.
2. Taking into consideration research instrument selected by us is through magazines,

newspapers, articles etc. because it gives more flexibility in terms of data and it has
been studied thoroughly before going for print and may have an important unknown
data that can be collected.
Chp 2. REVIEW OF LITERATURE

Article 1 : Ajay Banga, Indra Nooyi, Satya Nadella Attend Barack
Obama's State Dinner for Xi Jinping
Indians Abroad | Press Trust of India | Updated: September 26, 2015 12:22 IST
NEW YORK: Three Indian-American CEOs, Ajay Banga of Master Card, Indra Nooyi of
PepsiCo and Satya Nadella of Microsoft, attended President Barack Obama's lavish state
dinner for Chinese President Xi Jinping.
Mr Banga, Ms Nooyi and Mr Nadella, along with their spouses, were the only IndianAmericans invited by Obama for Xi's state dinner in the White House last night.
The 200-plus guest list included top brass from Apple, Microsoft, Facebook, Disney,
DreamWorks and more.
Many of the CEOs who attended the state dinner had either met Prime Minister Narendra
Modi in New York a day earlier or will be meeting over a dinner in Silicon Valley.
Mr Banga and Ms Nooyi had also attended a dinner hosted by Fortune for an interaction with
Modi in New York.
Ms Nadella would be meeting the Prime Minister over a dinner when he travels to San Jose.
Inspired by the harvest of the late summer and fall, chef Cris Comerford and Chef Susie
Morrison, in collaboration with Chef Anita Lo, created original dishes that highlight
American cuisine with nuances of Chinese flavours.
Guests dined on wild mushroom soup, poached Maine lobster, grilled cannon of Colorado
lamb and poppyseed bread and butter pudding.
Story First Published: September 26, 2015 12:22 IST
Article 2 : American CEOs Urge Modi to Fast-track Reforms

Posted: Friday, September 25, 2015 5:30 am | Updated: 5:37 am, Fri Sep 25, 2015.
New York: Prime Minister Narendra Modi has promised top American CEOs he would speed
up economic reforms in India, and asked them to take advantage of the huge opportunities of
investing in the country.
"Please continue to do more what you are doing. Maybe slightly faster," the 42 CEOs of
American companies with collective net worth of $4.5 trillion, told Modi on Thursday.
Prime Minister Narendra Modi with the leading Fortune 500 CEOs during
a program in New York. (IANS Photo)
"By and large the mood was very upbeat. There is general consensus that the prime minister
is effecting change in India. The only thing all the CEOs said is that, please make that change
faster," Ministry of External Affairs spokesperson Vikas Swarup told reporters after the
meeting.
During the Roundtable with America Inc., Modi listened to the CEOs concerns and plans
for India and how these issues can be resolved, he said.
Inviting the U.S. companies to set up manufacturing units in India, Modi told them, "Reform
in governance is my No. 1 priority. We are for simplified procedures, speedy decision
making, transparency and accountability."
He also listed the sectors that have been opened up in India for investment and said "FDI all
over the world has fallen but in India it has increased by 40 percent."
"This reflects confidence in the Indian economy," Modi said while interacting with the CEOs
from the manufacturing and infrastructure sectors.
The CEOs present at the meeting included Lockheed Martins Marillyn Hewson, Fords Mark
Fields, IBMs Ginni Rometty, PepsiCos Indra Nooyi and Dow Chemical Chairman Andrew
Liveris.
Article 3 : Pepsi CEO Indra Nooyi explains how an unusual daily

ritual her mom made her practice as a child changed her life
RICHARD FELONI1SEP 9, 2015, 08.15 PM
In 2006, Indra Nooyi became PepsiCo's first female CEO, as well as its first CEO not born in
the US.
At a "Women in Leadership Panel" at 92Y in New York on Tuesday, Nooyi said she's always
pushed back against adversity and her confidence is built upon an unusual daily habit her
mother made her and her older sister, Chandrika, practice when they were just 8 to 11 years
old.
Nooyi grew up in the socially conservative city of Madras (now Chennai), India. Her
mother adhered to some traditional beliefs - she stressed the importance of seeking a good
husband early - but she also instilled in her two daughters the belief that they could grow up
to become whoever they wanted.
"Every night at the dinner table, my mother would ask us to write a speech about what we
would do if we were president, chief minister, or prime minister - every day would be a
different world leader she'd ask us to play," Nooyi said to the 92Y audience. "At the end of
dinner, we had to give the speech, and she had to decide who she was going to vote for."
The winner of the debate then signed a piece of paper that stated they had become whatever
the world leader of the day was. The girls and their mom would laugh and have fun with it,
but Nooyi said she and her sister came to appreciate it, even after they became too cool for
the ritual when they hit adolescence.
"Even though my mother didn't work and didn't go to college, she lived a life vicariously
through her daughters," Nooyi said. "So she gave us that confidence to be whatever we
wanted to be. That was an incredibly formative experience in my youth."
That confidence was reinforced by her paternal grandfather, a charismatic judge. If he asked
her to do a job as a child and she later told him that she was unable to do it the way he
wanted, he would make her write "I will not make excuses" 200 times on a piece of paper.
She became grateful for this punishment when she grew older.
Nooyi's confidence and work ethic helped her achieve an MBA from the Yale School of
Management in 1980 and to start building a successful career. Early on, she said men
wouldn't make eye contact with her in meetings and would consistently check her answers
with one of her male colleagues. But rather than wilt under the pressure, she began to call
men out on their actions, and it wouldn't take long for them to realize she was highly adept at
her job.
"In my heart I said, 'I can do this better than anyone else can, and if everything else fails,
they're going to come to me and say, 'Fix it,' because I know I'm that good," she said.
"Remember, I could be president of India!"
Chp 3. ENTREPRENEURSHIP MANAGEMENT

Women As A Leader - Indra Nooyi - Pepsico
PepsiCo Inc. is an American multinational food, snack and beverage corporation
headquartered in Purchase, New York, United States, with interests in the manufacturing,
marketing, and distribution of grain-based snack foods, beverages, and other products.
PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc.
PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and
beverage brands, the largest of which includes an acquisition of Tropicanain 1998 and
of Quaker Oats in 2001, which added the Gatorade brand to its portfolio.
As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than $1 billion
apiece, and the company's products were distributed across more than 200 countries, resulting
in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest
food and beverage business in the world. Within North America, PepsiCo is the largest food
and beverage business by net revenue.
Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006. The
company's beverage distribution and bottling is conducted by PepsiCo as well as by licensed
bottlers in certain regions. Approximately 274,000 employees generated $66.415 billion in
revenue as of 2013.
Industry
Beverages, Crisps
Founded
New Bern, North Carolina, U.S. (1898)
Founder
Donald Kendall
Herman Lay
Headquarters
Purchase, New York, U.S.
Area served
Worldwide
Key people
Indra Nooyi
(Chairman and CEO)
Website
PepsiCo.com
Indra Krishnamurthy Nooyi

Indra Krishnamurthy Nooyi (born 28 October 1955) is an Indian-born, naturalized
American, business executive and the current Chairperson and Chief Executive Officer of
PepsiCo, the second largest food and beverage business in the world by net revenue. She has
consistently ranked among the World's 100 Most Powerful Women. In 2014, she was ranked
13 in the list of Forbes World's 100 most powerful women.
Early Life And Career

Nooyi was born to a Tamil-speaking family in Madras (presently Chennai), Tamil Nadu,
India. She was educated at Holy Angels Anglo Indian Higher Secondary School in Madras.
She received a bachelor's degree in Physics, Chemistry and Mathematics from Madras
Christian College in 1974 and a Post Graduate Diploma in Management (MBA) from Indian
Institute of Management Calcutta in 1976. Beginning her career in India, Nooyi held product
manager positions at Johnson & Johnson and textile firm MetturBeardsell. She was admitted
to Yale School of Management in 1978 and earned a master's degree in Public and Private
Management. While at Yale, she completed her summer internship with Booz Allen
Hamilton. Graduating in 1980, Nooyi joined the Boston Consulting Group (BCG), and then
held strategy positions at Motorola and Asea Brown Boveri.
Pepsico Executive
Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has
directed the company's global strategy for more than a decade and led PepsiCo's
restructuring, including the 1997 divestiture of its restaurants into Tricon, now known as
Yum! Brands. Nooyi also took the lead in the acquisition of Tropicana in 1998, and the
merger with Quaker Oats Company, which also brought Gatorade to PepsiCo. In 2006 she
became the fifth CEO in PepsiCo's 44-year history. She was named as the 3rd Most Powerful
Woman in Business by Fortune in 2014.
Since she started as CFO in 2001, the company's annual net profit has risen from $2.7 billion
to $6.5 billion.
Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and 2008, and
was listed among Time's 100 Most Influential People in The World in 2007 and 2008. Forbes
named her the #3 most powerful woman in 2008. In 2014, she was ranked #13 by Forbes.
Fortune ranked her the #1 most powerful woman in business in 2009 and 2010. On 7 October
2010 Fortune magazine ranked her the 6th most powerful woman in the world.
Nooyi's strategic redirection of her company has been largely successful. She reclassified
Pepsicos 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 sodas), and good for you
(items such as oatmeal). Her initiative was backed up with ample funding. She moved
corporate spending away from junk foods and into the healthier alternatives, with the aim of
improving the healthiness of even the fun offerings.
Compensation
While CEO of PepsiCo in 2011, Nooyi earned a total compensation of $17 million which
included a base salary of $1.6 million, a cash bonus of $2.5 million, pension value and
deferred compensation of $3 million. By 2014, her total compensation had grown to
$19,087,832, including $5.5 million of equity compensation.
Awards And Recognition

Forbes magazine ranked Nooyi on the 2008, 2009, 2010, 2011, 2012, 2013, and 2014 lists of
The World's 100 Most Powerful Women. Fortune magazine has named Nooyi number one on
its annual ranking of Most Powerful Women in business for 2006, 2007, 2008, 2009 and
2010. In 2008, Nooyi was named one of America's Best Leaders by U.S. News & World
Report. In 2008, she was elected to the Fellowship of the American Academy of Arts and
Sciences.
In January 2008, Nooyi was elected chairwoman of the U.S.-India Business Council
(USIBC). Nooyi leads USIBC's Board of Directors, an assembly of more than 60 senior
executives representing a cross-section of American industry. Nooyi has been named 2009
CEO of the Year by Global Supply Chain Leaders Group.
In 2009, Nooyi was considered one of "The Top Gun CEOs" by Brendan Wood International,
an advisory agency. After five years on top, PepsiCo's Indian American chairman and CEO
Indra Nooyi has been pushed to the second spot as most powerful woman in US business by
Kraft's CEO, Irene Rosenfeld.
Nooyi was named to Institutional Investor's Best CEOs list in the All-America Executive
Team Survey in 2008 to 2011. Forbes ranked her at the 3rd spot among 'World's Powerful
Moms' list.
Year
2015
2013
2011
2011
2011
2010
2009
2009
2008
2007
2004
Name
Honorary Doctorate of Humane Letters
Honorary Degree
Honorary Doctor of Laws
Honorary Doctorate of Law
Honorary Doctorate of Humane Letters
Honorary Degree
Barnard Medal of Honor
Honorary Degree
Padma Bhushan
Awarding organization
State University of New York at Purchase
North Carolina State University
Wake Forest University
University of Warwick
Miami University
Pennsylvania State University
Duke University
Barnard College
New York University
President of India
Babson College
Memberships and associations

Nooyi is a Successor Fellow of the Yale Corporation. She serves as a member of the
Foundation Board of the World Economic Forum, International Rescue Committee, Catalyst
and the Lincoln Center for the Performing Arts. She is also a member of the Board of
Trustees of Eisenhower Fellowships, and has served as Chairperson of the U.S.-India
Business Council.
Nooyi serves as an Honorary Co-Chair for the World Justice Project. The World Justice
Project works to lead a global, multidisciplinary effort to strengthen the Rule of Law for the
development of communities of opportunity and equity.
Personal life
Indra Nooyi
Nooyi at the World Economic Forum annual meeting in Davos, Switzerland, January
2010
Born
Indra Krishnamurthy
28 October 1955
Madras, Tamil Nadu, India
Residence
Greenwich, Connecticut
Ethnicity
Indian
Citizenship
United States
Alma mater
Madras Christian College (B.S., 1974)

IIM Calcutta (P.G.D.M., 1977)
Yale School of Management (M.A., 1978)
Occupation
Chairperson & CEO of PepsiCo
Employer
PepsiCo
Salary
$18.6 million (2014)
Net worth
$144 million (December 2014)
Religion
Hinduism
Spouse
Raj K. Nooyi
Siblings
Chandrika Krishnamurthy Tandon
Children
Tara Nooyi, Preetha Nooyi
CEO and Chairman, PepsiCo

Nooyi marks her ninth year atop the $66.6 billion snack-and-drink behemoth in a stronger
position than shes been in for a long time. She beat back a challenge from activist investor
Nelson Peltz, landed a big marketing deal with the NBA, and managed to post 4% organic
revenue growth in 2014 even as consumers tastes have shifted toward kale and quinoa. She
removed aspartame from Diet Pepsi this yearand has boosted R&D growth accordingly.
Yet people are still eating Laysalso good news for Nooyi.
How Pepsi's Indra Nooyi Learned To Be A CEO :

Nooyi credited experiences early in her career as a strategy consultant with Boston
Consulting Group (BCG) for teaching her inductive thinking that helped shape her leadership
style. "I don't think I could have gotten here without a strategy consultant background
because it taught me inductive thinking. It taught me how to think of the problem in micro
terms but also to zoom out and put the problem in the context of its broader environment and
then zoom back in to solve the problem."
As much as Nooyi credited her experience with BCG as "absolutely the best job to go into," it
was clear that she viewed strategic consulting as the foundationnot the structureof her
career. "That was more than thirty years ago," she said with a smile that softened only slightly
the firmness of the point she was making. "I've been around the bend in corporations."
After BCG, Nooyi worked for Motorola and Asea Brown Boveri and then PepsiCo, which
she joined in 1994 as chief strategist reportedly after turning down an opportunity to work
for Jack Welch at General Electric. She quickly made her mark on the company, urging thenCEO Roger Enrico to spin off PepsiCo's fast-food businesses including Taco Bell, Pizza Hut,
and KFC in 1997. Other moves she helped orchestrate include the 1998 purchase of
Tropicana and a $13 billion merger with Quaker Oats in late 2000.
In 2001, she became president and chief financial officer, which deepened her leadership
skills and experiences as well as her knowledge of the company. When she became CEO five
years later, however, nothing could quite prepare her for the demands of the job. "The one
thing I have learned as a CEO is that leadership at various levels is vastly different. When I
was leading a function or a business, there were certain demands and requirements to be a
leader. As you move up the organization, the requirements for leading that organization don't
grow vertically; they grow exponentially," Nooyi explained. "When I was president of the
company, I said, 'Okay, I can do thispiece of cake.' Then when you are the CEO, the
responsibilities multiply enormously because you worry about everything."
Her observation applies not only to herself but also to every CEO who discovers this position
requires a vastly different array of responsibilities. No matter how close a leader has been to
the CEOserving as CFO, president, or COOnothing quite compares with being in the top
job. In order to succeed, CEOs must not only draw on previous experiences and abilities they
have developed, but also commit to lifelong learning as a process of continual self
improvement. The more the leader is willing to expand and grow, the more vibrant the
organization will be.
Nooyi related this lesson by quoting what she considers one of the best pieces of advice she
ever received: "The distance between number one and number two is always a constant. If
you want to improve the organization, you have to improve yourself and the organization gets
pulled up with you. That is a big lesson. I cannot just expect the organization to improve if I
don't improve myself and lift the organization, because that distance is a constant." Her
comment echoed what Korn/Ferry has found in its work: that learning agility is a key
predictor of executive success.
A tireless worker who sleeps no more than four or five hours a night, Nooyi shoulders the
responsibility that goes along with being CEO to stretch herself while she takes the company
forward. "Just because you are CEO, don't think you have landed," she said. "You must
continually increase your learning, the way you think, and the way you approach the
organization. I've never forgotten that."
Learning and growing as a leader means Nooyi focuses not only on the big picture, but also
on the details. She related her experience of doing store checks to see how the company's
Pepsi-Cola, Frito- Lay, Quaker, Tropicana, and Gatorade products were displayed in a
neighbourhood store. "I notice everything. The printing qualityif the printing is bad or if
the color is off. If it's a Hispanic store and we don't have enough Hispanic offerings there.
Why isn't this merchandised so that the shopper mom can pick things up easily?" With a
slightly mischievous smile she added, "I pick up the details that drive the organization insane.
But sweating the details is more important than anything else."
Global leadership lessons from PepsiCo's Indra Nooyi

PepsiCo CEO Indra Nooyi has stood at the helm of the business for seven years and during
her tenure has introduced pivotal changes, which have truly shaped the image and direction
of the international drinks brand. Early on in her role of chief executive, Nooyi introduced the
mantra Performance with Purpose, which would become central to PepsiCos journey. But
this is not the only pearl of wisdom Nooyi has offered to the business and the industry as a
whole. She is an enthusiastic, headstrong and well-admired leader and Manufacturing Global
uncovers five lessons all manufacturing CEOs can learn from her global leadership style in
the 21st century.
1. Balance the short-term and long-term. Leaders today often fall into the trap of
focusing on short-term quarterly results, yielding decisions that are counterproductive
for the longer-term health of the organization. According to Nooyi, effective leaders
must strike a balance. Of course it goes without saying that they need to produce
results in the short term, however, their decisions must consider longer-term goals as
well.
2. Develop a deep understanding of public/private partnerships. Nooyi points out that
many private sector leaders treat the public sector (NGOs and governments) as the
enemy - and visa versa. Stiff arming them is simply not going to work, she once
said. Instead she advocates walking a mile in their shoes, and believes that NGO
leaders do their jobs as a labor of love. Treating them with respect and
understanding, as opposed to distain and condescension can go a long way.
3. Think global, act local. It may sound like a tired clich, by Nooyi argues this is sound
advice that can yield innovative, out-of-the box solutions.
4. Keep an open mind to adapt to changes. Nooyi is a huge advocate of Socratic learning
- the art of asking probing questions to facilitate dialog and exploration. All-too-often,
leaders close their minds to opposition, cutting off much needed debate. To lead in an
ever-changing world, Nooyi says, leaders must adapt, stay nimble and be willing to
listen to those around them.
5. Lead with your head and your heart. Leaders must develop deep emotional
intelligence, and bring their whole selves to work every day, says Nooyi. She
believes wholeheartedly in treating employees as unique human beings and believes
this approach strengthens the business. Nooyi once famously wrote letters to the
parents of her entire top executive team, telling them how proud they should be about
the work of their offspring. This unconventional act created an outpouring of emotion,
and more deeply connected her executive team to the company mission - tapping into
their underlying passions and sense of purpose.
Indra Nooyi: Success Mantra And Leadership Style

Indra Nooyi is a force of nature and a power to be reckoned with, all with good reason. She is
ranked 4th on the Forbes List of most influential women of 2013, and also has the privilege
of being one of the most powerful mothers in the world. This privilege is indicative of her
efficiency and management skills both in and out of the office, and could serve as an
interesting and inspiring case study for women who aspire to be like her.
Firstly, Nooyi shies away from the extremely formal atmospheres one would imagine
permeates the corridors and office cubicles at the PepsiCo. head quarters. She sings, she
walks around barefoot, and makes it a point to attend to her familys telephone calls even
during critical business meetings. Not one to dispose of her Indian heritage, she is known to
have spiritual leanings and wears a sari with as much ease as she dons a business suit. In
other words, her general attitude is not stereotypically in tune to the ideal manner in which
a CEO conducts themselves. On the contrary her conduct and demeanor appears to suggest
the very opposite of stiff, formal correctness. Being comfortable, and being true to ones self
without compromising on principles seems to be the pathway she has adopted for herself, and
judging by her success, it seems to be working wonders for her company and personal
credibility.
Secondly, Nooyi relies on inductive thinking to develop her strategies in line with her vision
for the company. I don't think I could have gotten here without a strategy consultant
background because it taught me inductive thinking. It taught me how to think of the problem
in micro terms but also to zoom out and put the problem in the context of its broader
environment and then zoom back in to solve the problem she says.
Thirdly, Nooyi recommends not sitting on your laurels just because you have attained a high
rank in the professional sphere. A tireless worker herself, she gets only 5 hours of sleep a
night, and continuously educates herself, re-evaluating her decisions and ensuring that she is
keeping the best interest of the company and its employees in mind. To her, her employees
are like an extended family, and she ensures that their needs and concerns are addressed so as
to ensure the overall running efficiency of the company. The formal and impersonal
atmosphere at PepsiCo, therefore, is a friendly one where her receptionist is known to have
fielded calls from her daughter regarding home work and television privileges.
Other aspects of leadership which are often expounded via lectures and books but are rarely,
if ever, executed effectively, include being able to manage crises, communicate clearly and to
be an expert in ones field. Nooyi herself serves as a real life case study in all of the above
contexts; her business acumen has resulted in PepsiCo. doubling its profits, while her habit
of surrounding herself with mentors whose advice she seeks and heeds shows both humility
as well as the desire to continue expanding her knowledge and networking base.
Indra Nooyi continues to be one of the most successful Indian women in the business world,
and her consistent success, acquisitions and associations with various ancillary businesses
[namely Pizza Hut and Taco Bell among others] along with her promotion of in-house brands
such as Frito Lay, Tropicana Fruit Juice and Quaker Oats, shows her multi-faceted
personality, and unwavering attention to every detail. She might be one of the most powerful
women in the world, and one of the richest, however, that does not prevent her from
inspecting the most minute details pertaining to product marketing and packaging; nor does it
erode her Indian roots, of which she is evidently very proud. She comes across as a balanced
and credible personality who practices what she preaches and considers all those around her
as equals. This is her overall success mantra, tried, tested, and completely successful.
Leadership Qualities Of Indra Nooyi

Indra Nooyi has been at Pepsi for 17 years. PepsiCo is currently the biggest food and
beverage company in North America, and Indra holds the reins as CEO. She manages a
corporate family of over 300,000 employees. Its not surprising that she is a valued and
influential leader in the business world. During her career, Indra explains that she has held to
her 5 Cs Model of Leadership. Her five Cs of leadership are competency, courage,
confidence, communication skills and compass. She is also ranked #2 on Fortunes 50 Most
Powerful Women in Business list. In studying her leadership style, there are three consistently
noticeable qualities that have enabled her growth as a leader and her success.
Communication
Indra Nooyi lists communication skills as one of the Five Cs of Leadership. She has
explained that competence, courage, confidence and a strong moral compass go to waste
without strong communication skills. What does it matter if someone is innovative on a
subject if they cant clearly discuss it? In Indras words You cannot over-invest in
communication skills. In addition to listing communication as a key skill for leadership,
Indra has received communication training to improve her abilities and flexes those
communication muscles every time she makes a public appearance, meets with her C-Suite,
and deals with a customer. In fact, communication is so valuable to Indra, that she maintains
a blog at Pepsi where she talks to her employees via posts every other week
Relationship Building
Indra goes beyond writing blog posts every other week to maintain a relationship with
employees. She writes letters to their parents to thank them for their children. If thats not a
CEO building strong relationships, what is? In regards to relationships, Indra has said If you
only want people to help you when you need them and not have an ongoing relationship with
them, they dont know you, they dont know where you come from, and they are doubtful
whether you really are interested in the issue, or are you just trying to skate over a current
problem? (CNN). In maintaining a company relationship with the public, Indra has been intune with consumers needs for healthier snack and drink options, which has led to
transformation in Pepsis product line. Relationship-building may not be part of Indras Five
Cs of Leadership, but it is certainly one of her strengths.
A Moral Compass
Indra lives by moral codes and she feels every corporation owes society care. Indra points out
that many companies are bigger than small countries. Organizations need to help society
reach goals and solve problems. When discussing the choice to face the challenges at Pepsi
during the economic collapse, rather than slash prices and bolt quickly, Indra explained
Look, this is my company, this is my living, my livelihood. And 300,000 people in
PepsiCo depend on PepsiCo for their life and their livelihoods. There are pensioners and
investors out there who are hoping PepsiCo will remain a successful entity forever (CNN
Money). This is just one of many examples where Indra has turned to her moral compass and
exercised strong emotional intelligence in making leadership decisions.
Indra herself had confessed that leadership is not easy 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 (Brainy Quote). The returns on building a better world are certainly
worth the struggle. Like Indra, leaders who take the time to analyze methods of
leadership and build communication skills are on a track for success.
Put your whole self into the job: head, heart and hands.
Among the influential leaders named to the annual ranking of Americas leading business
women, Indra Nooyi claimed the top spot for the fifth straight year in Fortune magazines list
of 50 Most Powerful Women in Business.
Her innovative leadership philosophy has been at the heart of her power and influence, and
has driven growth at PepsiCo even during challenging economic times. Named CEO in 2006
and Chairman of the Board of Directors in 2007, she helms PepsiCo, a world leader in
convenient snacks, foods and beverages with revenues of more than $60 billion and more
than 285,000 employees. The company boasts brands that stand for quality and include
respected household names such as Gatorade, Quaker Oats, Tropicana, Frito-Lay, PepsiCola and dozens more.
Indra shares her leadership lessons and why personalizing business is critical for success in
todays dynamic environment:
The world is changing in profound ways. While the western world maintains a powerful
status, the distance between developing nations is shrinking as other countries assume roles
of increasing status. Power is emerging in nations where religion, language and governments
differ vastly from traditional western beliefs. For the next two decades, aggressive growth
will happen in geography that is quite alien to us. That means understanding the complexities
of many parts of the world beyond Western Europe and the United States not just
intellectually, but with head, heart and hands.
This new world will be very different. Corporate governance must evolve to keep up with
these geopolitical changes. We need leaders with very different mindsets. Gone are the days
when companies were considered inanimate objects. Todays CEOs must walk a mile in the
shoes of their stakeholders. We need leaders with a global point of view, who develop
public/private partnerships and make decisions based on how they impact society.
The way we develop, recruit and train people will have to change radically. Success will be
fueled by diverse talent, and there will be a war for that talent. Ultimately you have to think
of diversity in many categories: ethnic, cultural, religious and generational. No part of society
should be excluded from the potential talent pool. Bringing talent in is easy; developing and
retaining it is difficult. The only way we will hold on to the best and brightest is to grasp
them emotionally. No one may feel excluded. Its our job to draw the best out of everyone.
That means employees must be able to immerse their whole selves in a work environment in
which they can develop their careers, families and philanthropy, and truly believe they are
cared for.
Companies must create return and value. At PepsiCo we keep in mind our role in society
and know we are a force for good. We deliver performance with a sense of purpose in a way
that offers great choice of products for consumers and leaves the environment as good as we
found it, if not better.
Sometimes corporate citizenship can sound like its an after-hours activity, but its important
that people who come to work can feel like they bring their whole selves. In todays often
unsafe and unsustainable world, the only way we can make positive change is through
economic prosperity. And that can be accomplished through responsible corporate citizenship
and innovative partnerships between private enterprise and public entities.
In 2010, PepsiCo made a promise that for the next ten years we will deliver sustainable
growth by investing in a healthier future for our consumers, our planet, our associates, our
external partners and the communities we serve. That promise is the cornerstone of our
Performance with Purpose mission. While continuing to build a portfolio of foods and
beverages, we are committed to finding innovative ways to reduce the use of energy, water
and packaging while providing a great workplace for associates. In fact, we design our
business plans to ensure that the work we do and the investments we make have a positive
impact on society. We will respect, support and invest in the communities where we operate
by hiring local people, creating products designed for local tastes and partnering with local
farmers, governments and community groups. A healthier future for all people and our planet
means a more successful future for PepsiCo. This is our promise.
Life Lessons
Born in Madras, India, Indra spent her youth in southern India. We were intellectually rich,
but not monetarily, says Indra. We cared about a good education and working hard.
Material benefits did not matter at all. Our house was huge but the furniture was sparse and
old. The mentality was, If you need a chair, sit on the floor. We never asked why, and we
never asked for things because we understood that every penny went to education. A masters
degree was the ticket to being a member of our family.
Her father and grandfather left strong impressions that shaped Indras future. My
grandfather insisted that we not be idle, even for ten minutes. He would say, Read a book,
and if you have read everything, re-read it to work on your English. He urged us to do our
absolute best. He taught us to be reliable, deliver on promises and dream big. He would say,
If you are going to be the janitor, then position yourself as being in charge of the buildings
hygiene and sanitation. Think about the bigger cause and contribute. Focus on your job today,
not the next job. That next job will come if you do well.
My father always told me to assume positive intent. That meant, if someone said or did
something that seemed bad or wrong, rather than getting mad, he would say, Lets think why
he did that. He was sending me a strong message to consider different points of view. I
struggled with the concept, but whenever I applied the lesson, I always came out ahead.
When I was growing up, some of the lessons seemed tough, even punitive, but now looking
back I see the lessons as unbelievably rich experiences.
After earning an MBA from the Indian Institute of Management in Calcutta, Indra attended
Yale School of Management in the US, earning a Master of Public and Private Management
degree. In 1980, she started her career with Boston Consulting Group, and in 1986 joined
Motorola as Vice President Corporate Planning and Strategy. Four years later, she accepted a
position with Asian Brown Boveri as Vice President.
Indra launched her career with PepsiCo in 1994 as Senior Vice President, Strategic Planning
and steadily rose through the companys ranks. She was elected to the Board of Directors and
became President and CFO in 2001 after serving as Senior Vice President and CFO. She has
been PepsiCos Chief Executive Officer since 2006 and assumed the role of Chairman of
PepsiCos Board of Directors in 2007.
Indras Eight Great Leadership Lessons

Drawing on her life lessons, Indra shares meaningful tips for leadership success:
Take on a global perspective in everything you do.
Look beyond your borders to understand the forces shaping the world.
Read and study what is happening everywhere. Understanding a global history will
give you a better context of the world.
Put your whole self into the job: head, heart and hands.
Its critical to come into work every day prepared to do your absolute best. A leader
must be hands on, not just involved intellectually. Empathize with and understand each
person and tailor strategies to coach, shape and train the individual. I ask myself each
day, Did I earn my return for the company? Did I make meaningful progress?
Zoom out before you zoom in.
Consider how your job impacts the people around you and how you are linked to
other people and departments. You will address your job more realistically and richly.
Do your job exceedingly well.
There is a meaningful speech by Dr. Martin Luther King, Jr., that I urge young people to read.
In it, he says, If a man is called to be a street sweeper, he should sweep streets even as
Michelangelo painted, or Beethoven composed music, or Shakespeare wrote poetry. He
should sweep streets so well that all the hosts of heaven and earth will pause to say, Here
lived a great street sweeper who did his job well.
Be politically aware, but dont play politics.
Stay true to yourself and your company.
Invest in communication skills.
How you interact, write and speak are all very important. A brilliant person who cant
communicate cannot move an organization.
Nurture yourself as much as your job. In the quest for a career, dont forget family, friends
and faith.
America's Best Leaders: Indra Nooyi, PepsiCo CEO

The karaoke-singing chief executive is taking Pepsi in an unlikely directiontoward
healthful foods.
She played lead guitar in an all-women rock band in her hometown of Madras, India. She was
a cricket player in college. She sang karaoke at corporate gatherings. Today, Indra Nooyi
presides over 185,000 employees in nearly 200 countries as the chief executive of PepsiCo.
And she still performs on stage at company functions.
Nooyi came to the United States in 1978 at age 23 to earn her M.B.A. at Yale, where she
worked as a dorm receptionistopting for the graveyard shift because it paid an extra 50
cents per hour. Her parents had told her she was out of her mind and should have stayed in
India and gotten married. "I always had this urge, this desire, this passion," she once
explained, to "settle in the United States," where she is now the married mother of two
daughters.
When Nooyi joined PepsiCo in 1994, it was as the company's chief strategist. From the start,
she helped executives make some tough decisions. Seeing less future in fast food, she moved
the company to shed KFC, Pizza Hut, and Taco Bell in 1997. Betting instead on beverages
and packaged food, she helped engineer a$3 billion acquisition of Tropicana in 1998 and a
$14 billion takeover in 2001 of Quaker Oats, maker of Gatorade. The moves proved prescient
choices. Company earnings soared, and so, too, did her stature.
By 2006, Nooyi was one of just two finalists to succeed CEO Steven Reinemund as leader of
one of the world's best-known brands. After getting the nod, Nooyi flew to visit the other
contender. "Tell me whatever I need to do to keep you," she implored. They had worked
together for years, both loved music, and Nooyi was persuasive, offering to boost her
competitor's compensation to nearly match her own. He agreed to serve as her right-hand
man, creating her version of a team of rivals.
A Caring CEO
Though raised on cricket, she has become an expert on New York Yankees statistics and
Chicago Bulls teamwork. Nooyi is a master of substance, knowing PepsiCo's product lines
and financial metrics in depth. But former CEO Reinemund, now the dean of business
schools at Wake Forest University, has also noted that she is "a deeply caring person" who
"can relate to people from the boardroom to the front line."
As CEO, she has continued to pursue her unusual, and tremendously ambitious, vision for
reinventing PepsiCo. She is trying to take the company from snack food to health food, from
caffeine colas to fruit juices, and from shareholder value to sustainable enterprise. In doing
so, Nooyi is attempting to move beyond the historic trade-off between profits and people.
Captured in her artful mantra"Performance with purpose"she wants to give Wall Street
what it wants but also, the planet what it needs. "It doesn't mean subtracting from the bottom
line," she explained in a 2007 speech, but rather "that we bring together what is good for
business with what is good for the world."
By 2010, Nooyi has pledged, half of the firm's U.S. revenue will come from healthful
products such as low-cal Gatorade and high-fiber oatmeal. The company will eschew fossil
fuels in favor of wind and solar. It will campaign against obesity.
This is, clearly, not business as usual. "People these days are bringing their principles to their
purchasing," she said in the same speech. "We, in return, are bringing a purpose to our
performance." If Nooyi can produce both wholesome foods and dependable profits, PepsiCo's
future may be safe.
Yet fresh challenges to Nooyi's leadership abound, including the spiraling costs of
commodities like cooking oil that go into the company's products; rising public aversion to
bottled water, such as PepsiCo's Aquafina brand; and slowing consumer spending in all
categories. The long-simmering cola wars could always flare up again.
But assuming Nooyi continues to combine performance and purpose at PepsiCoand to
offer melodies at company retreatsan even larger personal calling may lie ahead. With
annual revenue of $39 billion, the enterprise Nooyi leads is as large as many federal agencies,
and moving to run one of those agencies could be her next venture. "After PepsiCo, I do want
to go to Washington," she has said. "I want to give back."
7 Quotes That Prove What Kind Of Leader Indra Nooyi Really

Is - By - Benjamin Snyder - @Writersnyder - June 7, 2015,
8:00 Am
A bold CEOwhos tenure hasnt always been smooth
PepsiCos CEO Indra Nooyi made the right bet on getting her company to produce snacks
and drinks with the health-conscious in mind years ago. Her tenure hasnt always been
smooth, however. Fortunes Jennifer Rein gold profiled Nooyi for the new Fortune 500 issue.
Here are seven quotes that illustrate her leadership qualities:

1. She isnt afraid to get dirty in a supermarket that sells Pepsi products. Nooyi also is
unafraid to ask uncomfortable questions: Do they bring a guy to carry this out? Hello?
Hello? You need a forklift. Maybe because its inexpensive [$3.99], people are going to go
through the hell, but we should watch out.
2. Shes a perfectionist, a quality she brings to her leadership: We ought to keep pushing the
boundaries to get to flawless execution. Flawless is the ultimate goal.
3. She even has a slogan: Performance with purpose.
4. Nooyi has been vocal about the importance of health. She said that its up to Pepsi to help
solve one of the worlds biggest public health challenges, a challenge fundamentally linked
to our industry: obesity.
5. Shes invested heavily in research and development as well. In fact, Pepsi is developing a
3-D printed potato chip. We have patents on the design, the cutter, the mouth experience,
according to Dr. Mehmood Khan, Pepsis chief scientific officer. This is multiple layers of
IP.
6. She challenges standards of health food on the market as almost hypocritical: The
consumer has turned the definition [of healthy] upside down. If it is non-GMO, natural, or
organic, but high in sodium and high in sugar and fat, its okay.
7. And while shes demanding, shes realistic: I wouldnt ask anyone to do anything I
wouldnt do myself.
How Indra Nooyi Turned Design Thinking Into Strategy: An

Interview with PepsiCos CEO Forbes Magzine Article
Just a few years ago, it wasnt clear whether Indra Nooyi would survive as PepsiCos CEO.
Many investors saw Pepsi as a bloated giant whose top brands were losing market share.
And they were critical of Nooyis shift toward a more health-oriented overall product line.
Prominent activist investor Nelson Peltz fought hard to split the company in two.
These days Nooyi, 59, exudes confidence. The company has enjoyed steady revenue growth
during her nine years in the top job, and Pepsis stock price is rising again after several flat
years. Peltz even agreed to a truce in return for a board seat for one of his allies.
All of this frees Nooyi to focus on what she says is now driving innovation in the company:
design thinking. In 2012 she brought in Mauro Porcini as Pepsis first-ever chief design
officer. Now, Nooyi says, design has a voice in nearly every important decision that the
company makes. (See the interview with Porcini in this issue.)
To understand Pepsis transformation, I spoke with Nooyi at the companys temporary
headquarters in White Plains, New York (the real one, in Purchase, is being renovated). She
talked about what design means to her, the challenges in changing a culture, and her proudest
achievement. Adi Ignatius
1. What problem were you trying to solve by making PepsiCo more design-driven?
Nooyi: As CEO, I visit a market every week to see what we look like on the shelves. I always
ask myselfnot as a CEO but as a momWhat products really speak to me? The shelves
just seem more and more cluttered, so I thought we had to rethink our innovation process and
design experiences for our consumersfrom conception to whats on the shelf.
2. How did you begin to drive that change?
First, I gave each of my direct reports an empty photo album and a camera. I asked them to
take pictures of anything they thought represented good design.
3. What did you get back from them?
After six weeks, only a few people returned the albums. Some had their wives take pictures.
Many did nothing at all. They didnt know what design was. Every time I tried to talk about
design within the company, people would refer to packaging: Should we go to a different
blue? It was like putting lipstick on a pig, as opposed to redesigning the pig itself. I realized
we needed to bring a designer into the company.
4. How easy was it to find Mauro Porcini?

We did a search, and we saw that hed achieved this kind of success at 3M. So we brought
him in to talk about our vision. He said he wanted resources, a design studio, and a seat at the
table. We gave him all of that. Now our teams are pushing design through the entire system,
from product creation, to packaging and labelling , to how a product looks on the shelf, to
how consumers interact with it.
5. Whats your definition of good design?
For me, a well-designed product is one you fall in love with. Or you hate. It may be
polarizing, but it has to provoke a real reaction. Ideally, its a product you want to engage
with in the future, rather than just Yeah, I bought it, and I ate it.You say its not just about
packaging, but a lot of what youre talking about seems to be that.
Its much more than packaging. We had to rethink the entire experience, from conception to
whats on the shelf to the post product experience. Lets take Pepsi Spire, our new touch
screen fountain machine. Other companies with dispensing machines have focused on adding
a few more buttons and combinations of flavors. Our design guys essentially said that were
talking about a fundamentally different interaction between consumer and machine. We
basically have a gigantic iPad on a futuristic machine that talks to you and invites you to
interact with it. It tracks what you buy so that in the future, when you swipe your ID, it
reminds you of the flavor combinations you tried last time and suggests new ones. It displays
beautiful shots of the product, so when you add lime or cranberry, it actually shows those
flavors being addedyou experience the infusion of the flavor, as opposed to merely hitting
a button and out comes the finished product.
6. Have you developed other notable design-led innovations?
Were working on new products for women. Our old approach was shrink it or pink it.
Wed put Doritos, say, in a pink Susan G. Komen bag and say its for women. Thats fine, but
theres more to how women like to snack.
7. OK, how do women like to snack?
When men finish a snack bag, they pour whats left into their mouths. Women dont do that.
And they worry about how much the product may stainthey wont rub it on a chair, which a
lot of guys do. In China, weve introduced a stacked chip that comes in a plastic tray inside a
canister. When a woman wants to snack, she can open her drawer and eat from the tray. When
shes done, she can push it back in. The chip is also less noisy to eat: Women dont want
people to hear them crunching away.
8. Basically, youre paying a lot more attention to user experience.
Definitely. In the past, user experience wasnt part of our lexicon. Focusing on crunch, taste,
and everything else now pushes us to rethink shape, packaging, form, and function. All of
that has consequences for what machinery we put in placeto produce, say, a plastic tray
instead of a flex bag. Were forcing the design thinking way back in the supply chain.
9. To what extent do you listen to consumers? Do they even know what they want?
I dont know if consumers know what they want. But we can learn from them. Lets take
SunChips. The original size was one inch by one inch. When youd bite into a chip, it would
break into pieces. In focus groups consumers told us they went to another product because it
was bite-size. We had to conclude that SunChips were too damn big. I dont care if our mold
can only cut one inch by one inch. We dont sell products based on the manufacturing we
have, but on how our target consumers can fall in love with them.
Launch and Failure
10. When I picture design thinking, I think about rapid prototyping and testing. Is
that part of what youre trying to do?
Not so much in the U.S., but China and Japan are lead horses for that processtest, prove,
launch. If you launch quickly, you have more failures, but thats OK because the cost of
failure in those markets is low. In the U.S., we tend to follow very organized processes and
then launch. The China-Japan model may have to come to the U.S. at some point.
11. Isnt this model already established in the U.S., or at least in Silicon Valley?
Lots of small companies take this approach, and for them the cost of failure is acceptable.
Were more cautious, especially when playing with big brands. Line extensions are fine: If
you launch a flavor of Doritos that doesnt work, you just pull it. But if you launch a new
product, you want to make sure youve tested it enough. In Japan, we launch a new version of
Pepsi every three monthsgreen, pink, blue. We just launched cucumber-flavored Pepsi. In
three months it either works or we pull it and go to the next product.
12. Is your design approach giving Pepsi competitive advantage?

We have to do two things as a company: Keep our top line growing in the mid single digits,
and grow our bottom line faster than the top. Line extensions keep the base growing. And
then were always looking for hero productsthe two or three big products that will drive the
top line significantly in a particular country or segment. Mountain Dew Kickstart is one of
those. Its a completely different product: higher juice content, fewer calories, new flavors.
We thought about this innovation differently. In the past we just would have created new
flavors of Mountain Dew. But Kickstart comes in a slim can and doesnt look or taste like the
old Mountain Dew. Its bringing new users into the franchise: women who say, Hey, this is
an 80 calorie product with juice in a package I can walk around with. It has generated more
than $200 million in two years, which in our business is hard to do.
13. Is this an example of design thinking, or just part of the innovation process?
Theres a fine line between innovation and design. Ideally, design leads to innovation and
innovation demands design. Were just getting started. Innovation accounted for 9% of our
net revenue last year. Id like to raise that to the mid teens, because I think the marketplace is
getting more creative. To get there, well have to be willing to tolerate more failure and
shorter cycles of adaptation.Now our teams are pushing design through the entire system.
14. Do you feel that companies have to reinvent themselves every few years, that
competitive advantage is fleeting?
No question about it. Its been a long time since you could talk about sustainable competitive
advantage. The cycles are shortened. The rule used to be that youd reinvent yourself once
every seven to 10 years. Now its every two to three years. Theres constant reinvention: how
you do business, how you deal with the customer.
Managing Change
15. How do you bring everyone in the company along with what sounds like a
dramatic change in approach?
The most important thing was finding the right person in Mauro. Our beverage people
immediately embraced how he could help us think about product design and development.
Then retailers fell in love with him and started inviting him to their shops to talk about how to
reset their shelves. Mauros team grew from about 10 people to almost 50, and we set him up
in Soho in New York City. Now our products look like theyre tailored to the right cohort
groups, and our packaging looks pretty damn good, too.
16. How do you push the culture change throughout the company?
In the past, being decentralized was our strength, but also our weakness. Its a fine approach
when the whole world is growing and life is peachy. But it doesnt work when things are
volatile globally and you need coordination. Weve given our people 24 to 36 months to
adapt. I told everyone that if they dont change, Id be happy to attend their retirement parties.
17. How do you measure whether or not people are making it?
We watch how they act in our global meetings and whether they include design early in the
process. We see how much innovation, influenced by design, is being put into the market. We
maintain an aggressive productivity program to take costs out and free up resources. You
have to squeeze as much as you can out of every dollar, and we watch how many costs are
coming out.
Purpose and the Portfolio
18. You often use the term purpose in talking about your business. What does that
mean to you?
When I became CEO in 2006, I did a series of town hall meetings with employees. Few said
they came to work for a pay check. Most wanted to build a life, not simply gain a livelihood.
And they were well aware that consumers cared about health and wellness. We realized we
needed to engage our peoples heads, hearts, and hands. We had to produce more products
that are good for you. We had to embrace sustainability. Purpose is not about giving money
away for social responsibility. Its about fundamentally changing how to make money in
order to deliver performanceto help ensure that PepsiCo is a good company where young
people want to work.
19. Would you be willing to accept lower profit margins to do the right thing?
Surely, there have to be trade-offs.
Purpose doesnt hurt margins. Purpose is how you drive transformation. If you dont
transform the portfolio, youre going to stop top-line growth, and margins will decline
anyway. So we dont really invest in purpose, but in a strategy to keep the company
successful in the future. If we hadnt tackled certain environmental issues, especially with
water, we would have lost our licenses in some countries. Now, sometimes when youre
changing the culture radically, you run into problems. Transformations sometimes hit your
margins or top line because things dont always go in a straight line. But if you think in terms
of the life span of the company, these are just small blips.
20. But arent you still selling a lot of unhealthy products?
We make a portfolio of products, some of which are fun for you and some of which are
good for you. We sell sugary beverages and chips, but we also have Quaker Oats,
Tropicana, Naked Juice, and Izze. Were reducing the salt, sugar, and fat in the core products.
And weve dialed up the good-for-you offerings because societal needs have changed.
21. Would you consider stopping a popular product line because it doesnt meet the
good-for-you standard?
That wouldnt make sense, because none of our products is bad or unsafe. We give consumers
choices that reflect their lifestyles. If you want to consume Pepsi, well give you Pepsi in
every size possible so that on one occasion you can consume 12 ounces and on another only
seven and a half. We want to make sure that both the good-for-you and the fun-for-you
products are readily available, affordably priced, and great tasting. And we make sure that
good-for-you tastes as good as fun-for-you. We want you to love our Quaker Oats Real
Medleys as much as you love Doritos Loaded.
22. Do you try to push sales of the healthier products?
Yes, but we also want to preserve choice. Weve taken lessons from Richard Thaler and Cass
Sunsteins book Nudge. We try to put portion-control packages out front on the shelves. We
make sure our diet products are merchandised as aspirationally as our full-sugar products are.
We advertise Gatorade only with athletes in mind because its not intended to be a
recreational beverage.
23. Consumers seem very demanding these days. How do you keep up with that?
We have to make sure were engineering our portfolio for the consumer of the future. Theres
nothing wrong, for example, with aspartame. But if consumers say they dont like it, we have
to give them a choice. Well offer a diet product thats aspartame-free. Similarly, theres
nothing wrong with high-fructose corn syrup, but if consumers say they like real sugar, we
have to offer that, too.
24. Whats your proudest accomplishment since becoming CEO?
I took over PepsiCo just after it had a string of successful years. Then everything changed.
We faced new regulatory pressures on our fun-for-you categories, and our good-for-you
business wasnt fully developed. The North American market slowed down, and we werent
big enough internationally. Sales through some major U.S. customers slowed down
massively. Our key beverage competitor had done a big reset of its own, and it bounced back.
We looked at ourselves and saw a decentralized, far-flung company that had to be knitted
together. The culture needed to change. We had to eliminate redundancies. We had to slim
down to reinvest in R&D, advertising and marketing, and new capabilities. I had a choice. I
could have gone pedal to the metal, stripped out costs, delivered strong profit for a few years,
and then said adios. But that wouldnt have yielded long-term success. So I articulated a
strategy to the board focusing on the portfolio we needed to build, the muscles we needed to
strengthen, the capabilities to develop. The board said, We know there will be hiccups along
the way, but you have our support, so go make it happen. We started to implement that
strategy, and weve delivered great shareholder value while strengthening the company for
the long term.
25. Growing up in Madras, you seem to have broken every possible stereotypical
expectation of a young girl in India. Are you still that person?
To a certain extent. When youre a CEO, you cant break too many stereotypical
expectations. I wish you could, but you cant. In those days, there was a well-defined
conservative stereotype, so everything I did was breaking the framework. I played in a rock
band. I climbed trees. I did stuff that made my parents wonder, What the hell is she doing?
But I also was a good student and a good daughter, so I never brought shame on the family.
And I was lucky that the men in my family thought the women should have an equal shot at
everything. Im still a bit of a rebel, always saying that we cannot sit still. Every morning
youve got to wake up with a healthy fear that the world is changing, and a conviction that, to
win, you have to change faster and be more agile than anyone else.
Chp 4. CONCLUSION
Indra Nooyi - Chief executive officer, PepsiCo Inc.
Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo. Mrs. Nooyi leads one of
the worlds largest convenient food and beverage companies, with 2008 annual revenues of
more than $43 billion. The companys products are sold in approximately 200 countries, and
it employs more than 198,000 people worldwide. Its principal businesses include Frito-Lay
snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. In
total, the PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annual
retail sales.
Mrs. Nooyi is the chief architect of PepsiCos multi-year growth strategy, Performance with
Purpose, which is focused on generating robust financial returns from designing products for
and finding sustainable ways to give back to communities the company serves. Performance
with Purpose is premised on offering food and beverages that provide responsible
nourishment, minimizing impact on the environment and creating a diverse and inclusive
culture that attracts, develops and retains the most talented people. In keeping with this
growth strategy, PepsiCo is proud to be listed on the Dow Jones North America Sustainability
Index and Dow Jones World Sustainability Index.
Mrs. Nooyi was named President and CEO on October 1, 2006 and assumed the role of
Chairman on May 2, 2007. She has directed the company's global strategy for more than a
decade and led PepsiCo's restructuring, including the divestiture of its restaurants into the
successful YUM! Brands, Inc.; the spin-off and public offering of company-owned bottling
operations into anchor bottler Pepsi Bottling Group (PBG); the acquisition of Tropicana and
the merger with Quaker Oats that brought the vital Quaker and Gatorade businesses to
PepsiCo.
Prior to becoming CEO, Mrs. Nooyi served as President and Chief Financial Officer
beginning in 2001, when she was also named to PepsiCo's board of directors. In this position,
she was responsible for PepsiCos corporate functions, including finance, strategy, business
process optimization, corporate platforms and innovation, procurement, investor relations and
information technology.
Between February 2000 and April 2001, Mrs. Nooyi was Senior Vice President and Chief
Financial Officer of PepsiCo. Between 1996 and 1999, Mrs. Nooyi was Senior Vice President
of Corporate Strategy and Development.
Before joining PepsiCo in 1994, Mrs. Nooyi spent four years as Senior Vice President of
Strategy and Strategic Marketing for Asea Brown Boveri, a Zurich-based industrials
company. She was part of the top management team responsible for the company's U.S.
business as well as its worldwide industrial businesses, representing about $10 billion of
ABB's $30 billion in global sales.
Between 1986 and 1990, Mrs. Nooyi worked for Motorola, where she was Vice President and
Director of Corporate Strategy and Planning, having joined the company as the business
development executive for its automotive and industrial electronic group. Prior to Motorola,
she spent six years directing international corporate strategy projects at the Boston Consulting
Group. Her clients ranged from textiles and consumer goods companies to retailers and
specialty chemicals producers. Mrs. Nooyi began her career in India, where she held product
manager positions at Johnson & Johnson and at Mettur Beardsell, Ltd., a textile firm.
In addition to being a member of the PepsiCo board of directors, Mrs. Nooyi serves as a
member of the boards of the International Rescue Committee, Catalyst and Lincoln Center
for the Performing Arts. She is a Successor Fellow of Yale Corporation and member of the
Board of Trustees of Eisenhower Fellowships, and she currently serves as Chairman of the
U.S.-India Business Council.
BIBLIOGRAPHY
Books
Quotes That Prove What Kind Of Leader Indra Nooyi Really Is - By Benjamin Snyder - @Writersnyder - June 7, 2015,
September 2015 issue (pp.8085) of Harvard Business Review
No Fear Of Failure - Gary Burnison

Magazines
Business Today
Business World
Forbes
Fortunes 50 Most Powerful Women
Newspapers
Indians Abroad | Press Trust of India
India West News Paper Print & Online
Websites
www.hindustantimes.com
www.business-standard.com
www.pepsico.com

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Entrepreneurship Management Indra Nooyi PepsiCo.

Entrepreneurship is characterized by the following features:

Entrepreneurship Management Indra Nooyi PepsiCo.

Entrepreneurship offers the following benefits:

Benefits of Entrepreneurship to an Organisation:

K.E.S Shroff College - Mcom II Sem - IIIPage 2

Entrepreneurship Management Indra Nooyi PepsiCo.

1. Development of managerial capabilities:

K.E.S Shroff College - Mcom II Sem - IIIPage 3

Entrepreneurship Management Indra Nooyi PepsiCo.

K.E.S Shroff College - Mcom II Sem - IIIPage 4

Entrepreneurship Management Indra Nooyi PepsiCo.

K.E.S Shroff College - Mcom II Sem - IIIPage 5

Entrepreneurship Management Indra Nooyi PepsiCo.

K.E.S Shroff College - Mcom II Sem - IIIPage 6

Entrepreneurship Management Indra Nooyi PepsiCo.

Scope Of The Study

K.E.S Shroff College - Mcom II Sem - IIIPage 7

Entrepreneurship Management Indra Nooyi PepsiCo.

2. Taking into consideration research instrument selected by us is through magazines,

Chp 2. REVIEW OF LITERATURE

K.E.S Shroff College - Mcom II Sem - IIIPage 8

Entrepreneurship Management Indra Nooyi PepsiCo.

Article 2 : American CEOs Urge Modi to Fast-track Reforms

K.E.S Shroff College - Mcom II Sem - IIIPage 9

Entrepreneurship Management Indra Nooyi PepsiCo.

K.E.S Shroff College - Mcom II Sem - IIIPage 10

Entrepreneurship Management Indra Nooyi PepsiCo.

Article 3 : Pepsi CEO Indra Nooyi explains how an unusual daily

K.E.S Shroff College - Mcom II Sem - IIIPage 11

Entrepreneurship Management Indra Nooyi PepsiCo.

K.E.S Shroff College - Mcom II Sem - IIIPage 12

Entrepreneurship Management Indra Nooyi PepsiCo.

Chp 3. ENTREPRENEURSHIP MANAGEMENT

New Bern, North Carolina, U.S. (1898)

K.E.S Shroff College - Mcom II Sem - IIIPage 13

Entrepreneurship Management Indra Nooyi PepsiCo.

Purchase, New York, U.S.

Indra Krishnamurthy Nooyi

Early Life And Career

K.E.S Shroff College - Mcom II Sem - IIIPage 14

Entrepreneurship Management Indra Nooyi PepsiCo.

Entrepreneurship Management Indra Nooyi PepsiCo.

Awards And Recognition

K.E.S Shroff College - Mcom II Sem - IIIPage 16

Entrepreneurship Management Indra Nooyi PepsiCo.

Memberships and associations

K.E.S Shroff College - Mcom II Sem - IIIPage 17

Entrepreneurship Management Indra Nooyi PepsiCo.

Madras Christian College (B.S., 1974)

Chairperson & CEO of PepsiCo

$18.6 million (2014)

$144 million (December 2014)

Chandrika Krishnamurthy Tandon

Tara Nooyi, Preetha Nooyi

CEO and Chairman, PepsiCo

Entrepreneurship Management Indra Nooyi PepsiCo.

How Pepsi's Indra Nooyi Learned To Be A CEO :