Running Head: FINAL PROJECT PART II MILESTONE TWO: ORGANIZATIONAL VISION AND

CULTURE

5-2 Final Project Part II Milestone One: Organizational Vision and

Culture Akhira C. Watson

MBA 550 - Leadership in an

Organization Southern New Hampshire

University March 18th, 2018

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 FINAL PROJECT PART II MILESTONE TWO: ORGANIZATIONAL VISION AND 2
CULTURE

Indra Nooyi’s Organizational Vision

Indra Nooyi began her career at PepsiCo in 1994 as the Senior Vice President of Strategic

Planning and in 2006 she was promoted to Chief Executive Officer (CEO). Indra’s prior career

track to PepsiCo assisted in the development of her strategic expertise to efficiently and

effectively manage the company. Upon being promoted as Chief Executive Officer (CEO), Indra

introduced her vision of sustainability through Performance with a Purpose. Performance with a

purpose is a growth strategy that focuses on sustainability. “We recognized a simple truth: there

is profit in purpose. Sustainability is not something to support with the profits we make, but

rather a path to delivering profitability. Weaving sustainability into the very fabric of our

organization is a way to help future-proof our business for the changing world around us”

(Schroeder, E.,2015, September 24). PepsiCo usage of term “sustainability” resides under their

Three Pillars of Sustainable Growth (PepsiCo Launches 2025 Sustainability Agenda Designed to

Meet Changing Consumer and Societal Needs, n.d., para. 4):

1. Helping to improve health and well-being through the products it sells,

2. Protecting our planet, and
3. Empowering people around the world

Strategic Plan Development

Performance with a Purpose was brought into fruition due to Indra possessing a dual role and

using that power to enforce her strategic plan. “A leader’s legitimate power is strengthened when

he or she carries the title of both chief executive officer and chairman or chairwoman” (DuBrin,

A., 2015). An executive that occupies a dual role creates an unambiguous line of command and

communication throughout the company, ensuring that the executives and board members are

inclined to follow a powerful and influential leader.

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 In addition to Performance with a Purpose, Indra overhauled PepsiCo’s entire brand by

approaching marketing from a different aspect. This was illustrated with the Pepsi

Spire which “is essentially a large iPad that communicates with the user, inviting them to interact

with it. It tracks the customer’s habits, so that when purchasers swipe their ID, the machine

reminds them of the flavor combinations they tried last time and suggests new ones, while at the

same time displaying screenshots of the product being created” (Driver, L, n.d., para. 9). Indra’s

innovative ideas and success contributed to her awards in the food and beverage industry.

Strategic Plan Development - Alternate Method

Performance with a Purpose was immediately implemented following Indra’s promotion,

using the power behind her title as an enforcement tool. An alternate method that I would

propose is requesting feedback and suggestions from the executives. Often times, leaders exclude

the personnel that are responsible for implementing the vision when they should consider it as

motivation and empowerment to their employees.

Organizational Strategic Plan

Indra influenced PepsiCo’s culture by creating an environment focused on growth

through sustainability, employee morale, organizational learning, and teamwork. PepsiCo’s

culture is continuously fluctuating due to changes in leadership and business situations.

Currently, according to (Kissinger, D., 2017, February 06) the main categories are:

1. Performance with a Purpose - This feature of the organizational culture indicates

PepsiCo’s commitment to fulfill its corporate social responsibilities. The most significant

impact of this characteristic of the organizational culture is that it motivates workers to do

better.
2. Real World Leadership - The company uses employee knowledge to develop its

leadership. More specifically, PepsiCo promotes employees to leadership positions. This

 internal leadership development indicates that PepsiCo’s organizational culture facilitates

the use of employees’ work-based experiential knowledge to fuel business leadership and

growth.
3. Collaboration - Teamwork is an integral part of PepsiCo’s organizational culture. The

company believes that collaboration enables the business to achieve excellent

performance. While PepsiCo recognizes the strengths of individual employees, its

corporate culture sustains the use of these strengths through collaborative efforts.

The three pillars of PepsiCo’s culture were established through Indra’s personal, political,

and positional power. PepsiCo is the second largest food and beverage company in the world,

gaining 63 million in revenue which is a testament to Indra’s personal and political powers.

PepsiCo is also the leader in the market for the sale of salty snakes and second for the sale of

beverages showcasing Indra’s marketing and positional power.

Application of Examples

Indra writing over 400 personal letters to her executives and their parents contribute to

the effectiveness of the organization. These letters promote encouragement, motivation, and

increase productivity, thus aligning the team with the organizational vision. This strategic

planning method was not solely used to gain respect and trust of her staff but to build an

emotional and personal relationship.

 Reference

Driver, L. (n.d.). How Indra Nooyi changed the face of PepsiCo. Retrieved March 18, 2018, from

https://www.worldfinance.com/special-reports/how-indra-nooyi-changed-the-face-of-

pepsico

DuBrin, A. (2015). Leadership: Research findings, practice, and skills (8th ed.). Boston, MA:

Cengage Learning.

Kissinger, D. (2017, February 06). PepsiCo's Organizational Culture Characteristics: An

Analysis. Retrieved March 18, 2018, from http://panmore.com/pepsico-organizational-

culture-characteristics-analysis

PepsiCo Launches 2025 Sustainability Agenda Designed to Meet Changing Consumer and

Societal Needs. (n.d.). Retrieved March 18, 2018, from

http://www.pepsico.com/live/pressrelease/pepsico-launches-2025-sustainability-agenda-

designed-to-meet-changing-consumer-a10172016

Schroeder, E. (2015, September 24). PepsiCo seeks performance with a purpose. Retrieved

March 17, 2018, from https://www.foodbusinessnews.net/articles/6768-pepsico-seeks-

performance-with-a-purpose