overview of the structural organization, leadership, and management of PepsiCo Company.

overview of the structural organization, leadership, and management of PepsiCo Company.

Summary

This document gives a general overview of the structural organization, leadership, and management of PepsiCo Company. The paper also suggests challenges faced by the company and shortlists possible solutions to the problems.

Introduction

PepsiCo has it’s headquarter based in New York. It is one of the most abundant food and beverage companies worldwide. It has employed over 200000 employees, and it offers products in over 200 countries. The company manufactures and sells more than seventeen brands of beverages and snack food. PepsiCo encompasses the Quaker, Tropicana, Gatorade Frito-Lay, and Pepsi cola brands. In the U.S., PepsiCo holds 36 percent of the total snack food market share and 25 percent of the market share of the refreshment beverage industry. The CEO of PepsiCo international in 2006 was Michael D. White, and in 2007 Indra K. Nooya took over as the CEO. PepsiCo has won several awards and recognized over the years. It’s ranked in the top 25 among the best global brands. Diversity Inc. ranked it number overall. And the company earned the green Award by the environmental protection agency. The company focuses on innovation and adventure in products and product experience, and it has diverse product development capabilities..

According to Indra Nooyi, CEO of PepsiCo, “vision is the performance with a purpose, an initiative for sustainability, and an appeal to the values of a changing culture.” Leadership is the ability to guide other people by the law. At the same time, management consists of the interlocking functions of creating corporate policies and organizing, controlling, planning, and directing an organization’s resources to achieve the objectives of that policy. A leader is a person who leads a group, an organization, or a country. At the same time, a manager is a person responsible for controlling or administering an organization or a group of staff. PepsiCo believes in being blessed with most talented and innovative leaders and managers who can lead other employees according to the organization’s policy to achieve the intended objectives. All the leaders and managers of PepsiCo are future-oriented, have excellent communication skills, and can handle situations and the problems they face.

Leadership theory refers to a school of thoughts brought forward to explain how and why specific individuals become leaders, and the theories emphasize the traits. There several types of methods that are known and contribute more towards the success of the organization. They include trait theory, behavioral theory, transactional leadership, transformational leadership contingency theories, excellent man theory, etc. Indra Nooya, the CEO, applies various types of leadership theories that grant the organization success. Nooyi uses a transformational leadership style, which involves influential ideas, inspirational motivation, intellectual stimulation, and individual considerations as a recipe to get workforce on-board, Nooyi values employees and customers and works hard to empower them. She attracts new talents through its standards and ethics. This style makes sure that the employees feel challenged, enabled, and appreciated in what they do in day to day activities. She also uses democratic and maternal leadership, where she listens to opinions and takes consideration of the views suggested. And she still makes final and firm decisions that are important in running the organization. She tries to satisfy the need for employees. She also uses socialized charismatic leadership, where she profoundly relates and interacts with the employees, and continuously invest in communication skills. She takes care of the employees and listens to their needs. Through doing this, she stays updated in the field of business to inspire and motivate her employees and be inspired too.

Every organization faced with various challenges; when it overcomes them, it becomes successful. Socio-cultural influence is one of the significant challenges that face the firm. The operates in many nations worldwide; the introduction of the firm is faced with challenges in that it finds the hostile political structure of individual states which offer a hindrance to its establishment. It also faces competition from the firm that is present in a given state that the organization introduced. Different cultural believe from the people where the firm is to established also contributes to the challenges. The pollution effect and waste management pose a threat to the firm while being introduced to new states. These challenges result in the firm incurring more costs in the process of establishing itself in new countries, and this makes its growth more reluctant. PepsiCo should spend more time on research on how to reduce pollution, improve its impression at first sight to its new customers, and improve resource efficiency through technology upgrades and processes as well. It should also consider the health status of its customers.

Indra’s ability to manage more than 20,000 employees has made her valued as the most successful leader. She has led PepsiCo for 17 years. Indra uses a 5cs model in her leadership, which entails competency, courage, communication skills, confidence, and compass. Indra values communication as being the most valuable skill in business as people ought to communicate, share knowledge, and convince the customer to buy a product. She invested most in communication. She strengthened the relationship with her employees through frequent talks and writing them posts, thanking their parents through letters written to them. Indra lives by7 morals codes, and she feels every corporate owes community care. She says that the organization needs to help society achieve its goals and overcome its problems. These values have been at the forefront of the success of Indra. Indra maintained a healthy relationship between the company and the consumers, which built confidence in the consumer that resulted in them giving her feedback regarding the product and need to improve it. Indra enhanced courage and confidence in her workers through appreciation and valuing them; this improved their workability and relation to each other.

Conclusion

PepsiCo is regarded as a successful firm as it has grown from a single firm started by an individual businessman. With time, it has developed and extended its boundaries in more than 200 countries in the world. Development is the measure of success of a business and leadership quality of the leader as well. All leaders should be future-oriented.