1. Indra Nooyi, CEO, PepsiCo.
Introduction
Indra Nooyi, CEO, PepsiCo.

4. Indra Nooyi Value’s Values of Indra Nooyi External Conditions.
Values of Indra Nooyi
External Conditions
Sustainability
Global Impact
Environment
Diversity
Indra Nooyi has many great ideas, values and ethical thoughts as the CEO for a large corporation like PepsicCo. She has a vision that the values of the company should be reflected to help the community and other areas instead of being focused on the bottom line. Her idea is called, “Performance with Purpose”. Indra Nooyi states, “We believed then, as we do now, that there is more to business than the earnings cycle. Our basic idea was that a company had to marry its performance with its ethical concerns. Its performance and its purpose are not separate entities. They merge. They feed off each other. They need one another. This is a particularly important idea against the backdrop of economic troubles we are in today.(NOOYI, I. K. (2009). Leading to the Future. Vital Speeches of the Day, 75(9), 404).
Other key aspects of her “Performance with Purpose” are to, “tackle the obesity epidemic by improving the nutritional status of PepsiCo products and making PepsiCo an environmentally sustainable company. ( To help the environment even further, “PepsiCo launched a partnership with Waste Management Inc. to create innovative public recycling kiosks offering incentives for consumers to deposit empty bottles and cans”
Sticking with this agenda, since she received her title of CEO she has implemented the “Pepsi Refresh Program”. This program was developed by Indra Nooyi because she values the communities in which the company works in and supports. Pepsi, “took marketing funds generally used for expensive Super Bowl TV commercials and has used them instead for the "Pepsi Refresh" challenge, a competition to find the best not-for-profit organizations whose social innovations can solve significant world problems. (
Indra is a forward thinker that values hard work and talented individuals. She does not want PepsiCo to become just another organization, she wants to leave a footprint on PepsiCo’s legacy as not only a major corporation but one that is driven by being sustainable, being environmental friendly, having a diverse environment that feels like a family. For instance, Indra states, “The company of the future has to be guided by the fact that it owes an obligation back to society. The company of the future has to do better by doing. But I do think that we need to think again about the legacy we leave. I think we need to embed a culture of long-term thinking.(NOOYI, I. K. (2009). Leading to the Future. Vital Speeches of the Day, 75(9), 404)
When it comes to diversity with Indra, it is meant not only in the sense of people but also in product. PepsiCo along with other organizations are involved in what are considered unhealthy products. Some of which, some politicians are trying to tax to prevent obesity. However, since Indra Nooyi has arrived as CEO, PepsiCo has merged with Tropicana to help diversify PepsiCo and incorporate healthy beverages for everyone. Other companies that are now part of PepsiCo are Quaker Oats and Gatorade.

5. Value’s Internal Conditions Respect Loyalty Diversity Open-minded
When it comes to Indra Nooyi and her values for the internal workings of PepsiCo, she is very fair and just. She likes to promote a family atmosphere within the company. She is open to new ideas and finding new talent to help propel the company to new heights, not only in business transactions but its contribution to society. An example of her respect for employees, states, “Those who work with her feel challenged by her high-performance standards and expectation of excellence. She is not afraid to give people negative feedback—and with humor, too. She pushes people until they come up with a solution to a problem and does not take “I don’t know” for an answer. For example, she insisted that her team find an alternative to the expensive palm oil and did not stop urging them forward until the alternative arrived: rice bran oil. (
Indra is also well respect because of her leadership qualities and the values she portrays. “Nooyi is well liked and respected because she listens to those around her, even when they disagree with her. Her background cuts across national boundaries, which gives her a true appreciation for diversity, and she expects those around her to bring their values to work.( Indra knows how valuable all employees are. She recognizes that even herself is not perfect. She is constantly picking the brains of past CEO’s and executives to get their inputs as she values their knowledge, experience and what they have contributed to the company.
Being diversified with the employees is very important to Indra and the company. She even implements cultural practice to her everyday tasks. For example, “ she sends letters to the parents of her key executives thanking them for their children and telling them what a great job they do. The idea came to Nooyi after a return trip to her native India when her mother received guests praising her for raising such a successful daughter.(Quaratiello, F. (2011, May 13). PepsiCo boss Indra Nooyi blasts crackdown on soda, snacks. Boston Herald (MA).
As a very successful leader, Indra Nooyi values many important qualities that a company like PepsiCo requires. She has implemented many programs to help make PepsiCo more sustainable for years to come. She has PepsiCo contributing more to society and surrounding communities because she understands the contribution they make to her company’s success. She is continually trying to reduce their environmental footprint by reducing cardboard packaging and using more recycle products in new products. Family is very important to Indra and this goes to show as PepsiCo continues to make great strives in business and the community. She is always open for new ideas and hearing people speak out on new topics. She has a way of getting her employees to thing outside the box without making them uncomfortable. Overall, Indra Nooyi is a very important leader and her key values have made a instant impact on PepsiCo and how the organization conducts business.

6. Personality Charismatic Vision History Confidence
Magnetic Personality that people want to be around and follow
Great Leaders Make you Want to be a Better Person
Vision
Clarity
Concise Communication
Drawing Tangible Connections
History
Maintains a stellar rapport with individuals
Confidence
Not Pompous
There is a big Difference
Indra Nooy’s knows that leadership is hard to define and that good leadership is even harder. Indra has a nact for rallying people and getting them to follow her. As a leader she is tough on herself and in doing so it raises the bar for all of her employees. There is a fine line here and Indra walks it well. She is a charismatic leader that exudes a magnetic personality. Using this charisma, Indra is able to communicate her clear vision to stakeholders. She has a long history with a stellar record of proven success. Indra walks with a good confidence that is typical of strong leaders.

7. Decision Making Skills
Performance With Purpose
Make as Much Profit as Possible
Be Responsible in Doing so
Transformational Leadership
Change in Individuals and Social Systems
Valuable Positive Change
Focus on Conceptual Ideas
Development of Concept
Implementation of Concepts
Indra Nooyi has been one of if not the most successful female CEOs we have seen in today’s industry. After becoming CEO of PepsiCo in 2006, she capitalizes her style of leadership on a simple phrase “Performance With Purpose.” Performance with purpose simply means to genertate as much profit as possible, but to remain responsible at the same time. The effort she used to employ this concept can be highly related to transformational leadership. Through this she was able to not only inspire her workers, but the public as well. One very important aspect of Indra’s leadership style is the fact that she enables others. Indra encompasses many genuine and empathetic characteristics that shine through and give her employees a sense that she cares. She has a great ability to be able to utilize concepts and relate them to key individuals for implementation.

10. Leadership of follower motivation Transformational vs transactional leadership (Northouse, 2007) Transformational leadership factors include: 1. Idealized influence and charisma 2. Inspirational motivation 3. Intellectual stimulation 4. Individualized consideration
Robbins and Judge (2011) suggest transformational leaders inspire or motivate followers to transcend their own self-interests and are capable of having a profound and extraordinary effect on followers.
Dr. Martin Luther King Jr’s abilities to express his moralistic approach to civil rights led followers to a sense of intrinsic motivation which they developed into a movement that peacefully became his vision of an effectual nonviolent direct-action program (King, 1963) (Northouse, 2007). Dr. King provides one example of an effective transformational leader.
Robbins and Judge (2011) suggest transactional leaders guide or motivate their followers in the direction of established goals by clarifying role and task requirements.

11. Indra Nooyi Pepsico’s CEO and her transactional leadership role that works towards providing transformational leadership qualities.
Transactional Leadership factors include Northouse, 2007): 1. Contingent reward 2. Constructive transactions 3. Management by exception involving negative feedback and corrective criticism Active and passive leadership 5. Corrective transactions
The Forbes.com list of the 100 most powerful women rates Ms. Nooyi at number 3 in 2009 (Forbes.com, 2010b) and at number 6 in 2010 (Forbes.com, 2010a). Her work at PepsiCo involves a strong commitment to diversity and inclusion goals for her company (PepsiCo, 2010). Ms. Nooyi’s and PepsiCo’s goals associated with the programs “Performance with Purpose” and “Promise of PepsiCo” have achieved success and are listed as ways to make significant progress towards sustainable growth (PepsiCo, 2010). These programs include goals of investing in a healthier future for people and the planet as significant ingredients in PepsiCo’s business plan (PepsiCo, 2010).
Recruitment and retention involve strategies represented by these PepsiCo (2010) programs. Training and mentoring provide significant employee retention strategies that motivate workers while assisting with PepsiCo’s success under Indra Nooyi’s successful and continued leadership role (Cañas & Sondak, 2010). Proposed growth at PepsiCo can be achieved with incentives such as training as one form of reward that may reduce costs by reducing turnover (Robbins & Coulter, 2009).

14. Overall Success as a Leader
Indra Nooyi’s Record of Success
Top of Fortune’s list of Most Powerful Women in Business,
Revenues projected to $60 billion and saving $400 million in costs
Leadership Award for Advancing Diversity
Indra Nooyi’s Keys for Successful Leadership
Performance with Purpose
Raised expectations for people, strong organizational culture
International growth, expanded global markets
Sustainability Strategies for Sustained Performance
Healthy Consumers
Social Responsibility
5 C’s in Success
Competence, Courage & Confidence, Communication, Compass, Coaching
Indra Nooyi’s success has been easy to measure, through the success of her company as well as by awards of recognition named to her.
Fortune Magazine’s Most Powerful Women 2006 – 2011, 5 consecutive years
Cover of Fortune Magazine, March 2008
2011 Revenues to $60 billion, stock prices up, shaving costs from expense line items
(“Fortune’s Powerful Women,” 2011)
Leadership Award in Diversity (“Diversity Award,” 2008)
Chicago United 2008 Bridge Award honoring exemplary leadership in support of advancing diversity and inclusion, based on her company’s supplier and workforce diversity
Indra Nooyi’s Key’s for Successful Leadership, Performance with Purpose
Goal: Sustainability and Balance of Product Portfolio
- By 2010, 50% of PepsiCo’s business will be of healthier foods
Sold off less healthy businesses in (KFC, Pizza Hut, Taco Bell)
Acquired more nutritious food and juice makers – Tropicana, Quaker Oats, Gatorade, Naked Juice, SunChips
Good financial sense – healthy consumers will purchase the company’s products long-term
Sustainability strategy – Indra takes a balanced approach to the company offering “treats to healthy eats” (Deitsch, 2008). She recognizes the power, as well as the challenge, of running a packaged food and soft drink company. She is determined to implement corporate strategies that address nutrition, healthy living, and green business practices.
One model of Indra’s is Performance with Purpose (Deitsch, 2008)
- Profit with principles and positive impact on corporate culture – Indra recogizes that people want to work for a morally good company, demonstrateing social responsibility. Through her focus on the company products, as well as the legacy of a positive and morally responsible culture, she has achieved positive results, including:
- profits up, rising stock prices, (10% rise during her first two years as CEO)
Increased focus on international markets increasing (40% of revenue)
Nooyi’s 5 Cs in Success (Deitsch, 2008)
Competence, Courage & Confidence, Communication, Compass (moral integrity), Coaching (mentoring)
Indra believes you can’t be a coach to others unless you possess and maintain the first 4 C’s

15. Nooyi, Defined as a Leader
Successful Leadership Qualities
Integrity, competence, consistency, loyalty
Charisma, knowledge, expertise, judgment
Motivational ability
Visioning ability
Transformational Leadership
Incorporates charismatic and visionary leadership
Adapts well to the needs of today’s work groups
Raising people toward collective goals, intrinsic reward and higher levels of morality
Kouzes and Posner Strategies for Practicing Exemplary Leadership
Challenge the Process
Inspire a Shared Vision
Encourage the Heart
Enable Others to Act
Model the Way
Successful Leadership Qualities
Robbins & Judge (2011) - Integrity, competence, consistency, loyalty
Northouse (2011) - Charisma, knowledge, expertise, judgment
Pierce & Newstrom (2011) - Visioning and motivational abilities to unite people with a sense of purpose, unity and a common direction
Integration with Indra’s 5 C’s: Competence, Courage & Confidence, Communication, Compass, Coaching
Indra demonstrates Transformational Leadership
Incorporating charismatic and visionary leadership (Northouse, 2010)
Her style adapts well to the needs of today’s work groups
With emphasis on intrinsic motivation, follower development and empowerment (Bass & Riggio, 2006)
Transformational Leadership occurs when people “raise one another to higher levels of motivation and morality,” (Bass as cited by Kouzes & Posner, 2002). Indra makes this a priority of her leadership at PepsiCo.
As the name implies, transformational leadership moves and changes people, raising the level of motivation of an entire group, challenging a status quo, raising awareness and values, and causing great change. Indra Nooyi demonstrates transformational leadership, motivating people to embrace her business, diversity and sustainability goals. She transcends her individual interests for a greater collective purpose and to establish a strong legacy.
Kouzes and Posner Strategies for Practicing Exemplary Leadership (Northouse, 2011)
Challenge the Process = Successful business goal for renewed customer service models
Healthy consumers are consumers for longer lives.
Inspire a Shared Vision = Sustainability Initiatives for sustained performance.
Half of Pepsi’s business providing healthier options.
Encourage the Heart = Corporate Responsibility, community, green, healthy
Enable Others to Act = Motivating people, bringing to a higher level of performance
Model the Way = Clarifying Personal and Professional Goals,
Promoting her 5 C’s Competence, Courage & Confidence, Communication, Compass, Coaching
Mentoring others, knowing they will seek her out as their mentor if she maintains commitment to the 1st 4 C’s

16. Conclusion Indra Nooyi, CEO PepsiCo. Leadership of diversity practices
Leadership values
Personality and decision-making
Leadership of organizational culture
Leadership of follower motivation
Overall success as a leader
Leadership of Diversity Practices – Indra demonstrates a strong commitment to diversity, in management, through suppliers, in the company’s products, and personally, as a mentor to others.
Leadership Values – Performance with Purpose
Personality and Decision-Making – Charismatic personality, ability to motivate others toward her performance with purpose goals.
Leadership of Organizational Culture – Indra places a high importance on corporate culture, social responsibility and lifting people up to a higher purpose
Leadership of follower motivation – By focusing on the legacy of her company, Indra motivates her followers to reach higher goals, increasing intrinsic rewards for her employees
Overall Success as a Leader – Indra embraces and practices strong, tranformational leadership qualities.
Through stated and demonstrated leadership values, Indra Nooyi has become one of the most powerful leaders of one of the largest food and beverage companies in the world. Her continued focus on her company’s purpose, as well as her employee’s performance, firmly establishes her a model of great leadership.

17. References
Bass, B.M., and Riggio, R.E. (2006). Transformational leadership (2nd ed.). Mahwah, NJ: Lawrence Erlbaum
Berkun, S. (2010) The Myths of Innovation (1st ed.). Gravenstein Highway North, Sebastopol, CA: O’Reilly Media, Inc
Deitsch, R. (2008). Performance with a purpose. The Costco Connection, June 2008, p , Retrieved from
Diversity Award (2008). Retrieved from html
Epstein, M. J. (2008). Making Sustainability Work (1st ed.). San Francisco CA: Berrett-Koehler. 
Forbes.com (2010b). World’s most powerful women (2010): Indra Nooyi. Retrieve from: women-09_Indra-Nooyi_1S5D.html 
Fortune’s Powerful Women (2011). Retrieved from

18. References Cont.
King, Dr Martin Luther JR. (1963, 1991). “Letter from Birmingham Jail”. Oneonta, NY: The Hartwick Humanities in Management Institute.
Kouzes, J.M. and Posner, B.Z. (2002). The leadership challenge (3rd ed.) San Francisco, CA: John Wiley & Sons, Inc.
Northouse, P.G. (2010). Leadership: Theory and practice. (5th ed.). Thousand Oaks, CA: Sage Publications. 
(Nooyi, I. K. (2009). Leading to the Future. Vital Speeches of the Day, 75(9), 404).
O’Rourke, J. S. (2010). Management communication a case-analysis approach (4th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Pierce, J. L. & Newstrom, J.W. (2011). Leaders and the leadership process. (6th ed.). New York, NY: McGraw Hill.
(Quaratiello, F. (2011, May 13). PepsiCo boss Indra Nooyi blasts crackdown on soda, snacks. Boston Herald (MA).

19. References Cont. River, NJ: Pearson Education, Inc.
Robbins, S. & Judge T. (2011) Organizational Behavior (14th ed.). New York, NY, Pearson Prentice Hall