Strategic leadership (in Pepsi CO) Case study

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Today businesses have adopted strategic management due to the multiple benefits it has for effective business operations. First strategic planning helps the company to gain more knowledge about the future possibility and how best to approach the identified opportunity and threat (Hrebiniak, 2013). It also enhances the company’s sense of confidence for investment and growth by carefully analyzing environmental factors in the industry. The management advises regarding the analysis, which enables the business to make appropriate investment and development decisions with confidence. Most successful businesses today, such as Coca Cola, Google, Apple, and PepsiCo, have managed to remain the best in their industry because they have effective strategic management in place and always plan for their future. This paper is an analysis of strategic leadership and how they affect the performance of a business. It will involve the strengths and weaknesses of strategic leadership, the implementation of strategies in business, and the effects of strategic planning on business growth.

The CEO of PepsiCo, Indra Nooyi, is responsible for all the strategic planning and management of all the company’s strategies (Hughes, Beatty & Dinwoodie, 2013). It is her responsibility to build a culture for the business, solve the crisis, make strategic policies, give advice, and form strategic goals and targets for the company. In this case, Nooyi has managed to implement competitive strategies that have made the company to be among the best performing business in the world. She is also planning on building a business culture for the whole company that cares for both better social lives and human well-being. Her love and care for both production and customers are essential to the company. In the case study, she believes in economic,social, and environmental performance altogether. All this quality and ability gives her the capability to perform effectively. However, there are a few areas that may be in contrast with my point of view about her performing exceptionally. First, she is not change-oriented. For example, despite that, she proposes the company to split up, she seems reluctant towards the approach and believes that the company still has more value as one. This has led to a decrease in Pepsi performance for the past three years. Nevertheless, she still deserves The executive manager score because of her confidence in her strategy, which is now recovering and has the capability of enhancing the company’s performance even more.

When it comes to implementing strategy in an organization, the aim is always to yield better results and become unique (Hrebiniak, 2013). However, after applying a strategy, the most common behaves are that business growth and progress seem to be constant. This does not always translate to the new approach will fail. It can be because the business is in recovery as the workers familiarize themselves with the new strategy and adapt to the new culture. For this reason, whenever a business adopts a new strategy, it is essential to give it time and encourage the employee to take the new development. Furthermore, changes are not easy to adopt because of human resistance to changes.

The best way to solve the issue is ensuring employees have the right information about the reason for the changes. The leader can also implement training programs that allow the employee to adjust quickly to the new practices. It will also be sufficient to encourage the staff that success is achieved through a step by step approaches. As a leader, it is important to know the effects of a new strategy on workers, customers, and the business itself. If the company can sustain itself through the implementation process, then it can support the plan and give it time. Eventually, the whole organization will adjust, and production will accelerate back to normal and later become better.

Nooyi believes that performance and purpose are crossly related, and one cannot be complete without the other. But is this really true? Before I can give my opinion about the two, let first understand what each one of them means in the context of the business world. Purpose refers to the primary reason why the business was formed, for example, is it for industrial activities, is it for services or is it for corporate events (Ellsworth, 2002). Business performance, on the other hand, is a measured status of accomplishment of a task as compared to required standards of accuracy and desired outcome. In order to achieve a purpose, the level of performance must be satisfactory; hence Nooyi’s is right.

Pepsi has been operating for decades and still has a very high potential to grow through its executive growth strategy. For example, the organization is facing some health related to if soft drinks, but it has managed to develop better products with no sugar such as Pepsi. So, the future of soft drink production is still promising. Moreover, the management system has a lot of confidence in its operation, even in critical conditions. CEO Nooyi has remained persistent in her strategies despite the critics and negative review. In the end, her approach starts to yield results.

The second growth capability is its customer-focus strategies, which mainly involve customers’ health and economy. Developing health drinks is one way through which the company shows how values them. This has a high impact on its brand image values. It also has an adjacent business that it can switch from and to. For instance, it can either focus on the food industry or the beverages sector. Moreover, its quality product gives it an added advantage to venture into other businesses and gain trust almost instantly.

The increasing probability of succeeding gives it another opportunity to grow. This is supported by its long term established in the market and its multiple loyal customers. The company also has financial resources such as its revenues, which it can pull back into the business or venture into new areas. It has more experience in business practices and management and therefore stands a better of making very productive decisions in the future.

In conclusion, according to this case, I can say that leadership strategy and management are significant factors in business because they control how your company operates. Performance and purpose are crossly related, and for a business to be successful, the management must understand the relationship between them.


Ellsworth, R. R. (2002). Leading with Purpose: The New Corporate Realities. Redwood City, CA: Stanford University Press.

Hrebiniak, L. G. (2013). Making Strategy Work: Leading, Effective Execution, and Change. Upper Saddle River, NJ: FT Press.

Hughes, R. L., Beatty, K. M., & Dinwoodie, D. (2013). Becoming a Strategic Leader: Your Role in Your Organization’s Enduring Success. Hoboken, NJ: John Wiley & Sons.

Stowell, S. J., & Mead, S. S. (2016). The Art of Strategic Leadership: How Leaders at All Levels Prepare Themselves, Their Teams, and Organizations for the Future. Hoboken, NJ: John Wiley & Sons.







Strategic leadership (in Pepsi CO) Case study

Student’s name:




Strategic leadership (in Pepsi CO) Case study

Student’s name:



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