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Entrepreunership of Indra Nooyi Essay


Indra Krishnamurthy Nooyi(born 28 october 1956) is an Indian-American businesswoman who is currently the Chairman and CEO of PepsiCo which is the world’s second largest food and beverage business in terms of net revenue. She is one of the World’s 100 Most Powerful Women as ranked by Forbes magazine. 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 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 merger with Quaker Oats Company, which also brought Gatorade to PepsiCo. In 2006 she became the fifth CEO in PepsiCo’s 44-year history. According to BusinessWeek, since she started as CFO in 2000, the company’s annual revenues have risen 72%, while net profit more than doubled, to $5.6 billion in 2006. 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 the 7th of October 2010 Fortune magazine ranked her the 6th most powerful woman in the world.



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.


Nooyi said she tries to ascribe positive intent to everything people do or say. “When you do that it’s so much better to deal with people,” Nooyi said. “Does that mean I give people more rope than I need to? Yeah, but I’m very comfortable with it.” In this way, she aims to cultivate trusting relationships with both colleagues and direct reports, and to focus on developing executive talent. It’s a style that encourages entrepreneurial thinking across the company, says Reinemund, her predecessor and another influential mentor.


Nooyi’s strategic measures to tackle the slow-down in the beverages and snack food industry included a productivity improvement program, the benefits of which were expected to the tune of US$ 1.2 billion over the next three years beginning 2009. Other measures under her leadership included aggressive expansion into the emerging markets of Brazil, Russia, China, When Nooyi was SVP, the strategic measures that she planned and implemented resulted in a growth in PepsiCo’s sales and profits.


She implemented a number of measures to improve the sustainability of the company’s operations and image by focusing on improvements in the health implications of PepsiCo products.

Measures such as removing trans-fats from PepsiCo snacks, product innovations in the Quaker Oats brand to come out with a range of consumer perceived healthy snacks, categorization of its snacks into three categories named fun for you, good for you, and better for you were undertaken under her leadership.


Forbes magazine ranked Nooyi fourth 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


Pepsi faces rising production costs, lackluster U.S. sales, and attacks on its core snack and soda products from both competitors and health-conscious critics. As the company’s head and, since May, its chairman, Nooyi is taking on Pepsi’s challenges. And Nooyi, who formally took the CEO reins in October 2006, is giving Pepsi’s employees and shareholders good reason to ride her train — a powerful locomotive that has driven the company’s stock up 22% in the 12 months through Dec. 4, near a 52-week high. In May, the company hiked its dividend 25% and boosted its share buyback goal to $4.3 billion from $3.3 billion. Revenue is expected to rise more than 10% this year.



Nooyi used to announce a specific profit target that the company will gain. But the company was unable to gain that much profit. So this annoyed the investors. During her tenure pepsi has often failed to hit her statuted profit target, which investor consider an unforgivable scene.


Capital requirements are low for taking over a franchise, and profit margins are stratospheric. Nooyi’s plan looked plausible, and investors seemed willing to give it a chance; they pushed the stock down only incrementally despite the surprisingly downbeat profit forecast. Now she absolutely must execute the plan against strong and merciless competitors in a volatile economic environment.


The company is getting beaten up in its flagship product category, drinks, in the world’s largest market, North America. The soda pop planets shifted in their orbits last year when Pepsi-Cola was displaced as America’s eternal No. 2 carbonated soft drink, Coca-Cola was at No. 1; the new No. 2 is Diet Coke. That reordering is especially distressing to investors because there is scarcely a more beautiful business in the world than producing branded soft drink concentrate.


Irate investors have been calling for Pepsi to sell off its snack food business or for Nooyi to step down, or at least announce a likely successor. She did none of that at the presentation. Instead, by outlining a plan that will take two years to pay off, she showed that she has the board’s support. But if that plan doesn’t show clear signs of working before year-end, the board’s support could evaporate. That’s why the next several months are make-or-break for her.

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