Strategic Marketing Business English Third Semester Communication Case Pamela Berenice Rodríguez Ocadiz September 10, 2021

Strategic Marketing
Business English
Third Semester
Communication Case
Pamela Berenice Rodríguez Ocadiz

September 10th, 2021
Led by Ambitious Indra Nooyi,
PepsiCo Pushes Nutrition
An inside look at PepsiCo reveals a powerful CEO

decidedly different from most leaders of Fortune
500 companies. Indra Nooyi is one of the few
females in corporate America’s highest echelons and
probably the only Hindu. In her hometown of Chennai, India, she played in all-girl rock
band and majored in chemistry, physics, and math in college. After working in India, she
was accepted into a graduate program at Yale University. She headed for the United States
with meager financial support and warnings from her parents that such a move would dash
all chances of marriage. Working as a dorm receptionist, she took the night shift to earn an
extra 50 cents an hour. After completing a master’s degree in management, Nooyi went to a
job interview wearing an Indian sari because she couldn’t afford an appropriate suit –and
she got the job.
At Yale, Nooyi experienced a mayor turning point in her life. That education, she says,
gave her the skills lacking in a newly arrived immigrant. She learned how to speak, how to
communicate, and how to adapt to the environment. Recalling her program at Yale, she said
that all first-year students were required to take –and pass- a course in effective
communication. She confessed that this course was invaluable, especially for someone who
came from a culture in which communication wasn’t considered the most important aspect
of business.
Gaining expertise as a business consultant and strategist. Nooyi joined a struggling PepsiCo
and became its chief strategist. Over the next decade and a half, she helped PepsiCo
become a $43 billion food and beverage giant with 193,000
employees in nearly 200 countries. The giant conglomerate was recognized throughout the
world for its Pepsi soft drink, Frito-Lay snack foods, and fast-food outlets including Taco
Bell, Pizza Hut, and KFC. However, Nooyi’s ambitious strategy for PepsiCo involved
selling off its fast-food brands and moving into beverages and packaged food with a focus
on nutrition. She engineered the acquisition of Tropicana, maker of orange juice products,
and of Quaker Oats, maker of Gatorade.
Nooyi has pledged that by 2010 half of PepsiCo’s U.S. revenue will come from healthful
foods such as low-calorie Gatorade and whole-grain cereals. But observers wonder whether
she can produce dependable profits as well as wholesome foods.
Many companies –even before the recent financial crisis and economic plunge- strove to
improve their image by emphasizing ethics and social responsibility. In promoting baked
whole-grain snacks and vitamin-enhanced beverages, PepsiCo could point the way to better
nutrition for the entire industry. Nooyi is convinced that this initiative will benefit investors
as well as consumers.
When Indra Nooyi joined PepsiCo as chief strategist, she convinced management to sell off
its fast-food holdings in Taco Bell, Pizza Hut, and KFC. She was intent on moving the
company “from snack food to health food, from caffeine colas to fruit juices, and from
shareholder value to sustainable enterprise”. Her goal was to do good for business as well
as doing good for people and the planet. PepsiCo, under her leadership, would favor wind
and solar power, avoid fossil fuels, fight against obesity, and promote diversity.
To achieve these ambitious goals, Nooyi instituted “Performace With Purpose”, a

portion of which is explained in the following three components:
★ Human sustainability refers to PepsiCo’s efforts to nourish consumers with a range of
products from treats to healthful eats.
★ Environmental sustainability reinforces PepsiCo’s commitment to work to protect
natural resources and operate in a way that minimizes the company’s environmental
footprint.
★ Talent sustainability focuses on developing the company’s employees by creating a
diverse and inclusive culture and making PepsiCo as an attractive destination for the
world’s best people.
Convincing PepsiCo managers and employees to accept her “Performance With

Purpose” plan was a monumental task that would involve significant changes in products
and procedures within the enterprise. In any organization, change is accepted slowly and
often reluctantly. Encouraging managers, employees, and investors to buy in to changes in
company philosophy is often difficult.
CRITICAL THINKING
Indra Nooyi credited
How could an
a college course in
What skills do you emphasis on ethics
communication as
think and social
an important step in
businesspeople responsibility
her career. How do
need to succeed in improve profits and
you think you could
today’s workplace? benefit a business?
benefit
from such a course?
I think that in a great  Time In a way that creates
way taking management a better relationship
advantage of having skills with partners of the
a better  Leadership company and its
communication  Emotional clients, reflecting an
process, learning intelligence integrated image that
how to express  Team-building strengthens a lot and
oneself with contact skills generates profits and
with other people, as  Analytical grow.
well as their
experience and skills
knowledge as well as  Negotiation
the opportunity to skills
generate new  Problem-
contacts and ideas. solving skills
 Sales and
marketing
skills
 Financial
management
skills
In communicating
the changes in
In the midst of
philosophy and
organizational What kind of
practice within
changes at PepsiCo, barriers block the
PepsiCo, should
what kinds of flow of
Indra Nooyi and her
messages do you communication in
management team
think will be traveling any organization
use formal or
downward, upward, undergoing
informal channels of
and horizontally? change?
communication?
Give
examples of each.
They should use formal Speaking of the Failure to adequately
channels since it is sustainability of explain the idea of
something that talent, he focuses on the change you want
characterizes the
company and is
the development of to make, as well as
recognized. the company's the loss of control,
Formal: Through employees through especially over the
serious and formal a diverse and processes that have
language through the inclusive culture accumulated over
official company sites. should be messages time, surprise
Informal: It could that travel changes with little or
appear on the
company's social
horizontally, no space for mental
networks with a more regarding human preparation causing
colloquial language and sustainability in their major errors, lack of
even through visual products that send strategy direction
content such as images, messages downward and consistency and
videos, advertisements and environmental even cultural barriers
that demonstrate the sustainability.
changes.

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Strategic Marketing

Pamela Berenice Rodríguez Ocadiz

An inside look at PepsiCo reveals a powerful CEO

To achieve these ambitious goals, Nooyi instituted “Performace With Purpose”, a

Convincing PepsiCo managers and employees to accept her “Performance With

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