PepsiCo Inc.: Nooyi's Global Vision

Aug. 9, 2009
Visionary executive leads company's expansion efforts

Since becoming CEO of the world's second-largest soft-drink maker, Indra Nooyi has reached near-celebrity status in the business world.

Time Magazine named the PepsiCo Inc. executive one of the 100 Most Influential People of 2008, she attended President Obama's bipartisan economic summit when he was on the campaign trail last summer, U.S. News & World Report named her one of America's Best Leaders for 2008, and in July The Global Supply Chain Leaders Group named her CEO of the Year.

Nooyi earned her latest recognition from The Global Supply Chain Group for "promoting and supporting socially responsible business practices, including taking on one of the planet's most pressing problems -- climate change. Ms. Nooyi was also instrumental in the company's efforts to provide a wider portfolio of nutritious foods and beverages. Her commitment to global citizenship is evidenced by her multiyear growth strategy, Performance with Purpose."

Nooyi was named president and CEO on Oct. 1, 2000 and became chairman on May 2, 2007. For the past decade, Nooyi has directed the company's global strategy and led PepsiCo's restructuring, including the divestiture of its restaurants into Yum Brands Inc. and the acquisition of Tropicana and more recently a buyout agreement with Pepsi Bottling Group Inc. and PepsiAmericas Inc.

Pepsico Inc
At A Glance

Pepsico Inc.
Purchase, N.Y.
Primary Industry: Beverages
Number of Employees: 198,000
2008 In Review
Revenue: $43.3 billion
Profit Margin: 11.9%
Sales Turnover: 1.2
Inventory Turnover: 8.5
Revenue Growth: 9.6%
Return On Assets: 14.8%
Return On Equity: 29.8%
The Aug. 4 acquisition of the company's two largest bottlers ends months of contentious negotiations after PepsiCo offered an estimated $7.8 billion for the two companies. PepsiCo initially offered $6 billion.

The transaction is expected to result in pretax cost savings of $300 million by 2012 from greater efficiencies and improved revenue opportunities, the company said.

"The fully integrated beverage business will enable us to bring innovative products and packages to market faster, streamline our manufacturing and distribution systems and react more quickly to changes in the marketplace, much like we do with our food business," said Nooyi in a statement. "It will also make it easier to leverage 'Power of One' opportunities that involve both our beverage and food offerings, and for PepsiCo to present one face to retail customers. Ultimately it will put us in a much better position to compete and grow both now and in the years ahead."

Power of One is the company's marketing strategy introduced about a decade ago.

Nooyi's growth strategy has a global reach. The Indian-born executive took a 10-day tour of China in July and said the company would increase its agricultural investments in the country, according to China Daily.

In addition, the company said on July 6 it plans to invest US$1 billion in Russia over three years as part of its strategy to expand in emerging markets. The investment in Russia is funding various programs to expand manufacturing and distribution capacity.

The company, which says it's the largest private user of potatoes grown in Russia, plans to continue investing in local agriculture.

These moves, together with Nooyi's vision for reaching emerging markets, should help the company build on its 19% international revenue increase in 2008.

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