Women entrepreneurs play a significant role in contributing to the growth of the global and local economy. They are a significant part of the global expedition for sustained economic development and social progress. Indian born American businesswoman, Indra Krishnamurthy Nooyi was the Chairperson and Chief Executive Officer (CEO) of PepsiCo, one of the world’s leading food and beverage companies. On August 14, 2006, Nooyi was named the successor to Steven Reinemund as chief executive officer of the company effective October 1, 2006. Nooyi joined PepsiCo in 1994 and was named the 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 2007 she became the fifth CEO in PepsiCo’s 44 years history. Nooyi’s key contributions include promoting and supporting socially responsible business practices, including taking on one of the planet’s most pressing problems, climate change. Her commitment to global citizenship is evidenced by her multiyear growth strategy, ‘Performance with Purpose’. (Ray and Ray, 2011; P: 6).
Dear students for this assignment please watch the video and browse the details about PepsiCo https://www.pepsico.com/sustainability/performance-with-purpose to understand the concept of 'performance with purpose' Students must not contact the organisation directly.
The case must be based on material available in the public domain.
1. How will you use the leadership theories to analysis the importance of sustainable decisions as ‘Performance with Purpose’.?
2. Using ‘Performance with Purpose’ as a case critique the management decisions of any three Fast-Moving Consumer Goods (FMCG) companies which are using sustainable positioning as a greenwash strategy.
3. Describe the examples of social impacts created in the three FMCG companies.
4. Provide some short-term and long-term management recommendations for these companies.
Contribution of Women Entrepreneurs to the Economy
In today's time, organization leaders recognize the employees as primary key factors to evaluate the sustainability outcome (Maclaren, 2016). The organization grows with the support of sustainable decisions. Organizations reduce waste through sustainable decisions. Sustainable decision encourages employees to establish a sustainable environment within the organization. In modern time Fast-moving customer’s good organization (FMCG) is focusing to improve the consideration of economy, environment, and health (Mridanish, 2013). A sustainable decision of an organization focuses on the concept of sustainable development. This helps organizations meet the requirements of the present without conceding the future generation's ability to meet their own requirements. The main three pillars of sustainability are social, environmental, and economic. This paper will discuss the use of leadership theories to analyze the importance of sustainable decisions as to the performance with purpose. Management decision taken by fast-moving customer good organization is using sustainable positioning as a greenwash strategy. Further discussion covers the examples of social impact created by FMCG organizations and short-term and long-term management recommendations for FMCG organizations.
In today’s time sustainability has become more than a recent buzzword (Oltean-Dumbrava, Watts, & Miah, 2013). A sustainable decision provides more insight into the business. The sustainable decision in organizations helps to drive innovations. It also improves the quality of life of employees within the organization (Fielding, Terry, Masser, & Hogg, 2018).
Behavioral theory within the organization helps management to focus on the behaviors by making sustainable decisions (Fowles, 2017). Primary skills are executed by the management for leading a team through making a sustainable decision by human, conceptual, and technical skills. This improves management strength in critical situations. This also generates a meaningful atmosphere in the organization through an employee's development. The sustainable ecosystem created by sustainable decisions. The behavioral theory with the support of sustainable decisions helps the organization to reduce the negative behaviors. Behavioral theory helps the organization to make a sustainable decision by the support of a leader's personality to effectively handle the crucial situations. The behavioral theory also helps the organization to generate sustainable decisions according to the group characteristics, tasks, structures of organizations, and objectives. As per the Ohio state university studies, behavioral theory transforms leaders to imply organizational behavior among the subordinates. This is task-oriented and support management to monitor, direct, and design work of employees and implements behavior of leadership toward monitoring of sustainable decisions. Another study on behavioral theory is done by Michigan is known as a Michigan study. This focuses on the procedure and business methods to indicate the subordinate's satisfaction and performance to a sustainable decision. The behavioral theory also gives more aspects and insight about the environment development (Shimizu, 2017).
Indra Nooyi and 'Performance with Purpose'
Situational theory helps the management of the organization to handle the crucial organization situations through sustainable decisions (Jeong-Nam & Grunig, 2011). The situational theory of leadership helps organization management to identify the situations and make the right action according to the sustainable decision. The situational theory of leadership helps management to improve the organization's economy. It also increases the many opportunities in the organization by the development of many accesses to basic resources. The economy is developed by effective solutions for sustainable decisions. Economy development of the organization is also building success among individuals and communities through sustainable decisions (Hamilton, 2012).
Many variables are increased by the support of contingency theory in the sustainable decision (Donalson, 2011). Contingency theory helps organizations to focus on the employees by providing many opportunities for growth within the organization. Employees within the organization are significant assets. Effective leadership is formed through the performance with purpose by delegating more opportunities to employees. The contingency theory of leadership helps the organization to communicate and educate employees through sustainable decisions. A sustainable diet is completed by a nutrition product. This also contributes towards food and nutrition security and healthy life for organization employees (Tosi, 2014).
FMCG organizations provide products to customers at a high rate with innovation at a higher level. The market is very competitive and each organization motivates and encourages buyers to use products.
Australian organization Coca-Cola has launched a new green drink as the hope to target health-conscious customers. The product of the organization is labeled as a vibrant green drink that refers to lower calories by less sugar. This organization slaps a logo on products by calling it healthier and painting its products as green that makes people think that they are making a healthier choice for the environment and themselves. This is not true that environmentally conscious is not a trend. The group accepts it as a niche as it is not a label. This organization also promoted that the product of the organization now has 6.6 percent sugar compared to 10.6 in products. This is not a healthier choice as per the Cancer Council Australia Public Health Expert Sinclair.
One of the famous fast-moving consumer good organizations in Australia is Woolworths. This organization has mentioned that organization marketing tissues use a sustainable forest fiber logo with the tagline that it came from a certified environmentally managed organization that is socially, environmentally, and economically viable. The environmental claims were subsequently withdrawn and disputed. The products of the organization returned in the different packaging on shelves.
Application of Leadership Theories in the Context of Sustainable Decisions
Bellamy's Australia is also known as the main food and beverage organization of the nation. The major objective of the organization is to give an unadulterated begin to youthful kids' life by advancing adhering towards a good diet rehearses in youngsters. This organization stated that products of the organization are only made by the finest ingredients. One of the reports has mentioned that it acts like supplementary kid nourishment that is made to fill the entire dietary requirements of children and kids. Employees of the organization also present it very wrongly to the customers as products not provide the necessary nutrition to kid’s health.
Coca-Cola does business at a global level. This organization exaggerates the tastiness of products to draw in customers. It willingly misleads the customers by generating a falsely green image. This kind of information outrights dishonest advertising. This also generates overblown environmental claims. Coca-Cola also spread misinformation by sloppiness. Greenwashing takes and involves everything. Customers unnoticed Greenwashing as duped in buying of products as thinks all are environmentally sound. The explosion of Greenwashing suffers from lowered customers' confidence.
Woolworth’s claims are so poorly defined and intended to confuse customers. This is not true as the tissues of the organization are not environment-friendly. This is at a large level unimportant and unhelpful. This organization suggests that it set to pay attention to the overall negative impact of the product. This is also a common form of Greenwashing and makes all false claims towards customers.
Bellamy’s Australia by Greenwashing strategy can lose money and trust of customers. This will put the employees unsafe for the environment. It will also put the employees at risk of harmful products and instances often unsafe for employees. Provisions of the organization will impact the customers by making misleading and false claims including labeling across all promotional materials.
Coca-Cola required to investing in business and brand regularly. Organization investment in the making of a product more effective will help the organization to make the product healthier by decreasing the content and quantity of sugar in its products. Coca-Cola's short term goal will be to focus on to make the product healthier by inspire moments of happiness and optimism. The long term goal of Coca-Cola will be to focus on the direct marketing channels to customers by utilizing many bottling partners to focus on the creation of a beverage.
The short term goal for Woolworth will be to improve the stock turns and optimize the efficiency of the network by ensuring that customers served more around the globe. The long term goal for the organization will be to deliver the best regarding the value, convenience, and quality products to customers. The organization should also sell effective products in organization areas. The organization will offer a wide variety of products and seasonal compared to rivals.
Bellamy’s Australia short-term goal will include the infant formula that can have the plans to refresh entire brands by improving the quality of ingredients. The organization should improve certainty by giving a forecast for the growth of its Australian label. Long term objective for the organization should be to deliver strong quality products by implementing all the necessary supplements that improve user health.
In the limelight of the discussion it can be concluded that theories of leadership like contingency, behavioral, and situational are very important for sustainable decisions. Sustainable decisions also help the organization to protect the environment, and develop the economy more effectively. This also helps the organization to develop at social level by supporting employees more effectively. Further discussion covers the management decisions of fast-moving customer good organization like Coca-Cola, Woolworths, and Bellamy’s uses its products as sustainable positioning towards greenwash strategy. These are human sustainability, environment sustainability, and workforce development. Further discussion also covers the social impacted generated by these organizations. In the end, the discussion covers the short-term and long –term management recommendations for FMCG organizations.
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