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Current Leadership Strategies Of Pepsi Foods Mexico

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Evaluate the Most Important Leadership Skills and Competencies that you think will be required for Pepsi Food Mexico Organisation.



In the contemporary business environment, PepsiCo Foods Mexico (PFM) has required making significant changes in leadership patterns to draw substantial advantage in the marketing. By referring to the study material of PFM’s strategic intervention, Pepsi Foods Mexico’s current leadership strategies must be transformed to achieve innovation in the marketing. Meanwhile, the identified change will be required to increase customer loyalty through enhancing the core business competencies of PFM in the target market. Notably, the role of Jorge Rubio, the marketing veteran in PFM, has to be evaluated that can eventually make a huge impact on the change process. Precisely, the change will be effective for futuristic growth and sustainability of business in the target market (Williams, 2010).

In order to improve the changing scenario, transformative leadership will be the order of the day. In the study, a thorough discussion on transformative leadership has been presented to draw the impact on the same managing change (Nieman, Schuyler and Brett, 2014). Leading to change, the study evaluates the role of the marketing leader to develop transformative leadership among the staff members within the CSI Department of PFM. To finish, the research study suggests the contrasting scenario of transformative and transactional leadership.


Transformative Leadership

The concept of transformative leadership was introduced by James McGregor Burns, a leadership expert of modern time. According to him, transformational leadership can be defined as a particular leadership style that will lead the organisational employees to move to a higher level through motivation (Galli, 2016). Precisely, transformative leaders have set high expectations towards the workforce so that remarkable results can be achieved. Moreover, transformative leadership encourages the staff members to find efficient ways of achieving targets increasing the workplace morale (Antonakis and House, 2014). Through excellent rapport, transformative leaders mobilise the workforce leading by examples. Admittedly, transformational leaders are specialised in working to change management within the HRM system.


In the context of the existing scenario of PFM, transformative leadership must be introduced to the target audience i.e. the staff members within the CSI Department of PFM. Currently, the employees are reluctant to change the pattern within the marketing department. However, transformative leadership can alter the situation by changing the things that no longer works in the system (Sanders, Hopkins and Geroy, 2013). The transformative leadership will be effective for the employees as it will be evident in solving challenges through innovative ideas. Precisely, transformative leadership will help to replace the traditional patterns that are not fit with the system anymore.

By enforcing transformational leadership strategy within the workforce, PFM management can give employees autonomy over their particular job positions to make significant decisions suitable for achieving the overall business targets. Invariably, transformative leadership will encourage to maximising the capability and capacity of organisational teams. In addition, transformative leadership traits can be influential for every member of CSI Department so that each of the integral units can work efficiently with others (Gunn, 2009). Decisively, transformative leadership will help the employees to look beyond self-interest to attain the organisational goal. Undoubtedly, the staff members will be encouraged to achieve the improbable leading to change. 

Change process

Transformative leadership can be one of the most ideal strategies to management the change within the CSI Department of PFM. Significantly, transformative leadership among the team members can motivate the rest of the subordinates to deliver the vision at the workplace. Moreover, transformative leadership will be evident to set up trust-based relationship creating a unique and inimitable workplace culture (Galli, 2016). Precisely, such strategies can become the core competencies of the business leading to achieve competitive advantage in the target market. Leading to achieve significant change management, transformative leadership will be effective to combine the workplace diversity.

By focusing the strategic programmatic objectives, transformative leadership can determine diversity as one of the core organisational value leading towards success. By respecting the workplace diversity, transformative leadership can work according to the set plan irrespective of race, culture, religion, etc. Predominantly, transformative leadership has turned the diversity into empowerment and extensiveness that can be highly effective for achieving corporate goals (Bond and Keys, 2013). Precisely, inclusiveness and empowerment can help to change the course of the dynamics so that employees can become more committed to their responsibilities and job positions. Meanwhile, transformative leadership has provided the freedom to the staff members to control their actions and activities setting their destinations accordingly (Shambach, 2014).

Understandably, by including the transformative leadership within the CSI Department of PFM, employees can pioneer innovative strategic initiatives that can be useful to lead changes. Apart from that, the benevolent tradition within the management can get a makeover through the introduction of transformative leadership (Gunn, 2009). Unanimously, such leadership traits can encourage diversity culture among the workplace leading towards empowerment, inclusiveness, and equity.  Furthermore, employees can feel an eager sense of accountability that will make a positive impact at the end. However, the style of management must be suitable to merge each of the constituents relevant for successful transformation of leadership (Chun and Evans, 2009).


Meanwhile, research shows that transformative leadership is an essential modern-day leadership theory that helps in successful organizational change management. The application of transformative leadership helps in increasing the job satisfaction and motivation level of the workforce that further improves the productivity of the firm (Kennedy, 2008). Transformative leadership helps in referring to the process of major changes in the assumptions and attitudes of the organization’s members and develops a commitment for the firm’s objectives, mission and strategies.

On the other hand, the transformative leaders are those people who bring about the innovation, change and entrepreneurship for the improvement of the current operations of the firm. The transformational leaders are responsible for recognising the needs for change, create new vision, and implement the change (Mitra, 2013). The transformational leaders have the ability to inspire their subordinates to make the changes according to the needs of the firm and put themselves into the role of implementing the changes. On the other hand, transformational leaders attempt to increase the needs of the followers and promote dramatic changes in the behaviour of the organisations, groups and individuals (Makipere, 2008). Hence, transformative leadership is quite valuable for leading the change processes that are to be implemented by the CSI department of PFM.

Contrast between transformative and transactional leadership

The differences in the leadership styles rely on the ways the management uses to control their subordinates. Transactional leadership style is another approach that is used by the management to maintain the normal glow of the operations. In other words, transactional leadership can be considers as an approach that is used to keep the ship afloat (Tubin, 2017). The transactional leaders use an array of incentives and disciplinary power to motivate the employees to perform well in the organisation. The term transactional refers to the exchange of performance for rewards that is used by the managers to improve the productivity of the workforce (Mitra, 2013). The concept of transactional leadership can be introduced effectively drawing new models over the existing ones. Precisely, transactional leadership encourages the followers to make the move first during the change management. Meanwhile, by focusing of the target audience, staff members can be motivated leading towards transactional leadership. By identifying the trend in the existing market, transactional leadership can deliver cost effective measures drawing sustainable competitive advantage (Phillips and Hunt, 2012).

But, in the case of PepsiCo Food Mexico, there is a need of implementing change in the operations of the CSI team. There is a need of transformative leadership approach that goes beyond the day to day operations of the firm and develops strategies for taking the individuals, groups and organisation to the next level of success and performance (Tubin, 2017). The transformative leadership style focuses on improving motivation, team building and collaboration with the workers al a different level of the organization to effectively implement the changes for the betterment of the firm. In other words, transformative leaders have increased the emotional attachment among the employees to motivate their performance (Mitra, 2013). By exchanging the relations, transformative leaders have encouraged the team members to think beyond self-interest. Notably, transactional leaders have developed fundamental orientation dealing with the current issues whereas transformative leaders are proactive by nature. Through leading by examples, transformative leaders have led to innovation (Rogers, 2008). In case of PepsiCo Foods Mexico’s business context, transformative leadership can replace the traditional functions with the new ones so that strategic goals of the management can be achieved. Evidently, promoting new marketing system, the organisation can develop sustainable business advantage that will increase brand image in the target market. Hence, transformative leadership skills and competencies are more appropriate for leading the change in the CSI department of PepsiCo Foods Mexico.


Important leadership skills and competencies

By considering the above analysis, the CSI team of PepsiCo Food Mexico needs to develop transformative leadership skills and competencies in order to lead the changes in the operations of the firm. There are several leadership skills and competencies that can be developed by the team members to successfully implement the changes (Rogers, 2008). For example, innovation is the first criteria to lead the changes in the organisational culture. The CSI’s members must be creative enough to develop better marketing strategies to influence the customers. Innovation helps the workforce to lead the organisation towards its success by seeking competitive edge in the Mexican market (Hesselbein and Johnston, 2012). There is a need of developing a innovative mindset among the employees and higher responsibilities must be allocated to them to increase employee engagement. The improvement in the employee engagement through innovative mindset will enhance the productivity of the CSI team.

On the other hand, the self motivation skill and competency of a transformative leader will help the CSI members to set a clear vision and mindset to achieve the desired goals. The self motivation skill will help the employees to assess their strengths and weaknesses to develop their individual competencies (Hesselbein and Johnston, 2012). On the other hand, the motivational skills will help the CSI members to motivate their subordinates to follow the change process and deliver the vision of the organisation. The members need to appeal to the people’s value and inspire them with where and why they are leading them. Hence, the self motivation skill will develop a confidence among the members of the organisation to effectively lead the changes.


In the meantime, the CSI team members must develop customer centric approach to lead the operations of the firm. Understanding the need of the customers and their changing behaviour will help the team to develop better marketing plans (Hesselbein and Johnston, 2012). The customer focusing skills will help the employees to influence the buyers and develop a better reputation of the firm. The customer focusing skills can be used to conduct market research and develop new products according to the need of the buyers. Hence, this skill of the CSI members will be helpful to implement the changes effectively and improve the market positioning of the firm.


On the basis of the above analysis, PepsiCo Foods Mexico needs to make changes in its leadership styles to improve its marketing activities. The company will develop a Customer Service Insights that will focus on customer centric approaches and creative ideas to improve the marketing activities of the firm. In order to make the necessary changes to achieve a more flexible, innovative, creative, and matrix form of organisation, the members of the firm must focus on implementing transformative leadership style. The transformative leadership approach will help to motivate the workers and develop a clear vision for the future to influence the employees to work for a common goal. On the other hand, the transformative leadership approach will increase employee engagement. The approach will promote worker’s satisfaction level and loyalty towards the firm. Moreover, the transformative approach will influence the workforce to consider the changes, beneficial for own interest as well as for the organisation. On the other hand, the leaders of the firm must possess innovation, customer focusing, and self motivating skills to influence the organisation to move towards the right direction. Conclusively, the transformative leadership skills and competencies must be developed by the members of PFM to effectively lead the changes.



Antonakis, J. and House, R. (2014). Instrumental leadership: Measurement and extension of transformational–transactional leadership theory. The Leadership Quarterly, 25(4), pp.746-771.

Bond, M. and Keys, C. (2013). Empowerment, diversity, and collaboration: Promoting synergy on community boards. American Journal of Community Psychology, 21(1), pp.37-57.

Chun, E. and Evans, A. (2009). Bridging the diversity divide. 1st ed. San Francisco, Calif.: Jossey-Bass.

Galli, B. (2016). A Shared Leadership Approach to Transformational Leadership Theory. International Journal of Strategic Decision Sciences, 7(3), pp.1-37.

Gunn, A. (2009). Audacity of leadership. 1st ed. Authorhouse.

Hesselbein, F. and Johnston, R. (2012). On leading change. 1st ed. San Francisco: Jossey-Bass.

Kennedy, P. (2008). Enterprise risk management: effective ERM practices. Strategy & Leadership, 36(3).

Makipere, K. (2008). Sustainable leadership. Strategic Direction, 24(9).

Mitra, R. (2013). From Transformational Leadership to Leadership Trans-Formations: A Critical Dialogic Perspective. Communication Theory, 23(4), pp.395-416.

Nieman, T., Schuyler, J. and Brett, J. (2014). Value of Competency and Value of Competency Assessment. SPE Economics & Management, 6(01), pp.28-39.

Phillips, R. and Hunt, J. (2012). Strategic leadership. 1st ed. Westport, Conn.: Quorum Books.

Rogers, C. (2008). Leadership skills in policing. 1st ed. Oxford: Oxford University Press.

Sanders, J., Hopkins, W. and Geroy, G. (2013). From Transactional to Transcendental: Toward An Integrated Theory of Leadership. Journal of Leadership & Organizational Studies, 9(4), pp.21-31.

Shambach, S. (2014). Strategic leadership primer. 1st ed. Carlisle Barracks, PA: US. Army War College.

Tubin, D. (2017). Leadership identity construction practices. Educational Management Administration & Leadership.

Williams, D. (2010). Weighing in on Competency. Lippincott's Case Management, 5(4), p.129


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