Leadership And Change Management Essay: SWOT Analysis Evaluation, Limitations, And Recommendations. (70 Characters)

Evaluation of the Leadership and Change Management Development Plan

Discuss about the Leadership and Change Management for Swot Analysis.

Evaluation of the leadership and the change management development plan is necessary as by evaluating and analyzing the actual effectiveness of this plan will only give the insights where the company is required to put higher efforts and where there is need of any particular strategy to manage the barriers for achieving success and growth in the business. The SWOT analysis technique, various evaluation techniques as well as the annual reports will be utilized to measure and evaluate the success of the plan. After evaluation there has been found that the company is required to decrease its products costs which are increasing annually as well as rather than laying off the employees PepsiCo must implement strategies to have a cost management and profit maximization in the company (Colvin, 2012).

There are several changes which took place under the leadership of Indra Nooyi such as development of the snacks, drinks and products which are health-conscious rather than just manufacturing the soft drinks. She manages to overcome the negative impacts majorly issues related to obesity posed by the products of PepsiCo. She bought various innovations in the operations, business and in the organization which supports the success of the company (Snyder, 2015). Another change took place was the expansion of the portfolio where there were introduced several new and innovative products for capturing the market. In the leadership of Indra Nooyi there were also changes regarding the management as various senior mangers joined the company to gain development with their experience.

At the timeframe when Indra Nooyi joined the PepsiCo Group the company holds the recognized and finest position in the market. Pepsi was identified as the leader of the soft drinks market but in few years only there was a reverse scene which took place in the industry. The market capturing of Coca-Cola keeps on increasing year by year and respectively the extensive market share of Pepsi was rapidly declining and thus increased market competition and incompetency of the PepsiCo. Group to sustain that completion was one of the drawbacks of the leadership of Indra Nooyi (Feng and Enomoto, 2013).

The already stated revenue targets in last few years were too high that they were unable to meet by Indra Nooyi and her leadership faces a strong impact due to decreased revenues of the PepsiCo. Group (Barnett and Colvin, n.d).

Drawbacks/Limitations in Leadership Style of Indra Nooyi

The leading and eye-catching product of PepsiCo which was considered as the flagship product of the company was completely beaten up by the opponents’ products. The company was unable to stand within the market competition and thus the stakeholders doubted the leadership traits of Indra Nooyi

To cut-off the increased costs, Indra Nooyi lay off the jobs of around 8,700 workers. Thus step of her leadership strategy drowned her image as a successful leader as instead of adopting other cost management techniques she chosen the laying off of the employees (Bureau, 2011).

Another drawback or limitation o Indra Nooyi’s leadership was time utilized for the incorporation and implementation of a new strategy. The overall execution took a lot of time and the outcomes were delayed and thus the slower processes decreased the competitive spirit of the company (Freedhoff, 2014).

One significant limitation in the leadership style of Indra Nooyi came into light when the production costs of the products and the business operations hiked and this increased production cost sustain back the company from being an efficient competitor and thus the employees were are getting negatively impacted by these increased production costs (Moore, 2007).

Specific:The specific recommendations for the development or implementation plan of PepsiCo includes the Specific objectives which focuses over the short term objectives the company wants to achieve and it is required to be very much precise about that. The specific recommendations are decreasing of the production cost of the company, increasing its market share by 20 percent by the year 2020 and increasing the market share through the delivery of healthy and consumer friendly products and drinks.

Measurable:The measurable recommendations are the one whose evaluation and success can be measured from time to time. There is a need that the recommendation must be measurable such as for PepsiCo the measurable recommendations comprises of such as for decreasing the production cost, the company needs to evaluate the quarterly result so that there can be effective measurement and evaluation of the strategies that whether they have been implemented correctly or not.

Achievable:The recommendations for the development plan are required to be achievable which means that the company must be competent enough to perform those things rather than just planning various things which PepsiCo is unable to act or achieve in the real timeframe. As per the competence and inherent capabilities of the business operations and the employees the company should form strategies such as the revenue targeted for 2020 is 20 percent which sound to be achievable and with various strategies the production cost will also going to decrease.

Smart Recommendations for the Development/Implementation Plan

Relevant:The only reason why the company is undergoing any change in its policies and strategies should not be that the other companies ate also going through the same or it’s the trend of the market. Rather there must be evaluation that what will be the impact of the change, either it is required at the present time or not and what all are the benefits attained with this change management. The relevant recommendations are to increase competitiveness the various strategies related to cost management and profit maximization must be incorporate.

Time-Oriented:The one major element is time frame in which the recommendations are needed to be achieved as if the implementation is very slow and the actual time has been lapsed for the execution then the results and outcomes will be of no or of minimum use so it is essential that everything should be worked as per the time planned for that respective activity. Here the time is three to four years for getting the desired results (Fanzo, Hawkes and Rosettie, 2016).

There is a need of change management development plan in PepsiCo as with the effective and supportive leadership traits the company can attain higher profits and success. The business industry has experienced extensive number of cases where just the change in the leadership has altered the entire picture of the company. The change in the leadership will eventually change the mindset and working behaviour of the employees. A few changes in the leadership of Indra Nooyi can once again make the brand the leading one in the industry. There can be use of a tool called force field analysis tool which can better assist in the decision taking regarding the change management plan. The leadership and change management development plan can be finalized by adopting the SMART recommendations provided above as well as by implementing strategies by the leader to decrease the production cost, boosting the morale of the employees, reducing laying-off of the employees, enhancing revenues and decreasing time taken for implementing strategies (Cummings and Warley, 2014). 

References

Barnett and Colvin, n.d. Pepsi's CEO faces her biggest challenge, Fortune, Retrieved on: 25^th September, 2016, Retrieved from: https://fortune.com/2012/02/13/pepsis-ceo-faces-her-biggest-challenge/

Bureau, ET., (2011), World Inc caught in a leadership crisis: Indra Nooyi, The Economic Times, Retrieved on: 25^th September, 2016, Retrieved from: https://articles.economictimes.indiatimes.com/2011-11-04/news/30359642_1_indra-nooyi-leadership-crisis-brands

Colvin, G. (2012). Indra Nooyi’s Pepsi challenge. Fortune Magazine.

Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage learning.

Fanzo, J., Hawkes, C., &Rosettie, K. (2016). Making SMARTer commitments to nutrition action: Global nutrition report guidance note. Intl Food Policy Res Inst.

Feng, Y., &Enomoto, C. (2013). Did Fortune 500 Companies With Female CEOS Lay Off Fewer Workers In The Great Recession?. Leadership & Organizational Management Journal, 2013(2).

Freedhoff, Y. (2014). The food industry is neither friend, nor foe, nor partner.Obes Rev, 15(1), 6-8.

Moore, A., (2007), Indra Nooyi's Pepsi challenge, Market watch, Retrieved on: 25^th September, 2016, Retrieved from: https://www.marketwatch.com/story/indra-nooyi-puts-her-brand-on-pepsis-pressing-global-challenges

Snyder, B., (2015), 7 quotes that prove what kind of leader Indra Nooyi really is, Fortune, Retrieved on: 25^th September, 2016, Retrieved from: https://fortune.com/2015/06/07/indra-nooyi/