Introduction

Taking into accounts details from the mini case 2- PepsiCo’ Indra Nooyi: Performance with Purpose, some essential insights are brought into right. First, it is evident that the chief executive officer of Pepsico, Indra Nooyi is of the idea that the success that the company is currently achieving and the one to achieve in future is a result of one with one adoption of the principle of performance with purpose. As presented in the mini case, the principle of Performance with Purpose declares Pepsico’s intention to improve how it impacts consumers’ health, environment and the communities where it operates while remaining financially st able.In simple terms performance with purpose entails incorporating health and sustainability goals into the PepsiCo strategy. As much as this might be appealing to some section of the population, it is not as strong as it ought to be. The problem with it is that it lacks the aspect of shared purpose, especially with the employees. In other words, it lacks the perceived value delivery- the statements of customer value provision by employees which are very important are not mentioned.

Thesis Statement

The performance with Purpose could appeal to many by being more effective as a tool to be used to optimise, and concentrate employee energy and resources to reflect commitment, focus and passion.

Background

Pepsico, since its inception in 1965 had grown to become one of the largest selling food and  Beverage Company globally. In its beginning, Pepsico aim was to establish a business whose objective was to serve long term dynamic needs of consumers across the world. This meant it was to cater to all the needs of its customers from wherever in the world. However, as consumers of PepsiCo became health sensitive, the company had to seek options to produce products that take into account the health requirements of its customers. As noted by Sharma (2017), before the introduction of Indra Nooyi as the CEO, PepsiCo promise of corporate social responsibility that related to health, obesity, and marketing to underage were not only weak and vague but disingenuous and deceptive. With her as the CEO, Nooyi redeveloped the corporate social responsibility policy to include environmental sustainability policies and human sustainability policies. Some of the core CSR policies that have been adopted are the management of solid waste, replenishing water, and partnering with farmers in the bid to boost their productivity.

Alternatives

The “Performance with Purpose” as presented in the case documents well how PepsiCo is committed to ensuring it that company delivers to increase its productivity by offering high-quality products and by ensuring that the human and the environmental aspect is kept sustainable. However, it falls short in explaining the aspect of the perceived value delivery. To achieve this, various alternatives need to be looked into. These alternatives will all focus on the worth of PepsiCo products and services in the opinion of customers.

Alternative 1

Indra Nooyi and PepsiCo need to find logical evaluations and emotional impressions. This includes putting a value on things that PepsiCo customers can accomplish with its products and services, visual appeals, and packaging. For instances, focusing on an accounting service that eliminates customers’ administrative burden related to tax.

Alternative 2

Creating great customer experiences and enabling them through inspirational leadership. This option will entail educating its employees on how to handle customers at all levels of production within the company. Establishing training and development programs all through the year in all the company outlets is one way.

Alternative 3

This last alternative will entail empowering culture, and empathetic employees who are happy and fulfilled. Through this, the company will be able to instil a culture o its employees a culture that values both human and environmental sustainability at all levels of productions and marketing.

Proposed Solution

For PepsiCo to achieve its goal of being financially stable and at the same time ensuring human and environmental sustainability is maintained, they have to create a customer perceived value through its employees. Alternative three will correctly work for the company. Focusing on hiring employees who are innovative, motivated, proactive, and empowered will help the company develop products and services that are friendly to both human and the environment. This will, in turn, ensure that the company prospers in terms of revenue earned and a broad customer base of loyal customers.

Recommendations

For the proposed solution to work effectively, PepsiCo has to begin by relabeling its performance with purpose principle to something like ‘Performance with Purpose, Passion, and Commitment to Customer Value Delivery’. The second recommendation is for the company to invest more in research and development in the bid to understand things that drive value for its customers. If for example, their customers find value in non-carbonated drinks, PepsiCo has no option but to produce more of such products. Lastly, PepsiCo need not to stop giving back to the community where it operates. It should be more aggressive in implementing the already adopted corporate social responsibilities. This way it will be able to have a competitive edge over its competitors.

Conclusion

Although Indra Nooyi has done a lot in PepsiCo is doing great in the industry, the company has to focus on customer value delivery. It is through this value delivery that the company will be able to meet its goals of human sustainability and environmental sustainability. In this regards, it should put employees at the core since they are the one responsible for ensuring customer values are met. The other two alternative falls short of being selected as the solution since they are not all round.

References

Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution,        development, and application in marketing. Journal of the Academy of Marketing       Science, 45(4),            467-489.

Sharma, K. (2017). Corporate social responsibility in beverage industry a comparative study of     Coca Cola India and PepsiCo India.

 
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