(PepsiCo\'s Indra Nooyi: \"Performance with a Purpose\") and discuss the followi
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(PepsiCo's Indra Nooyi: "Performance with a Purpose") and discuss the following: If you were a member of the compensation committee of the board of directors for PepsiCo, would you recommend Ms. Nooyi be given a raise (how much?), no raise, or reduced compensation (how much?) and discuss why you feel that way. Also discuss your decision with other students in your discussion group.
PepsiCo's Indra Nooyi: "Performance with a Purpose" When appointed CEO of PepsiCo in 2006, Ms. Indra Nooyi was only the 11th woman to run a Fortune 500 company. Since then, Ms. Nooyi has been ranked in the top ten of Forbes Magazine's list of the world's 100 most powerful women. In 2010, she topped Fortune's ranking of the most powerful women in business. Today, leading a company that employs some 300,000 people worldwide, Ms. Nooyi is considered one of the most powerful business leaders globally A native of Chennai, India, Ms. Nooyi obtained a bachelor's degree in physics, chemistry, and mathematics from madras Christian College, an MBA from the Indian Institute of Management, and a master's degree from Yale University. Prior to joining PepsiCo in 1994, MS. Nooyi worked for Johnson & Johnson, Boston Consulting Group (BCG), Motorola, and ABB. For her BCG interview, right out of Yale, Ms. Nooyi wore a traditional sari. Ms. Nooyi is not the typical Fortune 500 CEO: She is well known for walking around the office barefoot and singing-a remnant from her lead role in an all-girls rock band in high school It should come as no surprise, therefore, that Ms. Nooyi-an executive who spends more than 50 percent of her time outside the US has been shaking up things at PepsiCo. She took the lead role in spinning off Taco Bell, Pizza Hut, and KFC in 1997. Later, she masterminded the acquisitions of Tropicana in 1998 and Quaker Oats (including Gatorade) in 2001. As CEO, Ms Nooyi declared PepsiCo's vision as performance with a purpose, defined by three dimensions 1. Human sustainability, which concerns the strategic intent to make PepsiCo's product portfolio healthier, to combat obesity. PepsiCo wants to make the "fun foods" such as Frito-Lay and Doritos healthier (less salty and fatty), and to include healthy choices in its product portfolio (such as Quaker Oats products and Tropicana fruit juices). Ms. Nooyi is convinced that if food and beverage companies do not make their product lineups healthier to combat obesity, theseExplanation / Answer
Even though Pepsico's stock performance is less than that of its rival Coca-cola, the company's CEO should be given a wage raise because under the leadership of Indra Nooyi the company's corporate and social responsibility has improved a lot. This will attract new investors to the company as investors not just look at financial performance but also pay attention to other factors such as clean image, contribution to society , ethical practices etc. Young people today are highly conscious of what they consume and would reject any product if it is harmful or causes adverse side effects to health. The company should continue to focus on sustainability and corporate social responsibility and sooner rather than later the company's financial performance will gradually improve.
The wage rise should be in accordance with the industry and company standards .
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