OPPORTUNITIES IN TRENDS In The New Competition for Global Resources , a special
ID: 429932 • Letter: O
Question
OPPORTUNITIES IN TRENDS
In The New Competition for Global Resources, a special report from Boston Consulting Group and Knowledge@Wharton, the threat driving new understandings about the global future, leadership, and competition was defined as "the need to compete with everyone, from everywhere, for everything" (2008, p.18). Using the case study PepsiCo India: On Road to Sustainable Development?, define how the shaping and driving forces that PepsiCo experienced in India impacted its leadership agenda. In particular, address whether the impact of the forces merely created leadership recognition that situations needed to be fixed or contained in order for the firm to penetrate further into the Indian consumer market, or whether the impact of the forces created a reorientation of the leadership agenda as the PepsiCo mindset changed because of learning about and exploring a complex set of concerns for the future.
Explanation / Answer
In India, the revenues or topline of Pepsico has been rising steadily for the last five years. But the company is facing problems maintaining profitability. It reported a loss in three periods out of the last five periods.
Pepsico had owned bottling operatings in India. Last year it sold its bottling operations to its partner, so as to reduce its working capital and free its resources.
The company has been witnessing double digit growth rate in India and as such the top management has declared it as a "high priority market" for Pepsi on a global level.
Now the leasership agenda is to make more products suiting the local taste. For eg. the company's snacks brand "Kurkure" is a super success story in India. It was developed in India, for India, to suit the tastes of Indian buyers.
The learning for the leadership management was that India appreciates products more suited to their requirements. By adopting this force or learning and applying it to their other products, the company aims to further penetrate the market.
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