Pepsi-Cola: Nutrition or Fun? Case Study Analysis
Question 3: What should the board do considering the criticism of shareholders and stakeholders?
Most of the shareholders are interested in the company’s earnings, which will directly maximize their wealth. Currently, an increase in the company’s costs has discourage the shareholders and gave way for them to criticize the company’s management. To avoid this, Nooyi needs to work on the success factors discussed above. The company can provide proper training to its employees, innovateits products’ design and packaging to have continuous improvement.
The change in products’ design with a mixture of healthy products will be the next option for the company. (Pepsi-Cola: Nutrition or Fun?, 2012) This change will attract the customers towards the company, which will help itgrowingits profits. The company’s different product design and packaging will be eye-catching when they are placed on the general stores’ or supermarkets’ shelves, which will persuade the customers to taste the new products. The proper and attractive packaging with healthier products, will show magnetic effect, which will improve the company’s sales growth and profitability.
Another option or strategy the company needs to adopt is to provide training sessions to the employees to perform and utilize the machinery of the company, efficiently. This will reduce the company’s operating cost and will also boost its revenues. An increase in the company’s revenues and reduction in its operating cost; will automatically increase its net income, which will encourage the shareholders and stakeholders towards the company.
Conclusion
To conclude, during the tenure of Indra Nooyi, the company’s performance was not appreciated by its stakeholders and shareholders,but with the passage of time, the company started making profits and increased its market share. The strategy of Indra Nooyi didnot just bring profits to the company, but the company also started to get recognized as the most respectful company in the global market...............................
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