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Pepsico The Challenge Of Growth Through Innovation Case Solution

Solution Id Length Case Author Case Publisher
2078 599 Words (4 Pages) Mary Summers, S. Venkataraman Darden School of Business : UV3910
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When PepsiCo’s 1996 annual report revealed that the company had incurred a loss, Enrico motivated the employees by stating that the company could get back on track. As a strategist, he was seen developing a team to assess the problem areas that had resulted in the company losing profitability. As a strategist and a leader, he was a good decision-maker because he took the company to acquire businesses that complimented PepsiCo’s core business. This included the acquisition of Tropicana and Quaker, which complemented not only the product offerings but also the supply chain of PepsiCo. 

Following questions are answered in this case study solution:

  1. What do you think of Enrico as a strategist and leader? How are strategy and leadership “linked?”

  2. What are the primary tasks of an executive as a “strategist"? What are the primary tasks of a good "leader"? How are these two linked? How did Enrico stand up to these three tests?

Case Study Questions Answers

Strategy and leadership have a strong link because if a strategist is not a good leader, the strategies cannot be implemented effectively. Enrico can be perceived as a good strategist and a leader. This is because when the decision to sell the restaurant business was made, the team was also considerate of the emotional attachment that people have to the business. However, the decision was tough, but it helped the company slack off the parts of the business that they could not focus on. Furthermore, another example of Enrico being a strong strategist can be seen when he made the decision to focus on defending Pepsi’s share in the markets where it already held a strong presence. The tough decision was made to close operations in countries where Pepsi had a distant second position if the markets did not perform well in the next three years of the decision. This showed that when it came to a tough decision, Enrico was strong and visionary.

2. What are the primary tasks of an executive as a “strategist"? What are the primary tasks of a good "leader"? How are these two linked? How did Enrico stand up to these three tests?

The primary tasks of a strategist include developing and implementing strategies and plans. A strategist also has a view of the result of the implementation of a strategy. The task of a leader is setting a vision, communicating the vision with the employees, and motivating the employees to attain the vision.

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