Blue Ocean Strategy, by Renee Mauborgne and W. Chan Kim (Harvard Business School Press, 2005), conceived of a new way for companies to drive profitable growth: by creating uncontested market spaces (blue oceans) where the competition is irrelevant, instead of fighting it out in overcrowded, commoditized industries (red oceans). Read More
During Nooyi’s tenure, PepsiCo’s total revenue annual growth rate has been 6.7% while net income growth rate showed minimal changes. However, apparently poor financial results can be explained considering the strong shift to healthier products perpetuated by Nooyi. Nowadays, only 25% of PepsiCo’s revenues derive from soda drinks and healthy products can represent the basis for a sustainable growth in the future. Moreover, Nooyi focused on her people, aligning them through a new vision. She realised relevant acquisitions and boosted on design. Read More
In this new series of case study, we will enlighten you with a comparison between the two giants of soft drinks, The Coca-Cola Company and PepsiCo. Their respective CEOs, Muhtar Kent and Indra Nooyi, will be X-rayed through the BOL tools within an innovative action based approach that focuses on their acts and activities. Read More
During critical periods, what should an organization do to sustain its success? How can you make sure your act & activities are linked to the market realities?
Effective leadership is a key element in an organization to transform a strategy into a successful result. Last week we told the story of Jim Donald as CEO of Starbucks and we left you with a question: how did Starbucks react to the difficulties that characterised Donald’s tenure? Here is the answer: on Monday 7th January 2008, Starbucks Corp. fired Chief Executive Jim Donald and gave control of the daily operations to Howard Schultz, chairman and architect of the ubiquitous coffee giant. Read More
A “Sip” of Leadership
Leadership, in essence, can be thought of as a service that people in an organization either ‘buy’ or ‘don’t buy’. As well as a banker, an entrepreneur, a farmer, every leader has his own customers: his followers, who need a guide to achieve the high standards required in every company. If your leadership is high in quality, people in your company would be willing to buy it; pro-activity and the commitment of employees would be encouraged, with evident benefits for the whole company. But what if your leadership is low in quality? Employees do not want to buy it anymore. They become non-customers, and, even more dangerous, they disengage. Read More