Pepsi Case Analysis
Case Summary
In 2000, under the leadership of the former CEO Steve Reinemund, PepsiCo.launched a new business strategy that based on the racial and culture diversity. It emphasized the importance of having equal working and promoting opportunities for all employees from different ethnic groups. In order to help the company keep up with the demographical shifting in United States, this strategy was initially resisted by some of the employees as well as senior division managers. The resistance led to a failure in Frito-Lay division of meeting its diversity goal, and consequently caused the company to miss its consolidated goals in 2002.Witha strong belief that diversity will greatly benefit the company in the long-run, Reinemund insisted to carry on and successfully improved the company’s market share in 2003. Later, motivated by creating a more inviting and engaging work environment for employees, Reinemund made the diversity part of the PepsiCo.’s culture. He encouraged authentic conversations between shareholders, employees and managers to infuse diversity into every level of the company. As the results, all three divisions of PepsiCo.reported substantial growth of revenue from 2004 to 2007.In addition, the turnover rate for minority workers was reduced significantly; the representations of women and minorities were increase noticeably; and the organizational health scores showed an overall positive work experience for the PepsiCo. .
Leadership Analysis
Several leaders before Reinemund were aware of the need of managing diversity in the company and made their attempts to reconcile it, e.g., D. Wayne Calloway first addressed the company need for a “people development” culture in late 80s; and Roger Enrico and Philip Marineau founded an external African American Advisory Board in 1999. However, these actions were considered to be “inclusive” and relatively not effective (i.e. company’s turnover rates for minorities and women employees were twice higher
In 2000, under the leadership of the former CEO Steve Reinemund, PepsiCo.launched a new business strategy that based on the racial and culture diversity. It emphasized the importance of having equal working and promoting opportunities for all employees from different ethnic groups. In order to help the company keep up with the demographical shifting in United States, this strategy was initially resisted by some of the employees as well as senior division managers. The resistance led to a failure in Frito-Lay division of meeting its diversity goal, and consequently caused the company to miss its consolidated goals in 2002.Witha strong belief that diversity will greatly benefit the company in the long-run, Reinemund insisted to carry on and successfully improved the company’s market share in 2003. Later, motivated by creating a more inviting and engaging work environment for employees, Reinemund made the diversity part of the PepsiCo.’s culture. He encouraged authentic conversations between shareholders, employees and managers to infuse diversity into every level of the company. As the results, all three divisions of PepsiCo.reported substantial growth of revenue from 2004 to 2007.In addition, the turnover rate for minority workers was reduced significantly; the representations of women and minorities were increase noticeably; and the organizational health scores showed an overall positive work experience for the PepsiCo. .
Leadership Analysis
Several leaders before Reinemund were aware of the need of managing diversity in the company and made their attempts to reconcile it, e.g., D. Wayne Calloway first addressed the company need for a “people development” culture in late 80s; and Roger Enrico and Philip Marineau founded an external African American Advisory Board in 1999. However, these actions were considered to be “inclusive” and relatively not effective (i.e. company’s turnover rates for minorities and women employees were twice higher