Wild Water Gets Soaked

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THE EXTERNAL ENVIRONMENT
AND ORGANIZATIONAL CULTURE

USING THE “UNFOLDING CASE”
CAN INDRA NOOYI KEEP THE FIZZ IN PEPSICO’S PRODUCTS?

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Teaching Tip: This is a case that lends itself to visual aids. Generate interest by walking into class and placing a bottle of Pepsi, a box of Quaker oatmeal (or an oatmeal bar), and a bag of Frito-Lay potato chips on the table at the front of the room. Then ask students what the three products have in common. Few will realize that PepsiCo makes all three of them. After pointing that out, put a picture of Indra Nooyi on the screen (go here to download one) and describe the challenge Ms. Nooyi has ahead of her. As of October, 2007, she seems to be moving the company in the right direction - PepsiCo stock is up over 10% under her leadership.

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CONCLUDING CASE - WILD WATER GETS SOAKED

Case Summary:

This case reveals how important it is to organizations of all sizes to be prepared and ready to implement changes in business scope and even product mix in order to combat the effects of external forces. As the case depicts, external environmental changes – changes in competition and consumers’ preference, to name a few - often strongly impact upon companies. Changes such as these often necessitate that an organization, desiring to remain profitable, must be willing to modify operations to better accommodate its changing consumers’ needs.

Chapter Topics Related to the Case:

• Discuss how environmental forces impact organizations • Describe the purpose of an environmental analysis • Discuss how organizations like the Salernos operation can conduct environmental analyses • Identify how an organization can better adapt to the demands of its external environment • Identify how an organization can influence its external environment •...
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