Leadership Theories and Sustainable Decisions
Sustainable management is defined as the process of maintaining sustainability in overall business practices that benefits in managing current and future generations. The objective of sustainable development is to meet the requirements of business. The sustainable development states that the resources that we use is not enough for our future generations and we need to develop a new strategy to use the resources effectively (Chin 2016). The three basic pillars of sustainable development is the economy, environment and society. Krishnamurthy Nooyi has successfully achieved a sustainable environment through benefiting society and corporate social responsibility. The CSR increased the value of PEPSICO Company. The greatest impact for the PepsiCo is in the areas of agriculture, packaging, water, products, people and climate (Cre?u 2015). The above factors help to achieve a sustainable food system.
The PepsiCo is a multinational food, and beverage corporation. PepsiCo has headquarter in Harrison, New York. Its main operational functions are in manufacturing, marketing, distribution of food and beverage. The company was formed in the year 1965 and its merger was Pepsi- Cola Company. The mission of PepsiCo is to lead the business to develop products that drives the market demand (Forero-Montaña 2018). The company’s mission statement is to identify the required actions in order to achieve the organisational vision. The vision statement of the company focuses on the company’s role in achieving the competitive advantage in global market.
The sustainable management helps to structure the global food system that provides higher opportunity, and convenience for the customers to buy more PepsiCo products. The company faces significant pressures that can be a threat for the future growth. The company must develop the strategy that can help to tackle the changes or challenges of the company. The aim of the company is to scale, expertise that can meet the requirements of human such as nutrition (Jones 2017). The sustainable approach must not exceed the natural boundary that may damage the environment. The company aims to address the financial risks, operational risks and create effective supply chain that can result growth and competitive advantage.
The approach of the company is to improve the performance with purpose. The strategy of performance with purpose focuses to improve the usability of water resource. The agricultural field must be provided with plenty supply of water, where there is increased risk due to lack in those areas (Mariadoss 2016). This approach can solve the problem of suppliers by focusing on increasing the efficiency of suppliers and eliminate the risk of climate change. The company is mainly focusing on new technology that can indulge the operations for technological advancement. The technological advancement will help the company to reduce the use of water and provide the effective use of water in the agricultural fields that can result in low consumption of resources.
Critiquing three FMCG companies using Performance with Purpose
The world’s population is tremendously increasing and is expected to grow 20% in 2050. The increased population can be an alarming factor for the growth of food production requirements in the world. The need of developing effective strategy for sustainable management is to acknowledge the current demands and future demands of public. To address the increase in the level of production, beverage and food segment, the company needs to manage the operations and decrease the production cost (Shibin, 2017). The production cost is increasing due to globalisation that results in drastic change in the climatic conditions of the country. The food and beverage segment is considered to be the important phenomenon that can increase the profitability of the company in the long run. The study states that PepsiCo Company is rated under top 10 companies that produces 263.7 million tons per annum and pollutes the country drastically.
It is observed that within 30 years, there will be an increased global demand for agricultural products. The study states more than 50 percent growth in agricultural products. As the global demand has increased in recent years, it is accounted for 70 percent fresh water consumption, biodiversity loss, global greenhouse gas emission, deforestation, and water and land pollution (Yusoff 2016).
The sustainable development focuses on farming that enhances the rural development and eliminates the poverty margin, inequality and abuse of human rights. The agriculture is the key aspect for betterment of food system. The PepsiCo Company has more than half of the operations that involve agriculture as a root for success. The company makes food and beverages by using 25 crops and its products are exported to 60 countries (Zhu 2016). The company provides the scale and reach, which includes all the standards that enhances the environment, society and economic impacts in the area of agriculture.
The PepsiCo Company develops effective strategy that can drive for sustainability approach in the business. The environment, social, and governance index created to analyse the current situation for the need of change in the sustainability approach of the company. The public officials, associates, customers, investors, consumers, suppliers and policy makers all depend on the sustainability growth of the company.
The product safety and quality approach is to prioritize for food safety. The products that PepsiCo manufactures ensures the safety and quality for the customers. The standards are imposed so as to strictly follow that can meet all the standards of food safety in the market. The suppliers of the company provides the ingredients of high quality and follows the regulations that are issued by the regulatory authorities and government (Stylos 2015). PepsiCo provides with the opportunity to trace the products to enable investigation and address the potential concerns regarding quality or any other factors that may impact the product quality in the market place.
Examples of Social Impacts created by FMCG companies
The company believes that a strong governance can lead a better foundation to deliver the sustainability strategy.
Nooyi has succeeded the business growth over decades. The PepsiCo foundation has resulted in making immense difference in the global market. The company is initiating potential growth for a better leading in the market. The approaches in addressing women empowerment, by sustainable food system, to promote safe water access, to investigate for a sustainable nutrition and effectively manage the waste of the company. As it is important for a company to involve in CSR activities to increase the value of the company as well as enhances the potential of the company(Reefke 2017). The company through CSR activities promotes for better education for children, economic growth, and healthier life of people.
The foundation activities has focused on solving the problems of childhood hunger, and provides meals to people who are suffering due to natural disaster. The motive is to increase the strength of the company through nutrition operation.
Conclusion
The paper concludes that the PepsiCo Company has successfully addressed the issues of the company and environment for sustainable approach. The company has focused on criteria that can avoid threats to the company such as climate change. The sustainable growth can be addressed by avoiding non- degradable products and non- renewable resources. The cost to the company is minimised by focusing on financial risks and operational risks of the company. The performance with purpose strategy has successfully increased the performance of the company that deals with improvement of financial performance. The financial performance has triggered for sustainable growth. The developed strategy that included several strategic business practices for increasing the efficiency of various operating costs and profitability. The strategy has helped in developing new technology that helps the suppliers to increase their yield.
References
Chin, C.H., Lo, M.C. and Ramayah, T., 2016. Rural tourism sustainable management and destination marketing efforts: key factors from communities’ perspective. Journal of Sustainable Development, 9(4), pp.179-197.
Cre?u, R.C. and Stefan, P., 2015. Sustainable management plan applicable for ecotourism certification systems. Scientific papers-series management economic engineering in agriculture and rural development, 15(2).
Forero-Montaña, J., Zimmerman, J.K. and Santiago, L.E., 2018. Analysis of the potential of small-scale enterprises of artisans and sawyers as instruments for sustainable forest management in Puerto Rico. Journal of sustainable forestry, 37(3), pp.257-269.
Jones, M.L., 2017. Sustainable event management: A practical guide. Routledge.
Mariadoss, B.J., Chi, T., Tansuhaj, P. and Pomirleanu, N., 2016. Influences of firm orientations on sustainable supply chain management. Journal of Business Research, 69(9), pp.3406-3414.
Reefke, H. and Sundaram, D., 2017. Key themes and research opportunities in sustainable supply chain management–identification and evaluation. Omega, 66, pp.195-211.
Shibin, K.T., Dubey, R., Gunasekaran, A., Hazen, B., Roubaud, D., Gupta, S. and Foropon, C., 2017. Examining sustainable supply chain management of SMEs using resource based view and institutional theory. Annals of Operations Research, pp.1-26.
Stylos, N. and Vassiliadis, C., 2015. Differences in sustainable management between four-and five-star hotels regarding the perceptions of three-pillar sustainability. Journal of Hospitality Marketing & Management, 24(8), pp.791-825.
Yusoff, R.B.M., Imran, A., Qureshi, M.I. and Kazi, A.G., 2016. Investigating the relationship of employee empowerment and sustainable manufacturing performance. International Review of Management and Marketing, 6(4S), pp.284-290.
Zhu, Q. and Sarkis, J., 2016. Green marketing and consumerism as social change in China: Analyzing the literature. International Journal of Production Economics, 181, pp.289-302.
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