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Without referent power, the leader would not be trusted or respected by subordinates and followers. Without referent power, the employees would not be motivated to work towards shifting to non-carbonated drinks and would not approve Nooyi’s strategic decisions. Nooyi has built goodwill due to his successful acquisitions of profitable bottling companies. Without referent power, the stakeholders would be frustrated with lack of advertising the core sugary and fatty cola products (Cummings and Worley 176).
This approach is sustainable for PepsiCo if Nooyi leaves the organization to Cabinet Member in Washington, D.C. The approach would be sustainable if she establishes clear strategic goals of PepsiCo and implements succession plans that ensure future leaders are committed to the turnaround to more healthy products and environmental potential. Some types of influences that she needs in order to wield power for her to be successful in this endeavor include influence reward influence through providing fair benefits and recognizing excellent job performance. Another influence is personal influence on shareholders by building close working relationships and trust in the turnaround strategy. A third influence would be positional influence by ensuring subordinates stick to the timelines of implementation of the strategy. She will also need expert influence by clearly demonstrating her career track record of making profitable acquisitions and change in organizations (Cummings and Worley ...Show more


It is a good business strategy to shift to more healthy conscious products. Currently, the lifestyle diseases like Diabetes and high blood pressure are on the increase globally due to fatty and…
Author : shanahanparis
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