Financial crisis: You hear the term all the time. Do you have a subscription to TV, radio, computer, newspaper or magazine? So you’ve heard the forecasts. But even in the midst of a “financial crisis,” we’re seeing select companies not just weather this storm, but thrive within it. If history has taught us anything, it is that the economy moves in cycles. Today’s crisis can be tomorrow’s boom.
What is different about this financial crisis? Now, more than at any time in history, we have the benefit of a new perspective. There are more women in positions of real power than ever before. There is no doubt that some key women will emerge from this economic downtrend as financial heroes.
Here are three women who are breaking all barriers by not only leading their companies, but guiding them through these difficult times:
1. Indra Nooyi – PepsiCo: President and CEO
Like many business sectors at this time, the soft drink industry was facing a severe recession. Beverage sales in North America in general were falling relatively quickly. Nooyi was quick to react to reports of falling revenue. He bolstered Pepsi’s international presence to offset the North American slowdown. In fact, now 26% of Pepsi’s revenue is raised internationally. Also, noting the upward trends in consumer demand, he urged Pepsi to start supporting its healthier brands (such as orange juice with omega-3 fatty acids).
The result: In a tough market with a current downward trend, Nooyi was able to keep Pepsi’s shares stable compared to a year ago.
2. Irene Rosenfeld – Kraft Foods: President and CEO
“The Big Cheese of All Turn Arounds” was Rosenfeld’s goal when he first took over Kraft Foods. When she took over, the stock had been running out of steam. The food giant needed a new approach. She was responsible for an upheaval that saw her invest more money in building the brand. She then handed power back to local managers (especially in third world countries). She also made sure Kraft started rolling out more microwaveable fast foods right away.
The result: Last year, Kraft’s shares were relatively flat in a declining market. It also replaced AIG in the Dow. Billionaire Warren Buffett also saw promise in Rosenfeld, increasing his stake to 9%.
3. Andrea Jung – Avon Products: President and CEO
Like Rosenfeld, Jung was tasked with an “extreme renewal of the enterprise.” He too, like Jung, he was not afraid to step in and take control. He’s not one to walk lightly, he quickly cut management, invested $100 million in research AND tripled his ad spend. In her spare time, Jung is also the only female member (as of 2008) on Apple’s board of directors.
The result: Avon doubled its Chinese representatives to 700,000, and in 2008 the stock actually went up 15%. Its performance in the second quarter of that year was the best since the turnaround began.
These three women looked disaster in the face and decided to face it. His aggressive tactics have kept businesses afloat and thriving. These are not small businesses either: huge corporations employing thousands.
It is clear that the world will need fresh minds to guide us through these economic times. It is also clear that we will have to rely on the skills of a wide range of people. We can no longer stick our noses in the air at the idea of equality. We will need smart men AND smart women of all races to make sure this business cycle is booming again.