...Isaiah Polk Professor Desmarais Pom 448 March 10, 2015 Frito-Lay: The Backhaul Decision Frito-Lay, the largest salty snack manufacturer in the United States based out of Texas is a two-billion plus corporation employing over twenty-seven thousand employees. The company came into existence from a merger between the Frito company and the Lay company. Then in 1965 it was purchased by the Pepsi Corporation and because the the company’s belief of “If it ain’t broke, don't fix it” Frito-Lay’s management was able to operate under the own accord as they had previously done before. Frito-Lay’s product mix is made up of potato chips, corn chips, tortilla chips, cheese-flavored snacks, pretzels and other snack items and dips. It has six core products; Lays, Ruffles, Fritos, Doritos, Tostitos, and Cheetos, that make up roughly eighty percent of their sales. Their core products have short shelf lives and are high volume low-weight products. Along with the core products they have specialty products but these products have longer shelf lives and produce less sales. Currently Frito-Lay operates using direct store delivery using their own private fleet of trucks. Eighty-five percent of their outbound sales were made on their own vehicles. By doing this it allows them to avoid third party distributors for sale services. It also means total quality control of products and a high service level. They have a very high on-time delivery rate compared to competition (same day vs same hour) because...
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...Green Manufacturing and Sustainability at Frito-Lay Case Study 3 Questions 1. What are the sources of pressure on a firm such as Frito-Lay to reduce its environmental footprint? 2. Identify the specific techniques that Frito-Lay is using to become a green manufacturer. 3. Select another company and compare its green policies to those of Frito-Lay. Each Case Study paper is to consist of the following components: 1. Title page and two written pages with no more than 500 words. 2. Answers to individual questions (as assigned) Each assignment will have specific questions you need to address. You should create a sub headed section for each one. 3. References/Appendix (if required) These are not research papers per se, so you may not have the need to cite outside sources. If you do, however, they should be identified on a proper reference page. Similarly, if you are required to do calculations and choose to perform them on a separate page, you should include them in an appendix. Weekly Case Paper Grading Rubric | Category | Points | Weighting | Description | Content | 24 | 80% | * Required questions are answered in an accurate and appropriate manner. * Adequate support is given for recommendations. * Calculations (where required) are performed correctly | Grammar and Spelling | 3 | 10% | * Paper is well written and reflects college level writing. * Rules of grammar, usage, and punctuation are followed and spelling is correct. * Sentences...
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...Stracuzzi Columbia Southern University Enter Sun Chips Frito Co. was founded in 1932 by C.E. Doolin in Dallas, Texas. This same year Herman W. Lays begins his path down the snack chip path in Nashville, Tennessee (“Frito-Lay Corporation,” n.d.). In 1945, their paths merge into a business agreement to sell each other’s chips in their respective areas. These two companies merged in 1961 to become Frito-Lay, Inc. Only four years later, in 1965, Frito-Lay, Inc. became a division of Pepsi Co. (“Our vision,” n.d.a). Frito-Lay has become one of the world’s prominent producers and venders of snack chips. Some of their snack brands include: Baken-Ets, Cheester’s Fries, Cheetos, Cracker Jack, Cracker Jack’d, Doritos, Fritos, Funyuns, Grandma’s, Islen, Lay’s, Matador, Maui Style, Mrs. Vickie’s, Munchos, OvenBaked, Ready to go Snacks, Rold Gold, Ruffles, Sabritones, Santitas, Simply, Smartfood Popcorn, Stacy’s, SunChips, and Tostitos (“Full brand list,” n.d.b.). Frito-Lay also produces nuts, dips, and peanut butter crackers (Kerin & Peterson, 2013). Frito-Lay not only manufactures the snack foods, but has a hand in every stage of the process. The corporation has a potato breeding operation located in Rhinelander, Wisconsin. Their goal is to produce a superior potato variety for chipping (“Frito Lay Agricultural Research,” n.d.). They receive potatoes from roughly 80 different potato farms. They have 29 plants in 15 states (“Frito-Lay Plant locations,” 2013). The company also is involved...
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...SUCCESSFUL MARKETING AND PRODUCTION STRATEGIES OF FRITO-LAY PURPOSE Frito-Lay Inc. has remained the dominant leader in its industry through the success of consumer-focused business strategies: Effective marketing strategies to promote products during times of economic downfall. Product innovations, and adjustments to accommodate consumer preferences resulting from dietary trends. Creative, and inventive promotional techniques used to remain superior to competitors. This report discusses these strategies as a model for other businesses within the snack-food industry. Data for this report was gathered through current books, articles, journals, reports, and business research databases, including: Datamonitor, Factiva, Business & Company Resource Center, Business Source Complete, and IBISWorld located through Newton- Gresham Library, on Sam Houston State University’s campus, in Huntsville, Texas. BACKGROUND Frito-Lay is currently one of the leading and most recognizable company names in the snack-food industry. The company’s 17 leading brand names generate billions of dollars in annual sales. As one of the four company divisions of PepsiCo, Frito-Lay North America is the most profitable, contributing 39% of the company’s operating profit, and one-third of PepsiCo’s entire revenue. (Entire paragraph paraphrased (Frito-Lay North America, 2006). Frito-Lay was originally formed in the 1930’s during the Great Depression as an entrepreneurial venture...
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...1. How would you characterize the snack chip category and Frito-Lay’s competitive position in this category? The snack chip industry is clearly a matured industry, showing significant signs of growth. This is evidenced by the steady growth in both dollar sales as well as volume of snack-chip pounds sold. The snack chip industry has grown 5% since 1989 to 1990 in terms of retail sales. The snack chips retail market was worth $9.8 billion in 1990. Since 1986 to 1990, the US bought 3.5 billion pounds of snack chips which is nearly 14 pounds per person. In 1986, snack chips per capita consumption was slightly less than 12 pounds. The snack chip industry contains mainly three types of competitors: national brands, regional brands, and private brands. National brands are those that distribute products nationwide, include Frito-Lay, Borden, Procter and Gamble, RJR Nabisco and Eagle Snacks. Regional competitors consist of regional brand firm which distribute products in certain parties of the United States. Private brands are produced by regional or local manufacturers on a contractual basis for major supermarket chains. The competition in the snack food industry is very intense. As many as 650 different types of snack chip products are introduced into the market each year by both national and regional brand companies. Most of the products are new flavors for existing snack chips. It is reported that the new product failure for snack chips is very high. Pricing is...
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...Frito- Lay Case Frito-Lay, Inc is a worldwide leader in the manufacturing and marketing of snack chips. In 1960, the Frito Company and the H.W. Lay Company merged to become Frito-Lay, Inc. The company is the leading manufacturer of snack chips in the United States, capturing about 50% of the retail sales in this category. Frito-Lay, Inc has been developing multigrain chips since the early 1970s after marketing research found that consumers wanted nutritious snacks, consequently in 1974 the company launched to the market Prontos, a multigrain chip that was not really a great success, hence withdrawn from the national market in 1978. People concluded the product was not introduced in the right time. The Sun Chips was introduced in the early 1970s, and the name was assigned to a line of corn chips, potato chips, and puffed corn snacks. Six years later, the name was given to a line of corn chips, but unfortunately in 1985, this line was also withdrawn from distribution due to poor sales performance. However, in the early 1980 Frito-Lay executives started worrying about the health of the baby boomers. They were getting older and healthier conscious, so snack companies had to develop newer, healthier snacks for people trying to stay away from the salty, fried chips. Product research and development continued during the 1980s with The Harvest but in the early 1980s several market tests failed. Nevertheless, in 1988 with the idea still of multigrain products, marketing research studies...
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...Devry GSCM 206 Complete Course-Latest 2015 December (All Discussions, All Case , Week 3 And 5 Quizes And Final) IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.hwspeed.com/Devry-GSCM-206-Complete-Course-Latest-2015-December-11204585.htm?categoryId=-1 IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM Question Devry GSCM206 Week 1 Discussion DQ 1 & DQ 2 Latest 2015 November DQ 1 What is operations and supply chain management? What career opportunities would you be interested in pursuing in the field of operations and supply chain management? DQ 2 How do operations and supply chain processes provide a competitive advantage in the global arena? How is a firm’s mission related to its strategy? Devry GSCM206 Week 2 Discussion DQ 1 & DQ 2 Latest 2015 November DQ 1 How can forecasting improve your operations and supply chain processes? What are the differences between independent and dependent demand? DQ 2 How important are the product design and the voice of the customer? How important are the product design and the voice of the customer during a new product development? What is the impact of the product life cycle on managing the supply chain? Devry GSCM206 Week 3 Discussion DQ 1 & DQ 2 Latest 2015 November DQ 1 Identify management’s role in linking operations and supply chain processes with quality improvement. Identify how improving quality can lead to reduced costs. DQ 2 Consider...
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...and Using Information Systems, Wiley, 2006 (3nd edition) 2. A package of Harvard Business School Case Studies Additional Readings and Cases: Class handouts as needed. Course Description and Goals This course is designed to provide the current and future managers with understanding and appreciation of the issues that are related to the organization’s information technology assets. The course is not to educate technical specialists, rather, it is to give students a managerial perspective on the use of, design of, and evaluations of information systems that exist in organizations today. The objective of this course is to prepare students to manage information services in both today’s and tomorrow’s environment with its managerial, social, political, ethical and global issues. Conduct of the Course All students are expected to read the assigned materials (text, end-of-chapter discussion board questions (DBQ) and Harvard Business School case studies- HBC) before coming to the class. Some days we will discuss the materials in the text book. You are expected to be prepared to actively participate in this discussion, answering questions such as “What are the issues involved in ...?”, “What do the authors mean by ...?”, and “Give an example of...?” The second use of class time will be group presentation on the selected cases from the case study package. You will be assigned a group and lead the discussion for this activity. Those of you not assigned for...
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...ITP1 This essay will provide an explanation of the strategic transition of Frito-Lay North American Operations and the manner in which Executive Management and newly appointed CEO Michael Jordan, provide a new corporate vision and strategy to improve profits, and increase productivity. In this essay I will discuss the relationship, similarities and differences between IT strategy and Business strategy. Information Technology (IT) is a vital component to any successful business. IT Strategy focuses on how to make IT work for businesses and advance the business performance alongside examining ways of exploiting the full potential of information systems from existing and new IT products. Successful businesses now view IT as a tool to serves as a foundation of both operational excellence and competitive advantage. Frito-Lay used IT to improve sales management processes and to make the information readily available to its sales staff. 1-Identify and describe the overlap between the IT strategy and Frito-Lay business strategy. Frito-Lay management realized that the paper-based method of keeping inventory was inaccurate, wasted time, money and product. The overall strategy was to increase the efficiency of the sales operations process by implementing of The IT strategy is similar to Frito Lay business strategy business although the focus is specifically on technology. It is important to plan ahead for the development of your IT systems, which will need to be able to...
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...MKT4416: Frito-Lay, Inc. – Sun ChipsTM Multigrain Snacks Case Study Analysis Assessment of the Sun ChipsTM test market results This test market was held at Minneapolis – St. Paul, Minnesota metropolitan, which was chosen as a representation to the 90 million snack chip households in the United States. The analysis of the Sun ChipTM‘s test market results is organized chronologically according to the order of findings as stated in the case. Type of purchase The coupon program was an effective advertising tool that should be actively used during its introduction into other cities. The importance of retailing supermarkets and convenience stores in its distribution network was exemplified in its 90% purchase contribution. The sales mix of different pack sizes enabled Frito-Lay marketers to work out the average price per pound to be $2.701 approximately. In addition, the trial pack of 2.25 ounces could be seen as an effective advertising tool in trading customers up to bigger pack sizes of 7 and 11 ounces, in which these packs contributed 47% and 38% of purchases respectively. Lastly, the French onion flavor was preferred by consumers as this flavor contributed 55% of purchases, an excess of 10% of purchases in natural flavor. Trial & Repeat rates The cumulative trial and repeat rates for Sun ChipsTM after 40 weeks were 19.9% and 41.8% households respectively, as well as the average purchase amount for triers was 6 ounces. Hence the trial volume was estimated at 6...
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..._______________________________________________________________________________ CANDIDATE NUMBER: 130168 Term Paper COURSE NAME: Philosophies of Social Sciences COURSE NUMBER: TØL 4003 December 6th 2013 EXAM PAPER DUE DATE: EXAM: Term paper AIDS ALLOWED: Any Comparison of how the analytical and system perspective look at reality, using a case as example: replacing the propane gas system used for the furnaces in Frito Lay to use Natural Gas Introduction Frito Lay (FLD) is a cooking company that makes fry chips, which form part of the Pepsi corporation cluster. Pepsi is one company that is totally committed to be on the track towards sustainability, considering area of protections as water treatment, Greenhouse gases (GHG) emission, sustainable agriculture, water recycling, social responsibility and others with the intention of increasing revenues while reducing the environmental impact that it causes. And FLD as part of this group has been thinking of the opportunity to implement some sustainable features within the company that are to strive for the same objectives. One of the strategies that they considered is about replacing the propane gas that they are using as the combustible with natural gas1, which in some way is more ecofriendly to use, due to the lower level of CO2 emissions that the burning produce. However, to be able to take the decision if the replacement should be done or not, there are many factors to consider, like, how viable...
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...Chapter 11 Case Study: Pepsi Background of the Company- 1965-PepsiCo, Inc. was established through the merger of Pepsi Cola and Frito-Lay. Caleb Bradham, a New Bern, N.C. pharmacist, created Pepsi Cola in the late 1890s. The 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. LAY COMPANY, formed Frito-Lay, Inc., founded by Herman W. Lay, also in 1932. Herman Lay, former chairman and CEO of Frito-Lay, was chairman of the board of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi Cola, was president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are: Pepsi Cola Company: Pepsi Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948). Frito-Lay, Inc.: Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961). 1966- Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the United States. Pepsi enters Japan and Eastern Europe. 1971- PepsiCo moves from New York City to its new world headquarters in Purchase, N.Y. The new corporate headquarters features a building by one of America's foremost architects, Edward Durrell Stone (19021978), set on a 144acre...
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...Market Research Businesses can either succeed or fail. Sadly, a lot of really good businesses fail because they failed to take any number of factors into account. What begins as a great idea soon gets lost in the unanticipated second and third orders effects of running a business. Proper market research may not eliminate all the pitfalls, but it can provide a clear and negotiable path for a business to make informed decisions. This paper will discuss one such company who has seen sales dwindle in one of its products and is looking for ways to bolster sales. The Company Frito-Lay North America, Inc. is experiencing a drop in product sales covering the last three quarters on their Tostitos Bite Size Tortilla chips. Tostitos have been on the market since 1990 and initially enjoyed tremendous success. At the present time there are 16 different types/flavors of Tostitos and Frito-Lay has over 30 separate products on the market. The other products range from tortilla chips to Cracker Jacks. “For more than 75 years, we have enjoyed making the best snacks on earth, starting with simple, farm-grown ingredients” The focus of this market research was on the bite size chip due to its dwindling sales. The Objective The overriding objective of market research is to obtain data on customers and potential customers. The collected data will provide valuable information for business decision making. Thereby, reducing the risks involved in making these decisions. There...
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...PepsiCo Case Study Analysis Paper Michael Gillespie Organizational Policy and Strategy, OML-450, Cohort (835) Professor Vicky Sons-Eiden September 15, 2011 PepsiCo Case Study Analysis Paper A case study analysis on PepsiCo’s diversion strategy in 2008 will be addressed in this paper. The elements that will be discussed are the vision and mission of PepsiCo, the background and history of the company, the external and internal forces of PepsiCo’s business environment, PepsiCo’s strategic marketing plan, and a conclusion and recommendations on how the PepsiCo company can improve their business strategy to stay competitive in years to come. Vision and Mission The vision of PepsiCo is to be a responsible company that supports continuous improvement of all areas across the globe in which they operate. These areas include the environment, social, and economic conditions creating a better future then the present. The mission of PepsiCo is to be the best company in the industry that provides convenient foods and beverages to the consumer. The company has a goal to provide financial benefits and growth for its shareholders as the company provides growth for its employees, its business partners, and the communities in which they are established. In all aspect of the business, PepsiCo strives to be the leader in honesty, fairness, and integrity. (PepsiCo, 2011). Company History PepsiCo Inc. was formed in 1965 when Pepsi-Cola Bottling merged with salty snack icon Frito...
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...PepsiCo 2005 Case Analysis June 17, 2009 I. Definition of the Issue The PepsiCo-2005 case study has several issues revolving it. It has the internal issue that PepsiCo has not been able to consistently meet its growth goal of 15+ percent annual increase in earnings for the last 10 years. Its external issues consist of its products as reaching maturity stage industry wise and its divisions, except Frito-Lay North America (FLNA), fail to rank highest in its respective market segments. Division wise, the company holds a large share of each respective market, but over-all the company sustains a flat growth rate and fails to meet its growth goal. In respect to this, it can be seen that the real issue in this case is the need of a strategy to sustain a compound annual growth rate (CAGR) in earnings per share of 15 percent per year. This paper aims to develop a three-year strategic plan for PEPSICO that can best ensure this growth through this decade. II. Objectives The paper’s objectives include designing of alternatives that may aid its development for a sound strategy in response to the issue through a quantitative analysis. The paper would also include an analysis of each alternative. From the generated alternatives, the paper would focus on one that would seem to best apply to the given circumstances. The paper also includes a potential problem analysis to aid in strengthening the strategy’s defenses and enables the company to predict and anticipate...
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