...Mainly four parties were responsible for this crisis. First one is Kenneth Lay, the former chairman of the Houston Natural Gas. Lay as chief executive wanted to make Enron as the world’s greatest company. Lay was responsible for the crisis as approval of the actions of Skilling and Fastow was done without inquiring about the details. He was also involved by making false statement to the auditors, bankers, indulging in wire frauds, conspiracy, money laundering and securities fraud. Moreover, he was a hippocrat who announced to investors to buy the stock as it is predicted to reach a level of more than $130 and at this point he sold his shares knowing the financial crisis of the company. Moreover he appointed Skilling on the condition to use mark-too market accounting that will foster company to book profit as soon as deal was signed irrespective of the success of the project. As the CEO of the seventh largest company he had direct access to the political and government authorities like G.W.Bush. The second individual responsible for the crisis was Jeffrey Skilling. He was hired by the Kenneth Lay to help him as his top subordinate. Skilling was responsible to develop and implement plans to transform Enron to a energy trading company i.e. to act as intermediary between the energy products producers and the users of these products. The third individual responsible for the crisis is Enron’s chief financial officer Andrew Fastow. He was involved in frauds, insider trading, money...
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...Executive Summary Having created a brilliant product, Bingo, which successfully brought about innovation in the snack market, Ram and Satya at ITC now are now facing problems in maintaining Bingo’s market share. Increased competition, Low quality cheap copies of the product, and low reach are the major drivers of the loss in market share. The task at hand is to improve Bingo’s performance, regain and increase its market share, communicate the brand proposition effectively and increase its reach in various parts of the country especially south. Getting trials with larger masses and maintaining the loyalty of existing franchise are a few potential ways of establishing connect with the customers. Clearly Bingo’s triangle shape is easily imitable, but the customer’s reasons for buying the snack are mainly its taste. The actual value proposition that the consumer seeks in bingo is the taste. In such a scenario, strategies for defense against copycats and discounted players need to be chalked out by communicating the actual brand proposition effectively. In addition, Bingo’s market penetration in Southern India is low as compared with the Northern India We see it as a huge opportunity for research regarding the consumer behavior specific to southern India, cater to their needs, increase reach and establish a solid base. In this analysis, we present our ideas, thoughts and recommendations on how to achieve the task at hand. Bingo’s war 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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...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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...Summary： Frito-Lay, Inc. is a division of PepsiCo, Inc., a New York-based diversified consumer goods and services firm. PepsiCo, Inc. includes Pizza Hut, Inc., Taco Bell Corporation, Pepsi-Cola Company, Kentucky Fried Chicken, and PepsiCo foods international. PepsiCo, Inc. recorded net income of $ 1.077 billion on net sales of $ 17.8 billion in 1990. 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. During 1990, the company has 39 manufacturing plants, more than 1,600 distribution facilities, and a 10,000-person route-sales team that calls on more than 400,000 retail store customers in the United States. Today, Frito-Lay brands account for 59% of the U.S. snack chip industry. Sun Chips Multigrain Snacks resulted from Frito-Lay’s ongoing marketing research and product development program. In the early 1970s, corporate marketing research indicated that consumers were looking for nutritious snacks. In the early 1980s, Frito-Lay marketing R&D instituted the “Harvest” project with the multigrain snack to appeal to consumers. The “Harvest” project also emphasizes on flavor line extension and low-fat versions. In the beginning, Frito-Lay faced some problems for increasing its sales volumes. Later, Frito-Lay uses different aspects...
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...1. Explain the concept and rationale behind mark to market accounting and it's significance to Enron. Kenneth Lay, the president of Enron hires a new CEO who is very energetic and a “dreamer” and joins Enron with one condition. That they utilized mark-to-market accounting, allowing the company to book potential profits on certain projects right after the deal are signed. Enron began a venture that could make $50 million in 10 years; it could claim the $50 million as current income. This gives Enron the ability to appear as a profitable company even if it isn’t. 2. Describe the Enron culture. Enron’s culture seems to be very competitive and all the employees had the same attitudes of their bosses. 3. What is Andy Fastow's significance to Enron? Andy Fastow’s was the Enron’s CFO. He helped the company by hiding the losses with a “Tom Ponzi’s scheme”. 4. What is Sherron Watkins significance to Enron? She was the Vice President at Enron. She is considered by many to be the whistleblower that helped to uncover the Enron scandal. She wrote a concerned internal email message to Enron CEO Kenneth Lay warning him that the in the financial reports didn’t make sense. 5. Why did Wall Street wait until the collapse of Enron to investigate the company? Was there a diffusion of responsibility whereby the executives at Enron told thmeselves that their behavior was okay because the bankers and the lawyers knew what they were doing? 6. In the Stanley Milgram experiment, why...
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...1. Explain the concept and rationale behind mark to market accounting and it’s significance to Enron. When the President of Enron, Kenneth Lay, hires new CEO Jeffrey Skilling, a very energetic and a “dreamer” who joins Enron on the condition that they utilize mark-to-market accounting, allowing the company to book potential profits on certain projects immediately after the deals are signed. To keep its stock price going up par example Enron began a venture that might make $50 million 10 years from now, it could claim the $50 million as current income. However, this projects turn out to be successful. This gives Enron the ability to subjectively give the appearance of being a profitable company even if it isn't. 2. Describe the Enron culture. The culture of Enron was very competitive and all the employees had the same attitude of their bosses. Par example Jeffrey Skilling imposes his idea on Enron by establishing a review committee that grades employees and annually fires the bottom fifteen percent. This creates a highly competitive and brutal working environment. 3. What is Andy Fastow's significance to Enron? Andy Fastow’s was the Enron’s CFO. He helped the company, hiding the losses with a “Tom Ponzi’s scheme”. One of Enron tactic was to create phony offshore corporate shells and move their losses to those companies, which were off the books. The film shows a schematic diagram tracing the movement of debt to such Enron entities. Two of the companies are named "M....
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...of Frito Lay is a tribute to two entrepreneur’s dreams. In 1932, C.E. Doolin purchased a bag of corn chips in a café in San Antonio, Texas. He learned that the chips manufacturer was selling his business so he purchased the recipe and began selling Fritos Corn Chip. Meanwhile, that same year, Herman W. Lay began his potato chip business in Nashville by delivering snack foods. He then purchased the manufacturer, and the H.W. Lay & Company was formed. It soon became one of the largest snack food companies in the Southeast, and LAY'S brand Potato Chips is still America's favorite potato chip. In 1961, the Frito Company and the H.W. Lay Company merged to become Frito-Lay, Inc. Today, Frito-Lay brands account for 59% of the U.S. snack chip industry. In 1965, Frito-Lay, Inc. merged with the Pepsi-Cola Company and formed PepsiCo, Inc. Since that time, Frito-Lay has operated as a wholly owned subsidiary of PepsiCo. Through Frito-Lay, PepsiCo is the largest globally distributed snack food company in the world. The primary snack food brands produced under the Frito-Lay name include Fritos corn chips, Cheetos cheese-flavored snacks, Doritos and Tostitos tortilla chips, Lay's potato chips. Something wonderful—a company that’s all about good fun—doing good things when it comes to making snacks and caring for the environment. This is the company vision of Frito Lay. For more than 75 years, they have been making snacks, starting with simple, farm-grown ingredients. Frito Lay continues...
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...in india, nutyumz will be manufactured in the company-owned plant in pune. the fritolay spokesperson confirmed the launch of new brand. sources said pepsi is gung-ho about fritolay as the subsidiary has been making some money, it ended the year 2000 with a rs 4 crore profit, up from rs 3.04 crore earned in the year ending 1999. pepsi's idea is to create new categories to suit indian tastes and pump up the profit figures by at least rs 2 crore by the end of 2002. sources said that after pepsi acquired uncle chipps, it got within its fold an entire constituency. lays and uncle chipps together earn the maximum (around 50 per cent) for fritolay, while cheetos and lehar namkeen are still on the fringes. pepsi is yet to measure up to haldirams market share which has maintained its numero-uno position in the namkeen segment for years, industry sources said. Crunch time Brand Launches, TNN Jan 29, 2003, 01.57am IST Frito-Lay introduces Red Chilli Chatka, an exciting tangy and spicy variant of Kurkure. The launch has been timed to coincide with the cricket world cup since Kurkure is...
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...Enron Corporation 1. Why did the company collapse? Enron In order to understand what happened within the company we need to start with its origins. Enron Corporation Inc. (later became Enron) begun operating in Huston Texas in 1985. It started from a merger of two natural gas companies, becoming the largest commercial, natural gas pipeline operating in the United States at that time. Throughout Enron’s humble beginnings it generally centred in the delivery of gas to utilities or businesses at market price. When the deregulation of the business markets emerged Enron’s role changed, they begun to act as energy brokers. Enron entered into contracts with the sellers (natural gas wholesaler) and signed the contract with the buyers (gas utility distributors). Enron then transitioned from an old-line energy company with pipelines and power plants, to a high tech global enterprise that traded energy contracts like commodities, launched into new industries like broadband communications, and oversaw a multi-billion-dollar international investment portfolio. Enron’s key corporate achievements during the 1990s was creation of an online energy trading business that bought and sold contracts to deliver energy products like natural gas, oil or electricity. It operated in over 40 countries and areas such as Europe, South America, Australia basing its main operations in the United States. Enron was only competing with a few major players in the recently deregulated industry and begun to design...
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...for a company, whether a small company or a large company. In business research a company have to follow the proper guidelines in order for the company to run smoothly. If a business does not follow the proper guidelines then the business could mislead many opportunities such as growth, funds, and most of the company planning could ruin the company to go out of business. There have been many times where unethical issues have occurred, and the reason this has occurred is because the companies are not having the correct business research ethnics. * Summarize the business research project or article. Enron was a very large company which was an American Energy trading and Communication company that was based in Houston Texas. The company was first started in 1985 by Kenneth Lay, which he thought at the time was a good idea to merge with Houston Natural Gas and the InterNorth Company. Kenneth Lay who was originally the top CEO at Houston Natural, which gave him the reason to think that he had a good opportunity to merge with other companies in order to get the company and what he needs in order to start his own business. In the year of 2000 Enron started to hit very high stock which put the company at 11 billion by the end...
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...for a company, whether a small company or a large company. In business research a company have to follow the proper guidelines in order for the company to run smoothly. If a business does not follow the proper guidelines then the business could mislead many opportunities such as growth, funds, and most of the company planning could ruin the company to go out of business. There have been many times where unethical issues have occurred, and the reason this has occurred is because the companies are not having the correct business research ethnics. * Summarize the business research project or article. Enron was a very large company which was an American Energy trading and Communication company that was based in Houston Texas. The company was first started in 1985 by Kenneth Lay, which he thought at the time was a good idea to merge with Houston Natural Gas and the InterNorth Company. Kenneth Lay who was originally the top CEO at Houston Natural, which gave him the reason to think that he had a good opportunity to merge with other companies in order to get the company and what he needs in order to start his own business. In the year of 2000 Enron started to hit very high stock which put the company at 11 billion by the end of that year....
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...Introduction Frito Lay Incorporated is the world leader in the snack food industry controlling over 35 percent of the world market and over 60 percent of the market in the United States. Frito Lay Incorporated started in 1961 merging the Frito Company with the H. W. Lay Company creating the largest snack food company in the world. Many of the company’s well known brands include Doritos, Lays, Ruffles, Cheetos Tostitos, Fritos, Smartfood, and Santitas, five of which create a billion dollars in sales or more annually. Frito Lay Inc., the snack food division of PepsiCo makes up about half of the parent company’s revenue and about two thirds of the company’s profits. Last year Frito Lay Inc. generated 48 billion dollars in revenue and employed over 48,000 people. The current role that I hold in the company is Route Sales Representative (RSR). This role consists of what they coin the “heart of the company,” and generates a major share of the company’s revenue. An RSR’s position consists of selling merchandise to the customer, delivering the product, stocking of the product as well as customer service. During the last 10 years the company has changed the pay structure that determines the compensation that each RSR receives. In doing this they have also increased the workload and amount of expectations that have been placed on the shoulders of the employees. During all of the events that were involved with the pay changes, the morale and drive of the employees continued...
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...could have been structured differently to avoid such activities. The origins of Enron started with the merger of Kenneth Lay’s company, Houston Natural Gas with InterNorth, a Nebraska-based pipeline company in 1985. Initially, from the beginning, Enron began to show some cracks in its structure, as the company started acquiring huge amounts of debt during its foundation, and as a result of the deregulation of gas pipelines, it no longer had exclusive rights to its own pipelines (Thomas, C.B., 2002). To solve Enron’s credit and revenue problems, Kenneth Lay, CEO hired Jeffrey Skilling, who eventually became the company’s Chief Financial Officer to the CEO in 1996. Almost overnight, Skilling turned Enron into a major market middleman for energy that would dominate the trading market. After many years of seemingly huge successes, more cracks began to appear in the Enron crown. In the final analysis, the conspiracy of Lay, Skilling and others led to the collapse of the company due to fraud, false reporting of revenue, shoddy accounting practices and a general disregard for virtually every tenet of business ethics. Building a robust ethics infrastructure that is self-sustaining, by composing a sound code of conduct that supports the top level, and communicating it to all employees, and assuring compliance with the Code of Ethics (Nakayama, 2002). Corporations that are open about their ethical standards and conduct seem to be more trustworthy than those who stay silent. Some...
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...Business Research Ethics We are going to looking at the Enron Scandal to see how this company’s unethical behavior brought it to an end, to see who were the injured parties; to see how this company’s unethical behavior affected the company and society, and to see if the unethical behavior could have been avoided or resolved? According to the New York Times (2002), in early 2000, Enron, the natural gas pipeline company turned online phenomenon, held a daylong conference in Huston for Wall Street analysts and investors. The audience, packed with financial experts on the natural gas and power industries, was wowed by all the talk of Enron’s online capabilities, especially its rapidly growing business of electronically matching buyers and sellers of numerous commodities like electricity and even network bandwidth. To keep its mystique alive and its stock price growing, it set up partnerships where it could bury its losses, or generate imaginary revenues. Here's one of the more audacious examples, pieced together by The Wall Street Journal: Enron invested a bunch of money in a joint venture with Blockbuster to rent out movies online. The deal flopped eight months later. But in the meantime Enron had secretly set up a partnership with a Canadian bank. The bank essentially lent Enron $115 million in exchange for Enron's profits from the movie venture over its first 10 years. The Blockbuster deal never made a penny, but Enron counted the Canadian loan as a nice, fat...
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