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Frito Lay North America

Abdullah Bin Jadid

University of the Incarnate Word

Table of Contents

Introduction------------------------------------------------------------------------------------------------3

Mission------------------------------------------------------------------------------------------------------4

Frito-Lay Leaderships---------------------------------------------------------------------------------------5

Factors in the Remote Environment------------------------------------------------------------------6

Factors in the Operating Environment---------------------------------------------------------------8

The External Environment----------------------------------------------------------------------------10

The Industry Analysis----------------------------------------------------------------------------------10

A Porter’s Five Forces Analysis----------------------------------------------------------------------11

Internal analysis-----------------------------------------------------------------------------------------14

The SWOT analysis-------------------------------------------------------------------------------------15

Identification of Core Capabilities-------------------------------------------------------------------19

Internal analysis-----------------------------------------------------------------------------------------20

Performance of Frito Lay North America---------------------------------------------------------22

BCG Matrix analysis-----------------------------------------------------------------------------------25

References------------------------------------------------------------------------------------------------28

Introduction

Frito Lay North America is one of the most successful as well as resilient companies in the Food Industry. This is evident in the fact that the company has been in existence since the year 1961. The company started as two companies that existed independently in the 1930 and existence as Frito-Lay started in the year 1961. The resilience and success that the company has registered over the years can be attributed to its strengths as well as strategy. Many companies have not been capable of surviving over the period especially due to times of financial recessions which weighed them down. One of the key strengths that the company has is diversity in the products that it offers to its customers. Ensuring that its products are of top quality through improvements over the years has also contributed to the success that the company has continued to register over the decades. This has ensured that the products are satisfactory and in line with the expectations of the customers. The strategic aspect of Frito lay was in the merger with Pepsi-Co in the year 1965. The market share of the company in the United States alone comprises 40% of snacks that are sold in the whole market while it is a global leader in the snacks products. Frito Lay North America has been a great success and this is evident in that the sales of Frito Lay comprise above 30% of the total sales on an annual basis. Frito Lay North America is highly detrimental to the operations of the company as whole especially given that operations regarding research and development of the products of the company takes pace here. The operations of sales and more importantly distribution of the products of the snacks food products in the United States as well as in Canada take place in North America as well, further making it an essential organ and section of the company. The leadership at Frito Lay North America has also been key to its success (Walker, 2013). Various leadership positions and the holders of these positions have their duties and tasks clearly outlined. The company culture of ensuring that the needs of customers are a priority and innovation to produce new and improved products has been its core as well. Given that the technology has become part of businesses and organizations in the current era, the company continues to exploit technology in its operations locally and in its global market environment. Technology has helped promote efficiency as well as delivery in an efficient manner to meet the expectation of the company’s consumers. Employees play a major role in the determination of the success that a business or an organization registers. Frito Lay North America considers its employees a huge asset and takes a broad range of actions to ensure that the employees feel appreciated. The employees are made to personalize and feel happy at work, an aspect that aims at enhancing their satisfaction at work and motivation to work hard. The achievements that the company has had have essentially been due to a dedicated and highly productive workforce (Villegas, & Barrar, 2006).

Thesis Statement

Frito Lay North America is one of the operating divisions of Frito-Lay Company, a division that has been critical to the success that the company has been capable of registering due to the various operations that are undertaken as well as the leadership capabilities that are unique.

Mission Statement

Per Pearce, J.A. & Robinson, R.B, the company mission is a broadly framed but enduring statement of a firm’s intent. It embodies the business philosophy of the firm’s strategic decision makers, implies the image the firm seeks to project, reflects the firm’s self-concept, and indicates the firm’s principal product or service areas and the primary customer needs the firm will attempt to satisfy. In short, it describes the firm’s product, market, and technological areas of emphasis, and it does so in a way that reflects the values and priorities of the firm’s strategic decision makers. An excellent example is the company mission statement of Nicor Inc., shown in Exhibit 2.1, Strategy in Action. (p. 23)

As stated by Frito-Lay, the vision from their official website is “At Frito-Lay, we’re all about good fun — from making tasty snacks to get your party started to taking care of our 50,000 employees who know how to find the fun in everyday challenges. As a proud member of the PepsiCo family, Performance with Purpose is what we work to achieve every day. And to us, that means creating the high-quality snacks our fans deserve, while caring for our people, communities and the environment we share” F. (2017). Furthermore, Frito-Lay is the manufacturer of over 40 different snack products. Together with Pepsi-Cola, Frito-Lay is responsible for satisfying snack urges to billions all over the world. Frito-Lay truly is the world's favorite snack and is always within arm's reach S. (1970, January 01).

Frito-Lay Leaderships

Vivek Sankaran is president and chief operating officer (COO) of Frito-Lay North America, Inc. Hari Avula is chief financial officer of Frito-Lay North America. Kristen Blum is senior vice president and CIO for Frito-Lay North America. David Flavell is senior vice president and general counsel of Frito-Lay North America together with PepsiCo Latin America. Ted Herrod is the senior vice president of Sales Transformation for Frito-Lay North America. Michael Hourihan is vice president of Procurement and Market Supply Officer for Frito-Lay North America. Chris Kuechenmeister is vice president of Communications for Frito-Lay North America. Jason is president of PepsiCo Foods Canada. Dr. Jonathan McIntyre is senior vice president of PepsiCo Research & Development, Global Snacks Category. Patrick McLaughlin is senior vice president of human resources and chief human resources officer for Frito-Lay North America. Randy Melville is senior vice president and general manager of Frito-Lay North America. Craig Musgrove is currently senior vice president of National Sales - Large Format and e-commerce for Frito-Lay North America. Jennifer Saenz serves as senior vice president and chief marketing officer of Frito-Lay North America. Leslie Starr Keating is senior vice president of PepsiCo’s North America Foods Supply Chain. Chris Turner is senior vice president of Strategy for Frito-Lay North America. Kevin Vivian serves as senior vice president of National Sales - Immediate Consumption for Frito-Lay North America. Steven Williams is the senior vice president of the East Division of Frito-Lay. F. (2017)

Factors in the Remote Environment.

The remote environment in a business or organization is an environment that constitutes of factors that come from beyond and are irrespective of any particular firm’s operating condition: social factors, political factors, economic factors, ecological factors and technological factors. The remote environment can present an organization or business with threats, constraints or opportunities and the organization rarely employ some meaningful reciprocal impact. The remote environment surrounding the Frito Lay North America Company greatly influences the progress of the company in either a negative or a positive manner, the company may either find solutions to minimize the threats and constraints that it may face or make the necessary adjustment in case of constraints and threats that cannot be changed so as to ensure they remain in the market. The company should be keen in ensuring that they utilize all the opportunities presented in the remote environment to make sure that they keep up with the fast-growing food industry with one of the opportunities being presented being technological advancement since the world is turning into a technological era.

The economic factors that have an impact on the operations of the Frito Lay North America include; general credit availability, North American’s propensity to save, North American’s disposable income levels, inflation rates, gross domestic product growth and the interest rates in North America. The growth rate of the gross domestic product in North America is high by 2009 it was at 2.4% this is a growth rate that has a positive impact on the growth of the Frito Lay North America Company (Engerman & Gallman 1986). A positive growth rate leads to increase in job opportunities that lead to an increase in people’s disposable income thus enabling people to spend more on products and services. Frito Lay North America benefits due to increase in demand for their products, this leads to increase in profitability due to increased sales volume. The inflation rate in North America was estimated to be around 0.62 in 2015 this is a low rate that means well to the operations of Frito Lay North America. This is because low inflation leads to stable demand and supply factors thus the company conducts its business and is able to supply products to their customers thus increasing their sales volume as prices are favorable and stable. The highest lending interest rate in North America is currently estimated to be around 3.42% the highest rate; this is a relatively low rate that indicates that there is availability of credit in the state. This means that people can easily access credit this increases their disposable income therefore increasing the sales volume of Frito Lay North America.

The social factors that the company faces include the changing taste and preferences of their customers, Frito Lay North America has to ensure that it keeps up with this changes in order to attract and retain their customers. The company’s reputation is very important as it creates a negative or positive impression to the customers and it may attract or discourage potential customers (MarketLine 2016). The political factors in North American creates constraints and threats to the Frito Lay North America especially due to the presidential elections that passed, the customers may prefer retaining their money rather than spending since they are uncertain about the economic conditions. Alterations in drug and food laws in North America has a negative impact towards the sale of food products thus may cause constraints on the operations of Frito Lay North America.

Technological factors may cause threats, constraints or lead to opportunities to the Frito Lay North America it all depends on how the company will handle these factors. North America has a high technological industrial economy; this gives opportunities for organization to advance in technological changes globally. Frito Lay North America should make use of this economy to ensure that it keeps up with the global technological advancement that will enable it to innovate and come up with high quality differentiated products. The rapid technological advancement may lead to increased cost on companies that have low technology and this may lead to them going out of the market due to high competition, Frito Lay North America should ensure it is not among these companies. Frito Lay North America is in the food industry and this industry is mostly affected by ecological factors since agriculture being the main raw material in this industry is highly affected by climatic change. Water plays a major role is the production of Frito Lay North America products thus the company should come up with measures to ensure that they minimize water consumption and help in environmental sustainability that creates a good impression on customers and therefore attracting more customers.

Factors in the Operating Environment.

The operating environment of an organization constitutes of factors that are in competitive situation that impact’s an organization’s success that help in acquiring resources that are needed or in enhancing profitable marketing of the company’s goods and services. Factors that may affect Frito Lay North America in the operating environment include; first the organization’s competitive position, Frito Lay North America is renowned for its great advertisement capability this is among the factors that has brought great success to the company over the years. Advertising products enhances customer’s loyalty and it attracts potential customers, this has made the company to keep up with the competition in the snack industry that has a stiff competition especially in North America and it has achieved 59% of people that eat snacks. The other factor that has made Frito Lay North America, competitive is the innovative capability of the organization, over the years the company has come up with new and differentiated products that are preferred by many customers. The most leading product being “Ranch Kettle Cooked Chips” that is highly demanded and has boosted the company’s success. The company’s competitive position is also attributed to the company’s ability to produce products that satisfy their customer’s tastes and preferences through producing the flavors that their customers crave this has helped in beating many snacks in the market.

The second factor is the company’s customers, Frito Lay North America has not been able to capture the elite class customers in most of their snacks especially chips, this is because most of the people in the elite class do not like chips as they are believed to have been fried using pig fat. Frito Lay North America mostly offers unhealthy snacks thus most people shy away from buying these snacks especially the wealthy consumers as they are health-oriented (Schlosser 2012). Frito Lay North America should come up with a group of healthy snacks so as to attract more customer base.

The third factor is the organization’s capability to attract qualified employees. Over the years, Frito Lay North America has made it their business to ensure that they offer a good working condition for their employees and it ensures that their employees are a top priority. The company ensures that the employees benefits are available they include health and life insurance covers and benefits as well as retirement benefits thus attracting qualified employees.

Business enterprises are normally surrounded by various that are either occurring inside the enterprise or as a result of the surrounding environment. The two factors are either those that are classified under internal or external factors are both very essential for any business organization to able to survive in a competitive venture. The factors that are classified under the internal environment are those that normally affect the business enterprise from within thus the business can have control over them if they handle them in a manner that would bring positive results to the company.

The External Environment

The external environment is referred to factors normally impact a business enterprise from within thus causing either positive or negative impact on the company’s performance and growth. The external environment is not controllable. Those that are given the managerial position of a business have no influence over business contenders, or changes to law, or general monetary conditions. However, the administrators of a business or association do have some measure of control with reference to how the business responds to changes in its outside condition. The same case applies to Frito lay company, which is categorized under food and beverages section. Therefore, this piece of work is going to focus on the external environment of Frito lay company following the five Porter’s forces of analysis.

The Industry Analysis

Frito lay company is mostly affected by the following factors. Political Factors: As a traded on an open market enterprise, Frito-Lay is required to take after each appropriate corporate direction set by the central government. Lay's must likewise keep any generation controls executed by the legislature, for example, points of confinement to Trans Fat use, limitations on bundling materials, and so on. These creation directions likewise stretch out to work confinements, which differ contingent upon the nation; in this manner, wherever Lay's delivers its Classic chips, it must hold fast to the work laws set up in that nation.

Economic Factors-Lay’s primary economic concern likely stems from the presence of its competitors in the snack food industry, since there generally isn’t a great deal of customer involvement when choosing to purchase a bag of chips-In addressing its presence in the snack food market, Lay’s must necessarily study the products, marketing strategies, research and development initiatives, and other important business aspects of competitors, such as Nabisco and Pepperidge Farm. As it said, for any business institution to be able to grow in terms of financial profit in a competitive environment it has to be aware of the external factors that are likely to hold it backwards if not taken with the seriousness that they deserve. This is the secret behind the prosperity of the Frito lay company as it has focused on the environmental factors in order to continue thriving and remaining on top of the industry in such a competitive environment.

A Porter’s Five Forces Analysis

Some of the key external environment factors that affect Frito lay North America are: Current economic conditions-The prevailing economic state of the countries where a company is situated will affect the spending trends of residents (Bornscheuer et al ,2015). Increments in financing costs as well as an abnormal state of unemployment will discourage utilization of trivial merchandise and enterprises. For instance: at the point when individuals encounter budgetary hardship, they will spend significantly less on game and entertainment, occasions, new autos and extravagance merchandise.

Competition - The other external factor that surrounds the Frito lay company is competition. The reason as to why completion is categorized under this section is because the competitors affect a company from the outside part. As a factor of concern, competition continues to increase every day due to the emergence of new competitors and the improvement of commodities by the existing firms. Frito Lay Company in the past has been able to cope up with the increasing competition to from force of Suppliers -This compels addresses how effortlessly providers can drive up the cost of merchandise and ventures. It is influenced by the quantity of providers of key parts of a decent or administration, how remarkable these angles are and the amount it would cost an organization to change starting with one provider then onto the next. (Grossberg, 2016). The less number of providers and the more an organization relies on a provider, the more power a provider holds. Frito lay has been able to thrive in business since it owns the power of supply as it ensures that its commodities are consumed and availed in all retail centers like supermarkets.

Capability of New Entrants into an Industry-An organization's energy is additionally influenced by the disadvantages of new participants into its market. The less cash and time it costs for a contender to enter an organization's market and be a viable contender, the more an organization's position might be fundamentally debilitated. In the food industry, this kind of trend has been happening thus leading to new competitors to the Frito lay company. The new competitors for Frito Lay Company are mondelez and Kellogg’s. This has in return forced the company to come up with new strategies of curbing the competition (Chao et al 2016).

Monetary conditions -These are worldwide also national, and when there is worldwide money related emergence as in 2007, changes in the outer condition can be emotional. For instance, in 2005, soda annual sales in the United States dropped without precedent for a long time. Coca-Cola sold 2% less cases, and Pepsi's aggregate case volume diminished by 3.2%. Frito-Lay's business development tumbled from 11 percent in 2000 to 7 percent in 2001 to just 5 percent in 2002. One reason was that its private-name snack contenders were offering their items at lower costs than Frito-Lay. Likewise, Frito-Lay was moving into more advantageous snacks, for example, heated chips, putting Frito-Lay in firm rivalry with organizations, like General Mills and Kraft. PepsiCo acknowledged it needed to discover approaches to expand its net revenues. Today, there are many Pepsi item and bundling arrangements, contrasted with 50 just a few years ago and store rack space has not expanded to oblige every one of these things. Pepsi must discover better approaches to offer, cost, advance, and convey its soda pops and different items at far less cost (Blosch et al, 2015).

Risk of Substitutes

Contender substitutions that can be utilized as a part of place of an organization's items or administrations represent a risk. For instance, if clients depend on an organization to give an instrument or administration that can be substituted with another apparatus or benefit or by playing out the assignment physically, and this substitution is genuinely simple and of minimal effort, an organization's energy can be debilitated. Frito lays product has been faced with substitutes especially since most of them have got high level of cholesterol.

The success of the company has not been without vain since as evidenced in the above essay the company has had to deal with numerous factors that were derailing its progress. The company also continues to improve its commodities in order to be able to control the external environment, which poses a threat to its resources. Therefore, the external factors cannot be taken for granted since the serious in whom they are taken determines a lot the success of a business.

In the previous cases, a brief introduction has been given based on the company and more information on how it has been able come up to the current position. This has provided an insight of the company and more so how it has been able to cope with difficult times of financial recessions. All this has been attributed by some of the aspects which have been present in the company’s management and hence the incredible improvements (Bennett, 2010). In this case, we shall focus on the internal analysis whereby we shall consider how the company works internally. Additionally, the SWOT analysis shall be considered and in this case, it shall cater for all aspects that are essential. Lastly the core capabilities portrayed by the company will also be identified which will therefore bring out the important aspects of the Frito Lay North America Inc.

Internal analysis

To clearly understand Frito Lay North America, an internal analysis is essential this will cut across all the elements that are ventured within the company and hence achieving the great success. The leadership strategy is one of the elements that make it successful; this is attributed to the entire process of ensuring that the company becomes successful. The format portrayed not only enhances achieving of the overall increased sales, more so it is out of this that the human resource department is able to interact with the employees. In addition, it is with this that the success has been progressive over the years thus making it the global leader.

It is the culture of the leaders who are in some of the positions are in a position to perform their tasks and ensure that all the duties and responsibilities are achieved. This has been possible since each leader understands all the terms and policies that he needs to work in and hence the need to work efficiently. It is from this culture that innovativeness has been evident and as a result new differentiated items have been developed. Different forms of seasoning have been used and out of this customer satisfaction has been achieved.

Consumer satisfaction is the basis of the company since without the consumers it becomes difficult for the company to grow. As a result, the internal environment ensures the company is in a position to keep up with the competition as well as enhance the potential of the consumers. It is in this manner that the consumer loyalty is maintained and hence the overall outcome becomes positive. Moreover, the employees are always considered and out of this they are in a position to ensure that they deliver the most efficient services. This includes how the employees interact and the channels used. This therefore not only forms a strong foundation but also the entire section is successful.

The SWOT analysis

Strengths

For Frito Lay North America to thrive it has showed some of the strengths, which have made it, cope up with the market competition as well as ensure that the market leadership is maintained. One of the key strengths is the diversity that it has when it comes to the products offered to the consumers. For instance, it has the potato chips, corn chips, fried pork cracklings, fried pork skins, plantain chips, and salted whole cashews. It is clear that with such products, the relevant consumers are not only accessed, but also, they are able to enjoy what they prefer. Additionally, the element of preference is fully satisfied when it comes to the case of the consumers and thus it adds up to the key strengths that the company has. By serving the consumers with high quality goods, then it is clear that it is able to maintain the market position.

The brand name is another key element when it comes to the strengths; this is based on various aspects and more so relating to the industry. Due to the commitment from the employees, it has been possible for efficient services to be offered as well effectiveness. Additionally, with the use of advanced technology, much has been attained since the expectations of the company have been met and therefore serving the consumers has been suitable. All this brings about the element of building the image as well as the reputation of the company. From this then the outcome is not only essential but also results to the increased number of sales and thus more profit.

Weaknesses

Identify what the consumers need when it comes to their choices is one of the essential elements; Frito Lay North America has based most of the products to be potato based. This therefore only enhances people who are into potatoes and as a result the rest are not catered for, this is mostly to people who are focused on making sure that their health is in the right condition. With the increased premature deaths, majority of the people have decided to face the entire health problem so as to improve, through this Frito Lay North America may not cater for all people. As a result, it may not be able to capture all the consumers who are present in the food industry.

Another form of weakness that the company is likely to have is the rare employment opportunity. This ends up making it to lose some of the potential employees who could not only be creative but also may enhance the success of the company. To mitigate the risk, it has to ensure that it is able to have an open employment platform, which will therefore enhance its success. Additionally, this will also ensure that it is able to include the technological elements, which are essential. This calls for competent employees and the only way to achieve this is by accepting them by recruiting some of them. This will enhance change, which is effective and leads to the incremental growth unlike having stagnant results.

Opportunities

One of the key opportunities that the company has is the aspect of credit services, which are availed to the consumers. The entire lending interest rates attributes all this since they enhance the credit availability. This serves as an opportunity since it not only results to attraction of the consumers but also gives them a reason to stay as well as ensure that they are in a position to understand how the market is trending. This therefore forms the basis of consumer loyalty and therefore the full potential of the company is maintained.

Another opportunity is enhancing brand awareness; this is possible with the use of campaigns, which not only enhance awareness but also build the repetition of the company. Campaigns are important since they form the basis awareness and through them customers who did not know of such a company will be able to know about it. having known the importance of food, then each new person will be interested and thus want to have new consumers.

Another opportunity comes in line with the power of supply whereby it is known to own the power of supply and therefore this may form the basis of its growth. By ensuring that the products are available in all retail shops, this clearly brings about the aspect of availability thus giving it the opportunity to grow. Additionally, other places like the supermarkets also form the platform for supplying the products and hence enhancing the overall element of growth and continuity. Moreover, this will establish a continual supply to the demand in the market since the new products will have a new basis to create a new connection with the consumers.

Threats

Each company faces some of the factors, which are considered to be threats this is part of the growing element. To begin with, the food industry is an industry, which seems to have more companies since food is a basic need to people. As a result, it is evident that Frito Lay Company continues to face competition from different companies. A good example includes the Conagra Brands, Inc. Company, which is also known for the foods it makes as well as the campaigns, which it has ventured in so as to create its awareness.

Global change is the other threat the company may face, this is based on several elements such as the raw materials. Frito Lay Company depends on agricultural products, which are often affected by weather, with the current changes in the weather patterns the raw products may end up decreasing and therefore the overall production becomes affected. In addition, the increased use of genetically modified products has led to majority of the people having a different say on eternal foods and therefore they prefer making their own. This is a threat since the people are not able purchase the products and hence the number of sales may reduce adversely.

Agricultural products have been affected and out of this the overall outcome is that Frito Lay Company may not have all the necessary ingredients including the seasoning products. More so the ecological factors are also playing a hug role since they are affecting agricultural production. From this the opportunity of the company is limited since it may not grow as expected, this clearly shows the threat that the company is facing and hence it is highly influenced.

Identification of Core Capabilities

Within the company some of the factors are considered important, more so this is what enhances the growth of the company. However, some capabilities often underlie within the company and hence they may attribute to more successful features. Full utilization of the employees is one of the core capabilities; this however does not mean that the company may overwork the employees. It simply means that the full potential is realized and thus the company is able to ensure that the most convenient products are delivered.

Moreover, this can be done in various ways such as employee motivation apart from the cover benefits that they receive. Through this the company will be able to increase the innovative nature and thus consumers will end up considering it the top priority. Another area that the company is capable of improving lies in the products that it offers to the consumers. Not each individual is in a position to ensure that they watch over their diet and due to this majority prefer to do away with junks or rather snacks. From this it is important to ensure that the products sold cuts across all individuals. The company is capable of ensuring that this is achieved since all that is required is capital and relevant skills on which this can be provided.

With the profit that the company makes and other benefits that it is subjected to it is capable of ensuring that the employees work is appreciated. This can be done by ensuring that the health of the employees is considered. As we understand food is an essential product, which needs proper conditions such as hygiene and better facilities, and all this can be achieved by the employees and hence the company needs to play a huge role.

To sum up, an analysis enables a company to understand what can be done and how this can be done. More so, the SWOT analysis lays a background and as a result Frito Lay North America is able to establish the most essential platforms. Also, it is with this that the leaders are able to enable the growth of the company and hence improvement becomes evident. Technology is part of the growing world and hence it needs to be part of the company (Roger, 2010).

In the previous, a brief introduction of the functionality aspect of Frito Lay North America was illustrated. More so, a situation analysis, which involves the internal and external environment of Frito Lay North America, was depicted in a more resilient perspective. The various illustration that were facilitated enhances a better understanding of Frito Lay North America. The formulation of the market is based on understanding the target market and among various factor that helps the company to be in a better position to function in a flexible perspective. This paper will focus on Internal Analysis where by consideration of the company functionality will be portrayed. More so, Comparison and Forecast of Past Performance will be identified in Frito Lay North America. Finally, there will be the identification of the competitors that is based on the BCG Matrix analysis which will give a clear evaluation on different perspective that will be based on the performance of Frito Lay North America in the market arena.

Internal analysis

In order to understand the functionality aspect of Frito Lay North America, an internal analysis ought to be facilitated so that the core idea can be identifies and as well the characteristics of Frito Lay North America. Internal analysis begins with the company itself, what are the products that are provided by Frito Lay North America and what is the initiative in terms of the business environment. In order to understand the company strategic plan consideration of the right technique ought to be enhanced so that a clear image of Frito Lay North America can be defined in the business environment. It is out of this that Frito Lay North America performance can be determined so that strategizing of new and innovative techniques can be used so the production can increase. A gain determining if the company will work on the speculated framework it is determined by the cultural practices that are emulated in the company (Cadle, Paul, & Turner, 2010).

Satisfaction of customers can be obtained if Frito Lay North America is in a position to consider customers needs and delivering services with appropriate measures. Organization operations are defined by the worker's motivation criterial and how competent and aggressive they are in mitigating factors it is by this that the speculated goals and objectives can be obtained in a more realistic aspect. In order for Frito Lay North America to keep up a better pace in terms of the competition arena, innovative ideas ought to be enhanced in both the working platform and the product that is being initiated.

The financial structure is what defines how activities will be carried out within the business so that a clear flow can be obtained and every person within the business can be content. Initiating and facilitating Effectiveness of communication level of family-friendliness within the business operation credibility’s is what defines that success of the business and the response of customers this is as stated by Bennett, (2010). Such factors are facilitated so that customers’ loyalty can be gained by values their existence and building a strong relationship.

Performance of Frito Lay North America

Frito Lay North America is known to enhance a progressive success that is based on several advantages, some structural and some cultural phenomena. It is out of this that the performance has been indicated to grow since Frito Lay North America embraces the fact that it keeps its eyes of the ground and in the market arena. This means that any opportunity that is venerable to appear Frito Lay North America stands a better position to identify it and utilize it to its maximum. On the other hand, Frito Lay North America stands a better position in scale and vertical integration that provide Frito Lay North America advantages in manufacturing, warehousing, and distribution of products in various market within the globe. Comparing the performance of Frito Lay North America different changes have been resonated that pertain factual acts that have been initiated in various aspect.

It is out of the better performance that has developed has enabled Frito Lay North America to initiate a market systems that provide ubiquitous reach, that facilitate brands virtually wherever consumers are live, work and play. Flexible and transparent in accessibility of recourses is obtained, with this Frito Lay North America has stood a better position in creating a strong bond with the consumers. Although the aspect that resonates the aspect of performance form a culture that is divers in all aspect allows different associates to be empowered to make a difference. Such aspect defined the company to be in a position to facilitate effective measure that are convenience, health, and wellness will continue to drive consumers to partner with the company because a common factor is achieved in the performance criterial (Lussier, 2012).

In order to obtained effective performance some credential ought to be enhanced so that a better relationship can be built which is defined to be a great source of wealth. More so, new structures are developed so that opportunities to quickly share best practices and scale regional successes reflect the performances of the company. It is out of this that the performance factor can be based on diverse and a focused team that vies everything in a positive manner this means that Frito Lay North America Stand a chance of being committed in winning wherever and however the company operate. Another precise factor that may define Frito Lay North America is that it should be in a position to deliver performance with purpose.

By this, it means that the structural aspect that is enhanced in the management aspect should be effective and flexible. All the identified forces are narrowed down to the how can Frito Lay North America offer competition in meeting the customer’s needs. In this section, different analyze are partaken so that a clear evaluation of how other companies in the business environment define their products and what are some of the essential aspects that are enhance. By doing this a better understanding of what is expected to be done so that the products can sell in large masses can be obtained.

However, the performance aspect is determined by the structural factors that are embraced in the internal and external levels. This calls for a better understanding of the core components that make up the working framework that defines the Performance of Frito Lay North America. Performance results are obtained depending on the organization capabilities, which is based on distinctive capabilities and among other capabilities. The speculated internal analysis defines Frito Lay North America performance which means that transparency ought to be enhanced so that a clear flow activity can be gained in order to fulfil the core principle of customers.

Determining the financial highlights rate of Frito Lay North America can be based on present value of liabilities (discount rate). For instance, certain employee-related demographic factors, such as turnover, retirement age and mortality is an analytical factor that determine the future expectations of the company. More so, the discount rates are based on interest rates for high-quality, measurement date, long-term corporate debt are defined by the proportional factors within the company. On the other hand, the expected return on assets in the company funded design is structured for any pension expense, out of this the rate of salary increases is defined by where benefits are based on earnings.

Change 2015 2014 2013 2015 2014

Total net revenue $ 63,056 $ 66,683 $ 66,415 (5)% — %

Operating profit/(loss)

FLNA $ 4,304 $ 4,054 $ 3,877 6 % 5 %

QFNA 560 621 617 (10)% 1 %

NAB 2,785 2, 421 2, 580 15 % (6)%

Latin America (206) 1,636 1, 617 (113)% 1 %

ESSA 1,081 1, 389 1, 327 (22)% 5 %

AMENA 941 985 1,140 (4.5)% (14)%

Corporate Unallocated Mark-to-market net gains/(losses) 11 (68) (72)

Restructuring and impairment charges (13) (41) (11)

Pension lump sum settlement charge — (141) —

Venezuela re-measurement charges — (126) (124)

Other (1,110) (1,149) (1,246) $ (1,112) $ (1,525) $ (1,453) (27)% 5 %

Total operating profit $ 8,353 $ 9,581 $ 9,705 (13)% (1)%

Total operating profit margin 13.2% 14.4% 14.6% (1.2) (0.2)

BCG Matrix analysis

Initiation of BCG Matrix analysis provides a brief description of the company product lines in search of growth opportunities that are venerable to occur this is as stated by Orcullo, (2008). This means that a broad dimension is overlooked based on how different calculation are partaken in the BCG matrix analysis. Another factor is to understand the strategic positions of the business portfolio which mean that the company out to determine which relative market share that will be used. This is because higher corporate market share results in higher cash return. BCG Matrix analysis is easy to perform in the business platform which means that acer evaluation ca be obtained in the business structure of Frito Lay North America. Doing this can enhance and boost the working condition of in the company so that the degree of performance can improve.

Reasonable investments are determined by the strategic thinking that is used so that a common decision can be obtained. In this case, Frito Lay North America can opt to generate investment of a different kind, a company or any institution is defined by the properties that are within its record. This insinuates that BCG Matrix analysis defines that company as a whole and the aspect that are within the company functionality aspect. Even though the analyze does not define how the market looks like it elaborates on the classification of business which means that a business should not be one way driven different dimensions ought to facilitate so that a whole objective can be gained.

In terms of internal analysis, BCG Matrix analysis plays a critical role because it does not extend its forces in the external parameters. This means that the functionality aspect is highly evaluated because competition begins with the inside arena were by the speculated strategies are made to be more innovative and better ideas put in place. Such factors are enhanced so that competition in the business environment can increase. This can be achieved by persuading workers on beneficial factors that define how the speculated goals will be achieved in a more resent perspective. This is evident because Frito Lay North America operate in high growth industries and maintain high market share which is based on the fact that the production rate is high and every opportunity is utilized to its maximum (Madhavan, 2013).

However, BCG Matrix analysis is channeled down in different steps that define various aspects that ought to be analyzed so that a better conclusion can be obtained this is as stated by Weygandt, Kieso, & Kimmel, (2005). More so, better performance are determined by the following step evaluation, so that better techniques can be enhanced in the framework aspect. To begin with the first step of, BCG Matrix analysis involve showing the first unit, this means that a clear analyzation of the separate brands, products or a firm as a unit itself. On the other hand, there is defining the market, which is an essential factor that determines how the company will work and the classification that will be enhanced.

It is by defining the market that calculation of relevant market share can be obtained in terms of revenue or market share. This is achieved by dividing the market shear by the company’s brand market shear; it is such aspect that help in the determination of the competitors and what are the aspects that are being used so that they can do well in the business forum. Another importance aspect is finding out the market growth rate, this ca be achieved in two form either in the record factor or calculation perspective whereby the average revenue growth of the leading industry firms. This is measured by certain percentage, which enables Frito Lay North America range its strength when it comes to the potential production and distribution of products. Finally, there is the final step, which involves drawing the circle on a matrix, this is done after a critical calculation that will enable plotting of brand on the matrix. More so, the revenue generated by the brand determines the size of the circle.

With the speculated aspect, Frito Lay North America can be in a position to enhance a better and functional change because the analysis covers up a wide range of the company functionality. This means that the chances are high that a company stands a better position in surviving any repercussions that are prone to emerge in the market platform. In addition, the analysis speculates and identifies various factors that the company should facilitate so that efficiency can be obtained. However, in order to maintain better performance in Frito Lay North America, the identified factors ought to be enhanced in a more sensitive manner.

To sum up, a better analysis that is carried out gives the company a better understanding of where it lies in terms of the performance and other factors. More so, formulation of different strategies is determined by the type of progress that a company is experiencing this means that better and effective measures ought to be enhanced so that productivity can increase. BCG Matrix analysis is a form of tool that determines and analysis where a company lies since it offers strategies that can improve the performance of the company and how adjust to the speed of market growth.

Long Term Objectives and Strategies

Looking at the performance of Frito Lay North America, it is evident that the organization is aimed at getting to higher heights. The organization has tried all it can to maximize the economic opportunities that have been at its disposal. The fact that the organization has been in existence for many years makes the organization stand a chance in outsmarting its competitors. When an organization stays in a business environment for many years, it learns a lot and the experience it gathers can be used against the competitors. The food industry is competitive and seeing that the organization controls 40% of the market, the company has a potential to enlarge its business and increase the percentage of its market share.

To make sure that the organization dominates and evicts the competitors out of the competitive food industry, Frito Lay North America must employ strategies that will not only ensure that it increases its profits, but it stays relevant in the market and controls a bigger share of the food industry (Simons, 2013). Such will only be possible if the organization will realize the need to identify long-term objectives and later select the most suitable strategies for making sure that the objectives are met. When an organization is called to have long term objectives and strategies, it does not mean that the organization is unable of survive. An organization is not supposed to be stagnant.

The modern business world is competitive, and any organization that fails to put down strategic measures is left behind. The long-term objectives that Frito Lay North America will put in place are meant to explore areas that the organization has not yet explored and at the same time make sure that the strategies that are currently in place are strengthened so as to make sure that the organization stands the heat of the business competitive world. The long-term objectives might take years before their results are seen, but when they start bearing fruits, the organization will have a lot to harvest.

Long term objectives of Frito Lay North America

For Frito Lay North America to be as competitive as some of the global organizations and to make sure that the organization retains its position, it has to work on some long-term objectives. The objectives are technology, technology leadership, productivity, employee relations, profitability, corporate image, customer satisfaction, and innovations. Every long-term objective that is listed above has its advantages. There is a need to look at the advantages so as to make sure that the organization is motivated to working hard towards reaching the objectives (Goetsch & Davis, 2014).

Technology

An organization that does not take advantage of the evolution that is taking place in the technological world today is missing a lot regarding advancements and competitiveness. Many organizations are using technology to reach a big number of customers and at the same time to improve efficiency and operations. Therefore, if the organization will invest in technology advancements, it is more likely that Frito Lay will rise to heights it has never been before.

Technology leadership

In the modern world, an organization does not need to have all its managers so as to lead their respective organizations. Many organizations have taken advantage of technology leadership and have hired a small number of managers to oversee numerous organizations. For example, an organization can decide to hire one manager who is entrusted with the responsibility of managing three different regions or branches. Through technology, the manager gets to control his respective branches and at the same time nurtures new leaders. Frito Lay is an organization that has ambitions of dominating the North America markets. To do so, the organization might be required to open up new branches. For an organization to make more profits, it ought to be strategic by minimizing the cost of employees. Therefore, by employing the long-term objective, the organization gets to save money that would have been paid to more personnel.

Productivity

An organization cannot make profits if it does not produce. The main aim of an organization operating is to meet the demands of the customers. The demands of the customers are only met if the organization has the capability to avail what the customer needs in the market in the desired quantity and at the right time. If Frito Lay works on its production, it will meet the needs of the customers. Productivity has more benefits on an organization because it meets the needs of the customers and at the same time adds to the profits of the organization (Gluck et al. 2000). By implementing the objective, the desire of the organization of covering a larger market area will be met.

Corporate image

What the customers and the community think about an organization has an effect on the operations of any given organization. A good example can be borrowed from the case of Coca-Cola in India. After the community had been dissatisfied with the actions of one of the organization’s plant to use more water in the community sources, the company shut down its processing plant in the region. That shows how bad it can get when an organization is not at peace with the community around. Frito Lay needs to make sure that it is in good terms with the community. Such does not come without input from the organization in a demonstration of good will. An organization that does not care for the community suffers a lot. There are rules and laws in different regions. The laws are in place to make sure that an organization considers the community in its operations.

Frito Lay North America has come a long way to get to where it is today. The organization has customers who have trusted it for its continuous production of products that are in line with the needs of the customers (Hill et al. 2014). One wrong move from the company would send a bad message which might come back to haunt the organization. Therefore, the organization will need to maintain the good relations and even go a step higher to build more relationships will all communities in its areas of production and operations around North America.

Profitability

An organization cannot survive in the harsh world of business if it does not make profits. For example, if Frito Lay was not a profit-making organization, it would have collapsed many years ago. Therefore, there is a need for an organization to make profit-making its objective. By so doing, the organization will employ the right strategies that will help it to get there. Profits in an organization help the organization in many ways. An organization cannot survive if it does not meet its needs, the requirements of the authorities, and the salaries of the employees. Therefore, Frito Lay North America has a responsibility of making sure that it makes more profits so as to sustain it need needs.

Customers’ satisfaction

If customers are not satisfied with the services and the products that an organization offers, it is more likely that the customers will seek the services elsewhere. When such happens, an organization is left in a disadvantageous position. An organization cannot be satisfied by a limited number of customers if it is determined to grow. The customers are some of the most important stakeholders in an organization. If an organization does not have customers, it is more likely that it will not be capable of making enough so as to meet its needs. Therefore, there are ways that an organization must consider if it is aimed at making sure that it meets the needs of its customers. Frito Lay needs to look into ways that it can retain its current customers and at the same time attract more customers. That is the only way that the organization can make more profits and gain an advantage over its fellow competitors.

Innovations

One of the reasons why many organizations are making profits than their competitors is because they have realized that by encouraging innovations, an organization can transform for the better. Innovations call for an organization to invest its new ways of operations. An organization that is not innovative is likely to lose in the competitive market. A good example can be fetched from Kodak (Armstrong & Taylor, 2014). The organization is well known because it has been on the market for many years. However, the organization was good at producing analog cameras. When the world transformed from analog to digital, the organization failed to be innovative. As a result, the organizations like Samsung which embraced innovations took over the film industry. Kodak has been lagging behind, and the case has gotten worse after the invention of phones that can record and take photos.

Strategies

Any given organization that is interested in being competitive and surviving in the business world must have a plan of doing so. Strategies are used as a blueprint towards an organization meeting its objectives. In this case, different strategies will be used on each and every long-term objective. The objectives cannot be of help to the organization in the absence of strategies. However, when strategies are used to reach the objectives, the organization, and all its stakeholders' benefit.

Technology

There are different strategies that the organization should use to take technology in the organization to a higher level and at the same time utilize technology for its gains.

1. Use of technologically advanced equipment
   
   

To make sure that Frito Lay is in line with the modern-day technology. The organization needs to use equipment that is technologically advanced. The reason why some organizations are making it in the competitive markets is that they have identified ways of making more profits than others (Hill et al. 2014). One way of doing so is using equipment that is technologically advanced. When an organization brings in machines that are technologically advanced, it saves on the cost of labor because the machines can handle a bigger workload than human beings. Researchers have found out that machines are more efficient than human beings. The machines that are used to prepare the snacks and machines that are used to pack the snacks can all be technologically advanced, and that will see the organization save much on labor and increasing the level of quality.

1. Hiring of employees who have technological skills

In the hiring process, the organization needs to make sure that all candidates who qualify for different positions have the technological skills to operate the equipment. The candidates can also be used to advise the organization on the best ways to improve on matters of technology. If such is done, Frito Lay North America will be among the organizations in the United States that their level of technology is high to the extent of becoming a threat to the competitors.

1. Training employees on how to be technology oriented

Long term objectives start with short term goals. Training employees is an objective that can be reached in stages. The organization should make a sacrifice to train some of the employees who are loyal to the organization. When such employees are trained, it becomes easy for the organization to tap into the talents available and utilize them to take the organization to a higher level.

Technology leadership

1. Leadership nurturing

An organization that has no leaders in place is bound to fall because it lacks people who can direct other in the right direction. The organization will achieve the objective of technology leadership if it motivates the leaders who are in place to nurture new leaders (Thompson et al. 2007). Nurturing new leaders ensures that when an organization will be in need of a leader to fill a position, the organization will not need to spend a lot of money to get one and at the same time will not go through a rough time looking for one because there will be leaders in place. All that will be needed is for the organization to choose the most suitable leader.

1. Inclusive leadership

Inclusive leadership is a leadership method that makes sure that all members of a group or a company are involved. In this type of leadership, the contribution of every person matters. In the process, the group members get to familiarize themselves with leadership, and that makes them potential future leaders. If Frito Lay employs the strategy, the company will have a pool of leaders in future, and that will mean that it can open as many outlets as it wishes because there are enough leaders to head the outlets.

Productivity

1. Specialization

Specialization calls for every employee to work on a specific task continuously. Such makes it easy for employees to manufacture products in large quantities because their attention and concentration are not diverted.

1. Advanced machinery

Machines that are advanced technologically have the capability to manufacture goods faster and efficiently. Therefore, the introduction of such machines makes it easy for the organization to manufacture goods in larger volumes compared to how laborers would have done it (Pearce et al. 2007)

Employee Relations

1. Employee motivation

Frito Lay should make sure that employees are paid well, they are promoted, they are rewarded, and they are paid for overtimes.

1. Conducive working environment

Employees need to work in a suitable environment for them to be productive. Such can be made possible by the organization providing all resources that the employees need to work effectively. At the same time, leadership in the organization should be democratic so as to give the employees the freedom to air their views.

Profitability

1. Acquiring raw materials from the source

Frito Lay should make sure that it researches on the places where it can acquire raw materials at a fair price. The organization produces a lot of snacks in a day. Therefore, looking for a place where it can purchase its raw materials at a lower price will save on purchasing cost and add on profits.

1. Production of quality products

It is the nature of customers to be attracted by goods that are of high quality. If the organization makes sure that all products are of unquestionable quality, more customers will buy the products (Grant, 2016). The more the customers buy, the more sales the organization makes and that leads to increased profits.

Corporate image

1. Participating in community events

Communities have different events that are aimed at bringing the society together. Frito Lay North America should participate in such event. Some of the events are sports in nature whereas some are social gatherings. To show its solidarity with the community, the organization should contribute to planning for the events.

1. Preserving the environment

It is a moral obligation for an organization to make sure that it operates in a clean environment. To be at peace with the residents, Frito Lay North America should make sure that it participates in programs of making the environment free of pollution. Such can be done by the organization managing its waste and at the same time participating in initiatives that are aimed at keeping the environment clean. The organization can even have one day in a month when employees join the residents to clean up the environment by collecting litter.

Customer satisfaction

1. High quality of goods and services

Customers are very selective when it comes to types of services they are offered. Frito Lay should make sure that the employees provide some of the most competitive services so that they can retain customers and attract more.

1. Discounts and offers

When customers are given discounts, they feel valued. Putting into consideration that this is a long-term objective, the organization should identify seasons when it should be giving offers to its customers (Grant, 2016). By so doing, customers will be more satisfied with the offers of the organization and will not seek services elsewhere.

Innovations

1. Talent pool management

Frito Lay North America should make sure that it has a pipeline of talents from the organization and from outside. Such can be made possible by the organization observing the most creative and innovate employees and giving them a chance to demonstrate their skills in the organization.

1. Research on global trends

An organization can know about innovations by looking at the current trends. Frito Lay has a good number of employees who are innovative. All it needs is to know about the current trend, share the idea and encourage the employees to work on the ideas or even produce better ideas that would be of benefit to the company.

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