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Frito Lay Essay

1967 words - 8 pages

Frito-Lay, Inc 1987-1992 Background: In December of 1986, Willard Korn, former CEO of Frito-Lay, Inc. resigns due to profit plummets. Korn had led Frito-Lay down a road to disaster. His micromarketing idea was good at theory but unable to support the needs of the ever growing company. His resignation proved to be a turning point for the company and all of its employees.A new beginning: A new beginning for the salty snack giant comes from the leadership of Michael Jordan. The CEO of Pepsi Worldwide Co. steps in to reestablish the market share of Frito-Lay Inc.Jordan as a CEO was attempting to establish a greater market share for profitability, and reorganize the company to streamline ...view middle of the document...

After the grand idea to implement these marvels of technology, Jordan and his counterparts realized that there must be some kind of information infrastructure to support these devices. So they embarked on partnership with MIS, to develop and jointly manage this information infrastructure. This partnership showed how well aligned the two departments were. There was only one minor detail to look at, the worth of this project would only be as valuable as the sales force.Jordan and the other senior management decided to overhaul the company from 91-92. These actions were designed to help introduce the micromarketing strategy. They divided the North America into segments run by ABT?s (area business teams). Each of these ABT?s was managed by an Area General Manager, which operated on the same profit objectives as the ABT?s. Each AGM, was given the authority to define how they were going to manage their own area. These major changes seemed to come at a crucial point in time for Frito-Lay. After the implementation of these groups they needed to find a way to review the progress of the teams. The concept of the Period Review Process was introduced. This gave the ABT?s a chance to manage operations and meet planning targets. The true functionality of the planning process to implement micromarketing was beginning to shine through. All these processes were working to create a more streamline company, and giving each ABT a better idea of the information and a more focused outlook on what needed to be done. This was beginning to accomplish their overall goal to be a market leader in the salty snack market.By 1991, the management began to see their dreams of a utopian company crumbling, all this information and now way to sort the relevant from the irrelevant. The only was to possibly make any sense of this massive information was to be skilled in computer languages. Restructuring was the only way to pick themselves back up from their fall. January 1991, Enrico takes over for Jordan, and hires a firm to study and make recommendations for improvements. After all this reorganization and restructuring the company must once again step back and look at the grim outcome of their attempt to streamline procedures. Job cuts and reorganization was the only way to complete the task of micromarketing. Senior management?s accomplishments from 90 ? 91, were too little to late. After all the reorganization and restructuring that went on since the early 80?s, they find themselves out of jobs due to cut backs. These cut backs are a direct effect of all the time and resources used to implement a strategy that was not fully understood. If the company had made attempt so use smaller more precise iterations, in my eyes they would have had a better chance at success.Frito-Lay strategy has made major changes over the years. Evolving from a paper driven style of management, to a high tech, hand held computer strategy. Their overall strategy is to become the market leader in the salty...

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