Essay On Frito Lay

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 operations and decision making. He began his campaign by the abandoning the micromarketing strategy, and moving to transfer control back to corporate headquarters.It is difficult to say what I would have done differently, since I only know what I have read about the company. I share much of the same feelings that Jordan does, in that the full potential of the HHC strategy is not fully unlocked. I might have looked deeper into what all this raw data was doing for my company. It is beginning to show towards the end of the case that this data overflow is costing the company more than it is providing it. If Jordan and his colleagues had taken a deeper look into what exactly they were going to do with all the data, they might have had a little glimpse of the future.The HHC project was prototyped in Los Angeles, for one main reason, they had won the 1986 best run sales organization. This project was set into motion by Jordan to help aid the sales force with decision making. Many accounting and distribution problems had been plaguing the company for years, and had begun to show major profit declines. With this in mind the senior managers went on a quest to solve this problem and found the HHC. These HHC solved the problems of the accounting by doing the numbers for the sales force, and solved the problem of distribution by allowing the sales people to effectively and accurately check inventory from their trucks. 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 ...


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