Frito-Lay It Strategy

 Frito-Lay That Strategy Article

Frito-Lay inside the mid to late 1980's was looking to change the way of working. As with many large firms, decisions were made on a corporate level, with field businesses carrying out the business plan. This model, though useful in terms of use of resources within the corporate level, did not permit the kind of flexibility that the snacks market required. The outgoing CEO, Willard Korn, got set frontward a micromarketing strategy where each field office can be responsible for discovering demand, performing promotions and other marketing actions and buying replenishment. The condition with this approach was that Frito-Lay lacked the technological structure to make it happen in an efficient method. (Frito-Lay, 1992)

Overlap Among IT and company Strategy

Frito-Lay's corporate strategy, set frontward by the new CEO, Jordan, was to trigger the micromarketing strategy commenced by his predecessor, although do so in a manner that will allow the company to retain total control although allowing regional decision making to adapt to marketplace changes. Essentially, Mr. The nike jordan was putting into action the same strategy, but his approach was going to garner much more success.

The key to success will be to use technology to improve the flow info to and from creation, sales, advertising the corporate level. The THAT strategy could center on learning the information demands of the business and building and carrying out a technology solution that can help achieve corporate and business goals.

Overlap Between IT and Functional Area Strategy

The central difficulty Frito-Lay was experiencing is that information gathering and making decisions was most efficient when nearest to the consumer process, or perhaps " the place that the rubber satisfies the road”. Given variations from region to region, different marketing efforts needed to be developed and no corporate advertising plan will allow for the most useful use of assets across the entire company.

To achieve this, THAT strategy will center on producing an efficient and usable system to allow the free flow of information coming from consumer buys up to regional sales offices. The primary tool that would be employed in this efforts would be the handheld computer (HHC). This tool would allow field reps to gather restocking information, sell-through and other product sales data when visiting each store that markets the product. These details could then be dispatched, in real-time, to the regional office pertaining to ordering renewal and promoting analysis. (Frito-Lay, 1992)

The functional area strategy is definitely the plan for Frito-Lay to apply the new IT and corporate plans on the detailed level. Certainly, any well-laid out company and THIS strategy is definitely useless if this isn't executed properly inside the operation with the business.

Strategic Prepare Items Requiring Review

Obviously such a sizable change in functioning procedure could require report on the plan by management of both the THAT process and business procedures. If a review is not really conducted, then money and resources could possibly be spent on assignments that finish up not working as intended, thus wasting those resources. (Turban, 2010)

The initial thing that should be examined is the general business technique and if the plan can achieve the objectives of moving detailed and advertising decision making downstream, closer to the customer. This includes the next items: 1)Will the salesforce be able to utilize the information quickly? 2)Will renewal be more efficient than beneath the current style? 3)How will certainly marketing decisions be made and what effect will the corporate and business strategy have on them? Second of all, the THIS strategy must be analyzed to ascertain if the technology solutions will certainly meet the organization need: 1)Can the HHCs be used by the current workforce without a significant investment in training? 2)Will the regional sales office buildings be able to make accurate and timely decisions based upon the data gathered? 3)Can the corporate...

Sources: Frito-Lay, (1992) Frito-Lay Inc, A Strategic Move (Abridged)

Diademe, Efriam. (2010). Information technology for management: improving performance inside the digital overall economy, 7th copy. Manoa, HI: Wiley.


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