Case Analysis Frito-Lay - 4387 Words

Sustain Your Chips —Sustainable Strategies Consultation for Frito-Lay Inc. 2011 Gillian Hrycko, Goya and Jake Eco-Innovations Consulting Firm 2011/7/18 Executive Summary Frito-Lay is a brand known by almost every consumer in North America. With products being exported to 79 countries around the globe and accounting for almost 62% of the salty snack industry in North America, it is certainly a powerful brand. Yet there are still many issues the company faces, both internally and externally. Some external problems the company faces are the threats of new entrants, threats of substitutes, and intense rivalry among competitors. Some internal problems the†¦show more content†¦1.2.1 Bargaining Power of Supplier Usually raw materials provided to Frito-Lay mainly consist of potatoes, barley, spices and other ingredients. Empirically, among these primary materials, potatoes are in the dominating position. Potatoes and even barley are extremely ordinary crops. Frito-Lay has great control power on them. * Again, as one of the common farm crops, potatoes are more likely to be provided by farmers. For Frito-Lay, there are more than enough potato growers to select from, thus the number of potential input suppliers can be huge. * At the same time, as a leader in the industry, the company can be absolutely well informed about these farmers’ products (potato and barley) and market. * Due to the scale and power of influence in North America, Potato suppliers, to a large extent, rely on the cooperative business with Frito-Lay. Sometimes this is the one and only regular customer for some farmers, which means business with Frito-Lay, occupies a relatively large portion of their business. * The uniq ue taste, formulation and production process of chips are definitely commercial secrets. In addition, the barrier to the technology and the restricted capital for machinery also eliminate the possibility for suppliers to directly sell chips to customers of the company. Therefore, suppliers cannot enjoy a high bargaining power inShow MoreRelatedFrito Lays Case Analysis1455 Words   |  6 Pagesmid-eighties Frito-Lay’s Dips had become a highly profitable product line with sales of $30 million in 1981, growing to $87 million in 1985. In late 1986, Marketing Director Ben Ball, and Product Manager Ann Mirabito had completed the planning review for the Frito-Lay line of dips. A major issue at the planning meeting was where, and how, to further develop Frito-Lay’s Dips. Two divergent viewpoints developed; that the dip line should be more aggressively promoted in its market segment, and that Frito-LayRead MoreCase Analysis of Frito Lay Essay917 Words   |  4 PagesRunning head: CASE ANALYSIS OF FRITO-LAY Case Analysis of Frito-Lay MKT610: Marketing Strategies Jane Student Davenport University Terry O’Connor, Ph.D. June 15, 2010 Table of Contents Purpose and Overview 3 Analysis of Our Past and Current Situations 3 External Opportunities We Could Exploit 4 External Threats That May Impeded Success 4 Internal Strengths on Which to Capitalize 4 Internal Weaknesses to Overcome 4 Assumptions on Which the StrategiesRead MoreFrito Lays Case Analysis1398 Words   |  6 PagesRecommendation: It is recommended that Frito-Lay’s (FLD) aggressively promote its current line of shelf-stable, â€Å"chip dip† products and should not enter the â€Å"vegetable dip† market until a future date. Problem Statement: Should Frito-Lay’s, the sales leader in the shelf-stable dip category, take an aggressive approach promoting its â€Å"chip dips†, or pursue the vegetable dip category? Facts: Market Conditions: FLD’s 1985 market share was 32.7% with sales of $135 million in that year. TotalRead MoreCracker Jack/Frito Lay Case Analysis1608 Words   |  7 Pages Frito Lay Company – Cracker Jack Case Analysis Carl James MBA:Marketing Strategy September 19, 2014 Frito Lay Company- Cracker Jack Case Analysis Case Recap Frito Lay, a division of PepsiCo Inc, has just purchased the Cracker Jack brand from Borden Inc. The company is a worldwide leader in the manufacturing and marketing of snacks, with products such as Ruffles Potato Chips, Fritos Corn Chips and Doritos found among its product mix. These well known company brands have seen it capture overRead MoreFrito-Lay/Cracker Jacks Case Analysis2325 Words   |  10 PagesOrganizational Culture and Globalization Stanley Brett Yunker Davenport University MGMT 735 Professor Andrew Makar October 18th, 2010 Case Recap Superior Supermarkets (SS) is a division of Hall Consolidated, a privately owned wholesale and retail food distributor. SS is the smallest of three chains which caters to the South Central United States and is ranked either No. 1 or No. 2 in each of its markets. SS has been considering an ‘Everyday Low Prices’ strategy for many yearsRead MoreEssay on Frito Lay - Cracker Jack Case Analysis1561 Words   |  7 PagesFrito-Lay Company - Cracker Jack 1. Why has Borden Foods decided to sell Cracker Jack? Borden Foods is in the process of divesting of snack and non-food products in order to focus efforts and resources in growing their pasta and grain based meal segments. Borden management has also recognized the value and equity in the heritage Cracker Jack brand. The Cracker Jack brand currently (1996) sits in the number two position in terms of Ready-To-Eat (RTE) caramel popcorn product category market shareRead MoreCracker Jack Case Analysis940 Words   |  4 PagesCase Recap The primary reason for the Borden Foods to divert itself from snacks is to emphasis its efforts and resources in the growth of their whole-wheat meal segments. Because of this valuation they had and a growth plan they had they decided to announce sale of Cracker Jack in 1997. The management team of Broaden also recognized that with the increase in competition they have not been able to successfully grow the sales figure in past five years. Also because the Cracker Jack brand has variousRead MoreMarketing and Dip1518 Words   |  7 PagesPurpose and Overview 3 Analysis of Our Past and Current Situations 3 External Opportunities We Could Exploit 4 External Threats That May Impeded Success 4 Internal Strengths on Which to Capitalize 5 Internal Weaknesses to Overcome 6 Assumptions on Which the Strategies are Based 6 Marketing Strategies That Emerge from the SWOT 7 Summary and Request for Action 7 References 9 Case Analysis of Frito-Lay Company Purpose and Overview Frito-Lay s net sales of over 8Read MoreAn Analysis of Several PepsiCo Brands Using a Boston Consulting Group Matrix1248 Words   |  5 Pagesï » ¿Analysis of Several PepsiCo Brand Using a Boston Consulting Group Matrix Introduction The Boston Consulting Group matrix, also known as the BCG Matrix, divides brands and products into different categories based on their market performance. The matrix looks at two dimensions: growth rate of the industry and market share. The aim of the matrix is to aid with strategic decision making, allowing firms to identify and invest in products that create, or have the potential to create, the best returnsRead More460 Syllabus KWONG Winter 11 121220855 Words   |  4 PagesAND ECONOMICS MGMT 460: CASE STUDIES IN OPERATIONS MANAGEMENT Winter 2011, SHC C368 Instructor: Kern Kwong, Ph.D. Office: Simpson Tower 805 College of Business and Economics California State University, Los Angeles Office Hours: Tuesday: 2:00-6:00 p.m. Email: kkwong2@calstatela.edu Website: http://instructional1.calstatela.edu/kkwong2/Mgmt460 Office Telephone: 323-343-2899 [Use email if you need a reply quickly.] Course Description Management 460 is a case studies course in the management

Esr Class Presentation †Week V Free Essays

ESR Class Presentation – Week V ( September 12 13 2011) 1. Cases for Discussion (David J. Fritzsche): * It’s Your Turn (page 109) * Kader Industrial (Thailand) Company- Case 10 (page 182) * Muebles Fino Buenos- Case 11 (page 184) 2. We will write a custom essay sample on Esr Class Presentation – Week V or any similar topic only for you Order Now â€Å"It’s Your Turn† – Please answer the question in the last line using the following ethical frameworks: (a) Categorical Imperative; (b) Rule Utilitarian; (c) Veil of Ignorance; and (d) Act Utilitarianism. * Categorical Imperative: If you have a contract with another party, fulfill this contract. No matter what. Especially if the other party is counting on you, because they should go bankrupt. Humanity: Fulfill your contract, moral duty. * Rule Utilitarianism: Follow through with your contract. Don’t abandon people/companies with who you have agreed to help/work with. * Veil of Ignorance: You have limited amount of resources, so you have to make the choice for one of the 2 clients. Keep producing for the old client, but use the rest of your capacity to start producing for the new big one. What if The domestic customer only signs the contract if you can produce everything in the first month. hose for domestic one, 2 happy vs. 1 bad * Act Utilitarianism: More positives vs. best negatives. Ok you make one party really unhappy, but still this is the most good for the most peoples. 3. Case 10: Only Questions 4, 5, 7 8. * 4: Lock the doors, no safety regulations or fire escapes. Cloth close to electrical transformer. No alarms. If you lock doors, make sure that you can open them really fas t at all times. Building disintegrated quickly (poor construction, steel beams) * 7: Business aimed, only profit matters†¦. Don’t look at the people as humans, but use them as machines. They even asked their workers to keep working while there was a small fire. Maybe even hostile, locking doors etc. * 5: Legal: Board, managers†¦ should have safety regulations. Government, Safety and health organization in Thailand (from government). Moral: * 8: Only sign contract if you know that the working conditions are ok, that there are safety regulations etc. company should at least follow the country regulations for safety codes, building rules etc. , if you ask more of the company, they won’t be able to give you the cheap labor. ut point in the middle Class†¦ where would you put the line, what are the moral/social obligations for the customers before signing any contracts? 4. Case 11: Only Questions 3, 4, 6, and 7. * 3: They didn’t follow all the environmental rules of the state. Unhealthy for the employees to work there. Just switching countries because they didn’t want to invest in the machines/other processing methods and to evade the fines. So fire a lot of people to get new employees at 1/8 of the costs. Is this even outsourcing? Or really moving your whole company somewhere else. * 4: Pollution vs. working conditions. A lot of pollution vs. good paid jobs. As long as there are good safety regulations and compensations for health. * 6: Egoism view: YES 😉 because you make more profits and you don’t care about the pollution. But†¦ you pay your employees less than in California, so you can invest a bit more in environmental issues. Deontology (don’t do to anybody else what you don’t want them to do to you): Stay in America and fix your pollution problems, because you don’t want to get fined and you don’t want your employees to get ill. * 7: Make sure they follow the standards and make sure that you have quit high environmental standards. But a lot of corruption in Mexico so make sure the companies follow your standards by controlling them yourself. Because a lot of American companies will go to Mexico (because of rising environmental standards in US) build some parks and green zones to help the people who live there to be able to live healthy, outside all the pollution. 5. Assume that stung by charges re the happenings of Foxcon in China, Apple Inc. has asked you to draft a memo on the subject of an ISO standard to be applied to high-tech contract manufacturers of high-end electronic items. Restrict yourself to 6 standards and explain your choice. 6. The Medical Council of Singapore has asked you to draft 3 ethics principles relating to the outsourcing of medical work to India. Please identify what, in your opinion, are the three most important principles and explain the purpose behind your choice and the specific content of such principles. Firms Find a Haven From U. S. Environmental Rules : Commerce: Hundreds of companies set up shop in Mexico, where regulation is less strict and wages are low. THE FREE-TRADE DILEMMA: The environmental costs of a U. S. Mexico pact. Third in a four-part series. Next: How will free trade affect El Paso’s smoggy skies? November 19, 1991|JUDY PASTERNAK  |  TIMES STAFF WRITER â€Å"We are rewriting history here. It was only recently that anyone here started to care about the environment. It will take time. † The backlog troubles EPA officials who deal regularly with SEDUE. Said one, who spoke on the condition of anonymity : â€Å"This is a situation where the economic activity has gotten way ahead of the regulatory activity. † * http://articles. latimes. com/1991-11-19/news/mn-70_1_environmental-rules/4 How to cite Esr Class Presentation – Week V, Essay examples

Kfc in China free essay sample

Entry Strategies Final Paper Kentucky Fried Chicken’s Market Entry in China Company Background KFC, the largest fried chicken chain and the second largest restaurant chain in the world, currently has more than 17,000 outlets in 115 countries worldwide. The chain primarily sells fried chicken pieces, chicken related products such as sandwiches and wraps, and other side dishes such as fries, desserts and soft drinks. KFC’s fried chicken pieces and related products are made with special ingredients and the exact composition of these ingredients is an unknown secret and also a key of KFC’s special flavor. KFC was founded by Harland Sanders in 1930. Sanders was one of the first few who applied restaurant franchising concept into restaurants management. The first KFC franchise was opened in Utah in the early 1950s. KFC grew rapidly and Sanders found that the rapid growth made it difficult to manage. Thus, he sold the company to a group of investors in 1964 for MM. Company’s Control Measures (Strength) KFC s control mechanisms are designed to ensure standard levels of quality, service and cleanliness (QSC) at all of the restaurant’s chain stores. This fits the positive image in Asia of American fast food restaurants as famous, air-conditioned, and hygienic. Product Consumption (Strength) Chicken has long been regarded as a kind of nutritious food, which is especially good for the patients, the elders and children. An increase in health conscious consumers also raises the consumption of chicken. Moreover, chicken is a more popular meal than hamburgers in most Asian countries and KFC has the opportunity to offer an American style experience that is different from most other food establishments. Drawing Area (Opportunity) In late 1978, China began implementing economic reforms to modernize its economy by lessening the government’s control of the economy. This reform referred as a socialist market economy boosted the national wealth and the consequent increase in individual’s income has led to steady changes in Chinese consumer patterns prevalent in pre-Mao era. As the world’s most populous nation with over 1 billion inhabitants, the potential size and growth for KFC makes the Chinese market very attractive. Not to mention, the possibility of establishing the first Western style fast-food operation in China as a historic opportunity for the company. Scarce Human Resources (Weakness) Managerial resources are precious because of the scarcity of Chinese-speaking KFC managers. There are also possible conflicts between KFC-appointed managers and local employees. Lack of Local connections (Weakness) Pioneering in the fast-food field would find KFC very difficult to form local and personal networks between businesses and government agencies, which are crucial in providing access to the local market and domestic suppliers and eventually, to the company’s success. Entering into a relatively unknown market, KFC, as a new entrant will have to get in touch with the local business customs and laws as well as with knowledge of culture and language. Quality of Government (Threat) A communist government with strict foreign investment laws rules China. Setting up here requires heavy investment expenses and high levels of resource commitment. The risk of domestication measures may be imposed by the host government, often leading to major financial losses for the foreign investor. Overcoming Threats and Weaknesses KFC has three options of entering the China market thru, namely: Franchising, Wholly owned subsidiary and Joint venture. The traditional franchising strategy, in markets where political risk and cultural unfamiliarity exists, certainly would reduce financial risks. However, KFC had already encountered problems in the past with the aligning of corporate planning with the franchisee’s short-term focus on profitability. In addition, KFC will be pioneering in the fast-food service and thus needs to be highly sensitive to cultural demands. In such case, franchising is not feasible. On the other hand, a wholly owned subsidiary would rely upon total control over competitive advantages and ensures complete operational and strategic control. It also involves high financial risk and little country-level flexibility and responsiveness. This option is not recommended. Entering into a joint venture is highly recommended. Such an international business strategy will attempt to solve many logistics problems such as access to good quality chicken and other supplies, ease the access to Chinese market, share risk with a local entity, utilize ways to cut bureaucratic red-tape and finally, serve as a sign of commitment to the host government increasing goodwill. In addition, due to the complexity of many barriers to entry into China, a potential partner with sufficient contacts or networks with the government officials may smoothen the process of setting-up operations in the country. The potential joint-venture partner should be large, well established, provide excellent distribution channels and have personal network access to government officials. It is recommended that a partner be found by backward integration- that is, a good domestic supplier of poultry. In order to ensure total commitment, the set-up of the joint venture should be with KFC as the dominant partner. This way, cost, quality and strategic control measures are maintained. By building on each partners core competencies, knowledge, and efficiencies, a mutually beneficial synergy effect could be achieved as a result of joint venture activities. For instance, the local partner can learn from KFC how to produce a better product at a lower cost and further expand on its new competitive positioning. KFC, on the other hand, can maintain quality supply, which is critical to its success. RECOMMENDATION: The Chinese market represents a great opportunity for KFC where Tony Wang is correct in his assumptions. By finding an appropriate domestic business partner via backward integration, it is possible to further build on opportunities and significantly reduce risk throughout financial sharing, cultural sensitivity and favorable treatment from the host government. KFC should start pursuing this strategy at the present time and develop a coherent international strategy linking the China operations with the other markets. Which of the three cities being investigated should the company choose if it decides to enter China? The capital city, Beijing, is recommended as the preferred location for KFC’s entry into the Chinese market. Beijing is the center for most political activities and provides the necessary access to government agencies and business regulatory bodies. Also, it has a large population of nearly 9 million inhabitants. The numerous universities located in the city contributes to more affluent and educated people that may make them more open to foreign ideas including Western fast-food. More importantly, plenty of Western tourists are attracted to Beijing’s many tourist attractions, increasing the potential for generating foreign currency sales. Furthermore, supplies of poultry are readily available. Beijing can serve as the initial platform of KFC’s operations and later expand into other potential areas such as Shanghai and Guangzhou. One or two initial outlets should be set-up to get an insight of how KFC will be perceived in the Chinese capital. Both dine-in and take-out facilities much in line with most KFC’s international operations ought to be offered in large, clean and well-serviced outlets to cater for the customers with above-average disposable incomes. In order to serve large numbers of customers due to the sheer size of the population, the right cultural fit of the business restaurants must be highly functional and effective. Special menu-substitutions may also have to be facilitated to cater to consumers taste for traditional Chinese meals. Lessons Learned Capitalizing on Strengths and Opportunities In the initial period of KFC’s entry into China market, few of Chinese onsumers were really impressed with the food itself since the country is known to have the best culinary culture in the world. Instead, they were more fascinated with the eating experience: the encounter with friendly employees, quick service, spotless floors climate-controlled and brightly-lit dining areas, and smiling Colonel Sanders standing in front of the main gate. Having experienced the initial surprises brought by a never-seen western lifestyle, Chinese consumers have gradually calmed down and their consumption attitudes towards foreign products are getting more reasonable. Since Chinese people are more concerned with the nutrition and tastes of the fast food, KFC taken advantage of McDonald’s. By offering poultry food that is more acceptable to Chinese people compared with beef, have taken consumers needs and competition with other brands into account. Knowing the market The most prominent success of KFC in China is not only the outcome of KFC’s persistent tenets â€Å"quality, service and cleanliness† but also the achievements of its keen perception of cross-cultural marketing and its understanding of Chinese culture. Based on its scrutiny and adoption of Chinese traditional culinary arts, KFC has developed a series of products that are specially designed for the tastes of Chinese consumers. Moreover, in purpose of maintaining its image of a U. S. brand and keeping consistent with its globalization strategy, most of KFC s Chinese side dishes are defined as short-term products and would be replaced by new products. KFC’s product strategies are categorized into two aspects: 1)To meet consumers desire for novelty by introducing western style products like Mexican Chicken Warp and New Orleans Barbeque Wings. This means can satisfy young consumers who are more open and acceptable to the foreign flavors. 2)To cater to consumers taste for traditional Chinese meal by offering Chinese style fast food from time to time, say, Old Beijing Chicken Roll, a wrap modeled after the way Peking duck is served, but with fried chicken inside and accompanied with green onions and hoi sin sauce, and Sichuan Spicy Chicken which absorbs the spicy flavor of Sichuan dish. This measure can attract older consumers who are fond of Chinese food and in need of the convenience of fast food service as well.

Marijuana Effects Essays (396 words) - Cannabis Smoking, Entheogens

Marijuana Effects Filip Kucera 5/7/01 Marijuana Smoking a joint, Lighting a bowl, cuttin a blunt. These are all terms that are reffered to when someone is smoking Marijuana. Marijuana is becoming more mainstream every year. There are even some attempts to legalize it. But there still remains the fact that it has effects on different parts of the body when it is being smoked. There are three most known effects one is the effect of THC, the mental effects as well as the tar that it releases into your lungs. The chemical THC is a stimulant so it what it basiclly does it is it relaxs.Usually the mental and behavioral effects of marijuana consist of a sense of well-being (often termed euphoria or a high), feelings of relaxation, altered perception of time and distance, intensified sensory experiences, laughter, talkativeness, and increased sociability when taken in a social setting. Impaired memory for recent events, difficulty concentrating, dreamlike states, impaired motor coordination, impaired driving and other psychomotor skills, slowed reaction time, impaired goal-directed mental activity, and altered peripheral vision are common associated effects With repeated exposure, varying degrees of tolerance rapidly develops to many subjective and physiologic effects. Thus, intensity of acute effects is determined not only by THC dose but also by past experience, setting, expectations, and poorly understood individual differences in sensitivity Mental effects are a very large part of why marijuana is banned today. Large smoked or oral marijuana doses or even ordinary doses taken by a sensitive, inexperienced, or predisposed person can produce transient anxiety, panic, feelings of depression and other dysphoric mood changes, depersonalization, bizarre behaviors, delusions, illusions, or hallucinations Depending on the mix of symptoms and behaviors, the state has been termed an acute panic reaction, toxic delirium, acute paranoid state, or acute mania. The unpleasant effects are usually of sudden onset, during or shortly after smoking, or appear more gradually an hour or two after an oral dose, usually last a few hours, less often a few days, and completely clear without any specific treatment other than reassurance and a supportive environment. A subsequent marijuana dose, particularly a lower one, may be well tolerated. In a large survey of regular marijuana users, 17 percent of young adult respondents reported experiencing at least one of the preceding symptoms during at least one occasion of marijuana use, usually early in their use. Psychology