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comments/1- Title Page, TOC, Mission, Leadership,
References.pdf
Running head: Frito Lay North America 1
Frito Lay North America
Abdullah Bin Jadid
University of the Incarnate Word

Teresa Harrison
Teresa Harrison: Nice title page.
Frito Lay North America 2
Table of Contents
Introduction------------------------------------------------------------
--------------------------------------
Mission------------------------------------------------------------------
-------------------------------------
History------------------------------------------------------------------
--------------------------------------
Internal Analysis-------------------------------------------------------
-------------------------------------
External Analysis------------------------------------------------------
-------------------------------------
SWOT Analysis--------------------------------------------------------
-------------------------------------
Strategy #1-------------------------------------------------------------
--------------------------------------
Strategy #2-------------------------------------------------------------
--------------------------------------

Strategy #3-------------------------------------------------------------
--------------------------------------
Strategy #4-------------------------------------------------------------
--------------------------------------
Conclusion--------------------------------------------------------------
-------------------------------------
References--------------------------------------------------------------
-------------------------------------
Teresa Harrison
Teresa Harrison: good
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 are:
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.
Teresa Harrison
Teresa Harrison: Remember block quotes for long quotes.
Teresa Harrison
Teresa Harrison: Work on this some to develop an analysis of
the strategic managers.

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)
References
Pearce, J.A. & Robinson, R.B. (2015). Strategic management:
Planning for domestic & global
competition (14th ed.). NY: McGraw Hill Education.
Frito-Lay - Good Fun! Retrieved January 26, 2017, from
http://www.fritolay.com/company
FRITO-LAY MISSION STATEMENT. Retrieved January 26,
2017, from
http://dangerouslycheese-z.blogspot.com/2013/02/frito-lay-
mission-statement.html

__MACOSX/comments/._1- Title Page, TOC, Mission,
Leadership, References.pdf
comments/2- Intro Paragraph, Thesis Statement.pdf
Abdullah Bin Jadid

Teresa Harrison
Teresa Harrison: Only include pages required for the assignment
(i.e., no title page, etc.)
Table of Contents
Mission------------------------------------------------------------------
--------------------------------------3
Introduction------------------------------------------------------------
--------------------------------------5
Internal Analysis-------------------------------------------------------
-------------------------------------
External Analysis------------------------------------------------------
-------------------------------------
SWOT Analysis--------------------------------------------------------
-------------------------------------
Strategy #1-------------------------------------------------------------
--------------------------------------
Strategy #2-------------------------------------------------------------
--------------------------------------
Strategy #3-------------------------------------------------------------
--------------------------------------
Strategy #4-------------------------------------------------------------
--------------------------------------

Conclusion--------------------------------------------------------------
-------------------------------------
References--------------------------------------------------------------
-------------------------------------
Mission Statement
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)
“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
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
Pepsi-Cola, Frito-Lay is
responsible for satisfying snack urges to billions all over the
world. Frito-Lay truly is the world's

January 01).
Frito-Lay Leaderships are:
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
Keating is senior vice president
of PepsiCo’s North America Foods Supply Chain. Chris Turner
is senior vice president of
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)

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

Teresa Harrison
Teresa Harrison: Delete the word Introduction.
Teresa Harrison
Teresa Harrison: You must include citations; otherwise it is
PLAGIARISM. Please work on this. If you turn in a full draft
without citations, you will not receive credit.
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.
Teresa Harrison
Teresa Harrison: This is not a thesis statement. Work on this. It
should be a strategic problem you are trying to solve. Go by the
WLC and get some help developing this. The thesis statement
should be 1-2 sentences about the main issue you will address
with your strategies.

References
Pearce, J.A. & Robinson, R.B. (2015). Strategic management:
Planning for domestic & global
competition (14th ed.). NY: McGraw Hill Education.
Villegas, F., & Barrar, P. (2006). Supply Chain Dynamics, the
case of FRITO-LAY in Latin
America. OR Insight, 19(4), 14-34. doi:10.1057/ori.2006.16
Walker, A. (2013). Frito-Lay North America/NREL CRADA:
Cooperative Research and
Development Final Report, CRADA Number CRD-06-176.
doi:10.2172/1087785
Frito-Lay - Good Fun! Retrieved January 26, 2017, from
http://www.fritolay.com/company
Frito-Lay Mission Statement. Retrieved January 26, 2017, from
http://dangerouslycheese-
z.blogspot.com/2013/02/frito-lay-mission-statement.html
Teresa Harrison
Teresa Harrison: Good.
__MACOSX/comments/._2- Intro Paragraph, Thesis
Statement.pdf
comments/3- External - Remote & Operating Environment.pdf

1
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 sur 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 leads 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

Teresa Harrison
Teresa Harrison: You are off to a great start!
Divide the paper into subsections (for example, under remote
environment, have a subsection for economic, social, etc., and
provide a definition of key terms and cite the text and a specific
example about Frito-Lay that you also have a citation and
resource. This will help you see where any gaps are in your
analyses.
Also, work on your citations -- there are some entire paragraphs
that you give make statements with no citation.
Keep working on this -- great start, though!
2
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
3
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.
4
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 this 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.

5
References
Engerman, S. & Gallman, R. (1986). Long-term factors in
American economic growth. Chicago:
University of Chicago Press.
MarketLine. (2016). Frito-Lay North America, Inc. – Strategy
and SWOT Report. Retrieved
from http://www.just-food.com/market-research/frito-lay-north-
america-inc-strategy-and-
swot-report_id254915.aspx
Schlosser, E. (2012). Fast food nation: The dark side of the all-
American meal. Houghton
Mifflin Harcourt.
__MACOSX/comments/._3- External - Remote & Operating
Environment.pdf
comments/4- External - Industry Analysis & Porter's 5

Forces.pdf
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,
Teresa Harrison
Teresa Harrison: Be sure to change your margins to left-

justification rather than full.
Teresa Harrison
Teresa Harrison: This is not the industry analysis -- this is the
remote environment.
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 a 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.

Teresa Harrison
Teresa Harrison: This is the industry analysis/Porter's 5 Forces.
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 centres 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
Teresa Harrison
Teresa Harrison: Go ahead and separate these out into a
subheader for each force. Please use the classification in our
book (Threat of Entry, Rivalry, Supplier Power, etc.)
Teresa Harrison
Teresa Harrison: ??
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.
Teresa Harrison
Teresa Harrison: My main concern is that you only have about 3
citations for this entire section. You will need to conduct some
research or add in the additional citations -- there are lots of
databases that can give you information about Porter's 5 Forces.
You must include additional citations; otherwise it is plagiarism
or there is not enough research/information. Please work on this
if you want to earn credit on your final paper. This is very
important. The goal is to learn to use our own databases to find
the information and put it all together to address your thesis
statement. Use the Chapter 4 Appendix and Exhibit 4.18 to help
you find sources and information. See Mr. Andersen in the
library for help as well.
However, overall, you are off to a good start!
References

Chao, M. C. H., & Florenthal, B. (2016). A comparison of
global companies' performance on
Twitter and Weibo. International Journal of Business
Environment, 8(3), 242-264.
Grossberg, K. A., & Grossberg, K. A. (2016). The new
marketing solutions that will drive
strategy implementation. Strategy & Leadership, 44(3), 20-26.
Blosch, K., Phua, V., & Silva, J. (2015). Frito-Lay-Supply
Chain Impact Analysis.
Bornscheuer, U., Brundiek, H., Evitt, A., SaB, S., Bonisch, F.,
& Kourist, R. (2015). U.S.
Patent No. 8,975,055. Washington, DC: U.S. Patent and
Trademark Office.
__MACOSX/comments/._4- External - Industry Analysis &
Porter's 5 Forces.pdf
comments/5- Internal Analysis - SWOT and Core
Capabilities.pdf
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
Teresa Harrison
Teresa Harrison: You need to add citations in this section to
help with some of the claims you make.
Teresa Harrison
Teresa Harrison: You are off to a good start. The main issue is
citations and references. You must include additional citations;
otherwise it is plagiarism or there is not enough
research/information. Please work on this if you want to earn
credit on your final paper. This is very important. Don't be

afraid to use news articles from Fortune, Wall Street Journal,
Forbes, USA Today, etc. to help you draw conclusions and
support your ideas. Also, don't be afraid to use financial data or
quantifiable data to demonstrate your points.
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
Teresa Harrison
Teresa Harrison: Define strength and cite the textbook. You
need to add citations from your research throughout the
document in each section.
Teresa Harrison
Teresa Harrison: Nice use of subheadings!
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 opportunity 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
Teresa Harrison
Teresa Harrison: Define core capability and cite the textbook;
again, citations are needed throughout the section.
realised 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).
References
Bennett, A. (2010). The big book of marketing: lessons and best
practices from the world's
greatest companies. New York: McGraw-Hill.
Blosch, K., Phua, V., & Silva, J. (2015). Frito-Lay-Supply
Chain Impact Analysis.
MarketLine. (2016). Frito-Lay North America, Inc. – Strategy
and SWOT Report. Retrieved
from http://www.just-food.com/market-research/frito-lay-north-
america-inc-strategy-

and-swot-report_id254915.aspx
Roger, K. (2010). Strategic Marketing Problems: Cases And
Comments, 12/E. Pearson.
__MACOSX/comments/._5- Internal Analysis - SWOT and Core
Capabilities.pdf
comments/6- Internal Analysis - Comparison and BCG
Matrix.pdf
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 customer’s needs and delivering services with
appropriate measures. Organisation
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 analyse 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 organisation 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.
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
Teresa Harrison
Teresa Harrison: Where is the financial data and comparisons?
Teresa Harrison
Teresa Harrison: This section needs a lot of work. You need to
go back and read the chapter that covers BCG matrix. Did you
take notes during class? Define key terms and cite our textbook.
Don't be afraid to use news articles from Fortune, Wall Street
Journal, Forbes, USA Today, etc. to help you draw conclusions
and support your ideas. Also, don't be afraid to use financial
data or quantifiable data to demonstrate your points.

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
analyse 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 facilitated 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
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 utilised
to its maximum (Madhavan,
2013).
However, BCG Matrix analysis is channelled down in different
steps that define
various aspects that ought to be analysed 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 analysation 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 share by the
company’s brand market share; 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.
References
Bennett, A. (2010). The big book of marketing : lessons and
best practices from the world's
greatest companies. New York: McGraw-Hill.

Cadle, J., Paul, D. & Turner, P. (2010). Business analysis
techniques : 72 essential tools for
success. London: British Computer Society.
Lussier, R. (2012). Management fundamentals : concepts,
applications, skill development.
Mason, Ohio: South-Western.
Madhavan, G. (2013). Practicing sustainability. New York:
Springer.
Orcullo, N. (2008). Fundamentals of strtegic management.
Manila, Philippines: Rex
Bookstore , Inc
Weygandt, J., Kieso, D. & Kimmel, P. (2005). Accounting
principles. Hoboken, NJ: J. Wiley
__MACOSX/comments/._6- Internal Analysis - Comparison and
BCG Matrix.pdf
comments/8- Long Term Objectives & Strategies.pdf
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.
Teresa Harrison
Teresa Harrison: EXCELLENT JOB -- now you just need to go
back through and fill in some details -- Spell out each strategy
specific to Frito Lay. Are they doing any of these things now
and can you build on them? How will you measure each?Define
key terms and be sure to use data (market share, financial, etc.)
to show some type of projection, forecast, or monetary impact

of each strategy and determine if this also addresses your thesis.
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.
a) 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.
b) 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.
c) 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
a) 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.
b) 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
a) 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.
b) 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
a) Employee motivation
Frito Lay should make sure that employees are paid well, they
are promoted, they are
rewarded, and they are paid for overtimes.
b) 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
a) 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.
b) 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
a) 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.
b) 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
a) 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.
b) 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
a) 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.
b) 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.
References
Armstrong, M., & Taylor, S. (2014). Armstrong's Handbook of
human resource management
practice. Kogan Page Publishers.
Gluck, F. W., Kaufman, S. P., & Walleck, A. S. (2000).
Strategic management for competitive
advantage. Harvard business review, 58(4), 154-161.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for

organizational excellence. Upper
Saddle River, NJ: Pearson.
Grant, R. M. (2016). Contemporary strategy analysis: Text and
Cases edition. John Wiley &
Sons.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic
management: theory: an
integrated approach. Cengage Learning.
Pearce, J. A., Robinson, R. B., & Subramanian, R. (2007).
Strategic Management: Formulation,
implementation, and control. Chicago, Illinois: Irwin.
Simons, R. (2013). Levers of control: How managers use
innovative control systems to drive
strategic renewal. Harvard Business Press.
Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2007).
Crafting and executing strategy. The
quest for competitive advantage. Concepts and cases. 15th
edition, New York, NY.
__MACOSX/comments/._8- Long Term Objectives &
Strategies.pdf
1
Running head: Frito Lay North America

40
Abdullah Bin Jadid
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
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)
“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
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
Pepsi-Cola, Frito-Lay is responsible for satisfying snack urges
to billions all over the world. Frito-Lay truly is the world's
January 01).
Frito-Lay Leaderships
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
Keating is senior vice president of PepsiCo’s North America
Foods Supply Chain. Chris Turner is senior vice president of
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.

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