Frito Lay North America 1 In the previous, a brief introdu.docx

Frito Lay North America 1
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
Frito Lay North America
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
Unit 1 Assignment: Rates in the Health Industry
To see the grading rubric, go to Course Home / Grading
Rubrics.
Unit outcomes:
● Describe what epidemiology is and how it is used in the
health professions.
● Identify measures of morbidity and mortality used to study
health problems.
● Interpret common measures of morbidity and mortality,
including death, birth, and
infection rates.
Course outcomes assessed in this Assignment:
HS311-1: Interpret epidemiological and health care rates using
standardized formulas.

GEL-1.1: Demonstrate college-level communication through the
composition of original
materials in Standard American English.
Instructions:
Select two entities (such as two hospitals or two countries).
Using credible published data,
identify the crude death rate, infant mortality rate and the
incidence rate from an infectious
disease that is common to both entities. Using these data,
compare and contrast the entities
and predict the health of its population.
Requirements:
● This paper should have at least one full page, not including
the title page or
references.
● This paper must follow APA formatting and citation
guidelines, including:
○ Title page and Reference page
○ Essay should be double-spaced
○ Use Times New Roman font, size 12
● All references should come from credible sources.
● Include a highly developed viewpoint.
● Organize your paper with subheadings.
● Free of grammar and spelling errors.
● No evidence of plagiarism.
Course outcomes assessed in this Assignment:

Running head: FRITO LAY NORTH AMERICA
1
FRITO LAY NORTH AMERICA
10
Student’s name
University affiliation
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 (Blosch, Phua, & Silva, 2015).
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 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 any given company since
without the consumers it becomes difficult for the company to
grow this is according to Bennett, (2010). 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 as stated by
(Blosch, Phua, & Silva, 2015).
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 (MarketLine, 2016).
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 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 (MarketLine, 2016).
Opportunities
One of the key opportunity that the company has is the aspect of
credit services, which are availed to the consumers this is
according to MarketLine, (2016). 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 having 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 (MarketLine, 2016).
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 realised and thus the company is able to ensure that the most
convenient products are delivered this is as stated by Blosch,
Phua, & Silva, (2015).
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
(Blosch, Phua, & Silva, 2015).
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 (Kerin, 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.
Kerin, R. (2010). Strategic marketing problems : cases and
comments. City: Pearson.
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
1
Running head: Frito Lay North America

2
Abdullah Bin Jadid
University of the Incarnate Word
Table of Contents
Mission------------------------------------------------------------------
--------------------------------------3
Introduction------------------------------------------------------------
--------------------------------------5
Factors in the Remote Environment----------------------------------
----------------------------------7
Factors in the Operating Environment ------------------------------
----------------------------------9

The External Environment--------------------------------------------
----------------------------------11
The Industry Analysis-------------------------------------------------
-----------------------------------11
A Porter’s Five Forces Analysis--------------------------------------
----------------------------------12
Strategy #3-------------------------------------------------------------
--------------------------------------
Strategy #4-------------------------------------------------------------
--------------------------------------
Conclusion--------------------------------------------------------------
-------------------------------------
References--------------------------------------------------------------
-------------------------------------
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. 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)
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.
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 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 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.
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 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.
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 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.
References
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.

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.
Engerman, S. & Gallman, R. (1986). Long-term factors in
American economic growth. Chicago: University of Chicago
Press.
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
Grossberg, K. A., & Grossberg, K. A. (2016). The new
marketing solutions that will drive strategy implementation.
Strategy & Leadership, 44(3), 20-26.
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
Pearce, J.A. & Robinson, R.B. (2015). Strategic management:
Planning for domestic & global competition (14th ed.). NY:
McGraw Hill Education.
Schlosser, E. (2012). Fast food nation: The dark side of the all-
American meal. Houghton Mifflin Harcourt.
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

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