Frito Lay
Strategic Analysis
Bobby Leach, Trish McManus, & Anita Williams
November 2012
Dallas Baptist University
Table of Contents
Executive summary 4
Future Environmental Turbulence 5
Marketing Turbulence 6
Future Innovation Turbulence 11
Organizational Assessment 15
Marketing Aggressiveness 15
Innovation Aggressiveness 18
Technology Applications 21
Product Life Cycle 22
CEO Attributes 23
Management 25
Culture 28
Organizational Structure 30
Decision Systems 32
Strategic Capacity 34
References 36
Executive summary
Yahoo Finance dubbed Frito Lay as the undisputed chip champ of North America. PepsiCo is the parent company for Frito Lay however; Frito Lay covers the majority of the financial profile for the company. PR News (2010) states that Frito Lay boasts values such as offering healthy snack choices, a reduction in environmental impact, and an inclusive work place. Frito lay is headed by CEO Al Carey.
This paper utilizes the Ansoff Model to analyze Frito Lay. A review was complete of Frito Lay’s competitors in order to measure the future turbulence for Frito Lay. The future competitive turbulence for Frito Lay is predicted to be 4.3. This paper analyzed how well Frito Lay will stand against this level of competition and what measures, if any the company will need to take to withstand the competitive environment. This is done by identifying “gaps” on the future performance of the company.
Four areas were researched for Frito Lay to determine the company’s strategy. These areas were comprised of Marketing Aggressiveness, Innovation Aggressiveness, Product Portfolio, and Product Technology. To further determine how well Frito Lay will fair, an analysis was made of the organization of the company. This deliverable is based on attributes of the CEO, the management style, corporate culture, formal structure, speed of decisions, technology, strategy and strategic capacity.
These components were weighed against an overall turbulence of
Bobby Leach, Trish McManus, & Anita Williams
November 2012
Dallas Baptist University
Table of Contents
Executive summary 4
Future Environmental Turbulence 5
Marketing Turbulence 6
Future Innovation Turbulence 11
Organizational Assessment 15
Marketing Aggressiveness 15
Innovation Aggressiveness 18
Technology Applications 21
Product Life Cycle 22
CEO Attributes 23
Management 25
Culture 28
Organizational Structure 30
Decision Systems 32
Strategic Capacity 34
References 36
Executive summary
Yahoo Finance dubbed Frito Lay as the undisputed chip champ of North America. PepsiCo is the parent company for Frito Lay however; Frito Lay covers the majority of the financial profile for the company. PR News (2010) states that Frito Lay boasts values such as offering healthy snack choices, a reduction in environmental impact, and an inclusive work place. Frito lay is headed by CEO Al Carey.
This paper utilizes the Ansoff Model to analyze Frito Lay. A review was complete of Frito Lay’s competitors in order to measure the future turbulence for Frito Lay. The future competitive turbulence for Frito Lay is predicted to be 4.3. This paper analyzed how well Frito Lay will stand against this level of competition and what measures, if any the company will need to take to withstand the competitive environment. This is done by identifying “gaps” on the future performance of the company.
Four areas were researched for Frito Lay to determine the company’s strategy. These areas were comprised of Marketing Aggressiveness, Innovation Aggressiveness, Product Portfolio, and Product Technology. To further determine how well Frito Lay will fair, an analysis was made of the organization of the company. This deliverable is based on attributes of the CEO, the management style, corporate culture, formal structure, speed of decisions, technology, strategy and strategic capacity.
These components were weighed against an overall turbulence of