Green Manufacturing at Frito Lay.

In: Business and Management

Submitted By ekhwan89
Words 872
Pages 4
Green Manufacturing and Sustainability at Frito-Lay
Case Study 3 Questions 1. What are the sources of pressure on a firm such as Frito-Lay to reduce its environmental footprint? 2. Identify the specific techniques that Frito-Lay is using to become a green manufacturer. 3. Select another company and compare its green policies to those of Frito-Lay.
Each Case Study paper is to consist of the following components: 1. Title page and two written pages with no more than 500 words. 2. Answers to individual questions (as assigned)
Each assignment will have specific questions you need to address. You should create a sub headed section for each one. 3. References/Appendix (if required)
These are not research papers per se, so you may not have the need to cite outside sources. If you do, however, they should be identified on a proper reference page. Similarly, if you are required to do calculations and choose to perform them on a separate page, you should include them in an appendix. Weekly Case Paper
Grading Rubric | Category | Points | Weighting | Description | Content | 24 | 80% | * Required questions are answered in an accurate and appropriate manner. * Adequate support is given for recommendations. * Calculations (where required) are performed correctly | Grammar and Spelling | 3 | 10% | * Paper is well written and reflects college level writing. * Rules of grammar, usage, and punctuation are followed and spelling is correct. * Sentences are written in a complete, concise manner, and sentence transitions maintain the flow of thought throughout the paper. | Formatting and APA Usage | 3 | 10% | * Paper includes the components required for the assignment: title page, answers to questions, references or appendix (where appropriate). * APA format is followed throughout the paper. | Total | 30 | 100% | |

Green…...

Similar Documents

Frito Lays Company

...Case 2 Position Paper Fito Lays Frito-Lays should pursue the vegetable dip market to remain a leader in the chips in dip Industry. I believe that some of the executives are stuck in a conventional logically way of thinking while others are focused on value Innovation. The conventional thinking executives are happy with the progress they have made with the cheddar dips and newer sour cream dips and they feel that they should concentrate on developing more brands to continue to be competitive. The problem with this strategy is that the competition is doing exactly the same thing. Frito-Lays and its competitors are continually trying to introduce new dips in hopes of securing more market share. In 1985, statistics show that 620 million dollars of dip was sold through supermarkets. In the same year 207 million dollars of the total dip sales where linked to vegetable usage. This translates to 33% of all dip sales in 1985 where linked to vegetable dip. Since Frito-Lays in the shelf stable dip market and total sales in this market where 185 million. Frito-Lays shelf stable dips contribute to 73% of this market with sales of close to 135 million. This means that there is only 27% of the market left to capture if they put a strategy together to remain in the chips in dip market. Common business knowledge should tell these conventional thinking managers that they already dominate the shelf stable dips market. It would not be a good marketing decision to try to......

Words: 523 - Pages: 3

Frito-Lay

...Savor Restaurant and Catering Heshan Abeywickrema Bellevue University MBA 652: Marketing Strategy Prof. Adrianne Agulla 04/20/2014 1. Case recap In 1997 the Frito-Lay Company, part of the PepsiCo, Inc. was looking at a possible acquisition of Cracker Jack from the Borden Foods Corporation. Cracker Jack is one of the oldest and one of the most well known trademarks in the United States, and the company has been under the Borden name since 1964. Frito-Lays interest to buy Cracker Jack came around when its parent company Borden announced the possible sale of the Cracker Jack brand. The executives at Frito-Lay wanted to know the potential of Cracker Jack and designated a team to consolidate the findings, create a plan of action on how to market Cracker Jack as a subsidiary of Frito-Lay, and finally to estimate fair market value of Cracker Jack as a entity. 2. Problem Identification The ready to eat caramel popcorn product category had decreased sales from the year 1995 to 1996. In 1995 there were sales totaling $205 million, and in 1996 it dropped down to $192 million. Besides the drop in sales there is also severe completion in the ready to eat caramel popcorn category that include national brand firms, seasonal/specialty firms, regional firms, and private label firms. Another alarming fact about the ready to eat caramel is that only about 12% of the total U.S. households consume the product. Only 2% of typical U.S. households would consume the ready to......

Words: 856 - Pages: 4

Frito Lay Case Study

...1.1 Background Frito –Lay, Inc. Frito-Lay, Inc is a division of PepsiCo, Inc, a New-York-based diversified consumer goods and services firm. Besides PepsiCo, Inc. divisions include Pizza Hut, Inc, Taco Bell Corporation, PepsiCola Company, Kentucky Fried Chicken and PepsiCo Foods International. PepsiCo, Inc recorded net income of $1.077 billion on net sales of $17.8 billion in 1990. Company Frito Lay, Inc is a worldwide leader in the manufacturing and marketing of snack chips Well-known brands include Lay’s brand and Ruffles brand potato chips, Fritos brand corn chips, Doritos brand, Tostitos brand and Sanitas brand tortilla chips, Cheetos brand cheese-flavored snacks, and Rold Gold brand pretzels. The snack chips industry accounts for approximately 26% of the snack food industry. Doritos brand tortilla chips and Ruffles brand potato chips have the distinction of being the only snack chips worth $1 billion in retail sales in the world. Frito-Lay, Inc accounts for 13 per cent of sales in the United States snack-food industry recorded retail sales of $37 billion in 1990 which includes candy, cookies, crackers, nuts, snack chips, and assorted other items. The company is the leading manufacturer of snack chips in the US, capturing nearly one half of the retail sales in this category and has 39 manufacturing plants, more than 1,600 distribution facilities and a 100,000 person route sales team that calls on more than 400,000 retail store customers each week in United...

Words: 261 - Pages: 2

Green Manufacturing at Frito Lay.

...GREEN MANUFACTURING AND SUSTAINABILITY AT FRITO-LAY 1. Using resources, regulation and reputation as a basis, what are the sources of pressure on firms such as Frito-lay to reduce their environmental footprint? The effect of industrialization and the increasing population of humanity are the reasons why natural resources are being overly consumed, outstripping the resource base on an unprecedented scale. The use of resources and subsequently a reduction in operational costs is the primary reason why several companies are going into environmental footprint reduction. Companies like frito-lay, Walmart, Sabaru, Pepsi and Ritz-Carlton would have an increase in OPEX parallel to expansion. Sustainable business spending would also increase rapidly because it is seen as a catalyst for more productive improvements Thus, it is a win-win solution for both humanity, the company and mother earth to reduce resources and lower cost and at the same time, be sustainable. Government agencies are also becoming stricter as more and more studies show that the consumption of men is at an alarming stage. As science advances, there are now several ways to tell how humanity as whole affects the environment. With this, more progressive economies are setting stricter laws that regulate transportation, waste and noise. Lastly, company reputation is also a big factor why companies wanted to reduce environmental footprint as more investors are becoming increasingly interested in the environmental......

Words: 857 - Pages: 4

Case Frito Lay

...1. Using resources, regulation and reputation as a basis, what are the sources of pressure on firms such as Frito-lay to reduce their environmental footprint? The effect of industrialization and the increasing population of humanity are the reasons why natural resources are being overly consumed, outstripping the resource base on an unprecedented scale. The use of resources and subsequently a reduction in operational costs is the primary reason why several companies are going into environmental footprint reduction. Companies like frito-lay, Walmart, Sabaru, Pepsi and Ritz-Carlton would have an increase in OPEX parallel to expansion. Sustainable business spending would also increase rapidly because it is seen as a catalyst for more productive improvements Thus, it is a win-win solution for both humanity, the company and mother earth to reduce resources and lower cost and at the same time, be sustainable. Government agencies are also becoming stricter as more and more studies show that the consumption of men is at an alarming stage. As science advances, there are now several ways to tell how humanity as whole affects the environment. With this, more progressive economies are setting stricter laws that regulate transportation, waste and noise. Lastly, company reputation is also a big factor why companies wanted to reduce environmental footprint as more investors are becoming increasingly interested in the environmental performance of a company where they put their money into...

Words: 285 - Pages: 2

Frito Lay

...factor might have been the rise of the Middle-East as the world’s supplier of oil. c) What was the trade deficit amount in 2010? Compare it to the trade surplus amount in 1960. Explain the change in terms of changes in trade and globalization during the 1960-2010 period. Answer: In 2010, the trade deficit amount was $499,379 million, while in 1960, the trade surplus amount was $3,508 million. Over the period from 1960-2010, globalization played a major fact in increasing free trade between countries. While the U.S was at the forefront of the industrial revolution, the rise of industries elsewhere in the world such as Automobiles in Japan helped contribute to increasing U.S. imports. Outsourcing manufacturing to reduce labor costs has also reduced U.S. exports. Increasing oil imports among others is also a key factor in the trade deficit. d) What was the amount of DFI made by U.S. MNC’s in foreign countries during 2010? What was the amount of DFI made by foreign MNC’s in the U.S. during 2010? Answer: During 2010, the amount of DFI made by U.S. MNC’s in foreign countries was $301,080 million where as the amount of DFI made by foreign MNC’s in the U.S. was $205,851 million. e) During what time period did the amount of DFI made by foreign MNC’s in the U.S. start to meet or exceed the amount of DFI made by U.S. MNC’s in foreign countries? What global trends do you think supported this observation? ......

Words: 3506 - Pages: 15

Frito Lay

...™ Strategic Marketing, BA-MI20 Frito Lay, Inc. Sun Chips Multigrain Snacks Frito Lay, Inc. Sun Chips Multigrain Snacks Strategic Marketing BA-MI (20) Tutor: Mikael Rasmussen Student: Tina Wichmann Strategic Marketing BA-MI (20) Tutor: Mikael Rasmussen Student: Tina Wichmann Contents Abstract 3 Introduction Frito Lay, Inc. 3 The product Sun-Chips™ Multigrain snack 3 Product Lifecycle 4 Competition 4 Segmentation - How might the chip category be segmented? 5 Product & Branding Considerations 6 Product strategy 7 Pricing strategy 7 Advertising and Merchandising strategy 7 Distribution and sales strategy 7 Recommendations 8 Abstract In this report the objective is to evaluate the feasibility of Frito-Lay, Inc. launching a new product, Sun Chips™ Multigrain Snacks. Dr. Dwight R. Riskey, Vice President of Marketing Research and New Business at Frito-Lay, Inc. had to decide and present, together with the product management, the future for Sun Chips™ Multigrain Snacks. The chip had been in test-market for 10 months in the Minneapolis-St. Paul, Minnesota, metropolitan area and appeared to be extremely favorable according to consumer response. The presentation to the Frito Lay, Inc. seniors had to be persuasive, and besides the thorough assessment of the test-market data, Riskey added: “Sun Chips™ Multigrain Snacks required a new manufacturing process, carried a new brand name, and pioneered a new snack......

Words: 3285 - Pages: 14

Frito Lay Case Study

...Isaiah Polk Professor Desmarais Pom 448 March 10, 2015 Frito-Lay: The Backhaul Decision Frito-Lay, the largest salty snack manufacturer in the United States based out of Texas is a two-billion plus corporation employing over twenty-seven thousand employees. The company came into existence from a merger between the Frito company and the Lay company. Then in 1965 it was purchased by the Pepsi Corporation and because the the company’s belief of “If it ain’t broke, don't fix it” Frito-Lay’s management was able to operate under the own accord as they had previously done before. Frito-Lay’s product mix is made up of potato chips, corn chips, tortilla chips, cheese-flavored snacks, pretzels and other snack items and dips. It has six core products; Lays, Ruffles, Fritos, Doritos, Tostitos, and Cheetos, that make up roughly eighty percent of their sales. Their core products have short shelf lives and are high volume low-weight products. Along with the core products they have specialty products but these products have longer shelf lives and produce less sales. Currently Frito-Lay operates using direct store delivery using their own private fleet of trucks. Eighty-five percent of their outbound sales were made on their own vehicles. By doing this it allows them to avoid third party distributors for sale services. It also means total quality control of products and a high service level. They have a very high on-time delivery rate compared to competition (same day vs same hour)......

Words: 959 - Pages: 4

Cracker Jack Frito Lay

...CRACKER JACK An analysis of potential brand acquisition by Diversified Products Corporation John Bry Sonja Gessling Phil Mark    Sara Meinke Jordan Schulz    Som Thamma Cindy Tsai Cohort C  ‐ Team 4 CURRENT SITUATION ANALYSIS: Cracker Jack (CJ) is a classic American caramel-coated popcorn and peanut snack that was acquired by Frito-Lay (FL) in 1997.1,2 Sales peaked in 1998 to $100M but soon sank back to $30M per year and has remained at that level since.3 Several factors are attributed to this sales slump. FL incorporated CJ into its existing distribution model that utilizes Direct Store Delivery and packaged CJ in Mylar bags (as opposed to the classic boxes).They also shelved CJ with other Frito-Lay salty snack products such as Lays Potato Chips, despite 98% of consumers rating CJ as a sweet snack and not a salty one. 4 Although priced lower than the leading caramel corn brands, CJ still appears expensive when merchandised next to inexpensive potato chips. Consequently CJ has numerous misalignments and a comparatively low profit margin (8.2% compared to snack average of 20.5%).5,6 The low price point combined with rising commodity prices has forced FL to substantially cut the quality of the prizes found inside each box to control costs, angering long time consumers.7 CJ, having stagnant sales for the past ten years, has not received the support required for brand revitalization, instead relying on steady baseball stadium sales to survive.8......

Words: 2595 - Pages: 11

Article Frito Lay

...Article 2 Sustainable Plant of the Year: Frito-Lay Casa Grande Plant Attains Near Net Zero Efficiency was built into Frito-Lay’s Casa Grande plant a quarter-century ago, but the snack maker takes the facility’s energy- and water-conservation systems to a new level with near net zero. Is it feasible for food or beverage production ever to be resource neutral, consuming no more gas, electricity, water and other utilities than what it generates itself? Perhaps theoretically, but not as a practical matter. Still, placing sustainable manufacturing in the context of assuring resource availability so operational capabilities are maintained, regardless of external disruptions, is intriguing. What would a food plant with net-zero impact look like? A close proximity sprawls across 283 acres of the Sonoran desert in Arizona. Part learning lab, part sustainability showcase, the Frito-Lay facility in Casa Grande is the focus of the snack food manufacturer’s ambitious goal of creating a blueprint for sustained production in a resource-strapped tomorrow. Most of the energy-generation and water-reclamation technology in Casa Grande can be found elsewhere in the Frito-Lay production network, but never before has such a comprehensive infrastructure been created. The result is a plant that pushes the limits of what is possible in energy and water self-sufficiency. Selection of Casa Grande came after an assessment of Frito-Lay’s 37 US facilities by the US Department of Energy’s National......

Words: 2984 - Pages: 12

Frito Lays Summary

...Factual Summary: Frito-Lay, Inc. is a division of PepsiCo, Inc., a New York-based diversified consumer goods and services firm. PepsiCo, Inc. includes Pizza Hut, Inc., Taco Bell Corporation, Pepsi-Cola Company, Kentucky Fried Chicken, and PepsiCo foods international. PepsiCo, Inc. recorded net income of $ 1.077 billion on net sales of $ 17.8 billion in 1990. Frito-Lay, Inc is a worldwide leader in the manufacturing and marketing of snack chips. In 1960, the Frito Company and the H.W. Lay Company merged to become Frito-Lay, Inc. The company is the leading manufacturer of snack chips in the United States, capturing about 50% of the retail sales in this category. During 1990, the company has 39 manufacturing plants, more than 1,600 distribution facilities, and a 10,000-person route-sales team that calls on more than 400,000 retail store customers in the United States. Today, Frito-Lay brands account for 59% of the U.S. snack chip industry. Sun Chips Multigrain Snacks resulted from Frito-Lay’s ongoing marketing research and product development program. In the early 1970s, corporate marketing research indicated that consumers were looking for nutritious snacks. In the early 1980s, Frito-Lay marketing R&D instituted the “Harvest” project with the multigrain snack to appeal to consumers. The “Harvest” project also emphasizes on flavor line extension and low-fat versions. In the beginning, Frito-Lay faced some problems for increasing its sales volumes. Later, Frito-Lay uses......

Words: 267 - Pages: 2

Frito Lay

...Case Analysis:Frito-Lay, Inc. Problem Definition In mid-1990, Frito-Lay, Inc. makes a new chips brand called Sun Chips Multigrain Snacks. The product had been in test market for 10 months in the Mineapolis-St. Paul, Minnesota, and metropolitan area. The senior Frito-Lay executives need to decide it they would launch this new product to market officially after the test period. Objectives: (1) Extend its product to attract the customers who always look for new and variety product. (2) Update healthier recipe to meet the current trend of healthy eating. (3) Pioneer a new snack chip category to maximize profit in the new market. Concerns: (1) Whether the premarket test results can correctly reflect the market performance when it introduced to nationwide market.   (2) There are many competitors in national market or local market. It's easy for them to make similar products. (3) The advertising and merchandising budget will rise. (4) The new product will cannibalize volume from its previous products.  The Situation of the Company Frito-Lay, Inc. is a division of PepsiCo, Inc. It is a worldwide leader in the manufacturing and marketing of snack chips. It is capturing nearly one-half of the retail sales in the United States snack chips market. Well-known brands include Lay's brand Lay's brand and Ruffles brand potato chips, Fritos brand corn chips, diorites brand, Tostitos brand, and Santitas brand tortilla chips, Cheetos brand cheese-flavored snacks, and......

Words: 1275 - Pages: 6

Frito Lay

...1. How would you characterize the snack chip category and Frito-Lay’s competitive position in this category? The snack chip industry is clearly a matured industry, showing significant signs of growth. This is evidenced by the steady growth in both dollar sales as well as volume of snack-chip pounds sold. The snack chip industry has grown 5% since 1989 to 1990 in terms of retail sales. The snack chips retail market was worth $9.8 billion in 1990. Since 1986 to 1990, the US bought 3.5 billion pounds of snack chips which is nearly 14 pounds per person. In 1986, snack chips per capita consumption was slightly less than 12 pounds. The snack chip industry contains mainly three types of competitors: national brands, regional brands, and private brands. National brands are those that distribute products nationwide, include Frito-Lay, Borden, Procter and Gamble, RJR Nabisco and Eagle Snacks. Regional competitors consist of regional brand firm which distribute products in certain parties of the United States. Private brands are produced by regional or local manufacturers on a contractual basis for major supermarket chains. The competition in the snack food industry is very intense. As many as 650 different types of snack chip products are introduced into the market each year by both national and regional brand companies. Most of the products are new flavors for existing snack chips. It is reported that the new product failure for snack chips is very high. Pricing......

Words: 1632 - Pages: 7

Frito-Lay Case

...Frito- Lay Case Frito-Lay, Inc is a worldwide leader in the manufacturing and marketing of snack chips. In 1960, the Frito Company and the H.W. Lay Company merged to become Frito-Lay, Inc. The company is the leading manufacturer of snack chips in the United States, capturing about 50% of the retail sales in this category. Frito-Lay, Inc has been developing multigrain chips since the early 1970s after marketing research found that consumers wanted nutritious snacks, consequently in 1974 the company launched to the market Prontos, a multigrain chip that was not really a great success, hence withdrawn from the national market in 1978. People concluded the product was not introduced in the right time. The Sun Chips was introduced in the early 1970s, and the name was assigned to a line of corn chips, potato chips, and puffed corn snacks. Six years later, the name was given to a line of corn chips, but unfortunately in 1985, this line was also withdrawn from distribution due to poor sales performance. However, in the early 1980 Frito-Lay executives started worrying about the health of the baby boomers. They were getting older and healthier conscious, so snack companies had to develop newer, healthier snacks for people trying to stay away from the salty, fried chips. Product research and development continued during the 1980s with The Harvest but in the early 1980s several market tests failed. Nevertheless, in 1988 with the idea still of multigrain products, marketing research......

Words: 379 - Pages: 2

Frito Lay

...Problem Definition In mid-1990, Frito-Lay, Inc. makes a new chips brand called Sun Chips Multigrain Snacks. The product had been in test market for 10 months in the Mineapolis-St. Paul, Minnesota, and metropolitan area. The senior Frito-Lay executives need to decide it they would launch this new product to market officially after the test period. Objectives: (1) Extend its product to attract the customers who always look for new and variety product. (2) Update healthier recipe to meet the current trend of healthy eating. (3) Pioneer a new snack chip category to maximize profit in the new market. Concerns: (1) Whether the premarket test results can correctly reflect the market performance when it introduced to nationwide market. (2) There are many competitors in national market or local market. It's easy for them to make similar products. (3) The advertising and merchandising budget will rise. (4) The new product will cannibalize volume from its previous products. The Situation of the Company Frito-Lay, Inc. is a division of PepsiCo, Inc. It is a worldwide leader in the manufacturing and marketing of snack chips. It is capturing nearly one-half of the retail sales in the United States snack chips market. Well-known brands include Lay's brand Lay's brand and Ruffles brand potato chips, Fritos brand corn chips, diorites brand, Tostitos brand, and Santitas brand tortilla chips, Cheetos brand cheese-flavored snacks, and Rold Gold brand pretzels. Eight of......

Words: 305 - Pages: 2