Frito Lays

Frito Lays Corporation

Company Background:

* Largest Producer of Snack Foods with sales of $13 Billion in 2000

* 37,000 Employees

* Headquartered in Plano, TX.

* Good reputation for management and use of computer technology

* Installed a data warehouse in 1989 to know location and price of all bags of chips in the US

Summary of Frito-Lay's business and its business strategy

Decentralized business model:

Ш Sales Reps used hand-held PCs

Ш $130 Billion for 15,000 PCs

Ш Ability to lock-in orders and to negotiate prices.

Decision-making shifted from upper-management to sales reps.

Company's knowledge management in the early 1990s and the relationship of its existing systems to those problems

* Lack of communication between Management and Sales Reps

* No way for Management to gather data on sales and profits

* Reps were unable to find information on competitors and no way of contacting experts

* Data was scattered throughout the country

Customer Community Portal (CCP) support Frito-Lay's business strategy

* CCP gives company and sales reps info that retailers need while maintaining security.

* Sales reps can inform others about meetings with customers while accessing industry data and news.

* Meetings and Training now done online

* Company policies are easily accessible through use of intranet

Future of CCP

* Very Successful in Long Run

* GREAT form of communication between sales reps and management

* Speeds up information sharing giving an advantage to Frito-Lay!

*Largest Producer of Snack Foods with sales of $13 Billion in 2000

The CRP will have different products. The tenets of this assignment are as follows:

1. It will run through the entire term.

2. Four afternoons will be earmarked by PGDM Office to enable the students of this course to visit Chennai market to carry out this fieldwork. The students SHOULD visit the market on these days without fail.