Case Analysis Frito-Lay
Sustain Your Chips —Sustainable Strategies Consultation for Frito-Lay Inc.
2011
Gillian Hrycko, Goya and Jake
Eco-Innovations Consulting Firm
2011/7/18
Executive Summary
Frito-Lay is a brand known by almost every consumer in North America. With products being exported to 79 countries around the globe and accounting for almost 62% of the salty snack industry in North America, it is certainly a powerful brand. Yet there are still many issues the company faces, both internally and externally. Some external problems the company faces are the threats of new entrants, threats of substitutes, and intense rivalry among competitors. Some internal problems the company faces are the rigid capital structure, falling profits, and increasing pressure from consumers to reduce their adverse environmental impacts.
Eco-Innovations Consulting Firm has come up with a sustainable strategy for the company to put forward in the future. Focusing on pollution prevention, we recommend for the company focus on four main areas: * Reducing energy consumption; * Reduce water consumption; * Reducing waste generation from products, as well as at the production plants; and * Educating workers and the community.
This strategy will help differentiate Frito-Lay from its competitors and bring about a positive reputation as an environmental steward. With customers becoming increasingly more concerned with the environmental footprint they are leaving on the world, switching to a pollution prevention strategy is not only a smart, but also necessary step for Frito-Lay as it moves toward dominating the salty snack industry.
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1.0 External Analysis
The external analysis of the client company Frito-Lay includes three parts: Value chain analysis, Industry analysis, and Competitor Analysis.
1.1 Structure and Value Chain
As Frito-Lay’s core business, Potato chip production will be assessed as the key-point.
2011
Gillian Hrycko, Goya and Jake
Eco-Innovations Consulting Firm
2011/7/18
Executive Summary
Frito-Lay is a brand known by almost every consumer in North America. With products being exported to 79 countries around the globe and accounting for almost 62% of the salty snack industry in North America, it is certainly a powerful brand. Yet there are still many issues the company faces, both internally and externally. Some external problems the company faces are the threats of new entrants, threats of substitutes, and intense rivalry among competitors. Some internal problems the company faces are the rigid capital structure, falling profits, and increasing pressure from consumers to reduce their adverse environmental impacts.
Eco-Innovations Consulting Firm has come up with a sustainable strategy for the company to put forward in the future. Focusing on pollution prevention, we recommend for the company focus on four main areas: * Reducing energy consumption; * Reduce water consumption; * Reducing waste generation from products, as well as at the production plants; and * Educating workers and the community.
This strategy will help differentiate Frito-Lay from its competitors and bring about a positive reputation as an environmental steward. With customers becoming increasingly more concerned with the environmental footprint they are leaving on the world, switching to a pollution prevention strategy is not only a smart, but also necessary step for Frito-Lay as it moves toward dominating the salty snack industry.
i
1.0 External Analysis
The external analysis of the client company Frito-Lay includes three parts: Value chain analysis, Industry analysis, and Competitor Analysis.
1.1 Structure and Value Chain
As Frito-Lay’s core business, Potato chip production will be assessed as the key-point.