Frito-Lay's Improvements For Growth, Productivity, and Efficiency

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and profitability of the company as a whole. Frito Lay represents 54% of PepsiCo Sales and 56 % of its profits, therefore they must be doing something right. Frito Lay has changed the way they do business and decentralized decision making (Jordan, 2002). Previously the company had focused on sales volume not profitability. Other companies in the industry have not faired nearly as well as Frito Lay. Part of the lack of success is due to in part to lesser marketing and advertising initiatives. The incorporation of EDI or electronic data input by Frito Lay has also enabled the company to step ahead of the competition. Frito Lay is ranked among the top 2% of competitors in the snack chip market industry.

Also critical to the recent success of Frito Lay is the diversification of product lines within the company. Frito Lay does not just sell chips, but also many snack bar products and Quaker Oat products. When business is flailing in one area, it is possible for the ...

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supportive business operations (Jordan, 2002). During the 1980's, Frito Lay actually struggled to realize profits. However, in the early and late companies the company made huge strides by altering there marketing approach and including a microeconomic view of their manufacturing and sales techniques.

Many changes occurred in Frito Lay during the 1990's which have made the PepsiCo division the nations leading chip manufacturer. One of the primary changes Frito Made was the inclusion of advanced technological information systems to streamline manufacturing and productivity efficiencies. In September of 2002 Frito Lay signed a contract with QUALCOMM to install new communications ...

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