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Case analysis- Do you think that the IT deployment in Frito Lay was strategic?

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Introduction

´╗┐Case analysis Submitted by DIV A Jimmy Roshania 11030241013 Vaividhya Vaghasia 11030241041 Priyam Shah 11030241209 Anirudha Ingle 11030241210 Ankita Kulkarni 11030241213 ________________ 1. Do you think that the IT deployment in Frito Lay was strategic? Justify your answer Yes, in our opinion IT deployment in Frito Lay was strategic. What was their micromarketing strategy? Prior to IT deployment, Frito Lays lacked organization and management processes along with the necessary information systems. Also the old strategy for decision making was adopted. And the paper based technology was not enough to react to rapidly changing market conditions. A lack of timely information limited their ability to move to their strategic vision. Lessons learnt 1. Frito Lays didn?t want to give up the benefits of their centralized structure while deploying a decentralized structure. They wanted to reap the benefits of both the structures to ease their decision making and achieve control over their operations. 2. Frito Lays decided to recast their vision so as to make it corporate-oriented rather than a sales oriented initiative. Deploying IT would help Frito Lays achieve their objective of a corporate oriented vision. 3. The integrated nature of their business and lack of inventory buffers, called for an inter-functional approach. ...read more.

Middle

2. But as a part of their new processes, they had two new approaches. First of them was Promotion Direct Delivery, which involved bypassing the warehouses and distribution centers to give enable the direct delivery of the product within one or two days from the manufacturing plants to supermarkets so as to support products on promotion. The second approach was Total Direct Delivery, which used the direct delivery process to enable key accounts to receive the product line within two days. 3. Thus, initially the processes adopted by Frito-Lay were very time consuming in terms of the delivery of the product. By adopting the two new approaches mentioned above, they made sure that the product reaches the market in time so that the promotion of the product in the target markets could be done in a better and efficient manner. Infrastructure 1. In the mid eighties, Frito-Lay decided to implement handheld computers (HHC) into the 32 geographic areas that it operated in. It helped massively in productivity and effectiveness and defined the information and reports that could be used by the sales force supervisors. 2. The implementation of HHC made sure that there were no accounting errors in the inventory. ...read more.

Conclusion

He adopted an integrated nature of the business which required interfunctional approach. Jordon and senior management led the company in the implementation of micromarketing strategy without loss of control. 2. In the implementation of HHC, the joint leadership from the technology and business functions played an important role. 3. The senior management was also instrumental in setting up the information infrastructure at Frito-Lays. 4. Leo Keily with his leadership was able to change the perspective of the business area team managers from their own personal goals to business perspective which involved all parts of the business. Both Jordon and Keily took the initiative for rapid business decision making. 5. The headquarters at Frito Lay was also able to address the concerns of ABT about information access by instituting a new position, the area information manager (AIM). 6. Roger Enrico whose take on the leading Frito Lays was different than that of Michael Jordan, he was able to raise the net income and sales of Frito Lays (graphs). 7. In governance, AGMs instituted weekly mini-reviews called the Breakfast Club. This weekly reviews was to be in pace with the changes in the business. 8. Governance was also responsible in shifting the focus of the employees from their personal goals to the organization goals. ...read more.

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