Frito Lay (North America) company

Running head: FRITO LAY NORTH AMERICA 1

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Frito Lay North America

Internal Analysis

Internal analysis refers to the activity by which the companies put in place different assessments that enable them to identify whether the processes and plans are operational. In other words, the internal analysis is the activity of implementing different tests methods that allow organizations to measure their operations and systems that have been adopted in the past. The primary aim of the assessment is to enable the firms to be in a position to understand which systems and plans and profitable and the ones that are not of any value to the organization (Besanko, 2010). The Frito Lay Company has continually made sure that it conducts internal analysis so as to be in a position to strategize most of the activities and plans as a way of attaining proficiency.

The internal analysis in one of the reasons that organizations involve the most skilled personnel in activities that require them to strictly check and supervise the workers and the functions of all the stakeholders of the organization so as to be in a position to succeed (Daft, Kendrick, & Vershinina, 2010). In other words, internal analysis has contributed to the increased success of the Frito Company based on the fact that it can place different supervisors at various units. The primary idea behind this activity is so as to ensure that the supervisors and the different departmental heads continually direct the employees. Also, it is the mandate of the supervisors to provide answers to different questions that are brought forward by the workers as a way of working towards efficiency of the various departments.

Moreover, it is clear that the success of one single unit contributes to the effectiveness of the entire company. Therefore, the mandate of the Frito Company is to make sure that all the different units in the organization continually perform all the different activities assigned to them as expected. If it can attain that, it is no doubt that the organization will continue to improve as time proceeds. Also, the organization will be placed in a better position when it comes to its existence in the near and long-term future. In other words, the business is promised to be in existence in the future based on the fact that it will continually satisfy all the needs and expectations of the clients that exist in different markets.

Comparison and Forecast of Past Performance and with competitors

The Frito Company is supposed to make use of the internal analysis to understand its past performance, the actions of the competitors, and some of the factors that lead to success in the industry. The managers of the company should familiarize themselves with the core capabilities so as to focus on the ones that are going to benefit them (Pearce, & Robinson, 2015). Some of the activities that enable the organization to understand its core capabilities are marketing, financial, research and development, and production activities that should be continually assessed so as to realize how to excel. The managers are required to have enough information concerning the different activities so as to be in a position to assess all the factors that affect the activities.

Operating margin is one of the factors that should be examined by the Frito Company so as to understand how is should increase its production level in the best manner possible. The past operating margin has been lower than other competitors such as the Coca-Cola Company which continues to lead in the food and beverage industry. However, the organization has continued to expand its production one of the reasons that have enabled it to reach a large market and increase its revenue (Lusas, & Rooney, 2001). The evaluation of the past performance is of great significance to the organization since it enables it to stand in a better position when it comes building a better future. However, the organization is required to make sure that they prevent themselves from adopting tunnel vision since it would suggest that the company will resist most of the changes. It is so as to make sure that the organization attains improvement

The conduction of benchmarking which includes the comparison of the organization with other competitors is paramount. It is because the organization can realize its competencies that need to be improved and invested in so as to outdo the firms. Different organizations have continued to make use of different skills and resources that include technical know-how, financial resources, talents, and brand images among others. Therefore, it is the mandate of the Frito Company to make sure that it assesses its capabilities with those of the competitors that will enable it to come up with the best strategies and plans (Pearce, & Robinson, 2015). For instance, the Coca-Cola Company is one of the competitors that have continued to compete with the Frito Company by providing the carbonated soft drink that attracts a large population. However, the Frito Company has made use of the food and snack brands enabling it to compete advantageously in the global market and contributing to its success.

The organization can make use of the three circles analysis to work towards the evaluation of the competitor's offerings and its offerings. Also, the three circles analysis will enable the organization to understand most of the customers’ requirements in the market. Therefore, the organization can make sure that it works towards the attainment of the clients’ needs in a better way that its competitors. It includes the use of different diversification strategies such as providing different services and commodities to the consumers. It is so as to meet the different tastes and preferences among the customers so as to outdo the other firms that continue to compete for a larger market share.

There are different actions that the Frito Company should work towards fulfilling and accomplishing so as to maintain higher competitive advantage than others competitors that operate in the same industry. In other words, the Frito Company is supposed to continually measure its strengths, weaknesses, opportunities, and threats. The primary reason for this is so as to be in a position to identify some of the issues including weaknesses and threats that should be dropped so as to be effective (Pearce, & Robinson, 2011). It is required that people and organizations should always drop any actions that do not tend to benefit them in any way and continue to cause problems that lead to their downfall.

Moreover, the organization will continue to emphasize on its core capabilities that include the use of advanced technology to provide quality goods and services to the society. Also, the organization can make sure that it conducts enough research based on the expectations of different market segments that exist so as to understand what to provide to people situated in different locations and people with different taste and preferences. Moreover, internal analysis can be made profitable by comparing the past performance of the firm and that of its competitors. Also, it includes taking the time to forecast some of the actions that will affect the organization in the future so as to come up with strategic plans. Also, the use of the BCG analysis will make it possible for the organization to understand the products that it should focus on and the ones to improve so as to work towards the defeat of the different competitors that are also working hard to succeed (Pearce, & Robinson, 2015).

Therefore, if the organization drops all the weaknesses and threats, it is no doubt that it will reach its objectives in the prescribed time. Most of the weaknesses and threats can be eliminated by putting in place plans that include risk management plans that enable the firm to deal with any problems that occur in the future. Some of the issues are caused by matters that are unforeseen requiring the Frito Company to be ready when they arise. Also, the organization is required to put in place strategies that will enable it to focus and put more efforts on the strengths and opportunities as a way of fully exploiting and investing in them. It allows the company to efficiently strategize its actions in a manner that will enable it to use the strengths to eliminate the weaknesses. It includes searching and recruiting the most skilled professionals in the society that have the necessary skills that are required for the organization to meet the expectations of the market.

BCG Matrix analysis

The introduction of the portfolio approach has made it possible for many companies to enter new businesses as a way of diversifying and expanding its operations. The companies tend to identify businesses that have greater potential to grow, increase vertical integration, diversity inherent risks, and the ones that have various cyclical considerations. The primary aim of these actions is so as to be in a position to meet all the needs of the market and benefit from the different factors. The portfolio technique leads to shortages when it comes to allocating resources which led to the introduction of the BCG Matrix analysis that leads to the effective allocation of resources (Griffin, 2008).

The BCG Matrix makes it possible for the organization to understand the relative competitive position and the market growth rate (Pearce, & Robinson, 2015). The relative position refers to that organization’s market share when divided by the largest competitor’s market share. The market growth rate refers to the sales growth of an organization that has been projected. It is calculated by identifying the percentage increase in the sales and the production level within two years. It enables the Frito Company to understand the markets’ relative attractiveness so as to choose the markets to put more focus than others. Comment by Alsudays, Mohammed A.: Break each of these sections down into subheadings (Stars, Cash cows, etc.) and then discuss. This section needs some work. Don't be afraid to use news articles from Fortune, Wall Street Journal, Forbes, USA Today, etc. to help you draw conclusions and support your ideas. Also, don't be afraid to use financial data or quantifiable data to demonstrate your points.

The BCG matrix consists of the stars, cash cows, question marks and the dogs. The stars represent the units that have large market shares and operate in rapidly growing markets. The cash cows represent the units that have high market share and operate in low growing markets. The question marks represent the units that have low market share but have high growth rate. The dogs represent the units that have a low market share and operate in low growing markets. Therefore, it is required that the organizations should invest highly on the stars and the cash cows so as to increase their revenue. Also, the Frito Company should identify the questions marks that will enable it to increase its market share as it moves to the stars level and drop all the dogs that would lead to its downfall.

The organization should make use of the industry attractiveness-business strength matrix enabling it to attain competitive advantage in the industry. It can be done by understanding some of the factors that affect the competitors including size, number, and price wars. Also, the Frito Company can understand the bargaining power of the suppliers, threat of new entrants, financial norms, and economic factors such as capital intensity, human assets, cost position, differentiation, and financial strength among others. It makes it possible for the organization to understand how it is going to compete with the other firms and how to maintain its competitive advantage (Lussier, 2012).

References

Besanko, D. (2010). Economics of strategy. Hoboken, NJ: John Wiley & Sons.

Daft, R., Kendrick, M. & Vershinina, N. (2010). Management. Andover: South-Western/Cengage Learning.

Griffin, R. (2008). Fundamentals of management. Boston: Houghton Mifflin Co.

Lusas, E. & Rooney, L. (2001). Snack foods processing. Boca Raton, Fla: CRC Press.

Lussier, R. (2012). Management fundamentals: concepts, applications, skill development. Mason, Ohio: South-Western.

Pearce, J. & Robinson, R. (2011). Strategic management: formulation, implementation, and control. New York: McGraw-Hill/Irwin.

Pearce, J. & Robinson, R. (2015). Strategic management: planning for domestic & global competition. New York: McGraw-Hill Education.