Chapter 14 – Frito Lay

Instructions

The leadership of Frito-Lay’s sales organization believes
that knowledge management is the key to success. Specifically, the data
concerning best practices, customer information, and corporate details are
essential. The challenge is that important information is captured in many
different places and systems. This can inhibit the sharing of knowledge
across members of the sales organization. Best practices represent the
optimal way to deal with customer’s issues and problems. If sales team
members in different areas are allowed to communicate their success stories
with other team members the entire company benefits. In addition, an effect
information sharing system creates a place for brainstorming and
collaboration. Frito-Lay’s solution was to develop a knowledge management
portal on the company’s intranet. The portal provides a central point of
access to the database of information, like customer and internal corporate
information. This access reduces the time an individual sale representative
needs to find and share sales, analysis, and news. The goals for the
Frito-Lay portal are to make knowledge that is more efficient, make use of
customer-specific data, and promote team collaboration. Each sales person is
enabled to share the experiences of overcoming customer problems and develop
effective sales presentations. In addition, by using employee profiles sales
team members are able to increase camaraderie and relationship building
amongst themselves. During the mid 2000s, the salty snack market grew slowly and
changes in consumers’ eating habits might provide for an even slower future.
This fact will increase the competitiveness amongst the different snack food
sales organizations. Sales people have to continue to develop customer
loyalty as consumers experiment with new products to enhance the at-home
experience.

1. What is the decision facing Frito-Lay?

2. What factors are important in understanding this
decision situation?

3. What are the alternatives?

4. What decision(s) do you recommend?

5. What are some ways to implement your
recommendations?