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What market condition was Frito-Lay facing in 2009, in terms of consumer demand, competition, and retail channels?
The consumer demand of the Frito-Lay products was on the high level, however, the competition was too big. The customers of different age were included in the demand issues, therefore, the retail channels were varied. The retail channels were wide, still, the number of competent did not allow the company to feel free at the shop shelves. So, it may be concluded that relationships with retails were complicated. The number of the similar products was too great, therefore, the competition was sharp.
What decision was Frito-Lay contemplating? Why was the decision important at this moment?
Looking at the situation concerning the difficult work with retailers, Frito-Lay decided to increase the knowledge of the company at different levels. Using the company intranet, the data about the integrated customers and other corporate information was spread. Looking at the structure of the company and the number of its departments, it should be stated that information share in this case was a complicated, however, a necessary measure.
What alternatives did Frito-Lay have, if it chose not to adopt the decision you just described? Do you support the decision they were contemplating, or do you support an alternative decision? Explain why.
If the company fails to implement the knowledge management in the company, it risks losing its clients. There is a tendency for healthy eating and the struggle for the buyer increases. The knowledge management helps the company collaborate and share the data from different departments for producing the exact number of the necessary products which are in demand. The failure to implement knowledge management will require from the company to create a special department of customers’ opinion where all the company managers should have an access into. The creation of such department will partially substitute the knowledge management strategy, however, some of the data will be used inefficiently, therefore, the company risks failing.
Suppose the contemplated decision was adopted, what pieces of information should be captured by the “knowledge management portal?” How would each piece of such information be utilized by salespeople and sales managers?
In case the contemplated decision was adopted, the salespeople and sales managers should have the access to the following information, the rates of sales and the specific division about what exactly was sold. The comparative analysis with the previous sales should be considered in order to see the dynamics. The prices of the competitors should be compared and contrasted. The sales managers should have the access to the possible ways of optimization and price reduction, different departments should have an opportunity to work on the ways for reducing the price without affecting the quality of the product. Customers’ opinion should also be shared in the company intranet knowledge management portal.
What strengths did Frito-Lay possess in competing with a few large multinational companies and numerous regional manufacturers, prior to this case’s decision time? What weaknesses did Frito-Lay have that might have triggered the company to feel the necessity of creating a “knowledge management portal?”
Frito-Lay was a leader in producing snacks due to the company’s spread location. Using outsourcing, the company managed to produce snacks all over the world spending less time and effort on transportation. The international brand name and its positive image can be considered as the advantages before other companies.
To what extent would the proposed “knowledge management portal” help Frito-Lay in strengthening relationship with retailers; developing Customer loyalty; and/or generating valuable intelligence about consumer trend?
The proposed knowledge management portal is going to be useful in the relation to the strengthening relationship with retailers as the data about them is going to be spread in the company faster. Customer loyalty will be developed as the access to the information about sales and customers is going to be free and easier reached.
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