Bryan Robichaud
Professor Desmarais
POM 465
October 8, 2013
Frito-Lay: The Backhaul Decision
Frito-Lay was the largest manufacturer of salty snacks in the United States. With 27,000 employees and sales of $2.053billion in 1982, it was the only full-line salty snack manufacturer distributing its product nationwide. Before the Motor Carrier Act of 1980, companies with private trucking fleets are generally prohibited from selling transportation services to other companies. Deregulation of the trucking industry in 1980 allowed private operators to provide transport services for hire. In 1983, as part of efforts to offset the increased costs of distribution, Frito-Lay considering selling your miles on other bands transports
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By adding more products to ship you must do things faster to keep on schedule. A huge con in this program is contamination of company equipment, agricultural products might harbor rodents and insects that could infest the trailers and harm Frito-Lay goods. Another huge con is there could be an increase in theft depending on what the trucks are shipping. The trucks could be shipping items such as electronics, tobacco, or alcohol. I feel that Frito-Lay should come up with some type of insurance policy so that they are not held reliable if something happens to other companies products. The drivers will also most likely not be on board with this program because it keeps them away from home longer and worker harder and longer.
There are strengths and weaknesses of the service offering from a customer’s perspective. The strengths are potential savings because Frito-Lay trucks must always drive back to their original distribution center, so they can offer low prices to ship other company’s products. Also, fuel costs go up because of weight, but with the amount of money that they will make shipping other companies products, the price of fuel would not even be a factor. Strength is that companies that are looking to ship low weight low cost goods for a low price, they could us the backhaul program. The weaknesses are that Frito-Lay is not a 3 party logistics, so cannot offer things that a 3 party logistics company could offer
“People think about trucking as a meat and potatoes business where you pick something up and then deliver it to a destination, but it’s not that simple, it’s a highly competitive business, and in order to thrive, firms need to implement innovations that will give them a competitive edge.”
FUTRONICS Inc. is a private company located in Lexington mainly categorized for modems, monitors, disk drives and terminals. It is moreover in to sales and services. This case is about the replacement of Futronics’s central office stores by an outside service provider. In this case supply management manager have an opportunity for investigating selected outsourcing in-house services.
profitability, slowing demand growth and a surge in private label sales threatened to undermine the
United Parcel Service, a logistics company has established itself through its strong corporate culture, continuous ability to innovate, and its far-reaching global network. The company has maintained a competitive advantage over the years by implementing continuous growth strategies—the first was geographic expansion, next the early adaptation of electronic tracking technologies, and then came a series of acquisitions. Although UPS is financially strong and is able to maintain its role in the courier and delivery industry—it is vital that UPS continue to act strategically as to strive for long-term success. UPS is heavily dependent on the U.S. economy and it is important that it find greater and more profitable ventures
This case involves a male and female Hispanic, entering TJ Maxx during business hours, and concealing various items in their bags. The suspects attempted to leave the store without paying for the items. Loss Prevention Agent Sergio Castro made contact with the suspects at the front entrance and retrieved all of the loss except for a black Michael Kors purse, valued at $159.99.
By paying out excess cash and issuing debt, BBBY could improve return to equity holders and raise earnings per share (by a share repurchase).
At the end of 2007, Panera Bread Company was in an unfamiliar position where taking out debt was a necessary action to gain funding. Raising prices would be an option to help with the deteriorating margins, but there is fear that this move will slow the growth of the company. Other options, such as lowering the quality of food, would go against Panera’s fundamental goal of serving high quality food. At this time, Panera is in a position where it needs to repurchase stock. The $75 million buy-back should help give confidence to their shareholders. However, to accomplish their growth goals and stock repurchase, Panera will require external funding for the first time.
Frito Lay, a division of PepsiCo Inc, has just purchased the Cracker Jack brand from Borden Inc. The company is a worldwide leader in the manufacturing and marketing of snacks, with products such as Ruffles Potato Chips, Fritos Corn Chips and Doritos found among its product mix. These well known company brands have seen it capture over 50 percent of the retail sales, and company officials envisage Cracker Jack can only but add to the richness of its product line and profits. Borden, because of its strategic decision to concentrate resources elsewhere, discontinued aggressive
Bed, Bath and Beyond (BBBY) currently has $400 million more in cash than they need for ongoing growth and operations requirements. While the company is financially sound analysts and investors worry about the company’s capital structure decisions. Investors do not want to see that much cash on the books and worry that the current capital structure is not the most effective for the future. They prefer that BBBY change their capital structure by paying out excess cash and issuing debt. This could allow BBBY to improve their return on equity and raise earnings per share. Given the low interest rates available it seems like the perfect time for BBBY to add debt to its capital structure. Until now they
Cracker Jacks sales will represent a tiny part of the Frito-Lay’s business currently, however the chances are high to get the numbers high from this division if proper decisions are made. Frito-Lay is the leader in the US market concerning market share and sales volume. So they can use their advertising and marketing experience to uplift CJ. CJ should be marketed as a stackable treat which is healthy as of natural ingredients like popcorn. Marketing researchers should focus on the small children as the target market as well. By launching the different sizes and convenient packages to the customers so that they can grab it and go rather than having a box. The CJ should be made available to as many stores as possible by utilizing the same direct store delivery channels. A careful analysis has to be done to change any features like gifts in each bag and the flavor of the CJ, because that is the major point of CJ and most of the customers are attracted because of that particular features.
625 10.125 8.125 10.000 9.875 10.250 9.750 9.125 8.500 4.250 4.375 3.625 3.125 2.625 Close 12.125 16.000 8.375 10.375 10.500 10.625 9.750 9.375 9.125 5.500 4.625 3.875 3.500 3.000 2.500 167.24 211.28 242.17 288.36 290.10 304.00 318.66 329.80 321.83 251.79 230.3 247.08 257.07 267.82 266.37 S&P 500 Closing Bond Prices 11.13% $81.875 82.000 77.750 76.000 94.000 75.625 76.125 72.000 55.250 50.000 41.500 41.750 27.000 14.38% $90.125 101.875 100.875 99.500 96.500 95.000 95.000 98.625 96.000 94.375 68.875 63.500 50.000 54.125 34.250 S&P longterm gov bond 40.29 48.93 58.04 60.69 51.55 52.42 51.89 50.40 47.39 47.17 50.31 49.89 51.28 53.67 52.50
Additionally, as expressed by Rebecca Ratner, Hsieh’s commitment to merging the workplace with social lives could present risk to the company in the form of unprofessional or inappropriate conduct that is not addressed properly.
By 1976, at a volume of 1,300 packages per day, FedEx’s Courier Pack service was only fulfilling one tenth of a percent of the “emergency rush” market, which totaled 870,000 packages delivered per day. By comparison, at 13,400 deliveries per day, the company’s Priority One “emergency rush” service accounted for one percent of the total market. Clearly both services have potential to gain more share of the rush delivery market, but the Courier Pack’s untapped potential is nearly limitless. Surely, the remaining 98 percent or so of customers using competing services for emergency rush delivery, including Emery Air Freight and USPS Express Service, are not familiar with Fed Ex’s less expensive, and more consistent Courier Pack service, and would switch brands with heightened awareness gained through careful marketing.
Frito-Lay is a national brand and a worldwide leader in the manufacturing and marketing of snack chips. Frito-Lay accounts for 13 percent of sales in the US snack food industry. Frito-Lay’s
Customer analysis – Who needs CP? How large is the market? Is CP an economically viable product? Can FedEx do 6000 CPs a day?