Chapter 14 – Frito LayInstructionsThe leadership of Frito-Lay’s sales organization believes that knowledge management is thekey to success. Specifically, the data concerning best practices, customer information, andcorporate details are essential. The challenge is that important information is captured in manydifferent places and systems. This can inhibit the sharing of knowledge across members of thesales organization. Best practices represent the optimal way to deal with customer’s issues andproblems. If sales team members in different areas are allowed to communicate their successstories with other team members the entire company benefits. In addition, an effect informationsharing system creates a place for brainstorming and collaboration. Frito-Lay’s solution was todevelop a knowledge management portal on the company’s intranet. The portal provides acentral point of access to the database of information, like customer and internal corporateinformation. This access reduces the time an individual sale representative needs to find andshare sales, analysis, and news. The goals for the Frito-Lay portal are to make knowledge thatis more efficient, make use of customer-specific data, and promote team collaboration. Eachsales person is enabled to share the experiences of overcoming customer problems anddevelop effective sales presentations. In addition, by using employee profiles sales teammembers are able to increase camaraderie and relationship building amongst themselves.During the mid 2000s, the salty snack market grew slowly and changes in consumers’ eatinghabits might provide for an even slower future. This fact will increase the competitivenessamongst the different snack food sales organizations. Sales people have to continue to developcustomer loyalty as consumers experiment with new products to enhance the at-homeexperience.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?
