Strategies Allowing Frito Lay and Darden Which Practice Outsourcing Offshore to Remain Leaders in Their Industries – Case Study Example
The paper "Strategies Allowing Frito Lay and Darden Which Practice Outsourcing Offshore to Remain Leaders in Their Industries" is a wonderful example of a case study on business. Frito Lay is an international company with many plants around the world. It is a subsidiary of Pepsico. It faces all ten of the major operation management decisions which include the design of goods and services, quality, processing strategy, location, layout, human resources, supply chain management, inventory, scheduling, and maintenance. Several strategies are used to ensure that Frito Lay remains as the head of the industry. These include the following strategies. The firm introduces new products frequently. This has been a strategy that ensures that the firm remains relevant and up to date with the current market trends. Samples are taken before raw materials are brought into the product lines to ensure that the quality of their product is high (Choi, 2016). Also, additional inspection points exist along the production line. This has enabled the firm to consistently perform well on impromptu quality checks. This quality score is then publically displayed to ensure that all employees are well aware of it. Frito Lay follows a product focus strategy where technology and sequencing equipment is put into use. The company is also making more use of solar energy and leaving out electricity. This has proved economical over time and has put into better use the financial resources of the company. The company also sells its by-products for use as animal feed. It has numerous plants around the world. Each plant’s location is carefully selected according to its proximity to raw materials and customers to make sure that the perishable commodities do not go bad. The company applies a product-oriented layout. To ensure that each employee is motivated at all times, Frito Lay pays them competitive wages and ensures that each and every of the employee is treated fairly and with respect. Darden is a company that develops international supplies. It is an example of companies that practice outsourcing offshore. The company gets its shrimp supply from international suppliers rather than local American suppliers. The major reason that is assumed to be the cause of this is that the quality of seafood from other countries is better than in America. This is because the quality of seafood is affected by environmental conditions. Hence, Darden may consider importing the seafood from areas of the world with better environmental conditions such as better climatic conditions. This is a major factor especially since most clients are quick to realize the quality of seafood they are served (Araujo, 2015). In an attempt to ensure that the company gets the correct quality of supply, the company has invested in training the suppliers on how to obtain and deliver better quality supplies. Darden’s operation strategy has provided them with a competitive advantage. This is through the creation of a supply chain which enables them to achieve excellence one step at a time. The company also maintains a good relationship with the suppliers which consequently results in better quality supplies. Although sourcing nationally would be much cheaper, Darden is concerned with the quality of their seafood rather than their cost. Another reason as to why Darden outsources offshore is because it does not have the legal permission to control the catch of foreign waters.