Business Case for Frito-Lay Net Zero Facility Harvard Case Solution & Analysis


            The initiatives for the conservation of the energy had began in the early 1990s and the management of the company had been more concerned regarding the rising rates for the usage of natural gas, electricity, water. Furthermore, the management of the company was exposed to the threats that might be faced by the company if the government imposed certain limits over the emissions of the green house gases and if the company failed to meet those limits the regulatory bodies might penalize the government with severe penalties. Therefore, in order to overcome these challenges, the management of the company had to devise plans to deliver sustainable growth and take initiatives that address the philosophy of the management of the company. It was in 2007 when these problems started to materialize and all the senior managers of the company had to come up with a specific plan for meeting the environmental sustainability plans for the company.

Anticipated Outcomes

            The outcome of the near net zero facility installation with all the combined innovative technologies would be that the company would be able to address and convey the vision to all the stakeholders of the company. After this project is implemented, all the combined innovative technologies at a single facility are going to provide the company with a core competency which would become the sustainable competitive advantage for the company. The company is going to benefit from the savings in the emissions of excessive greenhouse gases and the company would also benefit in cost savings by recycling the use of water, using alternative means of producing natural gas, reducing the wastage of landfill waste below 1% and generating other forms of electricity. All of these outcomes are going to result in a sustainable environment for the company which is the ultimate mission and vision of the company.


            A range of alternatives were there for the management of the company. The management of the company could have continued with its FLNA conservative initiatives or did nothing to cope up with the growing challenges with associated with the environmental footprint and the production and manufacturing processes of the company. Furthermore, all the senior managers of the company had emphasized over the reduction in the costs and the usage of the natural resources and as a result the initiative was taken by all of them for the near net zero emissions and to make it a reality. Some of the ways through which this alternative was recommended and a final proposal was developed are as follows:

  • The company would achieve the status of a sustainable company.
  • The company would achieve impressive results in its costs and bottom line.
  • The company is going to meet its targets for the conservation and saving of the energy.


            The implementation of the Frito Lay North America near net facility project is going to create quantitative and qualitative benefits for the management of the company. The quantitative analysis of the company has also been performed which projects the future emission rates and the savings in the electricity and natural gas. Along with this, the company is going to leverage on many intangible benefits such as the relationship with its stakeholders and the shareholders of the company. This project is going to allow the management of the company to create savings around $55 million annually in all the forms of the energy. Furthermore, the management of the company has also set specific objectives that would be achieved with this project. These objectives are as follows:

Business Case for Frito-Lay Net Zero Facility Case Solution

Management expected to reduce usage of water by 75%
Management expected to reduce usage of gas by 80%
Management expected to reduce 90% consumption of the purchased electricity
Reduce the amount of waste to less than 1%

Business Case Analysis Team

            The Frito Lay Net zero facility was based on the vision of near net zero. This was one of the core sustainability projects that had been launched by PepsiCo. This vision was instilled by the owners of the company and the objective was to transform the existing facility of PepsiCo into an off the grid facility. This facility would then run on the renewable resources and other forms of energy such as the recycled water. The core mission was that this facility would be producing zero landfill waste. The main people forming the business analysis team for this project are shown in the table below:............

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