Refer to Frito-Lay in S8-11. What qualitative factors should Gonzalez consider before making a final decision?
In S
Frito-Lay manufactures and markets snack foods. Betsy Gonzalez manages the company’s fleet of 200 delivery trucks. Gonzalez has been charged with “reengineering” the fleet- management function. She has an important decision to make.
■ Should she continue to manage the fleet in-house with the five employees reporting to her? To do so, she will have to acquire new fleet-management software to streamline Frito-Lay’s fleet-management process.
■ Should she outsource the fleet-management function to Fleet Management Services, a company that specializes in managing fleets of trucks for other companies? Fleet Management Services would take over the maintenance, repair, and scheduling of Frito- Lay’s fleet (but Frito-Lay would retain ownership). This alternative would require Gonzalez to lay off her five employees. However, her own job would be secure, as she would be Frito-Lay’s liaison with Fleet Management Services.