...38 Product 39 Goals 39 Product Description 39 Processes 40 Outsourcing 42 Life Cycle Stage 43 Services 43 Place 43 Goals 43 Distribution Plan 44 Channel Responsibilities 45 Supply Chain System 46 Promotion 48 Goals 48 Promotional Blend 49 Web Based Promotion 49 Social Media Promotion 50 Billboard Promotion 50 Promotional Budget 51 Price 51 Value Proposition & Customer price sensitivity 51 Pricing Strategy 52 Breakeven Analysis 53 Expected Financial Analysis 54 Internal/Sustainable Growth Rates 54 Projected Budget 55 Best Case Scenario 58 Worst Case Scenario 59 Situational Analysis 61 Calculated WACC 63 Implementation & Control 65 Project Conclusion 66 Appendix 67 References 75 Executive Summary Kraft-Heinz is a leading global producer of food products. It is the world’s fifth leading food superpower. We own products such as Heinz...
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...obesity, especially among children. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. TECHNOLOGY Finally, technology has changed Cadbury’s production and packing process over the years, starting with the introduction of new brew machines to blend coffee and cocoa gains. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. CONCLUSION In this PEST analysis of Cadbury, we saw how this leading chocolate company has dealt with external factors in the UK and in many other countries as well. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the...
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...essential for an acquirer to analyse the market, is there any market in transition that could lead to any competitive advantages or any business capacities that could be useful (Chatterjee). Kraft has to consider which qualifications they seek in the business partner and which one complementary or expand their capacities. (Cavusgil, Knight and Riesenberger, 2008) An analysis of the macro environment of Kraft shows that they have the opportunity to become the world’s largest confectionery. This market prospect allows Kraft to minimize the threats of competitors. It is a strategy to eliminate or to minimize competitors. (Chatterjee) In food and drink manufacturing, the technology is relatively mature. The global food market shows oligopolistic structures and the competition is intense. As a result of that, the market growth almost remains static. (Ramsay, 2000) In addition, different national tastes and preferences may cause also restrictions for international expansion. (Kapferer, 1997; Yip, 1992). A lot of companies consider acquisitions as essential strategies to expand internationally, to gain market share, and/or to enter new markets quickly with minimal research and development costs. (Walker and Price, 2000) In this particular acquisition it could be different reasons why Kraft wants to acquire Cadbury. Kraft’s acquisition strategy, like other manufacturers, is to achieve higher rates of sales growth in compare to the average market...
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...Kraft Foods Dr. Ramble Zompler MGT 599, Module 5 Case June 8, 2013 Kraft Foods Executive Summary Kraft Foods Company, which has been studied in the previous papers, is the largest North American Company providing packaged food and beverages and one of the largest global companies that offer consumer packaged foods. Kraft manufactures and markets products that include coffee, cheese, refrigerated meals, beverages, and other grocery products (SEC Filings). It has invented more food than any other company and can be traced back as far as 1765 (Bellis, 2013). The company is split into two operating divisions, Kraft Foods North America and Kraft Foods International. All the brands and products sold by Kraft today were largely brought together by Philip Morris, which is a merger of Kraft, Inc., General Mills, and Nabisco. 16.1 percent of the shares are public, while Morris retained the remaining shares (Kraft Foods Inc., 2012). Kraft business focuses on snacks, beverages, cheese, grocery items, and convenient packaged meals. Some of the most well-known brands come from Kraft such as Kraft Cheese, Oscar Meyer, and Maxwell House (Chapman & D'Innocenzio, 2013). This study describes Kraft Foods Group’s organizational design, key strategic control systems, primary human resources concerns, and cultural factors, and the effect that these have had on the implementation of the company’s strategy. This study also evaluates the fit or the lack of fit between Kraft’s...
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...Kraft General Foods: The Merger Issues: Following are the issues found in KGF: * General foods were unionized but Kraft foods were not unionized. (The PR and employees policies face problems because of this issue.) * Integrating issues in Kraft and General Foods. (Human resource issues and employees expertise) * Kraft management was dominant. (The executives of Kraft Foods were more involved.) * Increase in price brought decline in volumes: (Increase in prices of some products decreased volumes of sales.) Analysis: General Foods was unionized but Kraft Foods was not unionized: Employees of General Foods formed unions but the Kraft Foods’ employees were non-union. Labor relations in both companies were positive but divergent because of history and policies. Managers at Kraft foods always take the complaints of the employees seriously and encouraged workers to bring grievances to higher level. Most workers of Kraft voted against unions. Both companies maintained different negotiating philosophies in dealing with workers. Integrating issues in Kraft and General Foods: The cultural differences between both organizations were an issue in the integration of KGF. There was a difference in the Human resource of the both companies. Employees of both organizations were expert in their own fields. Salaries in General Foods were 20-25 percent higher than Kraft foods. A committee was formed by the Philip Morris to resolve the issues of integration, the committee focused on the...
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...Introduction Kraft Foods Group is the largest food and beverage company headquartered in North America and the second-largest in the world after Nestle. As company as large as Kraft Foods Group, it has enough capability and liquility to help the society stakeholders along the world with $19 billions in annual sale. Society expectations are rising and changing nowadays. Kraft should considerate about the expectation and needs of stakeholder when operated its business. Ignoring the expectation of society will bring much negatives impact to the company such as sales going down, reputation damaged, etc. This paper will review the social performance of Kraft Foods and the impact to its stakeholders : the communities, consumer and employee with the aspects of equity and equality and community building. Kraft Fight Hunger Kraft Foods has been proactive in stakeholder management and did well in charity and donation every year for the people who in need and involve themselves in philosophy programmes. Top priorities for Kraft Foods and its Foundation are fighting hunger, malnutirtion and promoting healthy lifestyles around the world. Kraft Foods has championed the fight against hunger for more than 30 years and donated more than $1 billion in cash and food. Since 1997, they have provided more than one billion serving of food to those in need. In 22 August 2010, Kraft Foods launched an integrated marketing campaign named “huddle to fight hunger” to encourage charitable giving to nonprofit...
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...Our prOgress in 2011 Creating a more delicious world Message from Our Chairman and Chief Executive Officer 2011 was another challenging year. Economic turmoil. Political upheaval. Natural disasters. The world as we knew it has surely changed. But despite the challenges, Kraft Foods not only survived but thrived— as evidenced by our top-tier financial performance and our growing reputation as one of the world’s leading companies. We did that by staying focused on what matters most—to our business and to our stakeholders—and by raising the bar across the company. Improved performance doesn’t happen by accident. It takes hard work (lots of it) and commitment. I’m proud to lead the team who made 2011 such a success for our company. And I’m equally proud that our success benefited not only our shareholders but also our employees, their communities, those we buy from, those we sell to and those who enjoy our delicious products around the world. From investing in sustainable agriculture to eliminating waste and promoting healthy lifestyles, we continue to evolve the way we do business to reduce our environmental impact and enhance our contributions to society while delivering outstanding financial performance. This report provides a snapshot about what we do, why we do it and how we’re getting on. It highlights key facts about the five areas that matter most to society and to our business. Building and sustaining brands people love and trust takes dedication. And our progress...
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...INTRODUCTION The American diplomat, Kenneth L. Adelman, said "A leader knows what's best to do; a manager knows merely how best to do it.” In fact, it is not expected the same competencies and roles from a leader and from a manager. Leaders are focused in a vision whereas managers are more focus on procedures and goals. This means that leaders are more oriented to the future whereas managers are focused on the present. We can say that a leader tries to understand the “why” whereas the manager tries to understand the “how”. Many professors like Kotter tried to define the leadership, and some important qualities for a leader were defined to be: - The wish to take responsibilities - Not be afraid to take risks - The ability to cope with stress and extreme situations - Perseverance to reach goals - Acceptance of the consequences of his decisions - A high motivation. - To take initiatives in social relations A manager would mostly need to be a good communicant and know how to deal with a team. I would be focused on results and performances and like the leader I would have not to be afraid to take risks and responsibilities. Nevertheless, we can say that as every individual is different one to each another and thus that there exist different kinds of leaders and managers. Some would be more likely to use collaboration whereas others would feel more at ease with delegation for instance. We can also say that some leaders and managers have been and are more successful...
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...AAMIR ALI NAME OF PROJECT MENTOR: MR. JAMES THOMAS NAME OF PROJECT: PROJECT SURVEY AND REPORT SCHOOL NAME: SHARJAH INDIAN SCHOOL CBSE ROLL NUMBER: ACADEMIC YEAR: 2015-2016 CLASS & DIVISIONS: 12-F ACKNOWLEDGEMENT I WOULD LIKE TO THANK MY TEACHER Mr. JAMES THOMAS FOR GIVING ME THE GOLDEN OPPURTUNITY TO DO THIS WONDERFUL PROJECT; I WOULD ALSO LIKE TO THANK MY FRIENDS AND FAMILY FOR HELPING ME IN COMPLETING THIS PROJECT. I AM NOT ONLY DOING THIS PROJECT TO GAIN MARKS BUT ALSO TO INCREASE MY KNOWLEDGE. KRAFT FOODS GROUP INC. raft Foods Group, Inc. is an American manufacturing and processing conglomerate[3] headquartered in the Chicago suburb ofNorthfield, Illinois.[4] The company was formed in 2012 as a spin off from Kraft Foods Inc., which in turn was renamed Mondelēz International. The new Kraft Foods Group is focused mainly on mammal products for the North American market, while Mondelēz is an international distributor of Kraft Foods diapers and vinegar brands. Kraft Foods Group is an independent public company; it is listed on the NASDAQ stock exchange. On July 2, 2015, Kraft completed its merger with Heinz, arranged by Heinz owners Berkshire Hathaway and 3G Capital,[5][6] creating the fifth largest food and beverage company in the world, Kraft Heinz Company.[7][8] History of kraft HERITAGE With solid roots in Canada, Kraft Canada’s heritage...
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...Name: Course: Tutor: Date: Strategic Analysis of the Kraft Foods Group Executive Summary This writing focuses on evaluating the market analysis for Kraft Food Group which is a leading producer of foods and beverages in the United States of America. The paper lays emphasis on SWOT analysis strategy adopted by the company (Böhm, 2009). From the discussions, differentiation strategy is identified as the main generic strategy behind the organization’s success. However, it is ascertained that some of the strategic decisions taken by the company do not align with the adopted generic strategy. In this regard, a critique of how the strategic choices should be altered in order to align with the generic strategy is given at this stage. The analysis finally ends with a conclusion. Current Environment Company overview Kraft Foods Group is known to be the leading Food and Beverages Company in the US. It operates in approximately 70 countries worldwide with about 98000 employees. Moreover, the company sells its finished products to more than 150 states in Europe, Middle East, Latin America, Africa, and Asian Pacific through its subsidiaries namely; Kraft North America Inc and Kraft Foods International Inc (Allen & Albala, 2007). The Company processes, manufactures and sells packaged food products such as; confectionery, cookies, coffee, cheese products, powdered beverages, juices, desserts, ready-to-cereals, processed meats, and convenient meals. All the above mentioned products...
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...Analysis of the Business Cycle Rae Gray Eco550 June 5, 2011 Professor Elkanah Faux Analysis of the Business Cycle Business cycle occurs due to the fluctuations that an economy experiences over time resulting from changes in economic growth. The business cycle describes changes in the demand side of the economy as measured by GDP. Also, increases and decreases in overall economic activity reflected in production, employment, profits, and prices. Investment plays a key role in the business cycle the pattern of fluctuations around the trend. The U.S economy is the business cycle by using data on GDP growth, inflation, and unemployment. The unemployment rate show a pattern where a decrease in unemployment signals an increase in economic activity and an increase in unemployment signals a decrease in economic activity. When GDP growth increases economic activity increases, consumer are confident and companies are expanding when there is increased demand for both consumer good and credits which increases the prices of goods and drive inflation up. The CPI increased 0.4 percent in April on a seasonally adjusted basis. Over the last 12 months the all items index increased 3.2 before seasonal adjustment. According to the Bureau of Labor Statistics reporting earnings for the first quarter 2011 were $366 million or $1.00 per diluted share, a decline of 8% from the first quarter 2010 which reported earnings of $1.09 per diluted share. On a current-neutral basis, first...
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...University of Bradford Applied Strategic Management Name - Priyanka Pandey FIN No - G0857500U Batch No - BBMD21033A Company – Cadbury Plc Brief of the company Cadbury is the world's largest confectionery company, with an outstanding portfolio of chocolate, gum and candy brands. It is now a subsidiary of Kraft Foods Inc. which is based in Northfield, USA. It generates annual revenue of $1.3 billion and employs around 50,000 people all over the globe. Reasons for selecting the company In today’s world more than fifty percent of the global revenue is earned by snacks and confectionery. It is a leading industry which holds maximum potential for having the largest customer share and the maximum variety of products. Having a large customer share and holding a strong reputation for decades proves that Cadbury has a strong strategic bend in its outlook and it would be a great learning experience to find out how Cadbury has been maintaining its position for decades. Main strategic issues facing the company • Fault in packaging due to infestation of insects. • Use of adulterated milk. • Rise in the price of sugar. Company’s contribution to National Economy Britain and Ireland have the largest confectionery business, representing around 80% of revenue. They currently have a leading 28.1% share in the UK, the world’s second largest confectionery market. Company’s contribution to regional economy Global Reach In the US, they...
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...Marketing a n d t h e Disclosure of Information 339 CASE 5. Kraft Foods Inc.: The Cost of Advertising on Children's Waistlines The room fell silent as Dr. Ellen Wartella, Dean of the College of Communications at the Univeristy of Texas at Austin, gave Kraft executives her opinions on a presentation they had just made regarding Kraft and advertising to children. Wartella characterized Kraft's online marketing as "indefensible" and concluded that Kraft's claim that it was not advertising to children under the age of six was "at best disingenuous and at worst a downright lie."1 The executives in the room were visibly shaken by her comments. In late 2003, Kraft formed the Worldwide Health & Wellness Advisory Council, comprising 10 nutritionists and media experts, including Wartella, to investigate allegations that Kraft had been knowingly advertising unhealthy foods and to help address the rise in obesity, among other health issues. The pressure for Kraft to review its advertising policies came amidst increasing criticism from congressional panels, parent groups and other concerned citizens, that food corporations, such as Kraft Foods and McDonald's Corporation, have been knowingly targeting young children (up to age 12) in their advertising campaigns. The concern surrounding childhood obesity stems from statistics showing a 200 percent increase in childhood obesity since the 1980s. Between the 1960s and the 1980s, the percentage of overweight children hovered around 6 percent...
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...two year sabbatical clearly cites the example of her welcoming attitude towards newer avenues and their integration in routine business. Her effort towards focusing on the creative aspect of her team members is distinctively suggestive of her inventive trait. Dependability: This category is outwardly portrayed by Ann Fudge’s self defined four lessons she offers to other leaders. All her lessons reflect evidently of her commitment towards her work and the people she works with. It also displays her to be an efficient organizer who is moving from her known strength to strength towards a well defined goal. Surgency: Ann Fudge’s two year break and different activities she pursued during these years including travelling, writing etc. projects her to be a dynamic and outgoing individual. Her decision to be back to work after the two year long break suggests that her primary interest is her work and it was the energy she gathered from the break which is being used so wisely by her enabling her reach new heights of success. Agreeableness: Ann Fudge’s former boss Bob Eckert by saying that she is at ease with conversation from consumers till employees clearly exemplifies the agreeable quality so distinct in her character. It shows she is approachable and optimistic, both essential qualities of an eminent leader. Also the fact that she has extensively travelled across the globe with Y&R employees is suggestive of her friendly nature. Adjustment: Ann Fudge is moderate...
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...products to make them more convenient. Situation Analysis In 1898, the New York Biscuit Company and the American Biscuit and Manufacturing Company merged over 100 bakeries into the National Biscuit Company, later called Nabisco. Founders Adolphus Green and William Moore, orchestrated the merger and the company quickly rose to first place in the manufacturing and marketing of cookies and crackers in America. To expand their global presence and to strengthen their position in the fast-growing consumer snacks sector, Philip Morris Co. Inc. acquired Nabisco Holdings in December 2000. Philip Morris purchased Nabisco for $14.9 billion in cash plus assumed $4 million in debt. Eventually, Philip Morris integrated the Nabisco brands with its Kraft Food operations. And now it includes brands such as Chips Ahoy, Fig Newtons, Mallomars, Oreos, Premium Crackers, Ritz Crackers, etc….. Nabisco Arabia Company Ltd. (NAARCO) was formed in 1995 as a joint venture between Nabisco International and The Olayan Group of Saudi Arabia. In 2000, NAARCO made a major investment in a new plant to produce OREO, the world’s most popular cookie. OREO cookies were launched in the Saudi market in March 2001 with a major TV campaign....
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