Roger Deromedi was promoted to CEO of Kraft Foods. He inherited a North America operation, along with more than a year of disappointed sales and earnings. There was some increase competition from private–level competitors along with several failed new products. He also lost two senior operators Executives to add to his problems. Even though Mr. Deromedi have all these problems there is still an opportunity to be creative and aggressively try to solve some or most of Kraft Food problems. Mr. Deromedi plans to close twenty of Kraft Food plants worldwide and cut the workforce by six thousand jobs, or six percent over the next three years, he plans to funnel a portion of the savings from these moves into needed product development, he also hope investor will welcome these moves.
These problems mentioned above are not the only problems Mr. Roger Deromedi have. There are problems dealing the obesity epidemic in the United States, and increasingly in the global market. As a way to treat obesity in the world market, large corporation like Kraft Food need to appropriate large sums of money to address these problems. Money for anti-obesity advertising, money for exercise class, money for research and development, money used for direct cost related to diabetic treatments, strokes, heart disease and various chronic conditions associated with being obese. Kraft Food is considered one of the major players in the food industry and is under examination by the media, politicians and various non-governmental organizations focus on health and obese children.
The Kraft Food Company develops and introduce new product on a routine basis. The company evaluates the new product according to their sales. Kraft Food competitor must be able to communicate in their market and exchange ideas on how to make this product more nutrition’s with less fats and carbohydrates. While analyzing this