...Question: Conduct a strategic analysis of Kraft Foods Company, with special emphasis on Value chain and National Diamond model Solution: Industry Overview Kraft Foods Inc operates in the food and beverages industry. The industry is constituted by those companies that involve in stages of activities from procuring the raw food material after harvest till the retail purchase. The activities involved are the processing of raw food materials, manufacturing, packaging the food products and distributing them. The products may be fresh, prepared foods, packaged foods, alcoholic and nonalcoholic beverages. All the products that are meant for human consumption except the pharmaceutical products belong to this industry. The dairy sector forms the largest part of the food industry. The baked and cereal items and chilled foods are the close second and third. In case of the beverages industry, it is divided into alcoholic and nonalcoholic segment. A vast of the alcoholic market is made up of beer, cider and other flavored alcoholic beverages. On the other hand, soft drinks, coffee, tea, juice and water constitute the nonalcoholic beverage market. The industry is highly competitive and fragmented. Though the competition is among few notable players, no player has a dominant position to dictate the price levels. The players rely largely on advertisements to promote their brand and secure the market position (Food and Beverages Industry Profile, 2009). Market size: With over 16.5...
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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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...KRAFT FOODS COMPANY INTERNAL ANALYSIS The starting of strategic management process is internal analysis where managers of the firm identify business strengths and weaknesses by analyzing its core competencies. For business to build competitive advantage and take advantage of profitability, it must be able to exploit and build upon its strengths and eliminate its weaknesses. Competencies for business are its resources and capabilities that allow the business to differentiate itself and its products and services, or reduce costs when compared to competitors (“The competitive advantage”, n.d). Assets can be tangible like equipment, land or technology, or intangible like brand, knowledge and expertise. When assets are utilized appropriately, they add value to output produced by the business. Similarly capabilities of the business, like skills, processes and structures are important to creating competitive advantage. Along with internal analysis managers must conduct SWOT analysis. SWOT stands for strengths, weaknesses, opportunities and threats. Strengths and weaknesses make up business’s internal analysis and opportunities and threats come from external environment of the firm and hence form external analysis. RESOURCES BASED VIEW FOR KRAFT FOODS Kraft Foods is one of the largest Food and Beverage Company in North America with presence in more than 155 countries. Kraft has a deep portfolio of consumer’s favorite food, beverage, cheese, refrigerated meals and grocery brands...
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...identification of the right company depends on the analysis of target market. Companies react when they recognize benefits in some certain markets. It is 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...
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...Strategic Analysis of Nestlé and its Competitor Kraft Foods Course: International Business Strategy (IB BA) Professor Lewis University of Applied Sciences Dresden Project Members: Katerina Schneiderova Sandra Merkel Nicole Klötzer Carolin Wiese Samuel Weimer Nicole Schröder Date: 11th June 2010 Executive Summary In the following, two companies and their strategic positions within the coffee consumer goods industry will be described. The focus lies on Nestlé and its competitor Kraft Foods. As coffee is one of the most popular products worldwide, this is a very demanding business. It is necessary to provide high quality products, especially when working in the more affluent segments like Nestlé and Kraft Food do. Several political, economic, social, technical, environmental and legal aspects have an impact on the industry branch they are operating in. In addition, there is not only a differentiation in Robusta and Arabica coffee, but also in filter coffee, portioned and non-portioned soluble coffee. To satisfy the diverging needs of all customers, different strategies are applied to gain more market share. In this report it is examined how those companies operate in the specific business context, what they have in common and where they differ. Furthermore, an analysis of the industry attractiveness, of the market segmentation and value chain and an overview of resources and capabilities are part of this paper. After intense research...
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...Let’s build a smarter planet Kraft Australia explores a new frontier of customer understanding through advanced analytics. Overview ■ The Need With Australian demographics changing, Kraft Australia saw the need to change its longtime branding campaign for its much loved Vegemite product. To get it right, Kraft needed a deeper and more insightful view of how consumers viewed—and used— Vegemite that it could rely on to tailor its branding message. ■ The Solution Kraft engaged IBM to provide Kraft Foods Australia is a subsidiary of Kraft Foods, the second largest branded food and beverage company in the world. Established in 1926, Kraft Australia is headquartered in Melbourne and has sales revenue of over A$650 million. The company’s flagship brand—Vegemite—has long been considered an Australian national icon. its leading edge tool for corporate brand and reputation analysis (COBRA) to conduct a pioneer study of its customer base. The solution reaches out to millions of sources of usergenerated content to paint a fresh picture of what its customers are thinking and saying. ■ Key Benefits — Ability to identify market opportunities at a very early stage — Ability to detect—and respond to—threats to Kraft’s brands and corporate reputation — Ability to increase sales and customer loyalty through more targeted brand advertising campaigns For all the diversity in the worldwide consumer products market, the most successful companies...
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...Introduction Kraft Foods Inc. is a publically traded food company that has been around since 1980, based originally in Delaware and has expanded into a globally recognized food company that was a spin-off from Mondelez International. The Kraft foods brand is synonymous with other well known brands like General Mills and Hines and their products can be found in almost every home in America. They make a variety of food products in the beverage, dressings and cheeses, refrigerated meals, meals & desserts, enhancers and snacks, to include other owned brands such as Canada. The company exists in the highly competitive market where advertising dollars spent directly correlate to revenue gained. According to Kraft Food’s 2013 annual report they compete “primarily on the basis of product quality and innovation, brand recognition and loyalty, service, the ability to identify and satisfy consumer preferences, the introduction of new products and the effectiveness of our advertising campaigns and marketing programs, and price” (Vernon, 2013). Their stated strategy for “improving our market position or introducing a new product requires substantial advertising and promotional expenditures” (Vernon, 2013). This shows a strong level a strategic thinking and planning within the company even though they are highly focused on competition through advertising and promotional expenditures. Within the context of this paper and continuing through out this class an analysis on Kraft Foods Inc...
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...Budgeting and strategy A Kraft Foods UK case study Case study pages • 1: What is a budget? • 2: Kraft´s income and expenses budget • 3: The importance of feedback • 4: Constructing an expense budget • 5: Advantages and disadvantages of expense budgeting • 6: Alternative types of budgeting • 7: Conclusion Read more: http://businesscasestudies.co.uk/kraft-foods-uk/budgeting-and-strategy/conclusion.html#ixzz1nUCFRFJb What is a budget? A budget is a financial plan that sets out, using figures, an organisation's expected future results. For planning purposes, organisations can use many different types of budgets. For example: • Income and expenditure budgets. These show how much an organisation expects to receive and to spend in future periods. • Production budgets. These set out how much an organisation must produce in coming periods of time in order to meet demand. • Profit budgets. These bring together planned sales, costs, and profit figures. By creating budgets, managers can: • set out a clear plan, involving target figures for defined periods of time • communicate their targets clearly • motivate employees to achieve these targets • control performance by monitoring actual outcomes against planned targets • meet the organisation's objectives. This case study illustrates how Kraft Foods uses budgets to enable it to meet business objectives related to financial performance with a view to achieving...
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...UNIVERSITY MGT599 – STRATEGIC MANAGEMENT CASE ASSIGNMENT 1 ABSTRACT Kraft Foods Inc. is know to be the largest confectionery, food and drinks corporation in the United States. 155 countries around the world market its brands. Their European headquarters is settles outside Zurich in Switzerland. It is an independent public company and has net incomes of around 2-5 billions a year. This is also due to important transactions between Kraft Foods and Philip Morris and Nestle as well as others of coarse. Kraft Foods, as it is known today, was formed in 1923 by Thomas H. McInnerney but the whole concept first emerged in 1903 when James Kraft began a door-to-door cheese business. His four brothers then joined him to create the first Kraft firm known as J.L. Kraft and Bros. Company in 1909. 40 brands belonging to Kraft foods are over 100 years old and so this shows how strong the firm is and how it has managed to create confidence and appreciation between them and their consumers. Below is an evaluation of Kraft Foods mission and vision statements, as well as their goals. Mission Statement Kraft Food mission statement “to be North America’s best food and beverage company” (Welcome, 2012). This is a brief statement that holds a great deal of information. It seems from the mission statement that the ultimate goal for the company is to be the absolute best in quality, delivery, taste, and availability of the product and as an employer. It appears that Kraft has a pretty accurate...
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...Marketing Plan for Oreo Cookies in Poland TABLE OF CONTENT Executive Summary 4 Business Mission 4 External Marketing Audit 5 Macro-environment - PEST Analysis 5 The Market 6 Competition for Oreo in the Polish market 7 Internal Marketing Audit 8 Operating Results 8 Strategic Issue Analysis 8 Marketing Mix Effectiveness – 4 P’s 9 SWOT Analysis OREO 10 Marketing Objectives 11 Strategic Thrust 11 Strategic Objectives 11 Core Strategy 12 Target Markets 12 Competitor Targets 12 Competitive Advantage 12 Marketing Mix Decisions for Poland 13 Product 13 Promotion 13 Price 13 Place 13 Budget 14 Sales and breakeven 14 Promotion expenditure 14 Organisation 14 Implementation 15 Marketing control 15 Action plan (see excel) 15 Reviews 15 Bibliography 16 Executive Summary This report is the marketing plan for the proposed market development of Oreo brand to Poland. The purpose of the plan is to analysis the feasibility and profitability of introducing Oreo brand to Poland market. Oreo brand is one of our leading brands and it constitutes a substantial part of our revenue in the previous years. Oreo is the biggest selling cookies in china in 2006 and it sales reach $1 billion in US in six months. Oreo is a sweet, creamy chocolate with moderate amount of calories and also serve as complementary products. Well packaged and easy to unwrap. ...
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...list out Kraft Foods’ perceived strengths and weaknesses. Some of the sources used in this report were taken from Kraft Foods 2012 annual report, government data, and other news agencies. Kraft does not willing list its own strengths and weaknesses for the general public to see. Some of the information in this report is inferred upon the results of various financial articles. From the information available, Kraft has more strengths than weaknesses and has the capacity to turn many of its weaknesses into strengths provided some guidelines are followed. Introduction Every company throughout the world has from time to time completed an internal analysis of itself. Kraft Foods is no different. To remain profitable in this economy, Kraft cannot remain stagnate. This report will accomplish an internal view of Kraft Foods’ strengths and weaknesses. After analyzing these strengths and weaknesses, Kraft can use the strength of innovation and the weakness of supply and turn them both into good opportunities. Strengths Innovation: One of Kraft Foods’ greatest newfound strength is innovation. However, this was not always the case. In 2008, Kraft ranked next to last in its peer group in new product successes. (Goudreau, 2013) For the rest of 2008 and 2009, 17 of 19 new products introduced into the market were considered failures. There is even a quote from an outside company consultant who was brought in to report on Kraft’s innovation process who said that “Kraft is where...
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...companies have been on the forefront of strategic planning performance. Such companies face several internal and external factors that have an impact on their organization, but more specifically, the planning function of management. These factors are often broad and can include issues such as ethics, legality, and social responsibility. The Altria Group, Inc. is a company that is often criticized for ethical and social issues, and these factors have a great deal impact on organizational planning. Previously known as The Phillip Morris Companies, Altria Group Inc. produces a wide variety of tobacco, beer, and food products. “Altria sells some of the world’s most successful and best-known packaged goods. Altria’s Philip Morris divisions make several leading cigarette brands and other tobacco products in the United States and internationally. The Philip Morris USA division is the nation’s leading cigarette manufacturer. Altria’s food division, Kraft Foods, Inc., produces a variety of popular cereals, prepared foods, and beverages. Altria is also the major shareholder in SABMiller plc, formerly known as the Miller Brewing Co., which makes some of the best-selling beers in the United States and in the world. Altria is located in New York City. The cigarette brands produced by the Philip Morris divisions include Marlboro, Virginia Slims, Chesterfield, and Basic. Kraft Foods is one of the world’s largest food companies. Its brands include Kraft, Maxwell House, Oreo, and Oscar Mayer” (Microsoft®...
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...Kraft Foods Group, Inc. Mission, Vision, Values and Goals Course Number: MGT599 Trident University Dr. Nanette Scarpellini Metz April 22, 2013 Abstract Kraft Foods Group, Inc. has a mission and vision statement that accurately reflects the strategic business plan and encompasses their brand. These statements have been effectively written to be mutually supporting and provide the roadmap for continued success. Based upon Kraft’s mission and vision statement, the company has developed a well-rounded set of values centered upon a “Responsibility” approach. The company has also identified and pursued incremental goal subsets that are moving the company in the direction of the vision statement via following the mission statement parameters. I ascertain Kraft Foods Group, Inc. is and will continue to be a successful business in the near and long term. Kraft Foods Group, Inc. Mission, Vision, Values and Goals Kraft Foods Group, Inc. has developed an effective business plan strategy that includes concise mission statement, vision statement, values and goals. The original company was established over 100 years ago; however, it has undergone significant restructuring in October, 2012 by splitting into two separate companies (Forbes, 2013). The resultant Kraft Foods Group, Inc. manufactures and markets packaged food products, including beverages, cheeses, convenient meals and various grocery products primarily marketed within the North American markets with the...
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...A1 STEAK SAUCE (LAWRY'S DEFENSE) - CASE ANALYSIS A1 Steak Sauce (Lawry's Defense) - Case Analysis Selwyn Paul Davenport University Marketing Strategies MKTG610 Dr. Paula Zobisch Aug 09, 2011 A1 Steak Sauce (Lawry's Defense) - Case Analysis Case Recap A.1. Steak Sauce was founded in England in 1830 by King George's Chef, Henderson William Brand and introduced to North America in the early 1900s. The Sauce became a premier brand of Kraft Foods Inc. who acquired it from Nabisco in 2002. (Kerin & Peterson, 2011, 630). A.1. Steak Sauce had done well in sales, and was able to secure excellent margins for Kraft Foods Inc. with a market share of approximately 50% and a brand awareness that was second to none (Kerin & Peterson, 631). However due to a decrease in beef consumption in United States, Kraft Foods Inc. witnessed a drop in sales which led to subsequent stagnation as sales of the Steak Sauce flattened out. And despite an increase in dollar sales due to higher prices for the sauce, the unit and volume sales of the sauce continued on a flattened trajectory. A.1. Also faced stiff competition from Lawry an organization renowned for its spices and seasonings, who announced the launch of a new steak sauce. Lawry’s strategy was to market their new steak sauce at a reduced price but very similar to A.1., with the goal of making Lawry the better choice for customers. As a result of this new competition from Lawry’s, Kraft Foods and A.1., was faced with the challenge...
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...Kraft Foods I chose a company that most of us have contact with on some basis, Kraft foods. I was amazed during my research how many products Kraft actually produces and how far their reach extends in the product world. Executive Summary Kraft is the largest branded food and beverage company in North America and the second largest in the world, it operates in more than 150 countries worldwide (Kraft, 2008). Kraft Foods markets the world's favorite food and beverage brands in five product sectors namely the snacks, beverages, cheese and dairy, grocery and convenient meals (Kraft, 2008). They also have 35 major brands with more than 100 years of remarkable achievements in products such as Oscar Mayer meats, Maxwell House coffee, Jell-O gelatin, and Cadbury (Kraft, 2008). Kraft is always looking for way to continue making historic records with the launch of different new products designed to meet the ever-changing needs of the consumer. Company Background Kraft Foods Inc. is the largest food company in the United States and holds the number two position worldwide, behind Nestlé S.A. The firm has two main operating units, Kraft Foods North America and Kraft Foods International. Seven of Kraft's brands bring in more than $1 billion in revenues each year, like Kraft cheeses and other products ($4.3 billion in 2000 revenue), Nabisco cookies and crackers ($3.5 billion), Oscar Mayer processed meats (number one in the United States), Post cereals...
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