We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Kraft Foods Inc. Essay Sample

essay
The whole doc is available only for registered users OPEN DOC
  • Pages:
  • Word count: 800
  • Category: brand food

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Kraft Foods Inc. Essay Sample

1. What is Kraft Foods Inc.’s corporate strategy? How has its corporate strategy evolved since its independence in 2007?

Kraft has a strong global strategy. They found themselves operating in more than 80 countries, which included 220 manufacturing and processing facilities and 228 distribution centers. Because of the different regulations in each country related to food, they found themselves in need of several different facilities for the manufacturing of their food products.

By 2007, Kraft was the 2nd largest processed-food company. The company continued to acquire and divest business units that were either extremely profitable or not profitable at all. They tended to divest the units that were essentially cannibalizing their profits. The company continued to address weaknesses in its business lineup. By 2009, the company replaced 80 percent of its management in leadership positions, changed its organizational structure to fix accountability at the business unit level, and boosted its advertising and promotions by $600 million. These changes were t=directed at improving the company’s geographic mix, sector mix, and channel ix to increase its number of products in attractive country markets, product sector categories, and distribution channels. The restructuring resulted in a rapid growth of sales in developing markets. After this restructuring, Kraft was left with more than 80 brands and annual revenues of over 4100 million each and 12 brands with more than $1 billion each in annual revenues.

2. What is your assessment of the long-term attractiveness of the industries represented in Kraft Foods’ business portfolio?

All of the industries Kraft participates in are characterized by strong competitive rivalry that required strong distribution and marketing skills to attract consumer demand and ensure product availability in supermarkets, discount clubs, mass merchandisers, convenience stores, drug stores, and retail food locations serviced by its food distribution operations. Brand building, consumer health and wellness, and advertising and promotions were all critical to success in the industry. Kraft’s ability to compete with lower priced snacks showed its ability to differentiate itself from other lower priced competitors.

It is clear that the industries Kraft participates in are ever growing, both as populations increase and Westernization increases in other countries.

3. What is your assessment of the competitive strength of Kraft Foods’ different business units?

Kraft is clearly a strong competitor, as they remain one of the top contenders in each of their industries. They are able to strongly differentiate their products from those of other companies to capture a large share of the markets they participate in. They have a wide array of products that can serve as subsituties for each other to keep consumers within their brands, but give them options on which products to consume.

4. What does a 9-cell industry attractiveness/business strength matrix displaying Kraft Foods’ business units look like?

Business Strength

Strong
Medium
Weak
Market Attractiveness
High
Protect Positions
U.S. Snacks
Invest to Build
U.S. Conenient Meals
U.S. Grocery
Build Selectively
U.S. Beverages

Medium
Build Selectively
U.S. Cheese
Manage for earnings

Limited expansion or harvest

Low
Protect and refocus
Manage for earnings
Divest

5. Does Kraft Foods’ portfolio exhibit good strategic fit? What value-chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see?

Yes, Kraft’s portfolio exhibits a good strategic fit, as it is unrivaled by its competitors. Kraft’s value-chain shares many different manufacturing and distributing facilities which helps cut costs. There is a huge opportunity to share branding and marketing across their different food categories and products.

6. What is your overall evaluation of Kraft Foods’ corporate strategy and planned restructuring in 2012? What evidence and/or reasons support a conclusion that Kraft Foods’ shareholders will or will not benefit from the spinoff of the company’s North American grocery business?

It is clear that Kraft plans to continue building its giant brands to create more market share for themselves. They also continue to emerge themselves in new markets by expanding their product lines. They also continue to raise prices in current markets to earn more revenue. Continually reinvesting in their brands and sub brands is a smart thing, as they continue to research and develop new products to increase market share.

7. What actions do you recommend that Kraft Foods management take to improve the company’s performance and boost shareholder value after the spinoff of its North American grocery business? Your recommended actions must be supported with convincing, analysis-based arguments.

1. Development of a healthy line of snacks in a convenient location and packaging 2. Use of a healthy role model / celebrity to create buy-in to these healthy snacks and foods 3. Creation and expansion of a healthy convenience meal for the whole family, not just something in a microwavable tin 4. Research and development into new consumer products that meet the increasing demands of busy American families

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

Red bull market

Red bull entered the US market in 1997 because it was a politically stable developed country. The company used a “cell” approach to divide the key markets into geographic segments rather than attempting a nationwide launch. The company’s first test market was Santa Cruz, a beachside town that was known for its active lifestyle through skateboarding and surfing and the University of California Santa Cruz....

What happened in the past with Coca-Cola?

Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups. Coca- Cola Company has been found 131 years ago in May 8,1886 in Atlanta, Georgia, U.S. by Asa Griggs Cadler and John Pemberton. John Stith Pemberton is pharmacist who invented formula for the most popular product Coca-Cola in 1886 in Columbus, Georgia. The formula is still...

PR Strategy

1. PR’s Competitive Advantage Pernod Ricard has a competitive advantage due to numerous factors, Pernod Ricard is currently ranked as the second largest Wine and Spirit Company, the strategy utilized to get to this position was a very deliberate and strategy of timely mergers, acquisitions and planned alliances which created a Pernod Ricard portfolio consisting of high market shares in global wine and global spirits....

Global Branding and Communication Case: The Global...

Introduction Interbrew traces its roots to Brewery called Den Hoorn which was located in a small town outside Brussels since 1336. It was purchased by Sebastiaan Artois in 1717 and brewery changed its name to Artois. After its merger with another Belgian brewery called Piedboeuf in 1987, the company was named Interbrew. It entered the rapid growth stage after 1990 by acquiring or merging with...

Brand Tracking Survey

This is a brand tracking survey that Steinlager beer might use. You will see where you can insert your own product category and brand name. Notice how the questions go from broad to specific. Keep that format if you add your own questions. Keep all of these questions! Be aware that in some situations, brand tracking may be concerned with which products the brand reminds...

Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Couldn't Find What You Looking For?

Get access to our huge knowledge base which is continuously updated

Next Update Will Be About:
14 : 59 : 59
Become a Member