...Kraft Food Incorporated Executive Summary Kraft Foods was established in 1903 in Chicago by James L. Kraft and is one of the largest packaging food and beverage companies in Northern America. In 2006 Kraft acquired the European business of Biscuits and the rights to Nabisco, trademarks in Europe, Middle East and Africa to include Oreo, Ritz and Chips Ahoy. Kraft is also one of the largest worldwide known with net revenues of $18.3 billion, and $2.5 billion from operations prior to taxes for last year. Kraft employs approximately 90,000 employees throughout the world. The competition in the food and beverage industry is very intense and competitive. Producing many well-known brands has enabled Kraft Foods to sustain quality growth and profitability. Kraft Foods is wide spread across 72 countries and their products have reached more than 155 countries. This SWOT analysis will determine if the company is strong or has serious weaknesses. . SWOT Analysis for Kraft Foods Strengths: a. The extensive and wide geographical presence of the company throughout the world creates a diversified portfolio of the investment and reduces the overall risk of the company. b. The Company has a strong market position due to its strong market presence in the food industry. The presence at the global level makes it easier for the company to market an international brand. The history of quality service provider makes the company one of the most wanted brands among food...
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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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...Industry Analysis: Kellogg (K) vs. Kraft (KRFT) Niki Cocke FIN 4461-791 Prof. Amy Ho April 22, 2015 Table of Contents I. Introduction II. Profitability/Risk Ratio Calculations and Analysis a. Kellogg (K) i. Risk ii. Profitability b. Kraft (KRFT) iii. Risk iv. Profitability c. Industry Comparison v. Current Ratio vi. Quick Ratio vii. Days Accounts Receivable Outstanding viii. Profitability 1. Return on Assets 2. Return on Common Equity d. Competitor’s ix. Kellogg’s x. Kraft III. Conclusion IV. Appendix I e. Kellogg’s xi. Kellogg’s Annual Report and Form 10-K 2014 3. Income Statement 4. Cash Flow Statement 5. Balance Sheet f. Kraft xii. Balance Sheet xiii. Statement of Income xiv. Statement of Cash Flows V. References I. Introduction This analysis on Kraft (KRFT) and Kellogg (K) will include multiple facets.Kraft Foods Group, Inc. operates as a consumer packaged food and beverage company. It is also one of the largest company in the North America and the second largest in the world. It operates through six segments: Cheese, Refrigerated Meals, Beverages, Meals & Desserts, Enhancers & Snack Nuts, and Canada. The company provides natura, cream, processed, grated and shredded, and cottage...
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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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...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 mission statement. ...
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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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...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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...Report (Date of earliest event reported): June 23, 2015 LOGO Kraft Foods Group, Inc. (Exact name of registrant as specified in its charter) Virginia 1-35491 36-3083135 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) Three Lakes Drive, Northfield, IL 60093-2753 (Address of principal executive offices, including zip code) (847) 646-2000 Registrant’s telephone number, including area code Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: x Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230-425) ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers. (e) As disclosed in the definitive proxy statement on Schedule 14A filed with the Securities and Exchange Commission (the “SEC”) by Kraft Foods Group, Inc. (“Kraft”) on June 2, 2015 (the “Definitive Proxy Statement”) relating to the...
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...I. Introduction A company in a slowing market with high competition often needs to make drastic changes to continue to create value for its shareholders. Kraft Foods Inc. (KFT) was a processed food company that produced big name brands, such as Oreo, Maxwell House, Honey Maid, among others. In 2012, the company was the second largest processed food company in the world based on revenues, after its main competitor Nestlé. However, slow growth in many critical industry segments meant that the company was unable to increase shareholder value throughout 2011. Additionally, sales were stagnating and revenues were only increasing by raising prices. In order to address these issues, the Board of Directors at KFT announced in 2011 that the company would be restructured to create two new companies by the end of 2012. First, there would be a global snacks business that included all of KFT’s business units in Europe and developing markets, in addition to the United States snack business. This new company would be called Mondelez International (MDLZ) and the Board hoped it would be a high-growth global snacks business. The remaining business units would become Kraft Foods Group (KRFT) and would be a high-margin, slow growth, North American grocery business. The following report begins with assessing the processed food industry as a whole through a PESTEL and Porter’s Five Forces analysis. Second, a SWOT and financial analysis are used to evaluate MDLZ and KRFT. Lastly, final recommendations...
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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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...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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... Executive Summary 5 Situation Analysis 6 Company 6 Organizational Structure 6 Corporate Goals 12 Internal SWOT Analysis 12 External SWOT Analysis 13 Internal Processes and Capabilities 14 Industry Financial Structure 14 Customers and Current Situation 15 Value Proposition 15 Current Core Target Market 15 Change in behavior, attitudes or buying trends 16 What are they purchasing from our company? 19 Why are the customers buying our products/services? 19 What differentiates our products/services 20 External Environment 21 Industry 21 Economic 22 Technical 22 Societal 23 Legal 23 Competitors 24 Nestle 24 Pepsi 26 Tyson Foods Inc 28 Kewpie 30 Financial Ratio Analysis 31 Growth Strategy 34 Our new Idea 34 Goals & Objectives 34 Description of Growth Strategy 35 Market Selection 37 Segmentation 37 Targeted Customer Segments 38 Positioning 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...
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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. with...
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...Background In 1903, James L. Kraft started a wholesale cheese business in Chicago, Illinois. In 1909,James and his four brothers formed J.L. Kraft & Brother’s Company. In 1912, their business expanded to New York which led to their international expansion around the world. The first plant was opened in 1914. They produced over thirty varieties of cheese that were being sold around the world. In 1924, the company was listed on the Chicago Stock Exchange and changed its name to Kraft Cheese Company. In 1989, General Foods and Kraft merges to become Kraft General Food. Kraft has been around for years buying and partnering with other companies. As of today, Kraft's line of work has reached a total equity of about $35.9 billion. Kraft focuses on promoting healthy lifestyles. Today's line of Kraft products includes beverages, cheese, dairy foods, and snack foods, to name a few. Key External Threats | Weight | Rating | Weighted Score | Opportunities | 1. Operates in many fast growing categories | 0.10 | 3 | 0.30 | 2. Growing demand for health and wellness products | 0.10 | 3 | 0.30 | 3. Decrease in costs for raw materials | 0.08 | 4 | 0.32 | 4. Change in healthy lifestyles | 0.08 | 3 | 0.24 | 5. Growing in coffee market overall | 0.06 | 2 | 0.12 | 6. Growth in snack market | 0.08 | 3 | 0.24 | 7. Cadbury acquisition provides new products | 0.07 | 3 | 0.21 | Threats | 1. Increasing trend in dining out | 0.09 | 2 | 0.18 | 2. Increase in...
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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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