...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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...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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...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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...KRAFT’S BUDGETING AND STRATEGY A case study Presented to CASE STUDY IN PRODUCTION AND OPERATION MANAGEMENT BUDGETING AND STRATEGY A KRAFT FOOD INTRODUCTION The company has its origin as National Dairy Products Corporation (National Dairy), formed on December 10, 1923, by Thomas H. McInnerney. The firm was initially set up to execute on a rollup strategy in the then fragmented United States ice cream industry. Through acquisitions it expanded into a full range of dairy products. By 1930 it was the largest dairy company in the United States and the world, exceeding Borden. McInnerney operated the Hydrox Corporation, an ice cream company located in Chicago, Illinois. In 1923 he went to Wall Street to convince investment bankers there to finance his scheme for consolidating the United States ice cream industry. He initially found "hard sledding" with one banker saying the dairy industry "lacked dignity." He persevered and convinced a consortium including Goldman Sachs and Lehman Brothers to finance a rollup strategy. As a result of his efforts, National Dairy Products Corporation was formed in 1923 in a merger of McInnerney's Hydrox with Rieck McJunkin Dairy Co of Pittsburgh, Pennsylvania. The resulting firm was then listed on the New York Stock Exchange with the offer of 125,000 shares having been The firm grew quickly through a large number of acquisitions. As it is typical...
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...[TYPE THE COMPANY NAME] Case #1 Kraft Foods Chyanne Thomas [Pick the date] [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] Kraft Mission, Vision, and Values Kraft Food Groups is a household name in America, “98% of North American households have Kraft brands in their pantries and refrigerators.” According to the Kraft CEO Tony Vernon the company’s vision is “… to be North America’s best food and beverage company, and we’ll get there by continuing to offer products consumers love, creating a performance-based culture that motivates and excites employees and becoming the best investment in the industry.” The mission of the company is “to be North America’s best food and Beverage Company.”(Kraft) The company has a long list of values to include; compliance &integrity, nutrition &well being, corporate governance, community involvement, sustainability, and food safety and equality. The company seems to use the terms mission statement and vision statement interchangeably as they both seem to be extremely similar, the mission statement being an abbreviated version of the vision statement. The company values seem to be what the company put the most thought into. As upon closer inspection one can see the subcategories and descriptions that the company lists for each of its values...
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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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...Kraft Foods and Hansen’s Natural are two similar corporations with dissimilar ways of operations. They both have a facebook and twitter page to where they can stay in the public eye; both operate differently in structure, accessibility, size, strategy, and international marketing; both share the similarity of working in the food industry; and most importantly they both focus on their customers. The Kraft website has more info about their products; and just click on the different products and you’re given a pretty good detail description of the product. There is so much on the Kraft website that it can be overwhelming because there are so many options on the page. Hansen’s website is nice and pleasant to the eye; it feels comfortable and much easier to access, especially when ordering online, there is an easy access icon to Amazon.com. When on Hansen’s site it makes you feel like you are not looking at a huge company website. Hansen’s products are not as broad as Kraft Food’s. Their products are restricted to beverages, while Kraft Food’s products are featured in both beverages and food. Therefore, Hansen’s has not been as dominant as Kraft Foods internationally. Hansen’s products are more original with the organic sodas and energy drinks so there are not too many generic products that compare to their product. They also are doing something that is quite popular, their products are free of preservatives and have no artificial flavors, which is what a lot people are looking...
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...I. Situation analysis Kraft foods successful launch of its single serve coffee pod system in Europe has led to the company’s decision to release the same product in North America. Greg Herzog, Product manager of coffee development for Kraft foods Canada will be the ultimate decision maker in the situation. Mr. Herzog will determine whether to launch the product to the Canadian market at the same time as the United States launch or wait results from the Unites States launch to gain more market insight. In order to make an informed decision Mr. Herzog needs to analyze four key components: a suitable branding strategy for Maxwell House and Nabob, wholesale and retail pricing, distribution methods, and an effective advertising and promotional strategy. Lastly, Mr. Herzog must make these decisions within a 1 million dollar budget and determine if he will be able to meet his market share objective of an initial 35% and still breakeven. As a company, Kraft enjoys a worldwide reputation of leading edge innovation and has a stated company mission to achieve leadership in the markets it serves. Currently, Kraft holds a leadership position in market share for coffee sales worldwide as well as in Canada. Kraft sells its coffee in Canada under the brands, Maxwell House and Nabob which enjoy a combined market share in Canada of 32%. Maxwell House holds the largest market share in Canada, with top sales in both roast and ground coffee. Nabob coffee is Canada’s leading premium...
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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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...Kraft Foods Group, Inc. – Challenges and Changes Marketing Plan – First Draft Kraft Foods Group, Inc. has been in business for over 100 years, and the business is steadily growing. Kraft Foods Group, Inc. is highly recognized. Kraft Macaroni and Cheese has become a household name, famous as Jif Peanut Butter and Welch’s Grape Jelly. Kraft Foods Group, Inc. known for easy preparation, affordability, tasty and soothing appeal. In addition to the taste and quality of Kraft Foods products and the variety of what Kraft has to offer, their marketing techniques are unique. Situational Analysis: The situational analysis of Kraft Foods includes the following: NORTHFIELD, Ill. – May 2, 2013 – Kraft Foods Group, Inc. (NASDAQ: KRFT) A reported solid first quarter 2013 results driven by significant productivity gains and overhead cost savings as well as topline, growth fueled by new products and increased investments in marketing. “We’re off to a solid start,” said Tony Vernon, CEO of Kraft. “Our first quarter results reflect strong returns on our new product innovations to date, as well as the fact that our cost savings outpaced our plans to reinvest in our brands. In the months to come, we’ll execute our marketing playbook more broadly across our portfolio and we expect to see good progress in both top- and bottom-line performance for the full year.” Q1 Net revenues and Organic Net Revenues: 1. 1 each grew 2.1% led by strong new product innovation 2. Cost management...
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...Running head: Kraft Foods Kraft Foods Inc Financial Research Analysis Strayer University March 28, 2010 Abstract Kraft Foods Inc. is the largest food and beverage company headquartered in North America and the second-largest in the world after Nestle. From 1988 to March of 2007, tobacco giant Phillip Morris Company, now Altria Group, owned and grew Kraft Foods, merging the food company with Nabisco and General Foods. Altria Group took Kraft public in 2001, maintaining an 88.1% stake in the stock until the completion of the spin off in 2007. Kraft operates in two main commercial segments, which are Kraft North America and Kraft International. Kraft has operations in more than 70 countries and sells their products in more than 150 countries. Kraft's products are divided into one of five categories: snacks & cereals, beverages, cheese & dairy, grocery, and convenient meals. The company's largest customer is Wal-Mart Stores. The purpose of this analysis is to perform a thorough examination of Kraft Foods Inc. financial performance over the past three years. In January 2004, the company announced a three-year restructuring program that ended in 2008. The entire program resulted in the elimination of approximately 14,000 positions and the streamlining of the company's operations. Kraft’s focus was to discontinue many of its weaker products, like parts of its rice and dessert product lines, in an effort to concentrate on higher-margin, more successful items. On...
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...Rosenfeld: Setting New Directions for Kraft Foods Organization : Kraft Foods Inc. Industry : Food; Consumer packaged goods Countries : Global Period : 2006-2011 Pub Date : 2012 "Servant leadership" is the most important aspect of a successful leader - the recognition that I am here to help the organization accomplish its objectives rather than they are here to meet my needs. Once you recognize that, you are able to engage the hearts and minds of your followers, and they are able to just deliver the kind of results that you are looking for." -Irene B. Rosenfeld, Chairman and CEO of Kraft Foods Inc., in 2010. Abstract The case study discusses how Irene B. Rosenfeld (Rosenfeld), CEO of US-based snack-food company Kraft Foods Inc. (Kraft), turned around and transformed Kraft into a global consumer food behemoth. Since taking up the position of CEO in 2006, Rosenfeld had fundamentally changed the footprint and prospects of Kraft. She repositioned the company to deliver top tier growth by revamping some iconic brands, transforming the product portfolio, and consolidating the company's presence in developing markets. In February 2010, Rosenfeld successfully led the Cadbury acquisition to make Kraft a market leader in the global confectionery market. A 29-year veteran of the food industry, Rosenfeld was successful in bringing about a transformational change at Kraft. Under her strategic leadership, Kraft emerged as the second largest food company in the world with its products...
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...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...
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...Mix of Kraft Foods When a company, like Kraft food, look at an alteration in its promotion it can believe about four ground rules, which are documented as the marketing mix or 4Ps, explained below: Products: Kraft foods are one of the most versatile companies based in America. Over the many years, Kraft food is serving as one of the most famous, delicious and prominent brand. The major products of the company are in chocolate, coffee, candies, etc. brands. The company’s products are recognized as delicious. That’s the reason company states that being delicious is their main rival factor that differentiates it with other food brands. The corporation produce and marketplaces wrap up are sold food products such as Coffee, cheese products, desserts, ready to cook foods, confectionery, juices, ready-to-cereals, desserts, convenient etc. , under the main brands such as Kraft, Jacob’s, Philadelphia, Maxwell house, Nabisco, Oscar Mayer, Post, Oreo and LU. Pricing: The pricing strategy of Kraft food is quite competitive to as compare of other food brands. The quality of food products is superior but cost effective to management. The company states that they never compromise on the quality of their branded food stuff, however they always try to introduce such ingredients while manufacturing their products that are taken from natural sources and cost effective so that both consumer & company enjoys competitive price products. Placement: Kraft Foods have a strong...
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