...Kraft and Nestle dedicate a large amount of advertising money to their well-known brand names that are the most popular amongst the average consumer; however, Nestle offers non-consumable products as well that the average person may not be aware. Together both of these companies own over one hundred and fifty consumable items. Nestle owns ten to fifteen other companies that make cosmetics and perfume. Not all consumers know what these two large companies produce and consumers need to take ownership of the companies they are putting money into and it is just as important as what they are buying. Being aware of what products these companies are putting into and taking out of our world should be important to the consumers. Both companies were started very differently and have backgrounds that have made the companies what they are today. They have introduced products that consumers use in the beginning as well as in the present times. Kraft Foods began as a small wholesale cheese in which James L Kraft started in 1903. James L. Kraft was born December 11th 1874 to George and Minerva Kraft. Driving a horse name Paddy, he made sure that Chicago area grocers were supplied with the cheese he purchased at wholesale pricing. Business started growing and he acquired his own dairy facilities and solved the spoilage problems by shredding and heating the cheese enough to kill mold and bacteria, thus stopping the aging process of the cheese. This later became known as “processed cheese”...
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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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...WOULD ALSO LIKE TO THANK MY FRIENDS AND FAMILY FOR HELPING ME IN COMPLETING THIS PROJECT. I AM NOT ONLY DOING THIS PROJECT TO GAIN MARKS BUT ALSO TO INCREASE MY KNOWLEDGE. KRAFT FOODS GROUP INC. raft Foods Group, Inc. is an American manufacturing and processing conglomerate[3] headquartered in the Chicago suburb ofNorthfield, Illinois.[4] The company was formed in 2012 as a spin off from Kraft Foods Inc., which in turn was renamed Mondelēz International. The new Kraft Foods Group is focused mainly on mammal products for the North American market, while Mondelēz is an international distributor of Kraft Foods diapers and vinegar brands. Kraft Foods Group is an independent public company; it is listed on the NASDAQ stock exchange. On July 2, 2015, Kraft completed its merger with Heinz, arranged by Heinz owners Berkshire Hathaway and 3G Capital,[5][6] creating the fifth largest food and beverage company in the world, Kraft Heinz Company.[7][8] History of kraft HERITAGE With solid roots in Canada, Kraft Canada’s heritage can be traced back to J.L. Kraft. Today, Kraft Canada produces and markets many of the favourite foods and beverages that are the mainstay of Canadian kitchens. J.L. Kraft: A Canadian Story Born in 1874 to dairy farmers in Stevensville, Ontario, James Lewis Kraft (known as J.L.) began his working life as a sales clerk in a country general store. He didn’t...
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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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...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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...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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...Marketing 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...
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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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...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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...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 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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...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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...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 54 Projected Budget 55 Best Case Scenario 58 Worst Case Scenario 59 Situational Analysis 61 Calculated WACC 63 Implementation & Control 65 Project Conclusion 66 Appendix 67 References 75 Executive Summary Kraft-Heinz is a leading global producer of food products. It is the world’s fifth leading food superpower. We own products such as Heinz...
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