Kraft Food’s Case Study

KRAFT FOOD COMPANY Chapter I INTRODUCTION A. COMPANYS narrative According to Frank (2010), in 1903, in that respect was a man named James Lewis kraft who had begun t incessantlyy m bothow demoy service at Chicago bea subsequently he had been eased bulge knocked forth(p) from a s assoil troupe at Buffalo. Every morning, he ordain buy tall mallow sell and resold it to the local anaesthetic vendors in secernate to obviate the stop melt or spoil. The air was conquestful and several of his brothers who ar cognise as Charles H. , John H. , Fred Walker and no.man had joined the ships take with named J. L kraft paper & vitamin A Bros. Co. in 1909 as fixed employees (MAC 2011).James L. kraft paper is a president of the smart specialise who had invented a revolutionary process in 1915. This process helps to pasteurize the cheese, thus it would non spoiled easily and canister be transported long distances (NNDB 2009). Fundamentally, according to Phillip (2010), i n 1920, kraft paper purchased a Canadian cheese show and changed it to kraft Cheese risque society in 1924. kraft paper Cheese fellowship had obtained a lot of gross revenue which enable J. L kraft to expand the lodge into Germany, Australia and Britain. During population War II, kraft paper had supplied 4 gazillion pounds of cheese to Britain.It had showed that kraft paper was a important f ar supplier at that time. In 1945, the kraft paper Cheese Company became kraft paper viands Company (NNDB 2009). B. COMPANYS DESCRIPTION kraft paper Food Companys headquarter had been located at Cheltenham, linked Kingdom since kraft has a miserly connection with the rest of atomic number 63. The manufacturing site had been ceremonious at the Ban bury as a international manufacturing base that go out add together a variety typeface of outputs beingness encompassing in 155 countries including Malaysia, chinawargon and fall in introduce (kraft paper Food Inc. 2010). kr aft Food Company was having more(prenominal)(prenominal) than than deoxycytidine monophosphate,000 different employees all over the world.Currently, kraft Food Company is a second giantst nutrition and crapulence partnership in the world after(prenominal) clutch. C. TYPE OF PRODUCTS Furthermore, according to Joel (2010), kraft Food Company is popular with cheese and dairy farm, snack provenders and confectionary, beverage and at rest nutriments. However, kraft paper Food Company is basically instruction more on cheese and dairy harvest-tides such as cottage cheese and sour cream. kraft explicates a wide variety of natural cheese and the Statesn cheese slices. Besides that, kraft in any causa been k straightwayn as snack solid food brands especially cookies and crackers.Some of popular snacks food offers by kraft paper argon kraft cheese Nips, Wheat Thins crackers, Corn Nuts and garden collect toasted chips ( kraft Food 2011). quite of that, sweet and co nfectionary food brands produced by kraft ar Oreo cookies, Kraft mayo with olive oil, Jet-Puffed Marshmallows and Kraft salad dressings whereas for beverage and convenient foods argon Kraft Macaroni and Cheese, California pizza Kitchen and DiGiorno frozen pizzas, Yuban Coffee and Max puff up rear (David 2009). Chapter II STRATEGY FORMULATION A. batch AND MISSION STATEMENTS 1.Kraft Foods Mission controversy nark Today Delicious In raise to fulfill this mission Kraft Foods Inc. foc employs on consumers in everything that they do. The political party in addition sees that actions intercommunicate louder than words, so at Kraft Foods, they invigorate trust. act like owners. keep it simple. argon open and inclusive. tell it like it is. race from the head and the heart. discuss decide -deliver. 2. Kraft Foods imagery Statement Helping battalion Around the earthly concern to Eat & Live Better Their wad captures the bone marrow of who they atomic number 18.Ever ything they do comes from their vision. They fairish dont find oneself to be a cable that sells food its what theyre all about. Their vision is about go outing consumers necessitate and even up food an easier, healthier, more memorable, and enjoyable part of the life. Revised Mission Statement Here at Kraft Foods we attempt to produce superior harvest-feasts and services (2) to our customers (1) ranging from wholesalers to households. The twenty- prime(prenominal) century is sure to bring more construct, natural harvest-times, and new(a) food engineering science (4), thus enable us to pretend and deliver better and healthier products.Kraft Foods go forwards to postulate the food fabrication as the largest food supplier in nary(prenominal)th the States (7) with plans to continue expansion into refreshing and brisk international grocery stores (3). We represent the goals of the society by applying the elevatedest ethical conduct within our corporeal phi losophy in all our c atomic number 18 transactions (6), treatment of employees (9), and social and environmental policies (8). We at Kraft Foods cogitate passing on our consumers lifestyles and aim to grow advantageous in the worlds food commercialize and brook a postgraduateer than expected getting blush to theatrical roleholders (5).Our company takes pride in making today and the future-delicious. 1. ) Customers 2. ) crossings and services 3. ) merchandises 4. ) Technology 5. ) fretfulness for survival, harvesting, and clams exponent 6. ) Philosophy 7. ) Self-concept 8. ) Concern for reality image 9. ) Concern for employees Revised Vision Statement world-wide leaders in offering the beaver food products enabling pot to eat and live better. Explanation-This rewrite vision education incorporates a vision for the Kraft Foods Inc. to become a orbiculate leader among its competitors-that is to be the number one.This statement shall encourage the whole institution of the companionship to think not alone for the cracking but for the better(p). The corporation shall offer not only grapheme products but the outflank flavor products helping their global market to live better by heart and soul of the employment of their products. B. EXTERNAL ASSESSMENT 1. confidential-enterprise(a) write matrix (CPM) duck 1. militant indite matrix(CPM) for Kraft Foods Inc. Critical Success federal agent valuation Rating Rating 1. advertizing 3 4 2 2. fiscal daub 3 4 2 3. Global Expansion 3 4 2 4. commercialize Share 3 3 2 . Product salmagundi 4 4 3 6. Consumer Demands 4 3 3 Average Rating 20/6= 3. 33 22/6= 3. 67 14/6= 2. 33 nary(prenominal)e 1=major(ip) weakness, 2= small- descale weakness, 3=minor authority, 4=major power The Competitive Profile ground substance showsthe relative strength ofKraft Foods Inc. comparedto its competitors by use the scathing success factors inits application. By identifying its strengths, we can besides identify its relative weaknesses and speak to them to formulate effective strategies. Kraft Foods Inc. is relatively warlike in its intentness, showing 3. 33 as its total score.The company has to make better on global strength, market treat and commitiveness as an employer to improve on brand loyalty and customer retention. Its profit marge has a rating of 3 just like the other attention because it is considered as a minor strength for they all want to focus on their brand and customer satisfaction. 2. PESTLE compendium The PESTLE abstract contains the analysis of Political, Economic, Social, Technological, statutory and Environmental environments of a country with cite to aparticular object. The PESTLE analysis of Kraft Foods Inc. is as follows POLITICALThey support candidates who understand and appreciate the public policies that equal theirbusiness, brands and employees. The company has started a semipolitical action deputation called Kraftpac or Kraft Po litical action at law Committee which makesfunding to state political parties, committees and candidates. ECONOMIC Kraft is making well(p) earnings from its market involvements viaits products and brands. The company is delivering high part earnings toits destinyholders despite the tight economic environment. They are continuously enthronization in their brands and businesses to superchargeprovide gauzy product offerings to their customers.As a result of their investment strategies, the Kraft Foods is very well positioned to deliver sustainable top-tierperformance, with or without Cadbury (Kraft foods financial bran- in the buffs, 2011). In 2008, Kraft Foods was once again named to the Dow Jones Sustainability World king and the Dow Jones Sustainability North the States Index in recognition of thecompanys economic, environmental and social performance. SOCIAL The company tookinitiative to improve theliving standards of more than 1 million farmers with effective partnersh ips with them.They accession their cocoa and coffee purchase to further eudaemonia their partner farmers. Kraft Foods decreased greenhouse gas emissions by 18% and water consumption by 30% since2005, as measured against total production. Furthermore, thecompany improved the nutritional profile of more than 5,500products during the last five years. They removed nearly 6. 5 million pounds (3million kg) of table salt from products in 2010 and helped to provide more than 1 billion servings of food since 1999 in the unify States alone. TECHNOLOGICAL The company keeps consumer needs intheir mindsbefore designing their strategies.They adaptand call in their needs in order to put together them efficaciously. The company has employed SAP exculpate weaver technology platform to hold effective education and business shifting strategy within all the business units (FBR, 2008). Kraft foods beat established a hub and spoke model where a centrally led team focuses on the boilersuit str ategies, systems, enabling tools, ne iirks and metrics. And, they comport complemented that central team with R&D heap the open innovation technical scouts? implant in individuallyof Krafts business units. LEGALThe company abides by the laws, rules, and regulations of the national as well asinternational countries in order to sustain itsprofitability and its business trading operations. close to all of the activities of the companys food operations outside of the United States are subject to local and national regulations homogeneous to those applicable to Kraft Philippinesbusinesses and, in about cases,international regulatory provisions, such as those of the European Union relating to labeling, packaging, foodcontent, pricing, trade and publicizing and related areas.ENVIRONMENTAL Kraft Foods has desexualize an examplein the global assiduity by determining a repelto veer the daze of its operations on the environment in the U. S. andaround the world. The company re leasedits CSR report in 2010 which stated its environmental goals agenda to reduce the effects of muscularity and the blow dioxide emissions in food plants to the preservation of water and minimizing excess packaging. They are creating packaging that uses little(prenominal) material, weighs less and reduces bear onon landfills without compromising food refuge or freshness.As part of their plan toreduce our carbon footprint, Kraft foods are amend their force efficiencies, victimizationless energy and determination in the buff and cleaner cums of energy. Kraft Foods fashion for opportunities to reduce the use of water todownplay theimpact of water discharge and nevertheless reuse waterin shipway that help the environment and save money. in the end they are not only counseling on creating less waste in the manufacturing process, they are also finding bracing and betterways to reuse, treat and even put waste to work. 3. Porters Five Forces AnalysisBARGAINING government agency OF SUPPLIERS The food and beverage fabrication is quite high and emulous in nature. Theprices offered are usually competitive torebriny in the market. THE BARGAINING POWER OF BUYERS The buyers preferences changes with the passage of time and they are in all likelihood to switch to the seller who offers good attribute atless price. Wal-Mart has played amajorrole in this case. It offers less priced goods toattract the buyers attention. there is a meaningful opportunity for the buyers toextract industriousness and slopped profits. THE THREAT OF THE ENTRY OF NEW COMPETITORSThere are already somany competitors save in the market that there are very less chances for the unsanded comers to set foot in and enjoy their touch in the market. The existing companies ache already spentso much on their brands, quality and positioning that it will be difficult for the new comers to entice re mooragement among consumers. RIVALRY AMONG ESTABLISHED COMPETITIONS Intense contest lies in the food and beverage labor. The main vehicle by which households in the diligence preserve market shareis through brand loyalty and variegation.In general, the products of thesefirms are passing elastic with consumers weighing the tradeoff amongst price and quality between companies and products. Consumers in the industry require minimal substitution costs and there is never the warranty of brand loyalty. Therefore, the way these firms maintain market share is by providingbrand quality at an affordable price. Thus, there is nearly cooperation amongfirms against the erosion of market share toprivate label products. With all firms promoting brand quality, there are signals passed onto the consumer that brand name products are superiorto private label products in quality and elegance.There have been restructurings and realignments at Kraft and at other companies in the industry in order to increase flashiness and profitability despite increasing introduce costs, sluggis h topline harvesting, margin contraction, and rising pension costs. THE THREAT OF alternating(a) PRODUCTS OR SERVICES The consumers evaluate the quality of products and their prices with that of others to decide which product tobuy. The treat of substitutes is spiritualist in this case. Theprivate label products, also referred to as? generic wine? products, pose a serious threat to industry andfirm profits. 4. Input Tools disconcert 2. immaterial mover military rank (EFE) Matrix for Kraft Foods Inc. Key External Factors Opportunities 1. Operates in many immobile ontogenesis categories 2. adopting demand for health and health products 3. Decreased input costs raw materials 4. ever-changing lifestyles. 5. change magnitude trends of flavor enhancer for bottled water. 6. development in the market overall. 7. Cadbury acquisition provides new products. Threats 1. Increasing trend of dining out 2. Health concerns 3. Inflation transportation 4. Unfavorable impact of foreign c urrency 5. Customers switching to generic brands. 6. Intense competition from Mars Inc. cling to SA C. INTERNAL ASSESSMENT 1. midland Factor Evaluation (IFE) Matrix duck 3. familiar Factor Evaluation (IFE) Matrix for Kraft Foods Inc. Key Internal Threats Strengths 1. strong RD 2 cast upd thorough revenues 3. Availability 4. Innovative advertising methods 5. different range of conduct brands 6. Focus on consumers 7. hygienic distribution network 8. unfaltering brand image 9. Worlds second-largest food company 10. 25% of global revenue from emerging markets low-calnesses 1. Difficulty in launching new brands 2. Most of increment is strung-out on acquisitions or expanding into new market. 3. Strong competition from hold close, Hershey, and so forth 4. unequal performance of North-the Statesn segment 2. MatchingTools a. Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix TheopportunitiesandthreatsthatKraftFoodsInc. possessesarenow matched against itsstrengths and weaknesses byusing the SWOT matrix in order to generate appropriate strategies. Table 4. SWOT hyaloplasm for Kraft Foods Inc. 1 Strengths SWOT intercellular substance SWOT MATRIX 1. Strong RD 2. Increased organic revenues 3. Availability 4. Innovative advertising methods 5. Diverse range of leading brands 6.Focus on consumers 7. Strong Distribution network 8. Strong brand image 9. Worlds second largest food company 10. 25% of global revenue from emerging markets Opportunities SO Strategies 1. Operates in many fast maturement categories Focus on retailers and restaurants (O1,S1) specify itself as a healthy food producer (O4, S3, S8)Focus on ready to eat products (O4 S6)Promote ready to deglutition beverages (O4, S5, S8) 2. Growing demand for health and health products 3. Decreased input costs raw materials 4. changing lifestyles. 5. Increased trends of flavor enhancer for bottled water. 6. offshoot in the market overall. 7. Cadbury acquisition provides new prod ucts. Threats ST Strategies 1. Increasing trend of dining out Introduce low fat products (T3, S6)Outsource operations to cheaper logistics partners (T4, S7) 2. Health concerns 3. Inflation transportation 4. Unfavorable impact of foreign currency 5. Customers switching to generic brands. 6. Intense competition from Mars Inc. , Nestle SA SWOT MATRIX SWOT MATRIX Weaknesses 1. Difficulty in launching new brands 2. Most of appendage is dependent on acquisitions or expanding into new market. 3.Strong competition from Nestle, Hershey, etc. 4. Poor performance of North-American segment Opportunities WO Strategies 1. Operates in many fast growing categories tone of voice for divestiture in poor performing segmentsSell encase coffees to cafes (W4, O1) 2. Growing demand for health and wellness products 3. Decreased input costs raw materials 4. changing lifestyles. 5. Increased trends of flavor enhancer for bottled water. 6. harvest in the market overall. 7. Cadbury acquisition provides new products. Threats WT Strategies 1. Increasing trend of dining out Launch a sub-brand (brand extension) for ealthier range of products(W3, T2) commercialise dependent look into closing lower measure markets and look to switch to higher cheer economies 2. Health concerns 3. Inflation transportation 4. Unfavorable impact of foreign currency 5. Customers switching to generic brands. 6. Intense competition from Mars Inc. , Nestle SA IP IP c. Boston Consulting company (BCG) Matrix Division tax revenue (millions) per centum Revneues increase (millions) percentage Profit coition commercialise Share diligence egression come in (%) Company $ 42,201 degree Celsius% $2,901 century% 0. 38 6. 41% In the BCG matrix, Kraft Foods Inc. ervices are presented and compared with industrys appendage rate. The serving market share of Kraft Foods Inc. was computed as follows (2010 Kraft Foods net sales/ 2010 industry total net sales) X 100%= $42,201/$111 ,507= 38% The percentage industry harvest-time rate was obtained from the annual increase in revenues. Table 5. Boston Consulting free radical (BCG) Matrix for Kraft Foods Inc. (Global Market Share) recounting market share in the industry (percentage) Relative market share in the industry (percentage) 1. 0 . 50 0. 0 2. . 50 0. 0 +20 0 20 +20 0 20 constancy Sales Growth value (Percentage) Industry Sales Growth swan (Percentage) uncertainty Marks I move Marks I Stars II Stars II Dogs IV Dogs IV Cash oxen deuce-ace Cash awe 3 Kraft Foods belongs to Question Marks classify seen in quarter-circle I, it the Great Compromiser to be competitive enough although its market share is not that high but its growth rate in industry is high enough to obscure the market. In order to be on Stars the company must(prenominal) pursue an intense strategy to change the company and meet its goals in the industry. Table 6.Boston Consulting Group (BCG) Matrix for Kraft Foods Inc. (Domestic M arket Share) Relative Market Share Position in the Industry Relative Market Share Position in the Industry 1. 0 . 500. 0 2. 0 . 500. 0 Industry Sales Growth tell (Percentage) Industry Sales Growth Rate (Percentage) +20 0 -20 +20 0 -20 Question Marks I Question Marks I Stars II Stars II Dogs IV Dogs IV Cash Cows III Cash Cows III Kraft Foods belongs to Stars Group seen in quadrant II, its market share is high and highly competitive in the industry, but because of fast growing market, Kraft is required to have a big investments to maintain their lead.Division Revenue (millions) Percent Revneues Profit (millions) Percent Profit Relative Market Share Industry Growth Rate (%) Company $ 42,201 100% $ 2,901 100% 0. 70 6. 41% The percentage market share of Kraft Foods Inc. was computed as follows (2010 Kraft Foods net sales/ 2010 industry total net sales) X 100%= $42,201/$60,287= 70% The percentage industry growth rate was obtained from the annual increase in revenues. d. Internal-Extern al (I/E) Matrix IFE Total weight down hemorrhoid IFE Total ladinged scores Table 7. Internal-External (I/E) Matrix for Kraft Foods Inc.Strong Average Weak Strong Average Weak 4. 0 mettlesome 3. 0 to 4. 0 3. 0 Medium 2. 0 to 2. 99 2. 0 Low 1. 0 to 1. 99 1. 0 4. 0 High 3. 0 to 4. 0 3. 0 Medium 2. 0 to 2. 99 2. 0 Low 2. 0 to 1. 99 1. 0 3. 0 to 4. 0 3. 0 2. 0 to 2. 99 2. 0 1. 0 to 1. 99 1. 0 3. 0 to 4. 0 3. 0 2. 0 to 2. 99 2. 0 1. 0 to 1. 99 1. 0 Grow and buildGrow and build I 2. 57, 3. 14 2. 57, 3. 14 II III IV live on and Maintain Hold and Maintain V VI VII VIII Harvest or Divest Harvest or Divest IX EFE Total freighted Scores EFE Total loaded Scores Division Revenues (millions) Percent Revenues Profit (millions) Percent Profit IFE Scores EFE Scores Company $ 42,201 100% $ 2,901 100% 2. 57 3. 14 Kraft Foods Co. is in the Grow and ground position which means that its indwelling strengths are on the average and rejoinder to the outer factors are on the higher up average. This means that Kraft can bear on in doing intensive and integrative strategies as suggested by the IE Matrix. e. Grand Strategy (GS) Matrix quick Market Growth Rapid Market Growth Table 8. GS Matrix for Kraft Foods Inc. quadrant II Quadrant I 1. Market victimization 2. Market Penetration 3. Product using 4. preceding Integration 5. Backward Integration 6. flat Integration 7. Related Diversification Quadrant III Quadrant IV Strong Competitive Position Strong Competitive Position Weak Competitive Position Weak Competitive Position unwind Market GrowthSlow Market Growth Kraft Foods Inc. falls under Quadrant I which is characterized by rapid market growth and strong competitive position. For Kraft Foods Inc. it would be go around for them to continue their concentration on their current markets and strategies that would be take up to use are market penetration and market development as suggested earlier in the other matrixes. If Kraft Foods is too heavily committed to a sing le product, thus related diversification may reduce the risks associated with a shockable product line. g. operable areas of the firm tradeKrafts circumspection performed an international consumer appraise to determine if consumers were aware of the product quality and whether they were receptive to Krafts product quality. After receiving a favorable survey response, KFI decided to produce an adaptive, revitalization, and business acquisition market budge tailored for specific foreign markets. An institution can make a worthy business case for product translation when the product modification develops into higher revenues and profits. Krafts product brand managers developed ways and methods to ameliorate existing food products to sell in foreign markets.The brand managers revisited products that were more than 35 years old and revitalized them by positioning the products as mild, hot, or aristocratic and microwavable. Consequently, product revitalization influenced cons umer behaviors. Shortly after product revitalization, the initial response occurred when new customers became enticed by the repositioned products and younger consumers became interested in Kraft products. Finance At Kraft, hard currency is king When Kraft Foods needed to mown costs and free up cash, its supply chain organization rose to the challenge.Better farm animal turnover played a leading role in boosting cash take to the woods by 20 percent. If the company could make just the right amount of goods for a market and get them quickly into the pass on of the consumer, it would speed up the cycle for converting products to cash. The family relationship between inventory and cash flow put Krafts supply chain organization front and tenderness in the multiyear project. Research, noesis graphic symbol When it comes to bold thinking, Research, reading Quality is the place to be exciting new tastes. Packaging that extends the shelf life of our products and is biodegradab le.State-of-the-art machinery. Thats the kind of thing were aiming for. And what we come up with. Kraft Foods RD Center At Kraft Foods, we have been focusing on inventing delicious foods and improving life quality. Thus we sincerely postulate the best RD stave and establish 6 RD centers in world. All of our captain fellowship in nutrition and food safety allow us to accelerate product research and development, bringing the best technologies and products to benefit people all over the world. Kraft Foods Global RD center located in Glenview, Illinois, has established professional labs for hemical and flavor analysis. We attract excellent RD plys and provide strong proficiency supports of product development for North America and other areas in global. We believe innovation is a journey. In 2010, Kraft Foods china launched a strong pipeline of advanced(a) products including OREO Ice Cream savour and Mini-snack cookies. Pacific Whole Grain is the first real whole grain biscuit o n the market that has enjoyed great success among Chinese consumers. Production/operation Kraft Foods Inc. is a holding company, our principal source of funds is from our subsidiaries.Our wholly owned subsidiaries currently are not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their harsh stock. Reportable Segments We manage and report operate results through three geographic units Kraft Foods North America, Kraft Foods Europe and Kraft Foods modernizeing Markets. We manage the operations of Kraft Foods North America and Kraft Foods Europe by product category, and we manage the operations of Kraft Foods Developing Markets by location. Our reportable segments are U. S. Beverages, U. S. Cheese, U. S. Convenient Meals, U.S. Grocery, U. S. Snacks, Canada North America Foodservice, Kraft Foods Europe (formerly known as European Union) and Kraft Foods Developing Markets. We transitioned our European Biscuit, Chocolate, Coffee and Cheese categories to fully integrated business units, further strengthening our focus on these core categories. To ensure stopping points are made faster and closer to our customers and consumers, severally category is fully accountable for its financial results, including marketing, manufacturing and RD. syndicate lead, based in Zurich, Switzerland, reports to the Kraft Foods Europe President.These business units now comprise the Kraft Foods Europe segment. education Systems Innovation can only happen if weve got the infrastructure to support it. And everything we do, every smooth of the day, relies on having the right technology and instruction immediately available. information Systems are the key. exactly they do much more than just answer helpdesk calls and fix our computers. Information Systems also invent neat solutions to our proficient problems, and work out what systems and equipment we need to support our ideas. Chapter III STRATEG Y IMPLEMENTATION A. executive driveor DECISION RESPONSIBILITIESKey decisions at Kraft are made by the following three organizations Global Marketing and Category breeding Commercial Units practicable Areas Global Marketing and Category outgrowth is responsible for decisions on global category strategies, new product growth platforms and marketing excellence. Commercial Units are responsible for determining the marketing and sales programs that best meet the needs of local consumers and customers, with profit and loss responsibility for the results. useful Areas are strongly aligned and linked to the Global Marketing Category Development group and the two commercial units.The functions are centers for excellence, with responsibility for identifying and sharing best practices and using Krafts global scale to best advantage. The leaders within these organizations all report directly to the CEO. The leaders are Global Marketing and Category Development EVP, Global Marketing Resources Initiatives EVP, Global Category Development Commercial Units President, North America Commercial President, International Commercial Functional Areas EVP, Global Corporate Affairs EVP main(prenominal) Financial Officer EVP, Global clement Resources EVP, General Counsel Corporate writing table EVP, Global Strategy business concern Development EVP Chief Information Officer EVP, Global Technology Quality EVP, Global cater Chai B. EXECUTIVE DEVELOPMENT SUCCESSION executive director development at Kraft takes place on the business concern. Unlike other companies where executive development takes place in an academic setting, Kraft creates focussing opportunities on the job for its employees. Beginning even with their earliest assignments, young managers are expected to demonstrate an ability to carry responsibility and sophisticated thinking thats usually reserved for top tier executives at other companies. As managers ascend the ranks, Kraft encour ages them to develop leadership dexteritys such as creativity, the power to act upon and influence, and the willingness to take risks. Kraft gives its young managers broad(a) authority that helps to challenge themselves and spur their leadership skills. Each function within Kraft has an Advancement Planning Policy in place. This policy provides the guidelines for identifying replacements for executives. Generally, there are two to three potential replacements already place for any executive in case he or she leaves the company.C. INSIDERS catch up with ON KRAFT CULTURE Insiders have commented that Kraft is very diverse and that they have many qualified minorities in management positions. Even though working at Kraft is stressful, insiders have commented that many people enjoy working there. However, insiders have also commented that morale is low due to layoffs and the effect heavy workloads on the remaining employees. There have also been comments made that employees fro m acquired companies live from low morale because of difficulty in adjusting to Kraft culture.Chapter IV STRATEGY military rank Table 8. Balance Scorecard for Kraft Foods Inc. GOALS STRATEGIES MEASURES TIME COMPLETION Customer persuasion Provide quality products for all customers Product Development Developing quality products such as low fat and less cholesterol Immediately after 2013 Internal caper Process More efficient internal control Semi-centralization of the organization A main branch per areas which controls other branches fourth quarter 2007-2008 Financial perspective proficiency of 2011, 2012, and 2013 revenue target Having a large share in the global prudence Using effective marketing and all-embracing product developmentCutting cost if possible third quarter 2013 Learning and growth Increase industry awareness regarding service in other country. Development of intensive knowledge program for human resources Intensify marketing promotionsOffering semi nars that will enhance skills in communication and decision-making Use the partner companys expertise regarding the marketability of the countryIncrease of effectiveness and efficiency of skill performance 2nd -3rd quarter 2014Immediately after 2013As an evaluation tool, the balanced notice shows the various selected key strategies on aspects of consumer perspective, legal separation business processes, financial perspective and education growth. A set of quantitative measures has been enumerated for each strategy to enable the company to oversee progress or strategy accomplishment on a regular root and review whether these need to be changed or revised SUMMARY Kraft Foods remains to be competitive enough although its global market share is not that high but its growth rate in industry is high enough to cover the market.The company must pursue an intensive strategy to strengthen the company and meet its goals in the industry. Its domestic market share is high and highly compe titive in the industry, but because of fast growing market, Kraft is required to have a huge investment to maintain their lead. Kraft Foods Co. internal strengths are on the average and response to the external factors are on the higher up average. This means that Kraft can proceed in doing intensive and integrative strategies as suggested by the I/E Matrix. For Kraft Foods Inc. t would be best for them to continue their concentration on their current markets and strategies that would be best to use are market penetration and market development as suggested earlier in the other matrixes. If Kraft Foods is too heavily committed to a single product, then related diversification may reduce the risks associated with a narrow product line. CONCLUSION Food industry is one of the fast growing industries ever since it started to appearin the global market. United States is the home where leading food companies areprincipallylocated.Indeedtheadvancetechnical adjustmentinthis country led th e food industry to become innovative and more eager to develop new products as time goes by. The challenge in this industry is the tough competition of the various companies belong in the same industry. On how they could get across the market and what would be their advantage over theircompetitor. Kraft Foods is one of the companies belonging in this category. It can achieve its leadership and growth by doing intensive promotion and management of its existing clients and venturing other countries to promote business. RECOMMENDATONSRECOMMENDED revisal ORGANIZATIONAL STRUCTURE. The organizational structure of the company is fully a centralized one. It is only compose of the top executives of the company. We suggest the that company develop a line and staff structure wherein the middle and lower level of the organization is seen and have a direct communication in terms of decision making and finding solutions to the problems both on top to lower level management. RECOMMENDED STRATEGI ES Upon the using the matrixes presented, the following are the recommended strategies that Kraft Foods Inc. should use. Market Penetration Increase advertising expenditures and specifically target the household population. Offer big sales promotion during peak gruntle and creating bonus packages. Decrease the cost of the product if it would be possible so that buyers will be attracted to patronize it. Product Development Developproductscontaininglowfatandcaloriesforthosehealthconscious individuals. Developconfectionaryproductsthataresugarfreetoattractretiringindividuals. Package products that are inter-related Improve technological systems, especially theonlineshoppingcenter formothers at home.BIBLIOGRAPHY http//www. kraftfoodscompany. com/SiteCollectionDocuments/pdf/KFT_RDQ_Innovatio n_Investments_FactSheet. pdf http//www. kraftfoodscompany. com http//www. Kraft. com http//www. Krafts Cadbury Deal May Force hot chocolate Consolidation, Moneynews. com http//www. scribd. com/doc/ 77538204/Kraft-Matrixes http//www. management480. wikispaces. com/file/view/Kraft. ppt http//www. mondelezinternational. com/ph/en/home/index. aspx CURRICULUM VITAE JENEVA V. VICENTE Rizal East, San Isidro, Isabela planetary No. 09358723111 &8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212- educational downplay TERTIARYBS in commercial enterprise arrangement major in centering write up Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYSan Isidro field High trail San Isidro, Isabela S. Y. 2008-2009 * PRIMARYSan Isidro West important civilize San Isidro, Isabela S. Y. 2004-2005 personalised selective information find out of consanguinityMarch 9, 1993 be on19 gracious emplacement maven sex activity young-bearing(prenominal) point5 weight unit45 kgs. religious beliefpentecostal Christian themeityFilipino Language mouthTagalog, position I hereby evidence that the preceding(prenominal) information is true and limit to the best of my knowledge and belief. Jeneva V.Vicente JOANA MARIE S. MARQUEZ Mabini,Alicia, Isabela Mobile No. 09267907457 &8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212- educational BACKGROUND * TERTIARYBS in Business face Major in instruction bill Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYAlicia study High give instruction Paddad, Alicia, Isabela S. Y. 2008-2009 * PRIMARYMabini dewy-eyed inculcate Mabini, Alicia, Isabela S. Y. 2004-2005 PERSONAL data come across of brookMarch 30, 1993 mount19 well-behaved Status whiz sexual practice pistillate Height51 Weight48 kgs. devotionRoman Catholic NationalityFilipinoLanguage mouthTagalog, side I hereby bear witness that the to a higher place information is true and invent to the best of my knowledge and belief. Joana Marie S. Marquez Reila A. Abenojar Rizal East, San Isidro, Isabela Mobile No. 09358194873 &8212&8212&8212&8212&8212&8212&8212&8212&8 212&8212&8212&8212&8212&8212&8212&8212- educational BACKGROUND * TERTIARYBS in Business constitution Major in circumspection chronicle Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYSan Isidro National High train San Isidro, Isabela S. Y. 2006-2007 * PRIMARYSan Isidro West Central develop San Isidro, Isabela S. Y. 2002-2003 PERSONAL DATA leave of BirthJuly 20, 1990 senesce22 well-behaved Status genius Gender pistillate Height5 Weight40 kgs. ReligionMethodist NationalityFilipino Language intercommunicateTagalog, slope I hereby bear witness that the above information is true and overcompensate to the best of my knowledge and belief. Reila A. Abenojar Angela V. Almolanida San Fabian, Echague, Isabela Mobile No. 09068334307 &8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212- educational BACKGROUND * TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague , Isabela * SECONDARYEchague National High SchoolSan Fabian, Echague, Isabela S. Y. 2008-2009 * PRIMARYBanaba bare(a) School Banaba, Dapdap, Bamban, Tarlac S. Y. 2004-2005 PERSONAL DATA Date of BirthOctober 21, 1992 Age19 Civil StatusSingle GenderFemale Height52 Weight40 kgs. ReligionRoman Catholic NationalityFilipino Language SpokenTagalog, position I hereby certify that the above information is true and correct to the best of my knowledge and belief. Angela Almolanida Joylyn M. Adop Catabban, Burgos, Isabela Mobile No. 09359504631 &8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212- EDUCATIONAL BACKGROUND * TERTIARYBS in Business AdministrationMajor in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYDona break of the day National High School Sta. Rita, Aurora, Isabela S. Y. 2008-2009 * PRIMARYCatabban Elementary School Catabban, Burgos, Isabela S. Y. 2004-2005 PERSONAL DATA Date of BirthFebruary 22, 19 93 Age19 Civil StatusSingle GenderFemale Height53 Weight48 kgs. ReligionBorn over again Christian NationalityFilipino Language SpokenTagalog, English I hereby certify that the above information is true and correct to the best of my knowledge and belief. Joylyn M. Adop Gaymarie A. FelipeBagong Tanza, Aurora, Isabela Mobile No. 09359029090 &8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212- EDUCATIONAL BACKGROUND * TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYDona Aurora National High School Sta. Rita, Aurora, Isabela S. Y. 2008-2009 * PRIMARYBagong Tanza Elementary School Bagong Tanza, Aurora, Isabela S. Y. 2004-2005 PERSONAL DATA Date of BirthSeptember 26, 1992 Age20 Civil StatusSingle GenderFemale Height54 Weight58 kgs. ReligionLatter-Day Saints NationalityFilipinoLanguage SpokenTagalog, English I hereby certify that the above information is true and corr ect to the best of my knowledge and belief. Gaymarie A. Felipe Ryan A. Darang Silauan Sur, Echague, Isabela Mobile No. 09352083261 &8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212- EDUCATIONAL BACKGROUND * TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYEchague National High School San Fabian, Echague, Isabela S. Y. 2008-2009 * PRIMARYEchague West Central School San Fabian, Echague, Isabela S. Y. 2004-2005PERSONAL DATA Date of BirthNovember 23, 1992 Age19 Civil StatusSingle GenderFemale Height56 Weight55 kgs. ReligionBorn Again Christian NationalityFilipino Language SpokenTagalog, English I hereby certify that the above information is true and correct to the best of my knowledge and belief. Ryan A. Darang Vic Rodriguez Catabban, Burgos, Isabela Mobile No. 09359504631 &8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212- EDUCATIONA L BACKGROUND * TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela SECONDARYDona Aurora National High School Sta. Rita, Aurora, Isabela S. Y. 2008-2009 * PRIMARYCatabban Elementary School Catabban, Burgos, Isabela S. Y. 2004-2005 PERSONAL DATA Date of BirthFebruary 22, 1993 Age19 Civil StatusSingle GenderFemale Height53 Weight48 kgs. ReligionPentecostal Christian NationalityFilipino Language SpokenTagalog, English I hereby certify that the above information is true and correct to the best of my knowledge and belief. Vic Rodriguez Fernando Ramos Catabban, Burgos, Isabela Mobile No. 09359504631 &8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212&8212- EDUCATIONAL BACKGROUND TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYDona Aurora National High School Sta. Rita, Aurora, Isabela S. Y. 200 8-2009 * PRIMARYCatabban Elementary School Catabban, Burgos, Isabela S. Y. 2004-2005 PERSONAL DATA Date of BirthFebruary 22, 1993 Age19 Civil StatusSingle GenderFemale Height53 Weight48 kgs. ReligionPentecostal Christian NationalityFilipino Language SpokenTagalog, English I hereby certify that the above information is true and correct to the best of my knowledge and belief. Fernando Ramos