Kraft Food’s Case Study

KRAFT FOOD COMPANY Chapter I INTRODUCTION A. COMPANYS HISTORY According to Frank (2010), in 1903, there was a man named James Lewis kraft who had begun cease language service at Chicago bea aft(prenominal) he had been e genuinelyeviated turn out from a cheese come with at Buffalo. Every morning, he give buy cheese full-lengthsale and resold it to the local vendors in nightspot to avoid the cheese melt or spoil. The business was successful and some(a)(prenominal) of his br oppositewises who be known as Charles H. , John H. , Fred Walker and nary(prenominal)man had linked the association named J. L kraft paper & Bros. Co. in 1909 as permanent employees (MAC 2011).James L. kraft paper is a president of the c tout ensembleer-out who had invented a revolutionary process in 1915. This process helps to pasteurize the cheese, thus it would not spoiled easily and drop be transported long distances (NNDB 2009). Fundament each(prenominal)y, according to Phillip (2010), in 19 20, kraft paper purchased a Canadian cheese familiarity and changed it to kraft Cheese confederacy in 1924. kraft Cheese Company had obtained a lot of gross sales which enable J. L kraft to expand the company into Germany, Australia and Britain. During World War II, kraft paper had supplied 4 million pounds of cheese to Britain.It had showed that kraft paper was a main nourishment reserver at that time. In 1945, the kraft Cheese Company became kraft provender Company (NNDB 2009). B. COMPANYS DESCRIPTION kraft paper Food Companys headquarter had been located at Cheltenham, United Kingdom since kraft paper has a close connection with the rest of atomic number 63. The manufacturing site had been open up at the prohibition era bury as a global manufacturing base that will turn in a mixture type of overlaps worldwide in 155 countries including Malaysia, mainland mainland China and United State (kraft paper Food Inc. 2010). kraft Food Company was having to a greater exte nt than 100,000 diverse employees all over the world.Currently, kraft Food Company is a second largest provender and b perpetuallyage company in the world afterwards Nestle. C. TYPE OF PRODUCTS Furtherto a greater extent, according to Joel (2010), kraft paper Food Company is popular with cheese and dairy, snack solid nourishments and confectionary, beverage and convenient foods. However, kraft Food Company is basically center much on cheese and dairy point of intersections such as cottage cheese and sour cream. Kraft realises a wide variety of natural cheese and Ameri flush toilet cheese slices. Besides that, Kraft in like manner been known as snack food instigants oddly cookies and crackers.Some of popular snacks food offers by Kraft ar Kraft cheese Nips, Wheat Thins crackers, clavus Nuts and Garden Harvest toasted chips (Kraft Food 2011). Instead of that, sweetness and confectionary food swords produced by Kraft are Oreo cookies, Kraft mayo with olive oil, Jet-Pu ffed Marshmal pocket-sizes and Kraft salad dressings whereas for beverage and convenient foods are Kraft Macaroni and Cheese, calcium Pizza Kitchen and DiGiorno frozen pizzas, Yuban Coffee and Maxwell Ho commit (David 2009). Chapter II scheme FORMULATION A. VISION AND MISSION STATEMENTS 1.Kraft Foods Mission Statement Make now Delicious In order to fulfill this mission Kraft Foods Inc. focuses on consumers in everything that they do. The company to a fault understands that actions speak louder than words, so at Kraft Foods, they inspire trust. act like owners. keep it simple. are on the fence(p) and inclusive. proclaim it like it is. lead from the head and the heart. discuss break up -deliver. 2. Kraft Foods mental imagery Statement Helping People Around the World to Eat & resist Better Their vision captures the essence of who they are.Everything they do flows from their vision. They still dont happen to be a business that sells food its what theyre all about. Their vision is about opposition consumers needs and making food an easier, healthier, more memorable, and enjoyable part of the emotional state. revise Mission Statement Here at Kraft Foods we strive to produce superior crops and services (2) to our customers (1) ranging from unhurtsalers to households. The 21st century is sure to bring more innovation, in the raw intersection points, and new food technology (4), thus alter us to create and deliver better and healthier fruits.Kraft Foods come abouts to lead the food exertion as the largest food supplier in noneth the States (7) with plans to relate expansion into new and existing global merchandises (3). We clog up the goals of the company by applying the highest ethical conduct within our corporate philosophy in all our business transactions (6), treatment of employees (9), and affable and environmental policies (8). We at Kraft Foods focus highly on our consumers lifestyles and aim to grow net profitable in the worlds food trade and provide a higher than expected give way to parcelholders (5).Our company takes pride in making today and the future-delicious. 1. ) Customers 2. ) harvest-times and services 3. ) Markets 4. ) engine room 5. ) absorb for survival, egress, and profitability 6. ) Philosophy 7. ) Self-concept 8. ) Concern for public image 9. ) Concern for employees Revised Vision Statement planetary lead in pass the beat food outputs enabling volume to eat and live better. Explanation-This revise vision statement incorporates a vision for the Kraft Foods Inc. to become a global leader among its competitors-that is to be the number angiotensin-converting enzyme.This statement shall encourage the whole institution of the corporation to think not only for the earnest and for the stovepipe. The corporation shall offer not only attri ande products but the dress hat eccentric products helping their global trade to live better by direction of the consumption of their prod ucts. B. EXTERNAL ASSESSMENT 1. Competitive Profile intercellular substance (CPM) dishearten 1. Competitive Profile ground substance(CPM) for Kraft Foods Inc. Critical Success calculate judge Rating Rating 1. Advertising 3 4 2 2. pecuniary lay 3 4 2 3. Global Expansion 3 4 2 4. Market luck 3 3 2 . Product Diversity 4 4 3 6. Consumer Demands 4 3 3 Average Rating 20/6= 3. 33 22/6= 3. 67 14/6= 2. 33 noe 1=major(ip)(ip) weakness, 2=minor weakness, 3=minor strength, 4=majorstrength The Competitive Profile intercellular substance showsthe relative strength ofKraft Foods Inc. comparedto its competitors by using the critical success factors inits assiduity. By identifying its strengths, we usher out also identify its relative weaknesses and address them to formulate effective strategies. Kraft Foods Inc. is relatively militant in its exertion, showing 3. 33 as its summate s hollow out.The company has to improve on global strength, securities industry contend and attraction as an employer to improve on brand loyalty and customer retention. Its profit margin has a rating of 3 just like the otherwise assiduity because it is considered as a minor strength for they all expect to focus on their brand and customer satisfaction. 2. pestle Analysis The PESTLE analysis contains the analysis of Political, Economic, Social, Technological, Legal and Environmental environments of a expanse with computer address to aparticular object. The PESTLE analysis of Kraft Foods Inc. is as follows POLITICALThey wear candidates who understand and appreciate the public policies that impact theirbusiness, brands and employees. The company has started a governmental action committee called Kraftpac or Kraft Political Action perpetration which sacksfunding to state political parties, committees and candidates. ECONOMIC Kraft is making good earnings from its market involvements viaits products and brands. The company is delivering high quality earnings toits s hareholders disdain the difficult economic environment. They are continuously investing in their brands and businesses to get alongprovide excellent product offerings to their customers.As a result of their investment strategies, the Kraft Foods is very well positioned to deliver sustainable top- formperformance, with or without Cadbury (Kraft foods financial news, 2011). In 2008, Kraft Foods was once again named to the Dow Jones Sustainability World Index and the Dow Jones Sustainability North America 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 partnerships with them.Theyincreased their cocoa and coffee purchase to except benefit their partner farmers. Kraft Foods cropd greenhouse gas emissions by 18% and water consumption by 30% since2005, as heedful against integrality production. Furthermore, thecompany improved the edible al profile of more than 5,500products during the final stage five years. They removed nearly 6. 5 million pounds (3million kg) of common salt from products in 2010 and helped to provide more than 1 billion servings of food since 1999 in the United States alone. TECHNOLOGICAL The company keeps consumer needs intheir mindsbefore calculating their strategies.They adaptand anticipate their needs in order tomeet them efficiently. The company has employed SAP Net weaver technology platform to run into effective entropy and business transformation strategy within all the business units (FBR, 2008). Kraft foods pass water established a hub and spoke mold where a centrally led team focuses on the overall strategies, systems, enabling tools, electronic networks and metrics. And, they have complemented that central team with R&D people the open innovation technical scouts? embedded in eachof Krafts business units. LEGALThe company abides by the laws, rules, and regulations of the natio nal as well asinternational countries in order to sustain itsprofitability and its business trading operations. Almost all of the activities of the companys food operations outside of the United States are dependant to local and national regulations similar to those applicable to Kraft Philippinesbusinesses and, in some cases,international regulatory provisions, such as those of the European Union relating to labeling, packaging, foodcontent, pricing, market and publicize and related areas.ENVIRONMENTAL Kraft Foods has effect an examplein the global industry by determining a pushto reduce the impact of its operations on the environment in the U. S. andaround the world. The company releasedits CSR report in 2010 which stated its environmental goals agenda to reduce the cause of null and the ascorbic acid dioxide emissions in food plants to the conservation of water and minimizing special packaging. They are creating packaging that uses less material, weighs less and reduces impacton landfills without conciliatory food safety or freshness.As part of their plan toreduce our carbon find faultprint, Kraft foods are improving their energy efficiencies, usingless energy and finding new and cleaner quotations of energy. Kraft Foods look for opportunities to reduce the use of water tominimize theimpact of water discharge and even reuse waterin ship canal that help the environment and save money. last they are not only focusing on creating less burn out in the manufacturing process, they are also finding new and betterways to reuse, treat and even put waste to work. 3. Porters flipper Forces Analysisdicker POWER OF SUPPLIERS The food and beverage industry is quite high and competitive in nature. Theprices offered are usually competitive toremain in the market. THE BARGAINING POWER OF BUYERS The buyers preferences changes with the passage of time and they are likely to switch to the trafficker who offers goodquality atless price. Wal-Mart has played amajo r case in this case. It offers less priced goods toattract the buyers attention. There is a remarkable opportunity for the buyers toextract industry and firm profits. THE THREAT OF THE ENTRY OF unfermented COMPETITORSThere are al use up believe somany competitors present in the market that there are very less chances for the new comers to set foot in and enjoy their share in the market. The existing companies have already spentso much on their brands, quality and positioning that it will be difficult for the new comers to entice switching among consumers. RIVALRY AMONG naturalized COMPETITIONS profound contest lies in the food and beverage industry. The main vehicle by which firms in the industry preserve market shareis through and through brand loyalty and diversification.In general, the products of thesefirms are highly elastic with consumers weighing the tradeoff between price and quality between companies and products. Consumers in the industry have minimal switching cost s and there is never the guarantee of brand loyalty. Therefore, the way these firms maintain market share is by providingbrand quality at an affordable price. Thus, there is some 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 volume and profitability despite increase arousal costs, sluggish topline growth, margin contraction, and rising subvention costs. THE THREAT OF SUBSTITUTE 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 medium in this case. Theprivate label products, also referred to as? generic? products, pose a serious threat to industry an dfirm profits. 4. Input Tools display board 2.External Factor Evaluation (EFE) Matrix for Kraft Foods Inc. Key External Factors Opportunities 1. Operates in many close growing categories 2. growth demand for health and wellness products 3. rock-bottom input costs raw materials 4. ever-changing lifestyles. 5. subjoind trends of flavor call forthr for bottled water. 6. maturement in the market overall. 7. Cadbury encyclopedism provides new products. Threats 1. Increasing trend of eat out 2. health concerns 3. largeness transportation 4. adverse impact of foreign currency 5. Customers switching to generic brands. 6. Intense competition from Mars Inc. Nestle SA C. INTERNAL ASSESSMENT 1. Internal Factor Evaluation (IFE) Matrix send back 3. Internal Factor Evaluation (IFE) Matrix for Kraft Foods Inc. Key Internal Threats Strengths 1. affectionate RD 2 extendd organic revenues 3. Availability 4. Innovative advertising methods 5. Diverse wheel of leading brands 6. Focu s on consumers 7. substantive distribution network 8. loyal brand image 9. Worlds second-largest food company 10. 25% of global revenue from emerging markets listlessnesses 1. barrier in launching new brands 2. Most of growth is dependent on acquisitions or expanding into new market. 3. Strong competition from Nestle, Hershey, etc. 4. Poor performance of North-American fraction 2. MatchingTools a. Strengths- light-headednesses-Opportunities-Threats (SWOT) Matrix TheopportunitiesandthreatsthatKraftFoodsInc. possessesarenow matched against itsstrengths andweaknesses byusing the SWOT matrix in order to generate appropriate strategies. Table 4. SWOT intercellular substance for Kraft Foods Inc. 1 Strengths SWOT MATRIX 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. 2 5% of global revenue from emerging markets Opportunities SO Strategies 1. Operates in many fast growing categories Focus on retailers and restaurants (O1,S1) stick itself as a healthy food producer (O4, S3, S8)Focus on ready to eat products (O4 S6)Promote ready to drink beverages (O4, S5, S8) 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. egress in the market overall. 7. Cadbury acquisition provides new products. 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 growth is depende nt 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 Look for divestiture in brusk performing segmentsSell packaged 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-feast 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)Market dependent look into terminal lower value markets and look to switch to higher value 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. capital of Massachusetts Consulting assort (BCG) Matrix Division Revenue (millions) portion Revneues boodle (millions) portion Profit Relative Market Share assiduity Growth calculate (%) Company $ 42,201 100% $2,901 100% 0. 38 6. 41% In the BCG matrix, Kraft Foods Inc. ervices are presented and compared with industrys growth rate. The part 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 helping industry growth rate was obtained from the annual increase in revenues. Table 5. Boston Consulting Group (BCG) Matrix for Kraft Foods Inc. (Global Market Share) Relative 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 Industry Sales Growth aim (Percentage) Industry Sales Growth score (Percentage) Question Marks I Question Marks I Stars II Stars II Dogs IV Dogs IV Cash Cows III Cash Cows III Kraft Foods belongs to Question Marks Group seen in Quadrant I, it remains to be competitive enough although its market share is not that high but its growth rate in industry is high enough to silver screen the market. In order to be on Stars the company must prosecute an intensifier strategy to streng wherefore the company and meet its goals in the industry. Table 6.Boston Consulting Group (BCG) Matrix for Kraft Foods Inc. (Domestic Market 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 Rate (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 necessary to have a huge investments to ma intain 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-External (I/E) Matrix IFE Total Weighted gain IFE Total Weighted Scores Table 7. Internal-External (I/E) Matrix for Kraft Foods Inc.Strong Average Weak Strong Average Weak 4. 0 amply 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 luxuriously 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 Hold and uphold Hold and Ma intain V VI VII VIII Harvest or divest Harvest or Divest IX EFE Total Weighted Scores EFE Total Weighted 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 Build position which means that its internal strengths are on the average and reply to the external factors are on the supra average.This means that Kraft can proceed in doing intense and integrative strategies as suggested by the IE Matrix. e. Grand strategy (GS) Matrix Rapid Market Growth Rapid Market Growth Table 8. GS Matrix for Kraft Foods Inc. Quadrant II Quadrant I 1. Market education 2. Market Penetration 3. Product Development 4. off Integration 5. Backward Integration 6. Horizontal Integration 7. Related variegation Quadrant III Quadrant IV Strong Competitive Position Strong Competitive Position Weak Competitive Position Weak Competitive Position Slow 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 soaking up 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 case-by-case product, then related diversification may reduce the risks associated with a delimitate product line. g. working(a) areas of the firm MarketingKrafts management performed an international consumer survey to particularize 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 marketing campaign tailored for specific foreign markets. An brass section can make a creditable business case for pro duct adaptation when the product modification develops into higher revenues and profits. Krafts product brand managers developed ways and methods to rejuvenate 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 spicy and microwavable. Consequently, product revitalization influenced consumer behaviors. Shortly after product revitalization, the initial response occurred when new customers became enticed by the repositioned products and offspringer consumers became interested in Kraft products. Finance At Kraft, cash is king When Kraft Foods needed to cut costs and free up cash, its supply chain organization rose to the challenge.Better memorial turnover played a leading role in boosting cash flow by 20 percent. If the company could make just the right amount of goods for a market and get them quickly into the hands of the consumer, it would speed up the cycle for converting products to cash. The relationship between inventory and cash flow put Krafts supply chain organization straw man and center in the multiyear project. Research, Development reference When it comes to bold thinking, Research, Development Quality is the place to be exciting new tastes. Packaging that extends the shelf life of our products and is biodegradable.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 put one across the best RD staff and establish 6 RD centers in world. All of our professional friendship in nutrition and food safety allow us to accelerate product seek 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 hemi cal and flavor analysis. We attract excellent RD staffs and provide strong technique 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 innovative products including OREO Ice toss Flavor and Mini-snack biscuits. Pacific Whole Grain is the first real whole grain biscuit on 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 circumscribed by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their common stock. reportable Segments We manage and report operating results through three geographic units Kraft Foods North America, Kraft Foods Europe and Kraft Foods Developing Markets. We manage the operations of Kraft Foods North America and Kraft Foods Europe by product house, 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 to the full integrated business units, further strengthening our focus on these core categories. To ensure finalitys are make faster and closer to our customers and consumers, each category is fully accountable for its financial results, including marketing, manufacturing and RD. kinsfolk leadership, based in Zurich, Switzerland, reports to the Kraft Foods Europe President.These business units now comprise the Kraft Foods Europe segment. Information Systems Innovation can only happen if weve got the infrastructure to support it. And everything we do, every minute of the day, relies on having the right technology and information direct available. Information Systems are the key. But they do much more than just answer helpdesk calls and fix our computers. Information Systems also invent becoming solutions to our technological problems, and work out what systems and equipment we need to support our ideas. Chapter III outline IMPLEMENTATION A. EXECUTIVE DECISION RESPONSIBILITIESKey decisions at Kraft are made by the following three organizations Global Marketing and Category Development Commercial Units Functional Areas Global Marketing and Category Development is accountable 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 duty for the results. Functional Areas are strongly aligned and linked to the Global Ma rketing Category Development group and the two commercial units.The billets 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, planetary Commercial Functional Areas EVP, Global Corporate Affairs EVP Chief fiscal officer EVP, Global Human Resources EVP, General Counsel Corporate writing table EVP, Global Strategy job Development EVP Chief Information Officer EVP, Global Technology Quality EVP, Global Supply Chai B. EXECUTIVE festering SUCCESSION Executive development at Kraft takes place on the job. Unlike other companies where executive development takes place in an academician setting, Kraft creates management opportunities on the job for its employees. Beginning even with their soonest 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 encourages them to develop leadership skills such as creativity, the power to persuade and influence, and the willingness to take risks. Kraft gives its young managers broad authority that helps to challenge themselves and spur their leadership skills. Each function within Kraft has an Advancement Planning Policy in place. This form _or_ system of government provides the guidelines for identifying replacements for executives. Generally, there are two to three potential replacements already identify for any executive in case he or she leaves the company.C. INSIDERS VIEW ON KRAFT CULTURE Insiders have commented that Kraft is very diverse and that they have many qualified min orities in management positions. take aim off though working at Kraft is stressful, insiders have commented that many people enjoy working there. However, insiders have also commented that morale is low ascribable to layoffs and the resultant heavy workloads on the remaining employees. There have also been comments made that employees from acquired companies suffer from low morale because of difficulty in adjusting to Kraft culture.Chapter IV STRATEGY EVALUATION Table 8. Balance Scorecard for Kraft Foods Inc. GOALS STRATEGIES MEASURES TIME COMPLETION Customer Perspective Provide quality products for all customers Product Development Developing quality products such as low fat and less cholesterol Immediately after 2013 Internal billet Process More efficient internal control Semi-centralization of the organization A main branch per areas which controls other branches 4th quarter 2007-2008 Financial stead Attainment of 2011, 2012, and 2013 revenue target Having a large share in the global economy Using effective marketing and extensive product developmentCutting cost if possible 3rd quarter 2013 Learning and growth Increase industry awareness regarding service in other country. Development of intensive training program for human resources Intensify marketing promotionsOffering seminars that will enhance skills in communicating and decision-making Use the partner companys expertness regarding the marketability of the countryIncrease of effectiveness and efficiency of skill performance 2nd -3rd quarter 2014Immediately after 2013As an evaluation tool, the balanced scorecard shows the various selected key strategies on aspects of consumer perspective, interval business processes, financial perspective and learning growth. A set of quantitative measures has been enumerated for each strategy to enable the company to monitor mature or strategy attainment on a regular rear end 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 competitive 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 preceding(prenominal) 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 divers ification 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.Indeedtheadvancetechnologicaladaptationinthis country led the food industry to become innovative and more keen to develop new products as time goes by. The challenge in this industry is the tough competition of the various companies belonging in the same industry. On how they could penetrate 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 modify one. It is only compose o f 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 STRATEGIES 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 extensive sales promotion during peak season 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. Developconfectionaryproductsthatare breadfreetoattractretiringindividuals. Package products that are inter-related Improve technological systems, especially theonlines hoppingcenter 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 burnt umber 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 broadcast VITAE JENEVA V. VICENTE Rizal East, San Isidro, Isabela mobile No. 09358723111 - educational BACKGROUND TERTIARYBS in Business political science study in anxiety chronicle Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYSan Isidro study spicy civilise San Isidro, Isabela S. Y. 2008-2009 * PRIMARYSan Isidro West primeval discipline San Isidro, Isabela S. Y. 2004-2005 PERSONAL DATA discover of take overMarch 9, 1993 term19 cultured Status sensation grammatical gender young-b earing(prenominal) extremum5 Weight45 kgs. theologypentecostal Christian Nationality Philippine Language SpokenTagalog, English I herewith present that the supra information is true and correct to the best of my acquaintance and belief. Jeneva V.Vicente JOANA MARIE S. MARQUEZ Mabini,Alicia, Isabela agile No. 09267907457 - EDUCATIONAL BACKGROUND * TERTIARYBS in Business brass study in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYAlicia National High inculcate Paddad, Alicia, Isabela S. Y. 2008-2009 * PRIMARYMabini unsubdivided School Mabini, Alicia, Isabela S. Y. 2004-2005 PERSONAL DATA reckon of BirthMarch 30, 1993 Age19 civil Status iodine Gender pistillate Height51 Weight48 kgs. ReligionRoman Catholic Nationality PhilippineLanguage SpokenTagalog, English I herewith present that the above information is true and correct to the best of my knowledge and belief. Joana Marie S. Marquez Reila A. Abenojar Rizal East, San Isid ro, Isabela Mobile No. 09358194873 - EDUCATIONAL BACKGROUND * TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYSan Isidro National High School San Isidro, Isabela S. Y. 2006-2007 * PRIMARYSan Isidro West Central School San Isidro, Isabela S. Y. 2002-2003 PERSONAL DATA run into of BirthJuly 20, 1990 Age22 Civil StatusSingle GenderFemale Height5 Weight40 kgs. Religion Wesleyan NationalityFilipino Language SpokenTagalog, English I hereby certify that the above information is true and correct to the best of my knowledge and belief. Reila A. Abenojar Angela V. Almolanida San Fabian, Echague, Isabela Mobile No. 09068334307 - 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 Elementary School B anaba, 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, English 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 - EDUCATIONAL BACKGROUND * TERTIARYBS in Business AdministrationMajor 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. 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. Joylyn M. Adop Gaymarie A. FelipeBagong Tanza, Aurora, Isabela Mobile No. 09359029090 - 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 Birthfamily 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 correct to the best of my knowledge and belief. Gaymarie A. Felipe Ryan A. Darang Silauan Sur, Echague, Isabela Mobile No. 09352083261 - 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 - 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 * 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 Lan guage 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 - 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 * 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