This paper presents an analysis of the strategy implementation at Kraft Foods by analyzing different internal processes and systems which can impact the strategy implementation process in a positive or negative way. It includes an analysis of the people, processes, systems, and culture at Kraft Foods and evaluates their contributions, impacts, and strategic fit with its mission, strategy, and corporate principles.
This paper presents an analysis of the strategy implementation at the Kraft Foods by researching its strategic controls, organizational design and structure, systems and processes, human capital, and organizational culture and analyzing their impact on its strategy implementation. It also critically evaluates the fit between the company's mission, vision, strategy, and organizational components critical to its strategy implementation. The major areas of concern in the strategy implementation process include human resource management policies, organizational structure and design, organizational culture, and strategic controls and systems.
This paper aims to analyze the strategy implementation at the Kraft Foods in the light of different organizational and operational aspects; including people, processes, structure, culture, and controls. This analysis is done on the basis of background knowledge about the company's current market standing, core competencies and weaknesses, business and marketing strategies, and human resource management policies. In order to achieve the aforementioned aim, the paper critically evaluates the match between its corporate wide principles and different organizational components.
Strategy Implementation at Kraft Foods
Organizational Structure at Kraft Foods:
The organizational structure of Kraft Foods is completely functional and centralized. The Chief Executive Officer (CEO) is the prime authority in the organization and is responsible for governing the entire organizational setup. He heads the Board of Directors of Kraft Foods that crafts and executes the business level strategies, provides a directional framework for the whole organization, and designs its corporate principles and policies. Every Board member heads a specific area of operations; like Production, Research & Development, Sales and Marketing, Finance, Audit, Supply Chain, Human Resource, etc. (Kraft Foods, 2013).
The chain of command flows from higher to lower organizational levels. There is an effective communication system instituted within the organization which facilitates its employees in both inward and outward communication to and from the key stakeholders. The Top level managers are primarily responsible to achieve the organizational goals. They follow the policies designed by the Board of Directors and define the ways in which these policies should be implemented. They formulate different strategies for the middle level managers who get the work done through lower level managers and employees (Kraft Foods, 2013).
There are different strategic controls implemented by Kraft Foods in its operational setup which facilitate its managers in ensuring service efficiency, improving employee performance, and keeping an eye on the overall organizational effectiveness Pryor, M.G., (Singleton, Taneja, & Toobs, 2009). The current strategic systems implemented at Kraft Foods include Financial Accounting and Budgeting System, Management Information System, Strategic Human Resource Management System, Customer Relationship Management System, and Inventory Management System.
The Financial Accounting and Budgeting system enables the Kraft Foods executive in managing its financial capital, doing forecasting for the short run, and performing financial analysis using different tools and techniques. The Management Information System (MIS) performs a number of data management and analysis functions. Strategic Human Resource Management (SHRM) system facilitates HR managers in analyzing their employees' performance, identifying training and development needs, designing promotion and reward schemes, etc. (Singleton, Taneja, & Toobs, 2009).
The Customer Relationship Management system enables Kraft Foods to build and maintain strong customer relationships by segmenting the most prestigious customers, evaluating their brand choices and frequency of purchases, and improving customer services. The inventory management system gives information to the Production department regarding available and required inventory, installed and available production capacity, and seasonal adjustments in production. All these systems facilitate the Kraft Foods' employees in their day-to-day job tasks and responsibilities and help them perform these tasks in a well-organized and efficient way.
Kraft Foods manages a large workforce in different corners of the world. It has instituted an effective human resource management policy which focuses on providing its workforce a pleasant working environment and competitive financial rewards against their employment services. Kraft Foods hires individual from both local and international markets depending upon the specific needs of different business projects. In its recruitment and selection process, Kraft Foods ensures that it places the right talent at the right job (Heneman, Fisher, & Dixon, 2001). Individuals are hired on the bases of their educational qualification, skills, competencies, and exposure in the relevant field and preferably in the related industries like food processing and manufacturing, distribution and marketing, research and development, etc.
Kraft Foods uses different motivational techniques to encourage its employees and increase their morale and commitment with their job. These techniques include both intrinsic and extrinsic motivation; like financial and non-financial benefits, flexible working options, attractive professional growth opportunities, etc. It also arranges training and development programs to groom its employees in their specific field of profession and improve their skills and competencies to become its most precious asset.
Kraft Foods has a strong organizational culture where employees share common beliefs and thoughts, respect cultural diversity, cooperate with each other in day-to-day tasks, stay committed towards one common direction, and work like a single unit. Kraft Foods has built this strong culture by providing its employees every facility and service which they need to work effectively and productively. In addition to providing various monetary and non-monetary benefits, Kraft Foods also provides its employees an opportunity to participate in the organizational innovation and improvement process. There are strong manager-employee relationships at Kraft Foods which largely contributes in increasing the employees' motivation and morale towards their organization and improving the overall organizational effectiveness (Heneman, Fisher, & Dixon, 2001).
In this strong organizational culture, Kraft Foods employees find greater opportunities to learn new things and groom themselves in their professional career. The culturally diverse employees feel secure while working at Kraft Foods workplace due to the positive attitude and respect given by their local coworkers. Kraft Foods not only focuses on organizational culture, but also gives a string emphasis on building strong industrial relations. In a challenging and learning work environment, Kraft Foods managers are able to effectively manage their subordinates by providing them regular learning opportunities and resolving conflicts and issues among them.
Impact on the Strategy Implementation:
All these strategic controls and systems, human resource management policies, organizational structure and design, and culture management practices positively impact the company's strategy implementation. Kraft Foods has effectively aligned its business policies and practices with its mission, vision, and corporate principles. The mission statement of Kraft Foods promises its true concern for all its stakeholders including customers, employees, supply chain members, investors, etc. For instance, the customer relationship management system helps it in managing its customer relations and improving customer services efficiency. Similarly, the strategic human resource management system enables it to design the most competitive HR strategies for its workforce which can give it a competitive advantage in the industry.
The Strategic Fit:
While implementing its business strategy, Kraft Foods has to ensure that all these operational areas are aligned with this strategy, i.e. It analyzes its current strengths and weaknesses, market standing, manufacturing capabilities, and current strategic controls. It tries to find a match between its current business practices and overall corporate principles. The major concern while implementing the business strategy is to figure out the human resource requirements in that strategy. In order to achieve the corporate objectives defined in every short run and long run business strategy, Kraft Foods has to revisit its human resource management policies by making recruitment for new business projects, arranging training sessions for new and existing employees, and revising the salary and compensation packages…