Verified Document

Kraft Past And Present Challenges Case Study

The result would be a shift in consumer habits toward better value through store-name brands and higher nutritional value through smaller-label or independently owned firms. This denotes a critical challenge for Kraft to present itself as providing healthy and organic lines of food, absorbing the cost of this strategic investment and pushing for a general change in its long-held image as a factory-firm with little direct interest in nutritional quality control. Current Challenges:

In response to the challenges imposed by a shifting set of market tastes in the U.S., Kraft's current orientation is toward a growing international marketing scope. This is highlighted by its recent acquisition of the London-based Cadbury company and its heightened focus on penetrating new markets. According to Ferrari, "Kraft's supply chain is about to undergo a rather dramatic transition. According to a presentation delivered by Chairwomen and CEO Irene Rosenfeld...

The company itself will morph to primarily be a confection and snacks oriented business with a presence in 160 countries." (Ferrari, p. 1) the transition will improve its earning and cash flow, making future acquisitions again a prospect.
Divestment/Acquisition Recommendations:

A recommendation hereby derived is that Kraft should return some of this investment to its domestic market for acquisition of several established nutrition-conscious supermarket shelf items.

Works Cited:

Ferrari, B. (2010). Kraft Foods Facing Considerable Global Supply Chain Challenges. Supply Chain Matters.

3

Langenfeld, B.K. & Morris, R.J. (2005). Tradictional Case 2: Kraft Foods in the Era of the Category Killer. Strategic Management: Theory and Practice-Cengage Learning.

Sources used in this document:
Works Cited:

Ferrari, B. (2010). Kraft Foods Facing Considerable Global Supply Chain Challenges. Supply Chain Matters.

3

Langenfeld, B.K. & Morris, R.J. (2005). Tradictional Case 2: Kraft Foods in the Era of the Category Killer. Strategic Management: Theory and Practice-Cengage Learning.
Cite this Document:
Copy Bibliography Citation

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now