In order to achieve the economies of scale, the company has vast network of sales and distribution along with acquisitions and mergers to support increased production of which Cadbury is a recent example. The company also tries to sustain and enhance its brand image by virtue of comprehensive branding strategy. Vertical and horizontal expansion of companies' product range is also indicative of Kraft's sustained strategic expansion. Recently the company split into Mondel-z International, Inc. And Kraft Foods Group, North America.
The potential discrepancies in the strategic and business level strategies of the company are based in the functional capacity of the firm. There have been issues related to internal control of the company being not stringent enough to ensure integrity of financial reporting and for this purpose; the company also adopted an audit committee charter. Aim was to improve the functional management in relation to finance and operations.
3) How can the Kraft Foods Company leverage its strengths and shore up its weaknesses by altering its strategic choices? How can the company take advantage of environmental opportunities and minimize environmental threats by altering its strategic choices? Be very specific!
Sustainable sourcing: With popular Chocolate brands such as Dairy Milk, Creme Egg, Flake, and Green & Black's and the strategic decision to acquire Cadbury's has increased the market share of Kraft in global confectionary market. The company can adopt sustainable and ethical sourcing strategies on the foot prints of Starbucks and Wal-Mart that have increased their brand perception and value through such strategic tactics. This will increase brand...
This will help the company to attain greater brand strength through partnering with large number of suppliers from marginalized supplier base. The company shall encourage sourcing from poor and small women suppliers based in rural localities.
Expanding to BRICs: In coming years, the business prospects of Brazil, Russia, India, and China are superior as compared to the developed economies such as the U.S. And the Europe. As reported by Goldman Sachs, China will supersede the U.S. economy in 2041. Kraft foods shall expand the business operations in this region of four countries. This will allow the company to become the market leader entering the market at an early stage of industry growth in these countries.
References
Bhaskaran, S., Polonsky, M., Cary, J., & Fernandez, S. (2006). Environmentally sustainable food production and marketing: opportunity or hype-British Food Journal, 108(8), 677-690.
Kraft Foods. (2013). Make a Legacy. Kraft Foods Group. Retrieved from: http://www.kraftfoodsgroup.com/About/index.aspx
Low, W., & Davenport, E. (2005). Has the medium (roast) become the message? The ethics of marketing fair trade in the mainstream. International Marketing Review, 22(5), 494-511.
Thomson, N., & Baden-Fuller, C. (2010). Basic Strategy in Context: European text and cases. Wiley-Blackwell.
