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Kraft Foods, one of the largest food manufacturers in the country, accomplishes its goals of the customer attraction, retention, and solving customer complaints through several means. According to Eccles (1981) customers prefer flexibility in their product and service offerings. Flexibility in product and service offerings not only provides the options to customers to choose and select only those products and services that best meet their needs but it also facilitates the process of customization and personalization. Similarly, Porter (1980) argues that in the present dynamic environment, a number of firms are shifting their focus from transaction-based interactions to relationship-based interactions. Since a firm usually incurs far more money in attracting a new customer than maintaining an existing one, it is always beneficial for the firm to lock- in its existing customers by developing close relations with them. In this perspective, businesses are encouraged to take notice of the customer's life…
Eccles, R.G. The Quasifirm in the Construction Industry, Journal of Economic Behavior and Organization (2), 1981, pp. 335-357.
Jarillo, J.C. On Strategic Networks, Strategic Management Journal (9), 1980, pp. 31-41.
Porter, M.E. Competitive Strategy. New York: Free Press, 1980.
Roberts, W.A. Kraft Foods 2001 Food Processor of the Year: The 'Big' Gets Bigger and Better. Excerpt at http://www.preparedfoods.com/CDA/ArticleInformation/coverstory/BNPCoverStoryItem/0,1229,114328,00.html,2003 .
It is a bit too whimsical and playful, as though it was designed for children. Since consumers are influenced by visual imagery, the environment in which they view things is important (Meyvis et. al, 2012). If children are the target audience, then this would be fine. but, it is safe to assume that Kraft is targeting an adult audience. After viewing this section, the consumer may decide not to view anything else because they may not take Kraft seriously.
The other section of Kraft's website that appears on the main page is the 'ecipes and Product Information' option. When this option is selected, the consumer is taken to a page that also displays a menu bar at the top. What works in Kraft's favor is that they were conscientious enough to post recipes and other information specifically geared toward the consumer. The marketing message on this page implies that Kraft…
Fan, W. & Tsai, M. (2010). Factors driving website success -- the key role of the Internet customisation and the influence of website design quality and Internet marketing strategy. Total Quality Management & Business Excellence, 21(11), 1141-1156. doi:10.1080/14783363.2010.529335
Kotler, P., & Keller, K.L. (2012). Connecting with Customer. Marketing Management (14th ed., pp. 122-149). Upper Saddle River, N.J.: Pearson Prentice Hall.
Meyvis, T., Goldsmith, K., & Dhar, R. (2012). The importance of the context in brand extension: How pictures and comparisons shift consumer's focus from fit to quality. Journal of Marketing Research, 49(2), 206-217. Retrieved May 2, 2012, from http://www.journals.marketingpower.com/doi/pdfplus/10.1509/jmr.08.0060
Kraft Foods is a major producer of supermarket food items. There are four generic strategies that define the position of a fir within an industry. Kraft operates with a differentiation strategy; here brand recognition and higher prices illustrate the premium value that Kraft brands have for consumers. This strategy is not perfectly aligned with the company's strengths and weaknesses, however. This poor alignment can be dealt with. First, Kraft needs superior products that can help it appeal to modern shoppers. Second, Kraft needs to fight to regain its bargaining power with the discount stores -- it has the ability to attract customers but needs to break out a cycle of not being able to afford to support its brands.
Kraft Foods is a major producer of supermarket food items. The company earned revenues of $18.6 billion in its last fiscal year, and profits of $1.89 billion. Some of the…
Business Week. (2004). Why Kraft is on a crash diet. Business Week. Retrieved November 22, 2012 from http://www.businessweek.com/stories/2004-11-28/why-kraft-is-on-a-crash-diet
Forbes. (2012) Wal-Mart could get wounded in grocery wars. Forbes. Retrieved November 22, 2012 from http://www.forbes.com/sites/greatspeculations/2011/01/21/wal-mart-could-get-wounded-in-grocery-wars/
Kraft Foods Group. (2012). Website, various pages. Retrieved November 21, 2012 from
The intensity of rivalries will negatively influence Kraft. This can lead to price wars and similar merchandise geared towards their customer base. ("Kraft Foods," 2013) (Nestle, 2007) (David, 2009)
Evaluate the organization's Intensive Strategy, in the areas of Market Penetration, Market Development and Product Development.
Market penetration is when a Kraft is focusing on increasing its market share for products through improving its advertising. This is occurring with the firm sponsoring different events that highlight the merchandise they are selling. At the same time, they have specific commercials and newspaper / radio / online advertisements that will enhance their image of specific brands. Market development is when Kraft is introducing new products to emerging economies. This is occurring with company focusing their efforts in China, India, Brazil and ussia. Product development is where the firm will modify various types of merchandise. This is taking place with the company understanding changes…
Kraft Foods. (2013). Yahoo Finance. Retrieved from: http://finance.yahoo.com/q?s=KRFT &ql=0
Kraft Foods Mission Statement. (2011). Kraft Blogger. Retrieved from: http://kraftblogr.blogspot.com/2011/09/kraft-foods-mission-statement.html
David, F.R. (2009). Strategic management concepts. Upper Saddle River, NJ: Prentice Hall.
Nestle, M. (2007). Food Politics. Berkley, CA: University of California Press.
In addition, it makes little sense to split out Canada as a unique reporting segment from the United States. The highly integrated economies, free flow of goods, near parity of currency and nearly identical product lines would indicate that there is little operational or strategic benefit to cutting Canada out from the United States. This may allow Kraft to rationalize production more, improving efficiency. The possibility of rationalizing production for Mexico should also be explored as that nation's economy becomes more integrated with that of the United States.
Kraft attempts to build share in its mature markets through a differentiation strategy. There is evidence, however, in the company's inefficiency and lower than industry averages margins, that the consuming public does not ascribe to Kraft the degree of differentiation that the company seeks. In order to improve efficiency, two steps can be taken. The first is to lower prices, spurring…
Kraft Foods 2009 Form 10-K. Retrieved April 21, 2010 from http://www.sec.gov/Archives/edgar/data/1103982/000119312510040106/d10k.htm
No author. (2010). MPs demand close monitoring of Kraft's undertakings. Parliament.uk. Retrieved April 21, 2010 from http://news.parliament.uk/2010/04/mps-demand-close-monitoring-of-krafts-undertakings/
MSN Moneycentral: Kraft Foods. (2010). Retrieved April 21, 2010 from http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=TenYearSummary&Symbol=U.S.%3aKFT
Kraft Foods is an example of a complex and innovative company. It is the largest branded food and beverage company in North America and the second largest globally. It operates in over 150 countries worldwide with a number of the world's preferred food brands. Kraft holds more than 35 major brands with over a century of successful sales: Oscar Mayer, Maxwell House, Jell-O, and Velveeta. In 2011 the company posted revenues of over $54 billion and continues to employee over 125,000 people worldwide (www.kraftfoodsgroup.com).
Kraft operates a diversified product portfolio with five core divisions: snacks, beverages cheeses, groceries and convenience prepared meals. The company is global in operations and has nine brands that exceed $1 billion in revenue. Kraft has over 223 manufacturing and processing plants worldwide, and 236 distribution plants. Conservative values of property and plant equipment top $14 billion. Kraft has just under 130,000 employees globally. As of…
Financial Analysis of Kraft Foods. (2011). Slideshare. Retrieved from: http://www.slideshare.net/yofosu/financial-analysis-kraft-foods-inc-kft
History of Cadbury's Sweet Success. (January 19, 2010). The London Times. Retrieved from: http://www.thetimes.co.uk/tto/business/industries / consumer/article2168253.ece
Kraft Foods Expands Sustainability Goals to Build on Success. (May 2011). Mondelez International. Retrieved from: http://www.mondelezinternational.com / mediacenter/country-press-releases/us/2011/multi_media_05112011.aspx
Kraft Foods Inc., Annual Report Fiscal Period 2010. (2011). Thomson Reuters. Retrieved from:
Kraft Foods, Inc.
An American Firm, Kraft foods Incorporation is a grocery manufacturing and confectionary firm formed in 2012. In the Chicago suburb, Northfield, Illinois is a place where headquarter of Kraft Foods Group is established. The organization is formed by demerger. Mondelez International was the new name of the demerger from Kraft Foods (About Kraft, 2012). In turn, Mondelez is a confectionary company and multinational snack whereas grocery business is the main focus of this North American Kraft food Group incorporation. Listed on NASDAQ, Kraft foods is a public company with independent standings.
Convenience foods, confectionery, snack foods, dairy foods, cheese and beverage are the core businesses of the organization. There are 128 brands in the list of distributed, owned, developed and developing brands in Kraft Foods Incorporation (MacArther, 2012). Some of the brands are Boca Burger, Better Cheddars, Bagel-Fuls, Back…
About Kraft, (2012), Retrieved from: http://www.kraftrecipes.com/about/AboutKraft.aspx
Chitakaem, A., (2011), "Retaining Your Most Engaged and Talented Employees, Retrieved
Don't Pamper Employees -- Engage Them, (2013), Retrieved from:
Extenal Envionment Analysis: Kaft Foods Goup
Kaft Foods, Inc., by means of its banches, ceates and makets foodstuff that is packaged and dinks all ove places such as the Middle East, Afica, Euope, and Asia. The copoation is able to supply its poducts to, supemaket chains, club stoes, wholesales, mass mechandises, convenience stoes, value stoes, dug stoes, distibutos, and othe etail outlets. In addition, they povide dessets, eady-to-eat ceeals, ganishes and convenient foodstuff. Beginning in Mach 2011, Kaft Foods was opeating in excess of 80 nations. It is also egisteed on the NY Stock Exchange with one of its most impotant achievements being that of Cadbuys in 2012 fo about $20.5 billion. With that said, food industy is an unceasingly on demand industy that individuals ae always want and need. Some economists and analysts claim that food industy is one of the most poof to financial decease. This makes this…
references will regulate the receipt of food products. Furthermore, the local taste and likes must be met and this will involve the companies and business to appreciate the local market place before boarding into the local ones.
It is quite obvious that the technological factors really do have some kind of an effect on the production and success of the plant and operation. When it comes to the food industry we are looking at the progression and enhancement in terms of technology engaged in food industry that accordingly recover the yield, making it more reliable and efficient. Product innovation and improvement is likewise produced with the aid of new systems technology, or techniques, this will then help the industries to harvest high quality and better food products in terms of health taste, ingredients, and safety.
Kraft Foods Group, Inc. vision is at all times is to make today enjoyable. The company makes some of the best-known brands all over the world. Products such as dinners, dressings and Kraft cheeses, Philadelphia cream cheese; Oscar Mayer meats; Nabisco cookies Maxwell House coffee; and different kinds of crackers and cookies, not to mention things such as LU biscuits and Milk chocolates. They managed to create reliable, growth that is consistent. That is what they are doing at Kraft, and their approaches are concentrating determinations on putting together a high-performing organization.
Strategies for Kraft Foods
The use of the different analytical models on Kraft Foods may be brought together on a table, using a SWOT analysis as the basis, and identifying a major factor from one of the models that may be assessed within the context of the different competitive strategies that may be adopted.
Looking first at the strengths; the firs has many One which may be particularly valuable in terms of the development of competitive advantageous the research and development expertise that exists within the firm. This has been drawn from the esource-Based View (BV) of the firm, as one of the human resources that are available.
The weakness chosen for the analysis is the high level of substitutability, taken from the Porters five forces analysis. The goods that are sold by Kraft can be easily substituted with other goods, for example, the packet of Kraft macaroni…
Kraft Foods, (2014), Form 10k, accessed at http://files.shareholder.com/downloads/ABEA-3QV6OO/3479462482x0x730413/145F2E19-6958-4EA2-9111-B31F2E8CEF47/filing_10K.pdf on 29th September 21014
Kraft Foods, (2014), accessed at
Strategic Analysis Kraft Foods Company
Kraft Foods Company is the leading beverage and food company in America. The company has established footprints in more than 70 countries throughout the world selling its products to more than 200 countries via its subsidiary companies. Kraft Foods markets and manufactures packaged food products including confectionary, cookies, processed meats, convenient meals, deserts, cereals, juice, coffee and beverages. These products are major consumer products and lead the consumer markets such as cheese, beverages, and snacks under main product brands such as Maxwell house and Kraft. Kraft Foods has focused on provision of customer friendly food products by focusing on wellness and health, premium products, quick meals and snacks. The company's products are distributed via numerous channels such as satellite warehouse, distribution centers, depots, storage facilities and other facilities (Williams, 2006).
Which of the four generic (Porter) strategies does the Kraft Foods Company follow, and how…
Daft, R.L., & Marcic, D. (2006). Understanding management. Mason, Ohio: Thomson/South-
Gitman, L.J., & McDaniel, C.D. (2009). The future of business: The essentials. Mason, OH:
South-Western Cengage Learning
Strategy Implementation at Kraft Foods
Strategy Implementation at Krafts Foods
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,…
Garrow, V. & Hirsh, W. (2008). Talent management: Issues of focus and fit, Public Personnel Management, 37 (4): 389-403.
Heneman, R.L., Fisher, M.M., & Dixon, K.E. (2001). Reward and organizational systems alignment: An expert system, Compensation & Benefits Review, 33 (6): 18-29.
Kraft Foods, (2013). About Us. Retrieved on March 14th, 2013, from
Pryor, M.G., Singleton, L.P., Taneja, S., & Toobs, L.A. (2009). Teaming as a strategic and tactical tool: An analysis with recommendations, International Journal of Management, 26 (2): 320-334.
Strengths and Weaknesses of Kraft Foods
Kraft Foods is a major U.S. firm that has undergone change in recent years. To assess the firms' current position, as well as look to the potential for future strategies, a common tool is a SWOT analysis. The SWOT analysis examine the firm and its environment, examining influencing factors by looking at the strength, weaknesses, opportunities and threats faced by the firm. This paper will focus in the internal factors, which are considered through the strengths and weaknesses
The firm has a large numbers of strengths. These include the scope and scale of the operations, the firms' position in the North American markets, the financial position of the firm, and their ability to adapt, supported by the research and development resources. These different strengths can all be examined.
The firm has a strength in terms of the number of brands that…
Baertlein, L, (2014, Sept 30), Kraft challenged by "healthier" macaroni and cheese brands, Reuters, accessed at http://www.reuters.com/article/2014/03/30/us-kraft-macandcheese-idUSBREA2T09C20140330
Kraft Foods, (2014), Form 10k, accessed at http://files.shareholder.com/downloads/ABEA-3QV6OO/3479462482x0x730413/145F2E19-6958-4EA2-9111-B31F2E8CEF47/filing_10K.pdf on 21th September 21014
Kraft Foods, (2014), Keurig Green Mountain, Inc. And Kraft Foods Group, Inc. Announce Licensing Agreement [press release, accessed at http://files.shareholder.com/downloads/ABEA-3QV6OO/3479462482x0x778092/485b3a7a-8e38-47f3-aa29-6badee4b4e70/GMCR-KRFT_News_Release_2014-08-22_FINAL.pdf on 21st Sept 2014
Kraft Foods, (2014), Kraft Foods Group Voluntarily Recalls Small Quantity Of Velveeta Original Pasteurized Recipe Cheese Product Due To Low Levels Of Preservative Ingredient, [press release] accessed at http://files.shareholder.com/downloads/ABEA-3QV6OO/3479462482x0x763122/dc275271-9e00-4f7b-a350-6b1ca7b7e4fb/Kraft_Velveeta_Recall_Press_Release.pdf on 21st Sept 2-014
The fourth C. is contagiousness. In communications, contagiousness is good. One wants their viewers to catch the message, run with it, and spread it around. In order to be contagious, a message has to be lively, new, dissimilar, and unforgettable. It should also suggest a bright emotional reaction, have talk prospective, inspire the target to do something, and draw out a comprehensible response (Albanese, 2011).
When it comes to advertising in regards to children the advertising industry has acknowledged a need to be aware of:
The special sensitivities involved in communicating to kids
The diverse stages of development the child goes through in its social environment
The lack of understanding the child has and its limited ability to measure the trustworthiness of messages it receives from the media
The significance for concern when appealing to the creative capabilities of younger kids
The important roles of parents and their accountability in…
Advertising as Effective communication? (2011). Retrieved from http://wiki.answers.com/Q/Advertising_as_Effective_communication
Albanese, Isabelle. (2011). How to Make Your Messages Memorable. Retrieved from http://humanresources.about.com/od/interpersonalcommunication/qt/memorable.htm
Anderson, Arnold. (2011). 7 C's of Effective Business Communication. Retrieved from http://smallbusiness.chron.com/7-cs-effective-business-communication-114.html
Case 6-3 Kraft Foods, Inc.: The Cost of Advertising on Children's Waistlines. (2006). Retrieved
Marketing to Millennials is important. The problem has been that they have been ignored and instead, their parents were the ones that were a market to for many years. This is significant since parenthood is altering the way millennials have been interacting with products and how they pick the products. Before they had children, millennials were particularly more likely to purchase brands that they looked at as having amazing quality. This was regardless of the value. They now put a greater stress on convenience and price in comparison to other features when ordering for themselves. Kraft Canada wants to come up with a way to not just market to the parents, but also to their children in a way that is effective and that can be traded in a way that is appealing (Kraft Foods Canada:Targeting The Millennials 2014). It is evident to the company that such transitions…
Sources of Information for a Porters Five Forces Analysis on Kraft Foods
To undertake a Porters Five Forces analysis it is necessary to identify potential sources of information that will give the required information. The Five Forces analysis will require an assessment of the five areas; degree of rivalry among competitors, threat of new entrants, bargaining power of suppliers, bargaining power of customers, and availability of substitutes. This process can be examined by looking at the sources which may be used for a Porters Five Forces analysis of Kraft Foods, a firm that competes in the food industry. Each of the forces will be considered separately.
Degree of rivalry among competitors
Source 1; CSI Market; UL is http://csimarket.com/stocks/competitionSEG2.php?code=KFT
This is a very useful web site which has the primary aim of providing information to potential investors. The page on Kraft Foods is particularly useful in assessing the firm's position…
Baertlein, L, (2014, Sept 30), Kraft challenged by "healthier" macaroni and cheese brands, didReuters, accessed at http://www.reuters.com/article/2014/03/30/us-kraft-macandcheese-idUSBREA2T09C20140330
CSI Market (2014), Kraft accessed at http://csimarket.com/stocks/competitionSEG2.php?code=KRFT on 7th Sept 2014
Food and Drug Administration, (2004), accessed at http://www.fda.gov/Food / on 7th September 2014
K-Mart, (2014), accessed at http://www.kmart.com/en_us/grocery-pet.html on 7th Sept 2014
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.
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 at this week's GAGNY conference in…
Ferrari, B. (2010). Kraft Foods Facing Considerable Global Supply Chain Challenges. Supply Chain Matters.
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.
Over the last few years, Kraft has been dealing with unique challenges. This is from the wide range of products and markets the firm is competing. In this study, there was a focus on the current opportunities and challenges. What was determined is that Kraft is facing considerable risks from a number of industry and external factors. To address these issues, the firm must maintain constant amounts of watchfulness of new changes and quickly adjust to them. This will help the company adapt with critical challenges and address the needs of stakeholders.
For many firms, globalization has increased the competitive pressures they are facing inside the marketplace. This has transformed the kinds of strategies they are utilizing. In the cases of Kraft Foods, they are facing similar issues from these and other factors such as: high raw material and energy costs. This has the potential to hurt their ability…
Kraft Foods. (2012). Yahoo Finance. Retrieved from: http://finance.yahoo.com/q?s=KRFT
Our Progress in 2011. (2011). Kraft. Retrieved from: http://www.kraftfoodscompany.com/SiteCollectionDocuments/pdf/KraftFoods_DeliciousWorld2011.pdf
PEST Analysis. (2009). Value-Based Management. Retrieved from: http://www.valuebasedmanagement.net/methods_PEST_analysis.html
Porter's Five Forces: A model for industry analysis. (2007). Quick MBA. Retrieved from: http://www.quickmba.com/strategy/porter.shtml
The author of this response is to find out some details and information about the company Kraft Foods. Indeed, the facets and characteristics that will be summarized and described will include the organization's structure, how centralized it is or is not, the lines of authority and communication as well as the teams, committees and task forces that make up the organization. Next up will be the systems of Kraft including how the budgets are set, how the planning is done and what measures are used to evaluate performance. After that, the people of Kraft will be discussed. The facets of the people will include the skills, experience and knowledge of the employees, their depth and quality and their attitudes about the company itself and their jobs within in. Finally, there will be a description of the culture of Kraft. Topics for the culture will include their values, their…
Clarke, B. (2014, October 11). Cross-cultural management: Kraft's - CEO Forum Group.
Cross-cultural management: Kraft's - CEO Forum Group. Retrieved October 11,
2014, from http://www.ceoforum.com.au/article-detail.cfm?cid=6063&t=/Ben-
Until now, Kraft has rested its marketing strategy for its processed cheese slices on the traditional demographic of Canadian families. As the millennial market grew, the need to reposition Kraft singles became immediately apparent. Moreover, the market for processed cheese itself had been falling and millennials tended towards products that reflected wellness and healthy food—the antithesis of what processed cheese offers. Kraft therefore finds itself in a position of needing to rebrand one of its most iconic products, making Kraft Singles relevant to millennial moms—and their children.
Kraft Singles promotes four core brand attributes overall: health, nutrition, taste, and convenience (p. 7). To retain authenticity, Kraft Singles needs to develop a new marketing campaign that is both relevant to millennial moms while also remaining rooted in these four core attributes or values. Because of the connotation of processed cheese as being less healthy than real cheese, Kraft Singles…
BV Analysis of Kraft Foods
Kraft Foods is a large corporation with interests in many sectors of the food and beverage markets. The basis of the firms' success, and challenges, can be appreciated by looking at the firm from an internal perspective using the resource-based view (BV). In a resource-based view analysis a firm can be seen as more than its output, instead it is viewed in the context of its combined assets and competences and the way in which they are configured, or can be reconfigured, in order to compete and create value.
The resources themselves may be considered in two main categories; the tangible and the intangible resources. The different asset types may be assessed individually, with consideration of the way they are configured.
A major category of Kraft Food assets, and an asset group on which the firm is highly reliant on,…
Alvarez, Jesus Timoteo; Gonzalez, Sonia A. Ferruz; Daguerre, Jesus Calzadilla, (2012, Dec), Pricing and Valuation of Intangible Assets, Journal of Modern Accounting and Auditing, 8(12), 1780-1788
CSI Market (2014), Kraft, accessed at http://csimarket.com/stocks/competitionSEG2.php?code=KRFT on 17th Sept 2014
Kleinberg, Adam, (2011, Jan), Why Every Brand Needs an Open API for Developers, accessed at http://mashable.com/2011/01/04/brand-open-api-developers/
Kotler Philip; Keller Kevin, (2014), Marketing Management, Prentice Hall
Porter's Five Forces Analysis
Threat of Competition (Moderated)
To begin, the threat of competition is moderated by the large size and market position of Kraft. The food and beverage industry should grow, at least as fast of the overall population. Combined with market share growth, the company is well positioned to grow 3% to 5% a year. Kraft is one of the largest food and beverage distribution companies in North America. It is a publicly- traded limited partnerships in the U.S. However, Kraft faces competition in the industry, as there are other companies that offer similar services in addition to proprietary products owned and operated by large integrated companies, and also it is the possibilities of merge or acquisition to other companies. Information that can be used to better ascertain the companies position are trade publications such as the overall census report to determine population growth. Food and beverage,…
Resources with explanation
1) www.census.gov- this resource provided information regarding population growth and the subsequent expenditures of the population. This information provides an overview of the overall industry as it relates to Kraft. This information is very reliable as it is provided by the United States government.
2) http://www.census.gov/compendia/statab/cats/business_enterprise/investment_capital_expenditures.html - this resource provides information as to capital expenditures and investments as it relates to competition. These investments all Kraft to better gauge occurrences in the industry overall. This source is very reliable as it is very specific in regards to industry.
3) http://www.bizreport.com/magazines/food_and_beverage_packaging.html - this resource provides trends within the overall food and beverage industry. Kraft can utilize this information to better ascertain its ability to compete in a changing and dynamic industry.
4) http://www.stlouisfed.org/publications/re/articles/?id=2194 - this resource provides information regarding foreign direct investment. This allows Kraft to view competitor's expenditures in other markets outside the United States. This information is very reliable by may be subject to mistakes. Areas such as China are not entirely accurate with their disclosures regarding investment.
Kraft Foods' Competitive Strategy
Kraft Foods is a one of North America's largest packaged food companies. To reach its current competitive position the organization is changed to great deal of the last decade, with increased focus on the core products, and the sale or spin-off of the non-core divisions, for example the sale of the frozen pizza division 2010 to Nestle, and in 2012 the demerger of Mondel-z International (Kraft Foods, 2014). This has left the company with a high level of focus in selected product categories and North American markets. The shift in the company's focus has impacted on the way in which they compete, but despite this change narrowing of focus, the organization still be seen as one which serves the mass market, with some type of Kraft Food product 90% of all households in the United States, 99% of all households in Canada (Kraft Foods, 2014).
CSI Market, (2014), Kraft Foods, accessed at http://csimarket.com/stocks/competitionSEG2.php?code=KRFT
Kotler Philip; Keller Kevin, (2011), Marketing Management, Prentice Hall
Kraft Foods (2014), Home Page, accessed at http://www.kraftfoodsgroup.com
Kraft Foods, (2014) 10=k, accessed at http://ir.kraftfoodsgroup.com/secfiling.cfm?filingID=1545158-14-3&CIK=1545158
The Alignment of Organizational Components, Mission and Strategy at Kraft Foods
Key Strategic Controls
Primary Human esource Concerns
Alignment of Organizational Components, Mission, and Strategy
Kraft Foods are a major North American Food manufacturer. The firm has a duel mission, to be the best food and beverage firm in North America selling products that people love and becoming the best investment in the industry. To achieve these goals and overcome, the challenges of the past, the firm has developed a new divisional structure based on products to increase the focus on the individual brands. The culture values the employees, and one of the main areas of focus is the &D, with more than 500 staff employed in 2 &D centers. The past culture of Kraft saw innovation associated with failure, this has now been turned around using an approach referred to "positive discontent',…
Buchanan, D; Huczynski, A, (2010) Organizational Behavior, Harlow, FT/Prentice Hall
CSI Market (2014), Kraft, accessed at http://csimarket.com/stocks/competitionSEG2.php?code=KRFT
Forbes, (2013, March 22), How Kraft Changed the "Change" Perception, Forbes, accessed at http://www.forbes.com/sites/johnkotter/2013/03/22/3822/
Kraft Foods, (2014), accessed at http://ir.kraftfoodsgroup.com/
Seneca Foods was founded in 1949 and is a producer of canned, frozen and bottled foods for the supermarket trade, often under store labels. In 2013, Seneca posted $1.27 billion in sales and net income of $41.4 million. The company is in the mature stage of growth for both itself and the industry, growing mainly with increases in population and inflation. The company's operations are subject to variability from weather, which affects the crops at the heart of the supply chain, and the seasonality of the industry.
Internally, Seneca has a strong supply chain, wherein it contracts with farmers to ensure supply of critical fruits and vegetables for its products. That said, Seneca remains quite small compared with many of its competitors, as Seneca mainly sells in the U.S. And has few major brands. Larger competitors sell globally and have individual brands as large as Seneca's entire operation. One of…
"Retail." Seneca Foods. Retrieved from http://www.senecafoods.com/products/retail
"Seneca Foods 2013 Annual Report." (2013). Seneca Foods. Retrieved from http://www.senecafoods.com/sites/default/files/node-annual_report-field_annual_report_pdf_/annual_13report.PDF
"Farming Operations." Seneca Foods. Retrieved from http://www.senecafoods.com/farming-operations
"About Us." Seneca Foods. Retrieved from http://www.senecafoods.com/about-us
Convenience rather than creating cuisine is the priority of Kraft ads. Adult tastes are given less of a priority than suiting the palate of children. Nutrition is paid homage to, but only in the sense of giving a family a starch, protein, and vegetable on a plate in the Hormel TV dinner advertisement.
One ad that occurred towards the end of the show, a Domino's Pizza advertisement, seemed to clash with the demographic of the other advertisement. However, the cheapness of Domino's many specials enables a mother to feed a large family quickly.
It is interesting to compare the Martha advertising with the advertising for later-night television programs aimed at a younger demographic, with a larger male audience. These ads favor snack food like sodas, have hipper and more conceptual features, and in the case of many fast food advertisements like KFC and McDonald's, often feature minority actors, even those…
childhood obesity and its correlation to social-economic background. he researchers argued that attention to childhood obesity focuses on genetic and environmental factors, and there is the increasingly prevalent belief that pediatric obesity may be a combination of both. Environmental factors can limit obesity but what -- the researchers wondered - stimulated the influencing environmental factors
Previous study: What has the previous study found out?
A previous study that the researchers had conducted stipulated three prime factors that were environmentally responsible for obesity. hese were: low weekly levels of moderate physical exercise, high levels of daily television viewing, and routine participation in a school lunch program.
he hypothesis of this study was that certain socio-economic backgrounds were more conducive for introducing these factors than were others in that -- and this was their hypothesis - median household income influenced nutrition and recreational activities.
Investigation of this suggestion was the purpose…
The correlation may be there but it pertains just to Massachusetts and indicates correlation rather than causality.
Eagle, T. et al. (2012). Understanding childhood obesity in America: Linkages between household income, community resources, and children's behaviors. The American Heart Journal, 163, 816-837.
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. ecently 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.
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:
Internal Analysis SWOT Analysis
esource-Based View (BV) analysis in Kraft Foods Company
esources in Kraft Foods Company
Kraft Foods Company has an advance of physical resources. These resources are meant for production and creation of a sustainable environment of productivity. Within the notion of productivity, Kraft Foods Company benefits from the resources since they offer the company a positive strength or capability to perform in the market. Increase in the amounts of resources translates to increase in productivity within the organization. Therefore, fullness of resources within the company has fostered its existence and strength of productivity in the market. Physical resources are the tangible facets that are used in production. For instance, the company relies on manufacturing structures, tools, and transportation mechanisms like trucks. These tangible resources are of immense assistance when it comes to productivity within the organization.
The physical resources give the company strength of productivity.…
Henry, A. (2007). The Internal Environment: A Resource-Based View of Strategy.
Understanding Strategic Management. Oxford University Press. Retrieved on November 6, 2012 from http://www.oup.com/uk/orc/bin/9780199288304/henry_ch05.pdf
The Value Chain. (2007). Retrieved on November 6, 2012 from:
Business and Corporate
business strategy analysis of kraft foods
Analysis of Business Level Strategy
Kraft Foods Inc. is the second largest food company in the world and makes annual revenues in excess of $54 billion (Kraft Foods Annual eport, 2012). It operates in a highly competitive consumer foods industry where high volume sales are essential for competitive success. Tapping into new markets and growing one's brand portfolio are also important for growth and success.
Kraft Foods Inc. pursues a number of business-level strategies to support its corporate level strategies. The business level strategies are determined by answering the question How do we compete? (Ireland, Hoskisson & Hitt, 2008). Kraft Foods Inc. has selected product differentiation and brand development as its primary business level strategy. Product differentiation involves creating and conveying to the consumer a unique feature of the product portfolio that distinguishes the company from the competition and…
Furrer, O. (2011). Corporate level strategy: Theory and applications. (p. 2). Routledge
Ireland, R.D., Hoskisson, R.E., & Hitt, M.A. (2009). Understanding business strategy: Concepts and cases. (p. 88). Cengage Learning
McKern, B. (2003). Managing the global network corporation. (p. 125). Routledge
O'Grady, T.P., & Malloch, K. (2010). Innovation Leadership. (p. 371). Jones & Bartlett Learning.
Strategic Management Process/Vision, Goals, Objectives
This document examines the mission, vision, values, and goals of Kraft Foods Group. It does so primarily to denote the fact that these components are indicators of this company's strategy. The document also aligns these components with the interest of stakeholders.
It is exceedingly important for organizations within today's climate of rapid-fire technology and constantly changing marketplaces to adhere to strategy. Due to the celeritous pace of both of these factors, there has been a tendency of many competitive organizations to assume that they can only remain competitive by refining operations processes, which involves cutting costs and increasing time to market of its products (Hammond, 2001). Nonetheless, an evaluation of one of the most successful enterprises within the food and beverage industry, Kraft Foods Group, reveals that an adherence to strategic positioning is a critical prerequisite for not only short-term success, but that which continues…
Hammonds, K. (2001). Michael Porter's big ideas. www.fastcompany.com Retrieved from http://www.fastcompany.com/42485/michael-porters-big-ideas
Welch, J., Welch, S. (2008). State your business. Bloomberg Business Week. Retrieved from http://www.businessweek.com/stories/2008-01-02/state-your-business
business, there are a number of issues that will have an impact on a firm's ability to compete and increase their profit margins. One of the most formidable is the transformations that can occur inside an industry. This means that corporations have to understand potential threats and create strategies for mitigating them. Otherwise, there is the possibility that a company could lose their market share and dominance in the sector.
A good example of this can be by looking at General Motors. From 1946 until 2008, they were considered to be the world's largest automaker. Yet, foreign manufacturers continued to erode away at their position. This is because the management failed to understand the challenges they were facing and adapt with them. The long-term effects are that the firm was forced into bankruptcy and had to receive government bailouts in order to stay in business. This is illustrating how not…
Please attached documents create a research paper accordance guidance provided.
Strengths: Outbound logistics
The company should improve their distribution method to make it more cost effective thus allowing them to cut distribution costs and these savings can be passed on to the consumers. As posited by Alagse (2012)
, the best strategy for Kraft foods would be to become the lowest cost supplier of their products rather than the lowest cost producer. This would enable the company to translate their cost advantage into price advantage for their consumers enabling them to improve their market share.
The company should ensure availability of their products in order to enjoy prolonged sustainability as a result of ease of access of their innovative products to the consumers thus increasing brand loyalty. The company will also be able to create unique value for their products as a result of…
http://www.alagse.com/strategy/s10.phpAlagse. (2012). Customer focused low cost leadership strategy Retrieved November 22nd, 2012, from Dennis, A.R., Nunamaker, J.F., Jr., & Paranka, D. (1991). Supporting the Search for Competitive Advantage. Journal of Management Information Systems, 8(1), 5-36. doi: 10.2307/40397972
Jemmeson, P. (1997). Using the Internet for competitive advantage. Industrial Management & Data Systems, 97(4), 139-142. doi: 10.1108/02635579710173202
Lindahl, D.P., & Beyers, W.B. (1999). The Creation of Competitive Advantage by Producer Service Establishments. Economic Geography, 75(1), 1-20. doi: 10.2307/144459
Ma, H. (1999). Creation and preemption for competitive advantage. Management Decision, 37(3), 259-267. doi: 10.1108/00251749910264497
A metal or wooden spatula would work best for spreading. (emember, no licking off the utensil until everything is spread.) Top with chili and cheddar cheese.
Bake at 350 degrees for 20 to 25 minutes or until thoroughly heated. Garnish with chopped green onion and bits of tomato. Serve with tortilla chips.
If you are going to a party and know that an oven is available, I would wait until you arrive before heating up the dish. That is, unless you live in the same place or next door to where the party is being held.
As you can see, this is really a no brainer. Even I can make it, and believe me, I am no chef. Plus, it is something that will be liked by almost everyone at the party. Who cannot like this American delicacy?
There are a great number of permutations on this dish, which can…
Hormel Foods. Our Kitchen. "Hormel Chili Cheese Dip." Website retrieved October 22, 2005. http://www.hormel.com/kitchen/recipe.asp?id=1712
Kraft Foods. Kraft Best-Ever Holiday Recipe Collection Description. New York:
Meridith Books, 2000.
The Recipe Link. Chili Cheese Dip. Website retrieved October 22, 2005.
Another contribution that a Sales Department can provide is not only in terms of introducing the new Far East Salad and bringing it to the market. Additionally, the Sales Department can play the role of taking care of customers' needs and looking after the things that are beneficial for them in relation to the organization's food products that they patronize. This role provides benefits for both the customers and the organization which in the end can result to the success of the organization.
Thirdly, the sales department can further contribute to the success of the organization by making the product known to consumers which consequently can make the company known as well. The Sales Department can achieve this through effective sales strategies of foods; strategies that include the following elements (Kraft Online).
Although these elements are sometimes mistaken for marketing elements, it is actually during sales…
Perner, L. Consumer Behavior and Marketing Strategy.
Retrieved on May 25, 2006, from Online.
Web site: http://www.consumerpsychologist.com/
The Vital Role of Sales at Kraft Food UK.
eanie-the Flavor Company-was born in the homely garage of Mark Porteus in February 2009. It was the brainchild of Chris Tarling and Mark Porteus, former employees of oater's Coffee. As more investors joined the company, the eanies brand was officially launched and registered. As operations began to expand out of the scope of Mark's garage, a 1000 square foot space was rented as an economical alternative in May 2009. Four varieties of flavored instant coffee were introduced in the same month. eanies truly became an "international" brand when it commenced exporting its product for the coffee lovers in Poland. With business growing further, the firm moved to a 2000 square foot space at the end of the winter in 2010. Growth in the digital realm is of prior importance to eanies and it launched its user friendly, fully integrated e commerce website that allows users to create a profile…
Beanies. (2012). Retrieved April 28, 2012, from Beanies Coffee: http://www.beaniescoffee.co.uk/
Coffee in Germany. CBI Ministry of Foreign Affairs in Netherlands.
(2010). Exporter Guide Germany Country Brief December 2010. New Zealand Trade & Enterprise.
German Coffee -- Flavor And Smoothness. (2011). Retrieved April 28, 2012, from German City: http://www.mygermancity.com/german-coffee
Germany Demographics Profile 2012. (2011, July 12). Index Mundi .
Germany Economic Structure. (2010, April 8). Economy Watch .
Germany in Transition: Traditional Markets in decline. (2004, June 14). Coffee and Cocoa International .
(2012). Hot Drinks in Germany February 2012. Marketline Industry Profile.
Competitor Product's Market
A short history of the organization and a description of their product
Hostess Brands, Inc. is a company set up in 1930 under the name Interstate Bakeries that later changed to Hostess Brands Inc. In November 2009. The company is located in the United States with its headquarters in Irving Texas. It has an operation centre in Kansas City, Missouri. The company works as a distributor and wholesale baker of snacks in the United States. It owns many brands such as Nature's Pride, Wonder Bread, Bakers Inn, Drake's and Dolly Madison. The company makes and sells cakes, loaves, snacks and rolls under different bakery brands (Smith, 2012).
These brands also make blue berry muffins, cheese Danishes, food cake donuts, honey buns and bear claws among others. Hostess gets revenue through selling of baked goods to mass marketers, supermarkets and stores in the U.S. The privately held bread…
Blythe, J., & Zimmerman, A.S. (2005). Business-to-business marketing management: A global perspective. London: Thomson Learning.
McEachern, W.A. (2012). Microeconomics: A contemporary introduction. Mason, OH: South-Western Cengage Learning.
Smith, A.F. (2012). Fast food and junk food: An encyclopedia of what we love to eat. Santa Barbara, Calif: Greenwood.
Welch, P.J., & Welch, G.F. (2009). Economics: Theory and practice. Hoboken, N.J: Wiley.
Beverage & obacco
Beverage and obacco Industry Analysis
Although the beverage and tobacco industry face mounting obstacles to their success, there are also an infinite number of possible opportunities. One clear opportunity is provided by emerging markets. he numbers of individuals who have greater levels of disposable incomes are increasing exponentially in the developing world. his represents a tremendous opportunity for corporations in the beverage and tobacco industry to tap into these emerging markets. Another opportunity for this industry can be thought of in terms of a localization initiative. here are growing concerns in industrialized nations which are centered on health issues. hus the beverage and tobacco industry stands the potential to innovate based on the consumer demands. hey could create a diversified product portfolio that was catered to the needs of the specific market.
here are a growing number of potential threats that plague the beverage and…
There are a growing number of potential threats that plague the beverage and tobacco industry. The first is the trend that is emerging in many of the industry's primary markets which is that the consumers are becoming more health conscious. Thus consumer demand for tobacco products and unhealthy beverages that contain ingredients such as high fructose corn syrup are diminishing rapidly. Many consumers are dedicated to living more healthy lifestyles and as a consequence they are shunning products that are not consistent with this preference. Another threat that is driven by consumer preference but represent an entirely different level of threat is that many health considerations are actually the subject of increasing regulations. For example, many cities have chosen to ban smoking from public spaces as well as prohibit unhealthy beverages being sold at places such as schools.
There are a countless number of manufactures and suppliers in this industry. Phillip Morris is one of the world's largest tobacco companies which name was officially rebranded in 2003 under a new name known as Atria. Atria also holds a significant stake in Kraft foods and also subsidiaries that operate in the wine industry. PepsiCo is one of the largest food and beverage companies and the largest U.S. based firm in the industry. InBev is one of the largest alcoholic manufactures and distributors in the world and operates in over one hundred thirty different countries. It recently purchased Anheuser-Busch in 2009 which significantly increased the size of the operations. To complete the deal, the United States required that InBev quit importing certain brands of beers to the U.S. market so that InBev would meet anti-trust regulations.
2 Marketing Communication Objectives
• Promotional Objectives: Initiate grass root, interactive, and experiential campaigns, over a six-month period, throughout the United States, to increase brand awareness, trial consumption, and long-term end-users. Target the college and college-aged segment, and college beach territories. Track consumer activity through specialized giveaways and promotions one to 1.5 years to determine the number of resulting repeat, long-term users. Aside from branding results, promotional efforts, with a budget capacity of $300,000, aim to secure at least 20,000 new long-term users or $250,000 in traceable sales, within one to 1.5 years.
• randing Objectives: Maintain and augment a fun, celebratory brand image for Wispa bars. Contract brand ambassadors to foster brand awareness among 250 U.S. colleges, and reach 250,000 U.S. college-aged students with gratuitous Wispa bar samples, over a six-month period.
• Sales and usiness Development Objectives: Establish relationships with five new major retail distributors in the United…
Cadbury. (2012). Cadbury Products. Available:
http://www.cadbury.co.uk/ourproducts/Pages/OurProducts.aspx . Last accessed 7th April 2012.
GlobalData. (2010). Cadbury plc (CBRY) - financial and strategic analysis review. Available:
http://www.just-food.com/market-research/cadbury-plc-cbry-financial-and-strategic-analysis-review_id97007.aspx . Last accessed 6th April 2012.
While Cadbury was initially vulnerable resulting in this take over, Kraft had to borrow heavily to afford the final price of 850p per share. In the coming months and years, Kraft will have to balance against recovering the money put into this acquisition (Wiggins, 2010). A risk, many British politicians and citizens alike fear will mean the end of their signature chocolate in an effort by Kraft to increase their profit margin quickly.
Case Study 2: Discussion
The Kraft acquisition of Cadbury is a corporate negotiation making headlines across the world both for the magnitude of the deal and the incredible hostility which marked the negotiations prior to the final signing of the agreement. Cadbury wound up in a financially vulnerable position after several strategically bold maneuvers ultimately resulted in a poor stock showing for the newly de- merged Dr. Pepper Snapple drinks company, and the reliance of Cadbury on…
1. "Exxon, Mobil in $80B deal." CNN Money official site. CNN, 1 Dec. 1998.
2. Beaudin, Guy. "Kraft- Cadbury: Making Acquisitions Work." BusinessWeek. 9 Feb. 2010.
3. "Mannesmann seals deal." CNN Money official site. CNN, 3 Feb. 2000.
4. "$58B bank deal set: J.P. Morgan agrees to buy Bank One in a deal that would combine two of the nation's biggest banks." CNN Money.com. 15 Jan 2004.
In the "question marks" category were introduced the products of the "Specialty channel," as they appeared in 2004 and tried to conquer a relatively new market for the company, that of the non-traditional products. Therefore, this attempt has not been proved to be a real success because, just as in the case of the natural, organic and frozen products, the market of the specialties had been reached by other companies and, even though the investments were quite high, because the offer of products was diverse, the growth has proved to be quite low.
The QSPM Matrix
Having all these in mind, the main two directions I could identify for the Kellogg Company to follow are represented by a potential enlargement of its company in Europe -where for example, the sugar free chocolate chips cannot be found- or by a diversification of the products line in the North America, the most…
Henry H. BEAM, "Kellogg Company-2005," Western Michigan University
Rory O'BRIEN, "Normative vs. Empirical theory and Method," New York American library, 1981
J.P. GUILFORD, 'Psychometric Methods," McGraw-Hill, New York, 1954
E. GUMMERSSON, Relationship Marketing," Macmillan Publishing Company, New York, 1993
Another method that the company can use in order to promote its products is represented by sampling. The company can offer free samples of its products in supermarkets, hypermarkets, and other locations frequented by numerous customers. This is good strategy intended to introduce the company's products to the potential customers in the UAE.
There are several issues that must be addressed when developing the company's marketing strategy for the UAE market. The most important aspects are represented by the cultural and language barriers between the UAE culture and the American culture. There are significant differences between the Arab habits and the American ones. These habits also refer to eating habits.
There are products and ingredients that the Arabs are not allowed to eat. Therefore, it is recommended that the company is careful in selecting the products that will be introduced on the UAE market. The company should use a UAE…
1. Strategies (2008). Campbell Soup Company. Retrieved October 9, 2010 from http://careers.campbellsoupcompany.com/Strategies.aspx .
2. Annual Report (2009). Campbell Soup Company. Retrieved October 9, 2010 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Mzc0ODM3fENoaWxkSUQ9MzczMDc3fFR5cGU9MQ==&t=1.
The decision to sell off stores in the 2006, 2007 and 2008 timeframes has also harmed the company's ability to deliver value (Fair Disclosure Wire, 2010).
Balancing Profitability and Value
CPK needs to align its mission, strategy and organizational components to deliver value and build a foundation to grow exceptional customer experiences on. Based on an analysis of the investment in the ASAP locations, it is evident that building three well-located and executed full service restaurants would have been more profitable and supported the value proposition of delivering superior quality experiences and food.
This is the paradox that CPK finds itself in; by investing to broaden the reach of the company, it very well could have been better off developing even greater levels quality and experience in the existing stores and opening a few very high quality full service locations. Brand equity would have been preserved and the logistics costs…
Event Brief of Q2 2010 California Pizza Kitchen Earnings Conference Call - Final. (5 August 2010). Fair Disclosure Wire
Lockyer, S. (2008, March). Chains look to licensed products to drive revenues amid soft sales. Nation's Restaurant News, 42(11), 1,9,70.
Jessica Long. (2006, November). California Pizza Kitchen Refocuses Sights on San Diego Marketplace. San Diego Business Journal, 27(47), 1.
Ruggless, R. (2007, December). Fast-casual segment continues to forge ahead despite uncertain economic times. Nation's Restaurant News, 41(49), 1,75,78,80.
hostile takeovers unethical? Why ? 2. What strategies turbulent, high-Velocity markets?
Do you think hostile takeovers are unethical? Why or why not?
A hostile takeover, unlike a willing merger or acquisition, is a takeover of one company by another company that is openly resisted by the board of directors of the targeted firm (Hostile takeover definition, 2011, Investopedia). The problematic ethics of hostile takeovers can be seen in the recent war between the American-based Kraft Foods and old, stalwart British chocolate manufacturing company Cadbury. Cadbury's chief executive criticized Kraft's takeover bid, citing the lack of ethics of "large, heavily indebted firms" like Kraft that were in stark contrast to Cadbury's independent spirit (Carrell 2010). Cadbury's CEO said "principled capitalism [was] woven into the very fabric" of his company, in contrast to Kraft (Carrell 2011). Without upholding long-standing corporate principles "you risk destroying what makes Cadbury a great company" (Carrell 2011).…
Carrell, Severin. (2010, January 20). Cadbury takeover raises doubts over Kraft's business ethics.
The Guardian. Retrieved January 29, 2011 at http://www.guardian.co.uk/business/2010/jan/20/cadbury-kraft-takeover-fair-trade
Hostile takeover definition. (2011). Investopedia. Retrieved January 29, 2011 at http://www.investopedia.com/terms/h/hostiletakeover.asp
Kuzmicki, Jana F. (2011). Tailoring strategy to fit specific industry and company situations
Its business alliances have succeeded because of the past encounter and uncompromising principles of Starbucks. When Starbucks created a licensing contract with Kraft Foods, Inc., it permitted Kraft Foods to begin to make Starbucks' items available in grocery markets, and now because of that attempt their items are available all over Northern U.S. And even the United Kingdom. If Starbucks did not have the primary features of what it is looking for in an alliance, it might not have been as effective in its collaboration with Kraft Foods or any other partner. Starbucks was willing to think about the good and bad in the possible collaboration and choose on whether or not the collaboration would benefit its organization (Davidson & Fielden, 2013). If Kraft Foods, Inc. did not have the same corporate perspective and objectives that Starbucks had, Starbucks would not have engaged in business with them. Starbucks has been…
Beer, S. (2014). Diagnosing the system for organizations. New York, NY: Wiley.
Harrison, M. (2004). Diagnosing Organizations: Methods, Models, and Processes (Applied Social Research Methods) (3rd ed.). Berlin: Sage Publications.
Davidson, M., & Fielden, S.L. (2013). Individual diversity and psychology in organizations. Hoboken, NJ: John Wiley.
Smith-Acuna, S. (2010). Systems Theory in Action: Applications to Individual, Couple, and Family Therapy. John Wiley & Sons
Cadbury has a rich history that begun nearly two centuries ago. In 1831 John Cadbury began manufacturing cocoa products in the United Kingdom that were used in primarily chocolate drinks. The company later went through a series of evolutions to become the multinational confectionery company known today. Its original introduction into the confectionery market was a direct attempt to stem off the Swiss dominance that overtaken the industry. Today's market is somewhat similar to the market of the early twenty first century in the sense that there is still a large dominance by one of Cadbury's competitors.
By the late twentieth century Cadbury virtually dominated its home markets which were mainly comprised the European market and that of former British Commonwealth nations such as Australia and New Zealand. In these markets, Cadbury gained notary and product loyalty through early expansion efforts. In this particular industry, it is…
Carr, R. "Cadbury Chairman Reiterates Opposition to Kraft Bid." 12 September 2009. DealBook. Web. 13 October 2011.
Reynolds, J. "Kraft claims Cadbury brand is top British icon." 16 September 2010. Marketing. Web. 13 October 2011.
Club / Amazon.com
Finding the Book of the Month Club at the URL given for this assignment was not possible. For some reason, accessing www.bookofthemonthclub.com, leads to something called BuyDomains.com. Indeed, BuyDomains.com appears to be attempting to sell the site visitor the URL to Book of the Month Club - "Domains for sale," yells the header. Is this some kind of Internet skullduggery? However, by going to Yahoo! And searching for Book of the Month Club, one discovers that the URL is www.bomc.com.And meantime, as to which company (amazon.com or bomc.com) has the better site and marketing mix - it seems very clear that Amazon.com is far out in front in the sheer volume of offerings for the Web consumer. If shoppers just want books or movies, then bomc.com is an easy site to navigate. But when looking for clothing, electronics, toys, software, and the kitchen sink, amazon.com is the…
S. operations. "The joint venture, now known as MillerCoors is designed to create cost savings in the U.S., where SAB is the second biggest brewer and Molson the third behind Anheuser Busch" (Herman 2007). Thus, the SABMiller arm of Altria is also falling into line with the general acknowledgement for the need to cut costs in terms of business operations in the U.S. This is good news for Altria as well because it ensures that the product lines in which it still possesses an interest extend beyond the realm of tobacco are likely to cut costs and may improve their market showing in upcoming months. Given that beer is less expensive than many other alcoholic beverages, even during a recession it is more likely that people will consume beer than more expensive wine or spirits, and alcohol is more socially acceptable from a health standpoint than cigarette smoking in the…
About Altria overview."(2008). Altria Group. Retrieved 11 Aug 2008 at http://www.altria.com/about_altria/1_0_AboutAltriaOver.asp
Corporate restructuring." Altria Group. Retrieved 11 Aug 2008 at http://www.altria.com/investors/2_2_corprestructuring.asp
Herman, Robin. (18 Jan 2007). "Reanalysis of cigarette content confirms tobacco companies have increased addictive nicotine 11% over recent seven-year period." Harvard School of Public Health. Retrieved 11 Aug 2008 at http://www.hsph.harvard.edu/news/press-releases/2007-releases/press01182007.html
Our companies and their brands." (2008). Altria Group. Retrieved 11 Aug 2008 at http://www.altria.com/about_altria/1_2_companiesandbrands.asp
Starbucks has established themselves as the giant in the gourmet yet quickly served coffee industry. Sure, there are other competitors nipping at their proverbial heels like Dunkin Donuts, Caribou and Seattle's Best (at least until Starbucks bought them out) but Starbucks is national and ubiquitous on a level that these other more regional and/or smaller outfits can only dream of. Not only do they have a lockdown on the store-based market but they are also branching out into the home market by selling conventional coffee beans, K-Cups for the Keurig single-serve coffee makers and they also have started their own line of machines on top of that. While Starbucks should dare not be complacent or fail to look forward to the future, their current fortunes and progress are quite good and are unlikely to change in at least the near future due to aggressive expansion plans and good practices.
This I believe: success in life is wonderful, but it’s not the greatest teacher and it often doesn’t help foster experiences for personal and professional growth. Success is comfortable. It feels good. It attracts others towards you. However, I’ve always believed that one of the most important things to experience in life is failure. There are numerous reasons for this. This essay will explore the power of failure and the importance of failure. This essay will suggest that failure is one of the most necessary ingredients for enormous success.
One of the most intense benefits of failure is that it shows intelligent, talented people that they are not infallible. One of the obstacles of being talented and intelligent is that such people have often heard these types of compliments their entire lives. It doesn’t necessarily mean that they’re arrogant, but it can indicate mean that they assume that every…
alt Disney Company Scenario
Scene: Fiscal Karat (FK), host of TV's Let's Talk Money, is seated at the center of an oak conference table. Let's Talk Money is a weekly PBS talk show that interviews business leaders and often finds government officials to debate certain ideas and programs. Tonight's episode features Mr. Michael McDuck (MM), CEO of alt Disney Company and Mr. Rigid B. Crat (RC), Senior Administrator for the U.S. Treasury's Anti-trust Division.
FK: Good evening and welcome to Let's Talk Money, your weekly adventure into provocative and interesting monetary topics ranging from mild to wild. Tonight, a special treat for the kid in us all -- Michael McDuck, CEO of alt Disney goes head to head with the Administration's Senior Anti-Trust Maven, Rigid B. Crat. elcome gentlemen!
First though, let's take a moment to establish a bit of background. The alt Disney Company is a multinational mass media…
Disney Vows to Investigate Claims of ABuse at Factories. (2005, June). Retrieved from SACOM: http://sacom.hk/archives/66
J&J, Walt Disney, Kraft Foods Top Rankgin. (2010, October 13). Retrieved from Environmental Leader: http://www.environmentalleader.com/2010/10/13/jj-walt-disney-krafts-foods-top-csr-ranking/
Hearing: Are Government Contractors Exploiting Workers Overseas? (2011, November 2). Retrieved from Sparky - Keeping You Plugged In: http://mssparky.com/2011/10/hearing-are-government-contractors-exploiting-workers-overseas/
Areeda, P., & Hovenkamp, H. (2011). Fundamentals of Antitrust Law. New York: Kluwer Law.
This restructuring refers to Kraft Foods. The reason behind developing Kraft Foods into an independent company relies on enhancing growth and creating long-term value. By gaining its independence, Kraft Foods will benefit from increased flexibility, which will allow the company to address the market in new and diverse manners. Also, the company will benefit from: "access to an acquisition currency that is not available to it today; engaging in alliances that potential partners will pursue eagerly, given the absence of a controlling shareholder; enhancing its ability to pursue divestitures in a tax efficient manner; access to greater debt capacity" (Camilleri, 2006).
The group's Camilleri further stated that "Philip Morris USA's overarching financial objective is to balance moderate share growth behind the strength of Marlboro and its three other focus brands with sustainable and predictable earnings growth" (Camilleri, 2006).
The Philip Morris USA strategy will be based on opposing the cigarette…
Our Mission and Goals (2008). The Altria Group. Retrieved August 28, 2008 at http://www.altria.com/about_altria/1_1_altriagroup.asp .
Remarks by Louis C. Camilleri Chairman and Chief Executive Officer Altria Group, Inc. At Morgan Stanley Global Consumer and Retail Conference (2006). The Altria Group. Retrieved August 28, 2008 at http://www.altria.com/media/press_release/03_02_pr_2006_11_16_01.asp .
Annual Report (2007). The Altria Group. Retrieved August 28, 2008 at http://www.altria.com/download/pdf/investors_AltriaGroupInc_2007_AnnualRpt.pdf .
Participants will be recruited with announcements in local newspapers and school newsletters. Flyers are posted in the nurse's offices and in the clinic. esponse cards will be given to parents who indicate an interest in participating in the study. See the participation invitation -- Appendix 1.
Once enrolled, participants will answer a series of questions related to food choices, influences, physical activities and food and beverage advertisements. The first measure will involve showing the children a set of distinct images. The children will then be asked 1) what company the image belongs to; 2) what they feel about that company; 3) if the images make them feel good/bad/nothing; 4) if they enjoy the food; 5) how they feel after eating the food; and, 6) what their parents think of the type of food or company. The following 15 images are examples of popular logos. These 15 will be used…
Caprio, Sonia. (2006). Treating child obesity and associated medical conditions. The Future of Children,16(1), 209+. Gale Group.
Darwin, David. (2009). Advertising obesity: Can the U.S. follow the lead of the UK in limiting television marketing of unhealthy foods to children? Vanderbilt journal of transnational law,42(1), 317+. Gale Cengage Learning.
Enz, C., & Lundberg, C. (1993). A Framework for student case preparation. Case Research Journal,13, 134.
Evans, W. Douglas. (2008). Social marketing campaigns and children's media use. The Future of Children,18(1), 181+. Gale Cengage Learning.
The weaknesses of the company are first that it relies on just a few top customers for the majority of its revenue growth and its lack of product quality have at times led to recalls. Opportunities include the growing level of health consciousness in globally, higher levels of product demand in Latin America nations that today have relatively low levels of adoption today and the potential to grow through mergers and acquisitions (Kissas, 2007). The threats Kellogg's is facing include stringent regulations and a lack of strategies for managing foreign exchange risk. In addition there is intensive pricing pressure from competitors as well.
GOALS and OBJECTIVES
The goal of transforming Kellogg's Fruit Loops into a healthy alterative and also spinning off new products for its widespread popularity is the goal of this marketing plan. Specifically concentrating on product line extensions for the product into the ready-to-eat cereal category is the…
Bainbridge, J.. (2010, March). All-day breakfast. Marketing,32.
Jeff Cioletti. (2005, January). There is no spoon. Beverage World, 124(1746), 12.
Clare Dowdy. (2004, October). Bright lights, big brands. Marketing,39-40.
Anne Bond Emrich. (2008, June). Kellogg Makes Progress on Nutrition Initiatives. Grand Rapids Business Journal, 26(26), 6.
They still continue to handle the shareholders who own Kraft Foods stocks as to best help them (Official Website of the Altria Group, 2008).
The Altria Group currently has three major components: Phillip Morris USA (PM USA), Phillip Morris Capital Corporation and Phillip Morris International. Each one of these components has the ability to influence the managerial and ultimate business outcome of the group. "Phillip Morris USA is the largest component of the company, with its focus on domestic sales of cigarettes and smokeless tobacco products" (the Altria Group 2007 Annual eport). A most recent and relevant way in which they influenced the management of the group was of having them allow and fund the purchase of John Middleton Incorporated, a leading manufacturer of machine-made large cigars.
The Phillip Morris Capital Corporation is the financial subsidy of the Altria Group, which handles portfolio operations. They influence the managerial operations in…
The Altria Group 2007 Annual Report, Retrieved at http://www.altria.com/investors/2_4_1_annualreport.aspon September 8, 2008
Official Website of the Altria Group, http://www.altria.comlast accessed on September 8, 2008
Atria's Business Strategy
Altria group, the parent company to Kraft, Phillip Morris and a host of other well-known companies, prides themselves on their commitment to innovative business practices and achievement. The company historically has performed remarkably well and has ranked number one for economic value added delivery providing shareholders unsurpassed value and performance (Altria, 2005). Their strategies for growth and business survival include superior delivery and economic returns to their shareholders in the short- and long-term.
To accomplish this goal Altria has committed themselves to improving each member of the Altria family or each of its operating enterprises. These include primarily Kraft Foods and Phillip Morris (Altria, 2005). The company also maximizes the returns shareholders realize in a consistent manner by taking advantage of technological advancements and innovations to ensure optimal technologies and knowledge sharing practices are adopted within the company.
There have been plans in recent years to restructure…
"Altria Group." 2, November 2005:
Healthy food cannot be imposed from the top down, or students will see junk food as 'forbidden fruit.' Students must be solicited for their input in creating new cafeteria menus. They can work to formulate substitutions for traditional fundraisers like on-premises vending machines and selling candy bars. Staging a 'recipe contest' for different healthy recipes city-wide, with rewards for the school of the winner, might be one way to show students that eating healthier is a struggle they must engage in, alongside adults. Students must be encouraged to engage in healthy eating and weight loss strategies to facilitate their own health or they will use junk food and circumventing PE classes as a means of rebellion.
Source: Bruce, Emily. (2010) Dorothea Orem's Theory of Self-Care. PowerPoint. Retrieved February 12, 2010 at www.nipissingu.ca/faculty/arohap/.../DorotheaOremTheory.pp
Increase data about students: Parents naturally fear that keeping track of students' BMI and screening children for diabetes…
Ethical esponsibility of Corporate America
Many organizations strive to increase their profit margins by doing everything possible (including unethical practices) to increase their revenues. Nevertheless, the past three decades have seen some organizations embracing CS (Corporate Social responsibility). This idea has become significantly important to almost every organization that seeks to increase revenues. Corporate social responsibility is also referred to as community responsibility, stewardship, corporate sustainability, corporate responsibility, accountability and corporate ethics among others. In essence, CS enable organizations to bring in people and the environment into their decisions, strategies and plans (Anyango Ooko, 2014).
In this paper, the use of the term corporate social responsibility will mean a set of actions by enterprises that are geared towards meeting the legal, ethical, economic, and discretional responsibilities that the stakeholders expect them to fulfill. They should undertake the economic obligations of producing profits, and meeting the consumption requirements of the people;…
AnyangoOoko, G. (2014). The environmental factors that influence implementation of corporate social responsibility (CSR) in an organization. Journal of Humanities and Social Science, 19(12): 95-102.
Castka, P., Bamber, C., Sharp, J. (2005). Implementing Effective Corporate Social Responsibility and Corporate Governance: A Framework. UK: British Standards Institution.
Daft, R. L., & Marcic, D. (2006). Understanding management. Mason, Ohio: Thomson/South-Western.
Pearce, J., Doh, J. (2005). The high impact of collaborative social initiatives. MIT Sloan Management Review, 46(3): 30-38.
CASE ANALYSIS: STABUCKS
Starbucks Case Analysis
Starbucks Case Analysis
Many individuals all over the world walk into Starbucks daily for their cup of coffee, but it is more than the costly coffee that brings individuals in day after day to the shops across the globe. Starbucks offers a high-energy atmosphere and helpful employees who help clients in any issue or question they might have with the coffee or service. People buy the product because of symbolizes and the status position coming along with it. Although various business designs are available, the concepts and framework of Starbucks is a good design to follow, due to its nationwide and international success. This paper investigates the strategic fit of Starbucks as a business and further shows how it survives even through hard economic times. By looking at the market and…
Grimm, C.M., Lee, H., & Smith, K.G. (2006). Strategy as action: Competitive dynamics and competitive advantage. New York: Oxford University Press.
Pham-Gia, K. (2009). Marketing strategy of 'Starbucks Coffe'. Mu-nchen: GRIN Verlag GmbH.
Pahl, N. (2008). The idea behind the Starbucks experience: The main elements of Starbucks' strategic diamond. Munchen: GRIN Verlag.
The bottled water industry is an extremely dynamic one which has brought the players major revenues. Seeing the great potential for further profits, new companies have emerged and some of the already existent ones merged as to get better comparative advantages. Evian's main competitors are the Perrier Group, Aquafina and Dasani, and all these have engaged in marketing operations to differentiate themselves from the newly entered players and consolidate their position in the international market. The Perrier Group based their marketing campaigns onto radio announcements in order to reinforce their brand; Dasani has launched a new television advertisement featuring the Commodores and other funk stars; and Aquafina (from PepsiCo), has developed a televised campaign based on advertisements featuring celebrities (Hein, 2001).
3.4 Target Market
The target market is identified through the application of the segmentation criteria. The most commonly used such criteria include age, cultural background, economic and social status,…
Danone Group 2005-2006 Annual Report, Retrieved at http://finance.danone.com/phoenix.zhtml?c=95168&p=irol-reportsAnnual2005on April 3, 2008
Hein, K., May 21, 2001, Water Competition Heats Up; Summer Awash with a Bevy of Ads, Brandweek
1988-2008, Oxygenated Water, Tools for Wellness, http://www.toolsforwellness.com/oxygenated-water.htmllast accessed on April 3, 2008
2002-2007, the Marketing Mix (the 4 P's of Marketing), Net MBA, Business Knowledge Center, http://www.netmba.com/marketing/mix/last accessed on April 4, 2008
In this paper, beverage giant, the Coca-Cola Company, has been analyzed. An internal as well as external analysis of the company has been undertaken using the following analytical tools: PESTEL, SWOT and Porter’s Five Forces. The 5-factor analysis has revealed: medium threat of new entrants, medium to high threat of substitute products, low supplier and buyer bargaining power, and high level of rivalry with its chief competitor, PepsiCo.
SWOT analysis results were as follows: Strengths: Brand Equity; Company valuation; Extensive international presence; Greatest market share; Brilliant marketing plans; Customer Loyalty and Distribution system. Weaknesses: Competition with Pepsi; Low Product Diversification; Lack of a health beverage offering and Water management. Opportunities: Diversification; Focusing on developing countries; Packaged drinking water; Supply chain improvement and Market lesser selling offerings. Threats: Sourcing of Raw Materials and Indirect competition.
Lastly, PESTEL analysis results were as follows: Political and Legal Factors potentially impacting the…