Kraft Food’s Case Study

kraft paper FOOD fel downheartedship Chapter I INTRODUCTION A. COMPANYS HISTORY According to Frank (2010), in 1903, on that point was a man named James Lewis kraft who had begun quit delivery service at stops ara after he had been eased step forward from a cheese club at Buffalo. each(prenominal)(prenominal) morning, he leave buy cheese sweeping and resold it to the local vendors in invest to avoid the cheese melt or spoil. The dividing line was successful and several(prenominal) of his br sepa commits who atomic number 18 k promptlyn as Charles H. , John H. , Fred baby buggy and no.man had joined the follow named J. L kraft & Bros. Co. in 1909 as permanent employees (MAC 2011).James L. kraft paper is a president of the fellowship who had invented a revolutionary answer in 1915. This process helps to pasteurize the cheese, frankincense it would non spoiled easily and can be transported eagle-eyed distances (NNDB 2009). Fundamentally, according to Phillip (2010), in 1920, kraft paper obtaind a Canadian cheese company and changed it to kraft paper Cheese articulationy in 1924. kraft paper Cheese troupe had obtained a lot of gross revenue which enable J. L kraft to expand the company into Ger many an(prenominal) an otherwisewise(prenominal), Australia and Britain. During World War II, kraft had supplied 4 billion pounds of cheese to Britain.It had showed that kraft paper was a main forage supplier at that time. In 1945, the kraft Cheese Company became kraft paper feed Company (NNDB 2009). B. COMPANYS DESCRIPTION kraft forage Companys headquarter had been located at Cheltenham, United Kingdom since kraft paper has a shut emerge connection with the rest of atomic number 63. The manufacturing site had been established at the Ban bury as a serviceman being(a) manufacturing base that will supply a variation type of intersection points worldwide in 155 countries including Malaysia, mainland China and United put up (kraft paper f atomic number 18 Inc. 2010). kraft feed Company was having more than than ascorbic acid,000 diverse employees all over the world.Currently, kraft paper Food Company is a siemens largest victuals and swallow company in the world after Nestle. C. TYPE OF PRODUCTS Furthermore, according to Joel (2010), kraft paper Food Company is popular with cheese and dairy farm, snack nourishments and confectionary, beverage and convenient nutriment for thoughts. However, kraft Food Company is essentially foc apply more on cheese and dairy results such as cottage cheese and acidify cream. kraft paper call forths a wide variety of cancel cheese and the supposesn cheese slices. Besides that, kraft withal been know as snack nutrient disgraces especially cookies and crackers.Some of popular snacks food offers by Kraft atomic number 18 Kraft cheese Nips, Wheat Thins crackers, gamboge Nuts and Garden gather toasted chips (Kraft Food 2011). Instead of that, sweet and confection ary food marks produced by Kraft are Oreo cookies, Kraft Mayo with chromatic oil, Jet-Puffed Marshmallows and Kraft salad dressings whereas for beverage and convenient foods are Kraft Macaroni and Cheese, California Pizza Kitchen and DiGiorno frozen pizzas, Yuban Coffee and maxwell Ho mapping (David 2009). Chapter II STRATEGY FORMULATION A. mickle AND MISSION STATEMENTS 1.Kraft Foods Mission Statement Make at present Delicious In order to fulfill this rush Kraft Foods Inc. foc accustoms on consumers in everything that they do. The company as well as pick ups that actions s apex louder than words, so at Kraft Foods, they jolly up trust. act like owners. keep it simple. are contri juste and inclusive. tell it like it is. lead from the head and the heart. dissertate decide -deliver. 2. Kraft Foods Vision Statement dowery People Around the World to Eat & comprise it Better Their mountain captures the essence of who they are.Everything they do flows from their visi on. They however dont happen to be a blood that sells food its what theyre all ab step to the fore. Their vision is about meeting consumers of necessity and do food an easier, healthier, more memorable, and enjoyable part of the vivification. Revised Mission Statement Here at Kraft Foods we strive to produce superior results and function (2) to our customers (1) ranging from wholesalers to nursing homes. The 21st century is sure to bring more innovation, sore harvests, and schoolgirlish food engineering science (4), thus alter us to create and deliver better and healthier products.Kraft Foods continues to lead the food effort as the largest food supplier in nary(prenominal)th the States (7) with plans to continue expansion into new and alert worldwide grocerys (3). We support the goals of the company by applying the upliftedest ethical charter inside our corpo direct philosophy in all our art transactions (6), be intimate acrossment of employees (9), and so cial and purlieual policies (8). We at Kraft Foods focus passing on our consumers lifestyles and aim to grow receiptsable in the worlds food food commercialise and cater a higher than judge return to treatholders (5).Our company produces pride in making today and the future-delicious. 1. ) Customers 2. ) harvest-times and services 3. ) merchandises 4. ) Technology 5. ) clientele for survival, exploitation, and favorableness 6. ) Philosophy 7. ) Self-c at a timept 8. ) Concern for public scope 9. ) Concern for employees Revised Vision Statement orbicular lead in offering the beaver food products enabling people to eat and live better. Explanation-This revised vision assertment incorporates a vision for the Kraft Foods Inc. to contact a globular leader among its competitors-that is to be the name unity.This statement shall encourage the whole memorial tablet of the green goddess to think not solely for the practised but for the exceed. The corporation shal l offer not only shade products but the lift out calibre products helping their international food commercialize mystify to live better through the usage of their products. B. EXTERNAL ASSESSMENT 1. rivalrous pen intercellular substance (CPM) sidestep 1. Competitive Pro file matrix(CPM) for Kraft Foods Inc. sarcastic Success Factor range Rating Rating 1. Advertising 3 4 2 2. pecuniary dapple 3 4 2 3. orbicular Expansion 3 4 2 4. Market divvy up 3 3 2 . intersection point Diversity 4 4 3 6. Consumer Demands 4 3 3 middling Rating 20/6= 3. 33 22/6= 3. 67 14/6= 2. 33 Note 1=major weakness, 2= venial weakness, 3= baby bird strength, 4=majorstrength The Competitive Profile hyaloplasm showsthe relative strength ofKraft Foods Inc. comparedto its competitors by using the critical success factors inits manufacturing. By identifying its strengths, we can in like manner identify its relative weaknesses and shout out them to formulate potent strategies. Kraf t Foods Inc. is relatively emulous in its industry, showing 3. 33 as its perfect s nerve.The company has to improve on global strength, commercialise helping and attractiveness as an employer to improve on bell ringer loyalty and customer retention. Its profit coast has a rating of 3 just like the new(prenominal)(a) industry because it is considered as a minor strength for they all want to focus on their brand and customer satisfaction. 2. cast Analysis The cast analysis contains the analysis of Political, Economic, Social, Technological, Legal and Environmental environments of a country with reference to aparticular object. The PESTLE analysis of Kraft Foods Inc. is as follows POLITICALThey support candidates who understand and appreciate the public policies that impact theirbusiness, brands and employees. The company has started a political action committee called Kraftpac or Kraft Political Action Committee which makesfunding to state political parties, committees and c andidates. ECONOMIC Kraft is making good earnings from its grocery involvements viaits products and brands. The company is delivering high property earnings toits voiceholders despite the difficult economic environment. They are continuously investing in their brands and businesses to furtherprovide splendiferous product offerings to their customers.As a result of their investing strategies, the Kraft Foods is very well positi iodined to deliver sustainable top-tier withstanding into action, with or without Cadbury (Kraft foods financial news, 2011). In 2008, Kraft Foods was once again named to the Dow Jones Sustainability World Index and the Dow Jones Sustainability North America Index in recognition of thecompanys economic, environmental and social give waying. SOCIAL The company took scuttle to improve theliving standards of more than 1 million farmers with effective partnerships with them.They af tied their cocoa and coffee purchase to further arrive at their partner fa rmers. Kraft Foods trim greenhouse gas emissions by 18% and piss consumption by 30% since2005, as heedful against total production. Furthermore, thecompany improved the keepal pen of more than 5,500products during the last five years. They removed virtually 6. 5 million pounds (3million kg) of salt from products in 2010 and helped to provide more than 1 billion servings of food since 1999 in the United States alone. TECHNOLOGICAL The company keeps consumer needs intheir mindsbefore designing their strategies.They adaptand forestall their needs in order tomeet them efficiently. The company has employed SAP Net weaver technology platform to ensure effective data and business transformation schema within all the business units (FBR, 2008). Kraft foods waste established a hub and rung model where a telephone exchangely led squad focuses on the overall strategies, systems, enabling tools, interlockworks and metrics. And, they stick out complemented that central team with R &D people the rough innovation technical scouts? embedded in from each oneof Krafts business units. LEGALThe company abides by the laws, rules, and regulations of the national as well asinternational countries in order to sustain itsprofitability and its business trading operating theatres. Almost all of the activities of the companys food trading operations impertinent of the United States are subject to local and national regulations similar to those applicable to Kraft Philippinesbusinesses and, in roughly cases,international regulatory provisions, such as those of the European Union relating to labeling, packaging, foodcontent, pricing, securities industrying and advertise and associate areas.ENVIRONMENTAL Kraft Foods has garment an examplein the global industry by determining a force backto sink the impact of its operations on the environment in the U. S. andaround the world. The company releasedits CSR report in 2010 which stated its environmental goals agenda t o take down the personal effects of nada and the carbon dioxide emissions in food plants to the conservation of water and minimizing excess packaging. They are creating packaging that uses slight(prenominal) material, weighs slight and reduces impacton landfills without compromising food safety or freshness.As part of their plan toreduce our carbon footprint, Kraft foods are improving their energy efficiencies, usingless(prenominal) energy and purpose new and cleaner extensions of energy. Kraft Foods timber for opportunities to reduce the use of water tominimize theimpact of water conduct and charge reuse waterin slipway that help the environment and save money. Lastly they are not only focusing on creating less waste in the manufacturing process, they are in like manner finding new and betterways to reuse, treat and even put waste to work. 3. Porters cinque Forces AnalysisBARGAINING personnel OF SUPPLIERS The food and beverage industry is kinda high and combative in nature. The values offered are jetly competitive toremain in the mart. THE BARGAINING POWER OF BUYERS The buyers preferences changes with the passage of time and they are likely to renewal to the seller who offers good theatrical role atless price. Wal-Mart has vie amajorrole in this case. It offers less priced goods toattract the buyers attention. There is a monumental opportunity for the buyers toextract industry and fast profits. THE affright OF THE ENTRY OF NEW COMPETITORSThere are al wee somany competitors present in the market that there are very less chances for the new set outrs to set foot in and enjoy their voice in the market. The existing companies have already spentso oft on their brands, prime(a) and positioning that it will be difficult for the new comers to entice shift among consumers. RIVALRY AMONG ESTABLISHED COMPETITIONS Intense disceptation lies in the food and beverage industry. The main vehicle by which firms in the industry preserve market share is through brand loyalty and diversification.In general, the products of thesefirms are highly elastic with consumers weighing the tradeoff between price and quality between companies and products. Consumers in the industry have minimal careening costs and there is never the guarantee of brand loyalty. Therefore, the way these firms maintain market share is by providingbrand quality at an affordable price. Thus, there is some cooperation amongfirms against the erosion of market share toprivate label products. With all firms promoting brand quality, there are signals passed onto the consumer that brand name products are superiorto private label products in quality and elegance.There have been restructurings and heartyignments at Kraft and at other companies in the industry in order to increase volume and profitability despite increasing foreplay costs, sluggish topline issue, margin contraction, and travel pension costs. THE THREAT OF SUBSTITUTE PRODUCTS OR work The consumers e valuate the quality of products and their prices with that of others to decide which product tobuy. The treat of substitutes is medium in this case. Theprivate label products, also referred to as? generic? products, pose a spartan threat to industry andfirm profits. 4. Input Tools hold over 2.External Factor Evaluation (EFE) Matrix for Kraft Foods Inc. paint External Factors Opportunities 1. Operates in many degraded exploitation categories 2. Growing demand for health and health products 3. lessen input costs raw materials 4. Changing lifestyles. 5. increase trends of relish enhancer for bottled water. 6. reaping in the market overall. 7. Cadbury acquisition provides new products. Threats 1. Increasing trend of dine out 2. Health concerns 3. Inflation transportation 4. uncomplimentary impact of contradictory currency 5. Customers switching to generic brands. 6. Intense contender from Mars Inc. Nestle SA C. INTERNAL ASSESSMENT 1. native Factor Evaluation (IFE) Ma trix Table 3. upcountry Factor Evaluation (IFE) Matrix for Kraft Foods Inc. come across Internal Threats Strengths 1. sound RD 2 change magnituded organic revenues 3. Availability 4. Innovative advertising methods 5. Diverse range of leading brands 6. focusing on consumers 7. fast distribution network 8. Strong brand image 9. Worlds second-largest food company 10. 25% of global revenue from emerging markets wantonnesses 1. problem in launching new brands 2. Most of ontogenesis is dependent on acquisitions or expanding into new market. 3. Strong competition from Nestle, Hershey, etc. 4. Poor performance of North-American incision 2. MatchingTools a. Strengths-Weaknesses-Opportunities-Threats ( dweeb) Matrix TheopportunitiesandthreatsthatKraftFoodsInc. possessesarenow matched against itsstrengths andweaknesses byusing the arise matrix in order to generate appropriate strategies. Table 4. SWOT matrix for Kraft Foods Inc. 1 Strengths SWOT MATRIX SWOT MATRIX 1. Strong RD 2. Increased organic revenues 3. Availability 4. Innovative advertising methods 5. Diverse range of leading brands 6.Focus on consumers 7. Strong Distribution network 8. Strong brand image 9. Worlds second largest food company 10. 25% of global revenue from emerging markets Opportunities SO Strategies 1. Operates in many fast emergence categories Focus on retailers and restaurants (O1,S1)Position itself as a healthy food producer (O4, S3, S8)Focus on ready to eat products (O4 S6)Promote ready to drink beverages (O4, S5, S8) 2. Growing demand for health and wellness products 3. reduced input costs raw materials 4. Changing lifestyles. 5. Increased trends of olfaction enhancer for bottled water. 6. egression in the market overall. 7. Cadbury acquisition provides new products. Threats ST Strategies 1. Increasing trend of dining out Introduce low fat products (T3, S6)Outsource operations to cheaper logistics partners (T4, S7) 2. Health concerns 3. Inflation transpor tation 4. Unfavorable impact of immaterial currency 5. Customers switching to generic brands. 6. Intense competition from Mars Inc. , Nestle SA SWOT MATRIX SWOT MATRIX Weaknesses 1. Difficulty in launching new brands 2. Most of growth is dependent on acquisitions or expanding into new market. 3.Strong competition from Nestle, Hershey, etc. 4. Poor performance of North-American segment Opportunities WO Strategies 1. Operates in many fast growing categories Look for divestiture in poor performing segmentsSell packaged coffees to cafes (W4, O1) 2. Growing demand for health and wellness products 3. Decreased input costs raw materials 4. Changing lifestyles. 5. Increased trends of flavor enhancer for bottled water. 6. Growth in the market overall. 7. Cadbury acquisition provides new products. Threats WT Strategies 1. Increasing trend of dining out Launch a sub-brand (brand extension) for ealthier range of products(W3, T2)Market dependent look into closing lower v alue markets and look to switch to higher value economies 2. Health concerns 3. Inflation transportation 4. Unfavorable impact of foreign currency 5. Customers switching to generic brands. 6. Intense competition from Mars Inc. , Nestle SA IP IP c. capital of Massachusetts Consulting root (BCG) Matrix course of instruction Revenue (millions) Percent Revneues clams (millions) Percent winnings telling Market Share industry Growth Rate (%) Company $ 42,201 century% $2,901 100% 0. 38 6. 41% In the BCG matrix, Kraft Foods Inc. ervices are presented and compared with industrys growth rate. The percentage market share of Kraft Foods Inc. was computed as follows (2010 Kraft Foods net sales/ 2010 industry total net sales) X 100%= $42,201/$111,507= 38% The percentage industry growth rate was obtained from the annual increase in revenues. Table 5. Boston Consulting Group (BCG) Matrix for Kraft Foods Inc. ( worldwide Market Share) congenator market share in the industry (perce ntage) relation back market share in the industry (percentage) 1. 0 . 50 0. 0 2. . 50 0. 0 +20 0 20 +20 0 20 persistence Sales Growth Rate (Percentage) effort Sales Growth Rate (Percentage) Question mark I Question Marks I Stars II Stars II Dogs IV Dogs IV Cash awe common chord Cash Cows iii Kraft Foods belongs to Question Marks Group seen in quadrant I, it remains to be competitive bountiful although its market share is not that high but its growth rate in industry is high enough to encompass the market. In order to be on Stars the company must pursue an intense schema to strengthen the company and meet its goals in the industry. Table 6.Boston Consulting Group (BCG) Matrix for Kraft Foods Inc. (Domestic Market Share) Relative Market Share Position in the Industry Relative Market Share Position in the Industry 1. 0 . 500. 0 2. 0 . 500. 0 Industry Sales Growth Rate (Percentage) Industry Sales Growth Rate (Percentage) +20 0 -20 +20 0 -20 Question Marks I Question Marks I Stars II Stars II Dogs IV Dogs IV Cash Cows deuce-ace Cash Cows III Kraft Foods belongs to Stars Group seen in quadrant II, its market share is high and highly competitive in the industry, but because of fast growing market, Kraft is required to have a huge investitures to maintain their lead.Division Revenue (millions) Percent Revneues good (millions) Percent Profit Relative Market Share Industry Growth Rate (%) Company $ 42,201 100% $ 2,901 100% 0. 70 6. 41% The percentage market share of Kraft Foods Inc. was computed as follows (2010 Kraft Foods net sales/ 2010 industry total net sales) X 100%= $42,201/$60,287= 70% The percentage industry growth rate was obtained from the annual increase in revenues. d. Internal-External (I/E) Matrix IFE broad(a) dull Scores IFE Total free weighted Scores Table 7. Internal-External (I/E) Matrix for Kraft Foods Inc.Strong Average Weak Strong Average Weak 4. 0 lofty 3. 0 to 4. 0 3. 0 ordinary 2. 0 to 2. 99 2. 0 Low 1. 0 to 1. 99 1. 0 4. 0 soaring 3. 0 to 4. 0 3. 0 Medium 2. 0 to 2. 99 2. 0 Low 2. 0 to 1. 99 1. 0 3. 0 to 4. 0 3. 0 2. 0 to 2. 99 2. 0 1. 0 to 1. 99 1. 0 3. 0 to 4. 0 3. 0 2. 0 to 2. 99 2. 0 1. 0 to 1. 99 1. 0 Grow and arrive atGrow and build I 2. 57, 3. 14 2. 57, 3. 14 II III IV Hold and keep up Hold and Maintain V VI VII VIII Harvest or rifle Harvest or Divest IX EFE Total heavinessed Scores EFE Total Weighted Scores Division Revenues (millions) Percent Revenues Profit (millions) Percent Profit IFE Scores EFE Scores Company $ 42,201 100% $ 2,901 100% 2. 57 3. 14 Kraft Foods Co. is in the Grow and Build position which mean that its internal strengths are on the average and solution to the external factors are on the higher up average.This mode that Kraft can proceed in doing intensive and integrative strategies as betokened by the IE Matrix. e. appalling Strategy (GS) Matrix Rapid Market Growth Rapid Market Growth Table 8. GS Matrix for Kraft Foods Inc. Quadrant II Quadrant I 1. Market ou tgrowth 2. Market discernment 3. Product outgrowth 4. Forward consolidation 5. Backward Integration 6. Horizontal Integration 7. Related Diversification Quadrant III Quadrant IV Strong Competitive Position Strong Competitive Position Weak Competitive Position Weak Competitive Position Slow Market GrowthSlow Market Growth Kraft Foods Inc. falls under Quadrant I which is characterized by rapid market growth and strong competitive position. For Kraft Foods Inc. it would be ruff for them to continue their meanness on their contemporary markets and strategies that would be exceed to use are market penetration and market winment as suggested forward in the other matrixes. If Kraft Foods is too intemperately committed to a iodine product, then related diversification may reduce the risks associated with a undertake product line. g. Functional areas of the firm MarketingKrafts management performed an international consumer survey to determine if consumers were alive(predicate) of the product quality and whether they were receptive to Krafts product quality. later receiving a favorable survey response, KFI decided to produce an adaptive, revitalization, and business acquisition marketing campaign made-to-order for specific foreign markets. An formation can make a creditable business case for product adjustment when the product modification develops into higher revenues and profits. Krafts product brand managers developed ways and methods to revitalize existing food products to sell in foreign markets.The brand managers revisited products that were more than 35 years old and better them by positioning the products as mild, hot, or red-hot and microwavable. Consequently, product revitalization influenced consumer behaviors. Shortly after product revitalization, the initial response occurred when new customers became enticed by the repositioned products and young consumers became interested in Kraft products. Finance At Kraft, exchange is king When Kra ft Foods needed to cut costs and free people up hard currency, its supply concatenation organization rose to the argufy.Better inventory turnover played a leading role in boosting currency flow by 20 percent. If the company could make just the right amount of goods for a market and get them quickly into the hands of the consumer, it would speed up the cycle for converting products to cash. The relationship between inventory and cash flow put Krafts supply chain organization front and center in the multiyear project. Research, growing fibre When it comes to bold thinking, Research, Development Quality is the place to be exciting new tastes. Packaging that extends the shelf life of our products and is biodegradable.State-of-the-art machinery. Thats the kind of thing were aiming for. And what we come up with. Kraft Foods RD center on At Kraft Foods, we have been focusing on inventing delicious foods and improving life quality. Thus we genuinely invite the best RD ply and es tablish 6 RD centers in world. All of our professional intimacy in nutrition and food safety allow us to promote product research and development, bringing the best technologies and products to benefit people all over the world. Kraft Foods world-wide RD center located in Glenview, Illinois, has established professional labs for hemical and flavor analysis. We attract excellent RD modules and provide strong technique supports of product development for North America and other areas in global. We believe innovation is a journey. In 2010, Kraft Foods China launched a strong furrow of innovative products including OREO Ice Cream sea tangle and Mini-snack biscuits. Pacific Whole Grain is the first real whole grain biscuit on the market that has enjoyed great success among Chinese consumers. Production/operation Kraft Foods Inc. is a holding company, our principal source of funds is from our subsidiaries.Our wholly owned subsidiaries currently are not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their common stock. Reportable Segments We manage and report operating results through troika geographic units Kraft Foods North America, Kraft Foods Europe and Kraft Foods Developing Markets. We manage the operations of Kraft Foods North America and Kraft Foods Europe by product category, and we manage the operations of Kraft Foods Developing Markets by location. Our reportable segments are U. S. Beverages, U. S. Cheese, U. S. well-to-do Meals, U.S. Grocery, U. S. Snacks, Canada North America Foodservice, Kraft Foods Europe (formerly known as European Union) and Kraft Foods Developing Markets. We transitioned our European Biscuit, Chocolate, Coffee and Cheese categories to fully integrated business units, further strengthening our focus on these core categories. To ensure decisions are made faster and enveloping(prenominal) to our customers and consumers, each category is fully accountable for its financial results, including marketing, manufacturing and RD. household lead, based in Zurich, Switzerland, reports to the Kraft Foods Europe President.These business units now comprise the Kraft Foods Europe segment. teaching Systems Innovation can only happen if weve got the infrastructure to support it. And everything we do, every second gear of the day, relies on having the right technology and information forthwith available. Information Systems are the key. But they do much more than just answer helpdesk calls and fix our computers. Information Systems also invent neat solutions to our proficient problems, and work out what systems and equipment we need to support our ideas. Chapter III STRATEGY IMPLEMENTATION A. EXECUTIVE DECISION RESPONSIBILITIESKey decisions at Kraft are made by the quest three organizations Global Marketing and socio-economic class Development commercialized Units Functional Areas Global Marketing and Category Development is responsible for decisions on global category strategies, new product growth platforms and marketing excellence. Commercial Units are responsible for determining the marketing and sales programs that best meet the needs of local consumers and customers, with profit and loss responsibility for the results. Functional Areas are strongly aligned and linked to the Global Marketing Category Development group and the two commercial units.The functions are centers for excellence, with responsibility for identifying and sharing best practices and using Krafts global scale to best advantage. The leaders within these organizations all report directly to the CEO. The leaders are Global Marketing and Category Development EVP, Global Marketing Resources Initiatives EVP, Global Category Development Commercial Units President, North America Commercial President, internationalistic Commercial Functional Areas EVP, Global Corporate affairs EVP Chief Financial Officer EVP, Global forg iving Resources EVP, General Counsel Corporate Secretary EVP, Global Strategy stemma Development EVP Chief Information Officer EVP, Global Technology Quality EVP, Global Supply Chai B. EXECUTIVE DEVELOPMENT SUCCESSION executive director director development at Kraft takes place on the job. Unlike other companies where executive development takes place in an academic setting, Kraft creates management opportunities on the job for its employees. Beginning even with their earliest assignments, young managers are expected to demonstrate an ability to carry responsibility and sophisticated thinking thats commonly reserved for top tier executives at other companies. As managers ascend the ranks, Kraft encourages them to develop leadership skills such as creativity, the power to persuade and influence, and the willingness to take risks. Kraft gives its young managers broad authority that helps to challenge themselves and spur their leadership skills. Each function within Kr aft has an Advancement Planning Policy in place. This policy provides the guidelines for identifying replacements for executives. Generally, there are two to three potential replacements already identified for any executive in case he or she leaves the company.C. INSIDERS VIEW ON KRAFT CULTURE Insiders have commented that Kraft is very diverse and that they have many qualified minorities in management positions. Even though working at Kraft is stressful, insiders have commented that many people enjoy working there. However, insiders have also commented that morale is low due to layoffs and the resultant sullen workloads on the remaining employees. There have also been comments made that employees from acquired companies suffer from low morale because of fuss in adjusting to Kraft culture.Chapter IV STRATEGY paygrade Table 8. Balance Scorecard for Kraft Foods Inc. GOALS STRATEGIES MEASURES cartridge clip COMPLETION Customer Perspective Provide quality products for all custom ers Product Development Developing quality products such as low fat and less cholesterol Immediately after 2013 Internal seam Process More efficient internal subordination Semi-centralization of the organization A main branch per areas which controls other branches 4th quarter 2007-2008 Financial perspective progression of 2011, 2012, and 2013 revenue target Having a large share in the global economy Using effective marketing and extensive product developmentCutting cost if doable 3rd quarter 2013 Learning and growth Increase industry awareness regarding service in other country. Development of intensive training program for human resources Intensify marketing promotionsOffering seminars that will enhance skills in communicating and decision-making Use the partner companys expertise regarding the marketability of the countryIncrease of effectiveness and efficiency of skill performance 2nd -3rd quarter 2014Immediately after 2013As an valuation tool, the balanced scorecar d shows the various selected key strategies on aspects of consumer perspective, interval business processes, financial perspective and instruction growth. A set of quantitative measures has been enumerated for each dodge to enable the company to monitor progress or strategy attainment on a secureness basis and review whether these need to be changed or revised SUMMARY Kraft Foods remains to be competitive enough although its global market share is not that high but its growth rate in industry is high enough to cover the market.The company must pursue an intensive strategy to strengthen the company and meet its goals in the industry. Its domesticated market share is high and highly competitive in the industry, but because of fast growing market, Kraft is required to have a huge investment to maintain their lead. Kraft Foods Co. internal strengths are on the average and response to the external factors are on the above average. This means that Kraft can proceed in doing intensive a nd integrative strategies as suggested by the I/E Matrix. For Kraft Foods Inc. t would be best for them to continue their concentration on their current markets and strategies that would be best to use are market penetration and market development as suggested earlier in the other matrixes. If Kraft Foods is too heavily committed to a single product, then related diversification may reduce the risks associated with a narrow product line. CONCLUSION Food industry is one of the fast growing industries ever since it started to appearin the global market. United States is the home where leading food companies areprincipallylocated.Indeedtheadvance proficientadaptationinthis country led the food industry to become innovative and more eager to develop new products as time goes by. The challenge in this industry is the tough competition of the various companies belong in the same industry. On how they could penetrate the market and what would be their advantage over theircompetitor. Kraft Foods is one of the companies belonging in this category. It can achieve its leadership and growth by doing intensive promotion and management of its existing clients and venturing other countries to promote business. RECOMMENDATONSRECOMMENDED REVISE organizational STRUCTURE. The organizational structure of the company is fully a centralized one. It is only compose of the top executives of the company. We suggest the that company develop a line and staff structure wherein the middle and lower level of the organization is seen and have a direct communication in terms of decision making and finding solutions to the problems both on top to lower level management. RECOMMENDED STRATEGIES Upon the using the matrixes presented, the following are the recommended strategies that Kraft Foods Inc. should use. Market Penetration Increase advertising expenditures and specifically target the household population. Offer extensive sales promotion during peak season and creating bonus packages. Dec rease the cost of the product if it would be possible so that buyers will be attracted to patronize it. Product Development Developproductscontaininglowfatandcaloriesforthosehealthconscious individuals. Developconfectionaryproductsthataresugarfreetoattractretiringindividuals. Package products that are inter-related Improve technological systems, especially theonlineshoppingcenter formothers at home.BIBLIOGRAPHY http//www. kraftfoodscompany. com/SiteCollectionDocuments/pdf/KFT_RDQ_Innovatio n_Investments_FactSheet. pdf http//www. kraftfoodscompany. com http//www. Kraft. com http//www. Krafts Cadbury heap May Force Cocoa Consolidation, Moneynews. com http//www. scribd. com/doc/77538204/Kraft-Matrixes http//www. management480. wikispaces. com/file/view/Kraft. ppt http//www. mondelezinternational. com/ph/en/home/index. aspx course VITAE JENEVA V. VICENTE Rizal East, San Isidro, Isabela energetic No. 09358723111 - EDUCATIONAL context TERTIARYBS in Business presidentship Major in vi gilance Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYSan Isidro study High teach San Isidro, Isabela S. Y. 2008-2009 * PRIMARYSan Isidro West of import give lessons San Isidro, Isabela S. Y. 2004-2005 face-to-face information experience of deliverMarch 9, 1993 advance19 civilized posture wholeness sexuality female tip5 Weight45 kgs. religionPentecostal Christian home(a)ityFilipino speech verbaliseTagalog, side I hereby take the stand that the above information is full-strength and correct to the best of my knowledge and belief. Jeneva V.Vicente JOANA MARIE S. MARQUEZ Mabini,Alicia, Isabela Mobile No. 09267907457 - EDUCATIONAL ambit * TERTIARYBS in Business regime Major in charge Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYAlicia National High schooling Paddad, Alicia, Isabela S. Y. 2008-2009 * PRIMARYMabini unsophisticated School Mabini, Alicia, Isabela S. Y. 2004-2005 in the fles h(predicate) info interpret of nascenceMarch 30, 1993 Age19 well-bred positioningSingle Gender pistillate summit meeting51 Weight48 kgs. trustroman type Catholic NationalityFilipinowords SpokenTagalog, English I hereby recognize that the above information is true(p) and correct to the best of my knowledge and belief. Joana Marie S. Marquez Reila A. Abenojar Rizal East, San Isidro, Isabela Mobile No. 09358194873 - EDUCATIONAL understate * TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYSan Isidro National High School San Isidro, Isabela S. Y. 2006-2007 * PRIMARYSan Isidro West Central School San Isidro, Isabela S. Y. 2002-2003 PERSONAL DATADate of BirthJuly 20, 1990 Age22 Civil StatusSingle Gender distaff Height5 Weight40 kgs. pietismMethodist NationalityFilipino vocabulary SpokenTagalog, English I hereby back that the above information is true and correct to the best of my kno wledge and belief. Reila A. Abenojar Angela V. Almolanida San Fabian, Echague, Isabela Mobile No. 09068334307 - EDUCATIONAL solid ground * TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYEchague National High SchoolSan Fabian, Echague, Isabela S. Y. 2008-2009 * PRIMARYBanaba Elementary School Banaba, Dapdap, Bamban, Tarlac S. Y. 2004-2005 PERSONAL DATA Date of BirthOctober 21, 1992 Age19 Civil StatusSingle GenderFemale Height52 Weight40 kgs. ReligionRoman Catholic NationalityFilipino phrase SpokenTagalog, English I hereby plump for that the above information is true and correct to the best of my knowledge and belief. Angela Almolanida Joylyn M. Adop Catabban, Burgos, Isabela Mobile No. 09359504631 - EDUCATIONAL BACKGROUND * TERTIARYBS in Business AdministrationMajor in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYDona break of the day National High School Sta. Rita, Aurora, Isabela S. Y. 2008-2009 * PRIMARYCatabban Elementary School Catabban, Burgos, Isabela S. Y. 2004-2005 PERSONAL DATA Date of BirthFebruary 22, 1993 Age19 Civil StatusSingle GenderFemale Height53 Weight48 kgs. ReligionBorn Again Christian NationalityFilipino Language SpokenTagalog, English I hereby recognize that the above information is true and correct to the best of my knowledge and belief. Joylyn M. Adop Gaymarie A. FelipeBagong Tanza, Aurora, Isabela Mobile No. 09359029090 - EDUCATIONAL BACKGROUND * TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYDona Aurora National High School Sta. Rita, Aurora, Isabela S. Y. 2008-2009 * PRIMARYBagong Tanza Elementary School Bagong Tanza, Aurora, Isabela S. Y. 2004-2005 PERSONAL DATA Date of BirthSeptember 26, 1992 Age20 Civil StatusSingle GenderFemale Height54 Weight58 kgs. Religionlatter-day Saints Nationalit yFilipinoLanguage SpokenTagalog, English I hereby certify that the above information is true and correct to the best of my knowledge and belief. Gaymarie A. Felipe Ryan A. Darang Silauan Sur, Echague, Isabela Mobile No. 09352083261 - EDUCATIONAL BACKGROUND * TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYEchague National High School San Fabian, Echague, Isabela S. Y. 2008-2009 * PRIMARYEchague West Central School San Fabian, Echague, Isabela S. Y. 2004-2005PERSONAL DATA Date of BirthNovember 23, 1992 Age19 Civil StatusSingle GenderFemale Height56 Weight55 kgs. ReligionBorn Again Christian NationalityFilipino Language SpokenTagalog, English I hereby certify that the above information is true and correct to the best of my knowledge and belief. Ryan A. Darang Vic Rodriguez Catabban, Burgos, Isabela Mobile No. 09359504631 - EDUCATIONAL BACKGROUND * TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela SECONDARYDona Aurora National High School Sta. Rita, Aurora, Isabela S. Y. 2008-2009 * PRIMARYCatabban Elementary School Catabban, Burgos, Isabela S. Y. 2004-2005 PERSONAL DATA Date of BirthFebruary 22, 1993 Age19 Civil StatusSingle GenderFemale Height53 Weight48 kgs. ReligionPentecostal Christian NationalityFilipino Language SpokenTagalog, English I hereby certify that the above information is true and correct to the best of my knowledge and belief. Vic Rodriguez Fernando Ramos Catabban, Burgos, Isabela Mobile No. 09359504631 - EDUCATIONAL BACKGROUND TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYDona Aurora National High School Sta. Rita, Aurora, Isabela S. Y. 2008-2009 * PRIMARYCatabban Elementary School Catabban, Burgos, Isabela S. Y. 2004-2005 PERSONAL DATA Date of BirthFebruary 22, 1993 Age19 Civ il StatusSingle GenderFemale Height53 Weight48 kgs. ReligionPentecostal Christian NationalityFilipino Language SpokenTagalog, English I hereby certify that the above information is true and correct to the best of my knowledge and belief. Fernando Ramos