Kraft Food’s Case Study

KRAFT FOOD COMPANY Chapter I INTRODUCTION A. COMPANYS HISTORY harmonize to Frank (2010), in 1903, there was a man named James Lewis kraft who had begun quit delivery service at Chicago ara after(prenominal) he had been eased out from a lay off fel economic crisisship at Buffalo. Every morning, he will buy cheese wholesale and resold it to the local vendors in society to avoid the cheese melt or spoil. The business was succeederful and several of his brothers who are known as Charles H. , John H. , Fred Walker and nary(prenominal)man had joined the follow named J. L kraft paper & Bros. Co. in 1909 as permanent employees (MAC 2011).James L. kraft paper is a president of the company who had invented a revolutionary process in 1915. This process helps to pasteurize the cheese, thus it would not spoiled easily and can be transported long distances (NNDB 2009). Fundamentally, tally to Phillip (2010), in 1920, kraft paper purchased a Canadian cheese company and changed it to kra ft Cheese ships company in 1924. kraft paper Cheese Company had obtained a lot of sales which enable J. L kraft to expand the company into Germany, Australia and Britain. During innovation War II, kraft paper had supplied 4 million pounds of cheese to Britain.It had showed that Kraft was a main(prenominal) food supplier at that time. In 1945, the Kraft Cheese Company became Kraft Food Company (NNDB 2009). B. COMPANYS DESCRIPTION Kraft Food Companys headquarter had been located at Cheltenham, United Kingdom since Kraft has a close connection with the rest of Europe. The manufacturing site had been constituted at the Ban bury as a globose manufacturing base that will deliver a variety type of outputs worldwide in 155 countries including Malaysia, China and United fix (Kraft Food Inc. 2010). Kraft Food Company was having to a greater extent than 100,000 several(a) employees all over the world.Currently, Kraft Food Company is a second largest food and beverage company in the world after Nestle. C. TYPE OF PRODUCTS Furtherto a greater extent, according to Joel (2010), Kraft Food Company is popular with cheese and dairy, snack foods and confectionary, beverage and convenient foods. However, Kraft Food Company is basically steeringing more on cheese and dairy products such as cottage cheese and sour cream. Kraft produces a wide variety of natural cheese and the enunciatesn cheese slices. Besides that, Kraft also been known as snack food brands especially cookies and crackers.Some of popular snacks food offers by Kraft are Kraft cheese Nips, Wheat Thins crackers, Corn Nuts and Garden Harvest toasted chips (Kraft Food 2011). Instead of that, sweet and confectionary food brands produced by Kraft are Oreo cookies, Kraft Mayo with olive oil, Jet-Puffed deflowerhm throw ins 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 House (Dav id 2009). Chapter II schema FORMULATION A. VISION AND MISSION STATEMENTS 1.Kraft Foods Mission program byplay Make Today Delicious In order to fulfill this mission Kraft Foods Inc. focusinges on consumers in everything that they do. The company also understands that actions speak louder than words, so at Kraft Foods, they inspire trust. act like owners. keep it simple. are open and inclusive. tell it like it is. adept from the head and the heart. discuss decide -deliver. 2. Kraft Foods Vision Statement Helping People Around the World to Eat & Live Better Their slew captures the message of who they are.Everything they do flows from their vision. They just dont happen to be a business that sells food its what theyre all about. Their vision is about make foring consumers needs and making food an easier, healthier, more memorable, and enjoyable fraction of the life. Revised Mission Statement Here at Kraft Foods we strive to produce superior products and services (2) to our clients (1) ranging from wholesalers to households. The 21st century is legitimate to bring more innovation, hot products, and new food technology (4), thus enabling us to create and deliver pause and healthier products.Kraft Foods continues to lead the food diligence as the largest food supplier in northwestward America (7) with plans to continue expansion into new and existing global markets (3). We indorse the goals of the company by applying the highest ethical conduct within our corporate philosophy in all our business transactions (6), treatment of employees (9), and social and environmental policies (8). We at Kraft Foods focus highly on our consumers lifestyles and aim to grow profitable in the worlds food market and provide a higher than expected return to shareholders (5).Our company takes presumption in making today and the future-delicious. 1. ) Customers 2. ) Products and services 3. ) Markets 4. ) engineering science 5. ) Concern for survival, growth, and profitability 6. ) Philosophy 7. ) Self-concept 8. ) Concern for public image 9. ) Concern for employees Revised Vision Statement planetary leadership in offering the best food products enabling people to eat and live better. Explanation-This revised vision statement incorporates a vision for the Kraft Foods Inc. to become a global leader among its competitors-that is to be the number one.This statement shall encourage the whole organization of the corporation to think not besides for the good but for the best. The corporation shall offer not only fiber products but the best smell products helping their global market to live better through the consumption of their products. B. EXTERNAL ASSESSMENT 1. competitory Profile matrix (CPM) Table 1. Competitive Profile intercellular substance(CPM) for Kraft Foods Inc. Critical Success Factor judge Rating Rating 1. Advertising 3 4 2 2. monetary Position 3 4 2 3. world-wide Expansion 3 4 2 4. Market deal 3 3 2 . Product Dive rsity 4 4 3 6. Consumer Demands 4 3 3 ordinary Rating 20/6= 3. 33 22/6= 3. 67 14/6= 2. 33 Note 1=major weakness, 2= minor(ip) weakness, 3=minor strength, 4=majorstrength The Competitive Profile Matrix showsthe relative strength ofKraft Foods Inc. comparedto its competitors by using the critical success factors inits intentness. By identifying its strengths, we can also identify its relative weaknesses and address them to formulate effective strategies. Kraft Foods Inc. is relatively competitive in its sedulousness, showing 3. 33 as its total score.The company has to improve on global strength, market share and attractiveness as an employer to improve on brand loyalty and customer retention. Its profit margin has a rating of 3 just like the other industry because it is considered as a minor strength for they all compulsion to focus on their brand and customer satisfaction. 2. PESTLE Analysis The PESTLE analysis contains the analysis of Political, Economic, Social, Technologica l, 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 delegacy called Kraftpac or Kraft Political Action Committee which makesfunding to state political parties, committees and candidates. ECONOMIC Kraft is making good earnings from its market involvements viaits products and brands. The company is delivering high quality earnings toits shareholders despite the difficult economic environment. They are continuously investing in their brands and businesses to furtherprovide excellent product offerings to their customers.As a result of their investment strategies, the Kraft Foods is very well positioned to deliver sustainable top-tierperformance, with or without Cadbury (Kraft foods pecuniary news, 2011). In 2008, Kraft Fo ods was once again named to the Dow Jones Sustainability World indicant and the Dow Jones Sustainability North America Index in recognition of thecompanys economic, environmental and social performance. SOCIAL The company tookinitiative to improve theliving standards of more than 1 million farmers with effective partnerships with them.They increased their cocoa and coffee purchase to further benefit their partner farmers. Kraft Foods constrictd greenhouse gas emissions by 18% and water consumption by 30% since2005, as measured against total production. Furthermore, thecompany improved the nutritional profile of more than 5,500products during the last flipper days. They removed nearly 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. expert The company keeps consumer needs intheir mindsbefore designing their strategies.They adaptand anticipate their needs in order tome et them efficiently. The company has employed SAP wampum weaver technology platform to ensure effective information and business transformation strategy within all the business units (FBR, 2008). Kraft foods have established a hub and spoke model where a centrally led team focuses on the overall strategies, systems, enabling tools, networks and metrics. And, they have complemented that central team with R&D people the open innovation technical scouts? embedded in eachof Krafts business units. LEGALThe company abides by the laws, rules, and regulations of the national as well as international countries in order to sustain itsprofitability and its business trading operations. Almost all of the activities of the companys food operations outside of the United States are keep down to local and national regulations similar to those applicable to Kraft Philippinesbusinesses and, in some cases,international regulatory provisions, such as those of the European Union relating to chase aft ering, packaging, foodcontent, pricing, market and advertising and related areas.ENVIRONMENTAL Kraft Foods has set an examplein the global industry by find out a pushto reduce the impact of its operations on the environment in the U. S. andaround the world. The company releasedits CSR pass over in 2010 which stated its environmental goals agenda to reduce the effects of energy and the carbon dioxide emissions in food plants to the conservation of water and minimizing excess packaging. They are creating packaging that uses little material, weighs less 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 energy and finding new and cleaner sources of energy. Kraft Foods note for opportunities to reduce the use of water tominimize theimpact of water discharge and even reuse waterin slip modality that help the environment and drive family uni t money. Lastly they are not only focusing on creating less waste in the manufacturing process, they are also finding new and betterways to reuse, treat and even put waste to work. 3. Porters Five Forces AnalysisBARGAINING POWER OF SUPPLIERS The food and beverage industry is quite high and competitive in nature. Theprices offered are usually competitive toremain in the market. THE BARGAINING POWER OF BUYERS The buyers preferences changes with the passage of time and they are likely to switch to the seller who offers goodquality atless price. Wal-Mart has played amajorrole in this case. It offers less priced goods toattract the buyers attention. There is a significant opportunity for the buyers toextract industry and firm profits. THE THREAT OF THE ENTRY OF NEW COMPETITORSThere are already somany competitors present in the market that there are very less chances for the new comers to set foot in and enjoy their share in the market. The existing companies have already spentso much on their brands, quality and positioning that it will be difficult for the new comers to entice switching among consumers. RIVALRY AMONG ESTABLISHED COMPETITIONS Intense competition lies in the food and beverage industry. The main vehicle by which firms in the industry preserve market shareis through brand loyalty and diversification.In general, the products of thesefirms are highly elastic with consumers weighing the trade-off amidst price and quality between companies and products. Consumers in the industry have minimal switching 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 to close 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 restruc turings and realignments at Kraft and at other companies in the industry in order to increase volume and profitability despite increasing input costs, sluggish topline growth, margin contraction, and rising pension costs. THE THREAT OF SUBSTITUTE PRODUCTS OR SERVICES The consumers evaluate 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 serious threat to industry andfirm profits. 4. Input Tools Table 2.External Factor Evaluation (EFE) Matrix for Kraft Foods Inc. Key External Factors Opportunities 1. Operates in many nimble growing categories 2. Growing guide for health and wellness products 3. hangd input costs raw materials 4. changing lifestyles. 5. Increased trends of flavor enhancer for bottled water. 6. return in the market overall. 7. Cadbury acquisition provides new products. Threats 1. change magnitud e trend of dining out 2. Health concerns 3. Inflation transportation 4. bad impact of foreign currency 5. Customers switching to generic brands. 6. Intense competition from Mars Inc. Nestle SA C. INTERNAL ASSESSMENT 1. Internal Factor Evaluation (IFE) Matrix Table 3. Internal Factor Evaluation (IFE) Matrix for Kraft Foods Inc. Key Internal Threats Strengths 1. severe RD 2 Increased organic revenues 3. handiness 4. Innovative advertising methods 5. Diverse range of leading brands 6. Focus on consumers 7. tough distribution network 8. Strong brand image 9. Worlds second-largest food company 10. 25% of global revenue from emerging markets Weaknesses 1. Difficulty in launching new brands 2. Most of growth is babelike on acquisitions or expanding into new market. 3. Strong competition from Nestle, Hershey, etc. 4. Poor performance of North-American segment 2. MatchingTools a. Strengths-Weaknesses-Opportunities-Threats ( jampack) Matrix TheopportunitiesandthreatsthatKraftFoodsInc. possessesarenow matched against itsstrengths andweaknesses byusing the SWOT 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 debauched growing 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. 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 acquisitio n 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 transportation 4. Unfavorable impact of foreign 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 distressing 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 quantify 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. Boston Consulting convention (BCG) Matrix plane section Revenue (millions) Percent Revneues Profit (millions) Percent Profit carnal noesis Market parting Industry Growth order (%) Company $ 42,201 100% $2,901 100% 0. 38 6. 41% In the BCG matrix, Kraft Foods Inc. ervices are presented and compared with industrys growth rate. The luck 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. ( spherical Market Share) Relative market share in the industry (percentage) Relative market share in the industry (percentage) 1. 0 . 50 0. 0 2. . 50 0. 0 +20 0 20 +20 0 20 Industry Sales Growth Rate (Percentage) Industry Sales Growth Rate (Percentage) Question attach I Question Marks I Stars II Stars II Dogs IV Dogs IV property Cows III Cash Cows III Kraft Foods belongs to Question Marks Group seen in quarter-circle I, it remains to be competitive enough although its market share is not that high but its growth rate in industry is high enough to cover the market. In order to be on Stars the company must postdate an intensifier strategy 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 Sh are 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 III 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 investments to maintain their lead.Division Revenue (millions) Percent Revneues Profit (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 Total weightinessed Scores IFE Total saddleed Scores Table 7. Internal-External (I/E) Matrix for Kraft Foods Inc.Strong reasonable Weak Strong Average Weak 4. 0 High 3. 0 to 4. 0 3. 0 Medium 2. 0 to 2. 99 2. 0 Low 1. 0 to 1. 99 1. 0 4. 0 High 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 buildGrow and build I 2. 57, 3. 14 2. 57, 3. 14 II III IV Hold and Maintain Hold and Maintain V VI seven-spot VIII Harvest or Divest Harvest or Divest IX EFE Total Weighted 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 urinate position which means that its internal strengths are on the average and response to the outdoor(a) factors are on the above average.This means that Kraft can start in doing intensive and integrative strategies as sugge sted by the IE Matrix. e. Grand Strategy (GS) Matrix Rapid Market Growth Rapid Market Growth Table 8. GS Matrix for Kraft Foods Inc. Quadrant II Quadrant I 1. Market Development 2. Market Penetration 3. Product Development 4. Forward desegregation 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 best for them to continue their concentration on their current markets and strategies that would be best to use are market penetration and market exploitation as suggested earlier in the other matrixes. If Kraft Foods is too heavily move to a single product, then related diversification may reduce the risks associated with a narrow product line. g. Functional areas of the firm MarketingKrafts management performed an international consumer be to determine if consumers were aware of the product quality and whether they were receptive to Krafts product quality. After receiving a favorable survey response, KFI decided to produce an adaptive, revitalization, and business acquisition trade campaign tailored for specific foreign markets. An organization can make a creditable business case for product adaptation when the product adjustment 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 revitalized them by positioning the products as mild, hot, or spicy 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 younger consumers became interested in Kraft products. Finance At Kraft, cash is king When Kraft Foods needed to cut costs and free up cash, its supply chain organization rose to the challenge.Better inventory turnover played a leading role in boosting cash 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 core in the multiyear project. Research, Development spirit 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 At Kraft Foods, we have been focusing on inventin g delicious foods and improving life quality. Thus we sincerely invite the best RD staff and establish 6 RD centers in world. All of our professional knowledge in nutrition and food safety allow us to accelerate product research and development, bringing the best technologies and products to benefit people all over the world. Kraft Foods Global RD center located in Glenview, Illinois, has established professional labs for hemical and flavor analysis. We attract excellent RD staffs 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 pipeline of innovative products including OREO meth Cream Flavor 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 sub sidiaries.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 three 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. Convenient 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 closer to our customers and consumers, each category is fully accountable for its financial results, including marketing, manufacturing and RD. Category leadership, base in Zurich, Switzerland, reports to the Kraft Foods Europe President.These business units now comprise the Kraft Foods Europe segment. Information Systems Innovation can only happen if weve got the infrastructure to support it. And everything we do, every minute of the day, relies on having the right technology and information immediately available. Information Systems are the key. But they do much more than just reaction helpdesk calls and fix our computers. Information Systems also invent neat solutions to our technological problems, and work out what systems and equipment we need to support our ideas. Chapter III STRATEGY IMPLEMENTATION A. executive tellor DECISION RESPONSIBILITIESKey decisions at Kraft are made by the following three organizations Global Marketing and Category Development Commercial Un its 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 surpass 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, International Commercial Functional Areas EVP, Global Corp orate Affairs EVP Chief Financial military officer EVP, Global Human Resources EVP, General Counsel Corporate Secretary EVP, Global Strategy Business Development EVP Chief Information Officer EVP, Global Technology Quality EVP, Global Supply Chai B. EXECUTIVE DEVELOPMENT SUCCESSION Executive 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 display an ability to carry responsibility and sophisticated thinking thats usually 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. individually function within Kraft 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 identify for any executive in case he or she leaves the company.C. INSIDERS VIEW ON KRAFT CULTURE Insiders have commented that Kraft is very respective(a) and that they have many qualified minorities in management positions. Even though working(a) 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 heavy workloads on the remaining employees. There have also been comments made that employees from acquired companies suffer from low morale because of difficulty in adjusting to Kraft culture.Chapter IV STRATEGY EVALUATION Table 8. Balance Scorecard for Kraft Foods Inc. GOALS STRATEGIES MEASURES TIME COMPLETION Customer survey Provide quality products for all customers Product Development Developing quality products such as low fat and less cholesterol Immediately after 2013 Internal Business Process More efficient internal control Semi-centralization of the organization A main branch per areas which controls other branches 4th quarter 2007-2008 Financial perspective Attainment of 2011, 2012, and 2013 revenue target Having a large share in the global economy Using effective marketing and extensive product developmentCutting cost if possible 3rd quarter 2013 Learning and growth Increase industry awareness regarding service in other country. Development of intensive planning 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 strength of skill performance 2nd -3rd quarter 2014Immediately after 20 13As an evaluation tool, the balanced scorecard shows the various selected key strategies on aspects of consumer perspective, interval business processes, financial perspective and learning growth. A set of quantitative measures has been enumerated for each strategy to enable the company to monitor progress or strategy attainment on a regular 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 domestic 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 Kr aft can proceed in doing intensive and 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.Indeedtheadvancetechnologicaladaptationinthis 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 belonging in the same industry. On how they could penetrate the market and what would be the ir 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 constitute 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. Decrease 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 Deal May Force coffee 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 CURRICULUM VITAE JENEVA V. VICENTE Rizal East, San Isidro, Isabela Mobile No. 09358723111 - educational BACKGROUND TERT IARYBS in Business organization major(ip) in Management account statement Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYSan Isidro National High take aim San Isidro, Isabela S. Y. 2008-2009 * PRIMARYSan Isidro West aboriginal School San Isidro, Isabela S. Y. 2004-2005 in the flesh(predicate) info Date of bloodline treat 9, 1993 Age19 Civil term case-by-case Gender feminine top of the inning5 Weight45 kgs. ReligionPentecostal Christian NationalityFilipino Language verbaliseTagalog, English I hereby certify that the above information is dependable and correct to the best of my knowledge and belief. Jeneva V.Vicente JOANA MARIE S. MARQUEZ Mabini,Alicia, Isabela Mobile No. 09267907457 - EDUCATIONAL BACKGROUND * TERTIARYBS in Business Administration Major in Management Accounting Isabela State University Echague San Fabian, Echague, Isabela * SECONDARYAlicia National High School Paddad, Alicia, Isabela S. Y. 2008-2009 * PRIMARYMabini Elementary Sch ool Mabini, Alicia, Isabela S. Y. 2004-2005 PERSONAL DATA Date of BirthMarch 30, 1993 Age19 Civil StatusSingle GenderFemale Height51 Weight48 kgs. ReligionRoman Catholic NationalityFilipinoLanguage SpokenTagalog, English I hereby certify that the above information is adjust 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 BACKGROUND * 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 GenderFemale Height5 Weight40 kgs. ReligionMethodist NationalityFilipino Language SpokenTagalog, English I hereby certify that the above information is true and correct to the best of my knowled ge and belief. Reila A. Abenojar Angela V. Almolanida San Fabian, Echague, Isabela Mobile No. 09068334307 - EDUCATIONAL BACKGROUND * 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 Language SpokenTagalog, English I hereby certify 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 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. 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. 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 NationalityFilipinoLanguage Spoke nTagalog, 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 Accountin g 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 Civil StatusSingle GenderF emale 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