Conductng a Internal Analysis Within Kraft's Corporation

This results from the fact that it is a mature segment with many well established companies vying for market share. The industry is highly consolidated and very fragmented. To grow their businesses, companies rely heavily on mergers and acquisitions to capture additional market share. Historically, the grocery industry has been characterized by slow growth which results in strong price competition and the development of aggressive marketing campaigns between existing firms. Perceived product quality and strong brand recognition by consumers are the basis of competition among firms in the industry. The source of General Mills’ competitive advantage lies in its ability to develop innovative products and highly reputable brands. As a result, they hold cost leadership positions across a number of grocery categories. Exhibit 1 shows the top US companies according to their sale of packaged foods globally. Market leaders include Kraft Foods, PepsiCo, Nestle, Mars, Kellogg, and General Mills, however, neither company possess an overwhelming share of global sales. This is in part due to the large degree of product diversity throughout the industry and the strong brand rivalry of each competitor’s labels.

Net income on the income statement: $2,377,000,000 ($5.37 per share), which is an increase of 15% compared to 2014.

Kraft Foods Group produces annual revenues of about $18 billion or more. CEO, John T. Cahillore ensures that “with the spirit of a startup and the soul of a powerhouse, we are on a mission to be the best food and beverage company in North America.” Kraft exists around that statement and every decision made for the business should reflect being a powerhouse in food and beverages. So far, this company’s strategies have made that statement true.

Economic: An economic downturn could affect the sales of Burt’s Bees products. While a large percentage of customers are loyal due to Burt’s Bees their natural and/or

Revenue: Net sales between years 6 and 7 demonstrate a 33.3% increase or an increase in approximately $1.5 million.

In the latest figures released for the third fiscal quarter of 2016, Net sales increased 1.1% to $5.00 billion from $4.95 billion in the prior year's third quarter. This was the Company's 35th consecutive quarter of positive same-store sales with a 1.7% increase on a constant currency basis.

• Net income for the year totaled $2.6 billion, or $6.72 per share, inclusive of $2.1 billion, or $5.36 per share, resulting from a deferred tax asset reversal, compared with 2013 earnings of $206 million, or $0.54 per share;

Tesco was feeling the pressure because they saw a fall in profit since 2008 and were worried that their customers would not return. However as time moved on the economy started to pick up again in 2009. Customers started to spend more and were more comfortable about their current financial situation. However Tesco realised that their customers were not purchasing goods of high price, meaning that customers were likely to purchase readymade meals and organic products. The demand for a product depends on the economic factors such as interest, inflation and local employment levels. Tesco doesn’t have control on the economic factors; however these do have an effect on the business.

In 2008, the economy suffered a recession that caused consumers to cut back on spending. According to Josh Parnell (2014), typically as consumers are considering cut backs, they are also considering how they should wisely spend their money whenever they have to. While Bob hoped that a struggling economy would persuade consumers to consider eating at home more than eating out to save money, Bob’s was not always the cheaper option (Parnell, 2014). In fact, because Bob’s was a local grocery store, they struggled to compete with prices against large chain stores. Also with an economic recession, employees are looking for ways to increase their wages. As minimum wage increased nationally and affected Bob’s and its competitors, because it is a smaller company, this impacted Bob’s on a larger scale(Parnell, 2014).

The second force that I will use to analyze the Trader Joe’s company is the “the rivalry among established competitors”. Factors to consider when looking at the rivalries in the industry are industry demand, cost conditions, and exit barriers. Trader Joe’s competitors include The Kroger Co., Whole Foods Market, and Safewat Inc., and all super markets in general (Llopis, 2011). With that said, there seems to be a high demand for what Trader Joe’s offers, private labels. This means that the intensity in the industry is less compared to an industry with a flat demand. Trader Joe’s does not have to fight hard to sell their products because of the service they have created. Trader Joe’s brand can be considered “diversity on steroids” which has somewhat of a cult following among consumers (Llopis, 2011). Consumers that want unique experiences with their food are able to do exactly that at

million), a rise of 18.7% against the previous year’s revenues that were £28,280 million. The company’s

During this time, sales increased from: $7.11 billion in 2010 to $7.99 billion in 2012. Earnings improved from $2.84 to $3.57. While the total amount of dividends rose from $1.00 to $1.72. These figures are showing how the company has been continually increasing sales, earnings and dividends over the last three years. In the future, the management predicts that their current strategy will increase returns. As, executives believe that their focus on building the brand and accounting for costs will lead to net earnings of $5.20 to $7.19 annually by

By 2007, Kraft was the 2nd largest processed-food company. The company continued to acquire and divest business units that were either extremely profitable or not

As per the deal shareholders of Heinz in total will have a 51% stake overall. To neutralise the deal somewhat in favour of Kraft Foods Co also, Berkshire Hathaway and 3G Capital paid a one- time cash dividend , which meant that one share of Kraft Foods came equal to one share of Kraft Heinz Company.

Regarding Johnson & Johnson’s earnings per share, we can see that from the total net earnings, each share of the company’s common stock is valued in $4.40 which has significantly decreased from its value in 2008, but once again is over the value of year 2007, probably due to the economic crisis.