Kraft Questions Essay examples

815 Words Apr 9th, 2015 4 Pages
Amanda Kluszczynski
Strategic Business 59-620B
Eveanne Lovero
Kraft Questions
March 12, 2015

1. What is Kraft Foods Inc.’s corporate strategy? How has its corporate strategy evolved since its independence in 2007?

Kraft has a strong global strategy. They found themselves operating in more than 80 countries, which included 220 manufacturing and processing facilities and 228 distribution centers. Because of the different regulations in each country related to food, they found themselves in need of several different facilities for the manufacturing of their food products.

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
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Brand building, consumer health and wellness, and advertising and promotions were all critical to success in the industry. Kraft’s ability to compete with lower priced snacks showed its ability to differentiate itself from other lower priced competitors.

It is clear that the industries Kraft participates in are ever growing, both as populations increase and Westernization increases in other countries.

3. What is your assessment of the competitive strength of Kraft Foods’ different business units?

Kraft is clearly a strong competitor, as they remain one of the top contenders in each of their industries. They are able to strongly differentiate their products from those of other companies to capture a large share of the markets they participate in. They have a wide array of products that can serve as subsituties for each other to keep consumers within their brands, but give them options on which products to consume.

4. What does a 9-cell industry attractiveness/business strength matrix displaying Kraft Foods’ business units look like?

Business Strength

Strong
Medium
Weak
Market Attractiveness
High
Protect Positions
U.S. Snacks
Invest to Build
U.S. Conenient Meals
U.S. Grocery
Build Selectively
U.S. Beverages

Medium
Build Selectively
U.S. Cheese
Manage for earnings

Limited expansion or harvest

Low
Protect and refocus
Manage for earnings
Divest

5. Does Kraft Foods’ portfolio exhibit good strategic fit? What value-chain match-ups

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