TUI UNIVERSITY
Module 3 Case
MGT 599 Strategic Management
Dr. Nanette Metz
Executive Summary Kraft Foods is the second largest consumer packaged food and beverage company in the world with revenues of approximately $19B. After 110 years Kraft Foods has excelled as an organization and become a well recognized household name. Through the utilization of a SWOT analysis Kraft Foods has been able to determine internal and external threats and opportunities to help them remain on top of their industry. Competition in the food industry is extremely high and through adaptability and change Kraft Foods is able to provide their consumer with better quality and affordable foods. This adaptability has
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Kraft Foods has nearly 23,000 employees and takes pride in “hiring, training, educating and retaining qualified individuals that “make their company stronger” (Kraft Foods, 2014). Kraft Foods understands that happy satisfied employees enhance their products and brand name and without these people the company would not be as successful (Kraft Foods). Through empowerment of their employees innovative ideas are generated enhancing brand quality and rendering increased revenues (Kraft Foods, 2014). Additionally in 2008 Kraft developed the website ‘Innovate with Kraft’ which sought to obtain creative ideas from consumers relating to products, packaging and processes (Key, n.d.).
Weaknesses
Organizations must analyze internal weaknesses to determine ways in which to accomplish their mission and achieve full potential and financial success (Management Study Guide, 2013). Determining weaknesses can generate opportunities for future success. Although Kraft Foods is number two in the food industry there are numerous factors to be improved upon. A major weakness of Kraft Foods is their low market share, only 9% in a $40B global food industry (Vuru Financials, 2014). This demonstrates weak geographic positioning, especially in markets outside North America (Vuru Financials). Nestle, Kraft Foods number one rival, enhanced their net profits by nearly 11.5%, while
In my opinion, Kraft Food s Inc. has good strategic fit. The profitability trend was upward between 2009 and 2011 fiscal year. The company has strategic created segments that would complement their efforts to reduce cost through efficient value supplier chain that is interconnected with each segment of the incorporation. The system in its entirety is facilitated through the Kraft Foods supply chain initiatives management team. The team ‘s main focuses is improving cash
Weaknesses – These are internal qualities that hinder an entity or organization from accomplishing its mission and goals. Weaknesses include the poor quality standards that cause an organization not to perform optimally. Weaknesses might include obsolete machinery, high employee turnover, narrow product range or debts. Since they are internal in nature, weaknesses can be eliminated and minimized. For instance, in the business of baseball exercise, the main weaknesses identified include insufficient use of statistics to evaluate layer performance and poor management of baseball insiders. Both of these weaknesses could be eliminated or minimized. An analysis of weaknesses enabled organizations to identify problems or challenges that they can easily address.
In this technique, internal strengths and weaknesses of a company and external opportunities and threats faced by it are closely examined to chart a marketing strategy for the future (Forsyth, 2010, pp. 102-106). Major strengths, weaknesses, opportunities and threats of Starbucks are analyzed below.
A prominent goal of marketing research is the identification and definition of marketing problems and opportunities. This goal also includes the improvement and development of marketing actions. Kudler Fine Foods performed a SWOT Analysis to identify its strengths, weaknesses, opportunities, and threats. Strengths listed are: 1) because it is a small organization, KFF can control and watch over all of the stores operations continually, 2) KFF has no direct competition because there are not any gourmet stores in the area, 3) KFF offers its customers a wide variety of produce, fruits, wines, and cheeses. None of the grocery stores in the area can offer such a wide variety of products, 4) KFF is very customer oriented and employs a very friendly staff. Employees help the customer in any way possible and very courteous, to help customers as much as possible, 5) KFF locations are strategically placed in higher classed areas in which people can afford to pay the higher
The SWOT analysis is a simple way of generating strategic marketing alternatives from a situation analysis. Another type of popular analysis is a PEST analysis, which involves Political, Economic or Environmental, Social, and Technological or Transportation analysis. An industry analysis can be performed using a framework developed by Michael Porter known as Porter's five forces. This framework evaluates entry barriers, suppliers, customers, substitute products, and industry rivalry.
In reviewing their vision statement (to me) it speaks silently of the organizational values. Their unspoken goal behind the vision statement is to Help…. To help people globally “Eat and Live Better”. In my opinion their message is saying we care and we want to make products that help you achieve that.
SWOT Analysis: Case study Sandwich Blitz Sandwich Blitz is an up and coming restaurant that has 8 stores open for business and looking to expand. With the right business plan and executives in place, their expansion is sure to be a success. When looking to expand using the SWOT analysis will help execs summarize important facts about the internal and external factors affecting the company. Being a well-known restaurant in an area where there are corporate America and thousands of college students is a strength. Word of mouth is a very significant part of marketing and plays a big part in expansion, the more people that are familiar with the company the more clients the business is bound to bring in.
The authors stated that, “Kraft Foods was the second largest food company in the world and the largest food company in the United States,” (Kerin & Peterson, 2010). A.1. Steak Sauce is a condiment “power house” in the Kraft portfolio that made incomparable profits for the company. Lawry’s, one of Kraft’s long-lasting competitors, endeavors to get a jump on the Holiday weekend (Memorial Day) at Publix to attain the ad and market their new product. Once notified, Kraft must lucidly make calculated decisions (SWOT analysis) as to how they will counteract Lawry’s new launch so they don’t
Bob’s Supermarket SWOT Analysis shows the supermarket displayed strengths with having loyal customers, customer service, and a POS System that helped them “improve both their sales and profit margins” (Parnell, 2014). Their weaknesses showed they lack having attractive displays, a marketing strategy, “limited advertising and promotions” and “attract long-term workers” (Parnell, 2014). In fact, Bob’s Supermarket has the potential to take advantage of many opportunities such as expanding their “products or services” (Matsa, 2011), utilizing innovations, re-branding their image such as making uniforms with name tags available for employees, and remodeling the interior, lighting and fixtures of Bob’s Supermarket (Parnell, 2014). Their threats
Date Whole Foods Market SWOT Analysis Whole Foods Market Inc. positions itself “more than just a food enterprise,” where it aims at selling quality organic and natural products, by creating an ideal consumer experience for those willing to pay a higher price. Apparently, SWOT analysis can be used for Whole Foods Market Company to identify its competitiveness. Strength The company has expertise market knowledge and experience in this industry, where they have recorded a consistent growth over the years, making it a leader in the organic foods market in the United States. Across the North of America, the company has more than 196 stores, which are the fifth most valued public retailer, providing them with the ability to secure significant market knowledge.
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.
After evaluating this analysis, it will be easier to determine if the negative aspects of starting such a venture significantly outweigh any positives. Possibly the easiest of the four quadrants of the SWOT Analysis to determine are the strengths.
The SWOT analysis of ASDA can help the organization to make strategic decision regarding their internal and external environment. However, Porter's model is also an effective analytical tool to evaluate competitive strategies. ASDA food has now strong sourcing and distribution network, they want to maximize their market at the each corner of the country as well as in the abroad. The parent company 'Wal-Mart' has strategic planning on the market expansion of ASDA food.
Businesses in the same industry compete against each other to meet their organization goals and sustain competitive advantage over one another. But to meet those goals, it’s important for businesses to analyze their internal and external environment to allow them to come up with new business strategies beneficial to the business. Firms can use SWOT as a starting point. SWOT is a basic technique that can be used by business owners to analyze their business and industry condition (Dess, G., Lumpkin G.T., Eisner, A., McNamara, G, 2013). Using SWOT will help business owners understand the strengths, weaknesses, opportunities and threats of their business. It would help them analyze and come up
We are going to be discussing Sandwich Blitz’s strengths, weaknesses, opportunities and threats, also known as a SWOT analysis. A SWOT analysis is done as part of the strategic planning process, it will help lead a company to its objectives. Strengths identify what the company is doing right and what other business may also be looking to copy. Weaknesses are what other, similar businesses, could exploit to steal customers away and build their business. Opportunities look at the weaknesses and help to identify what could be done to turn them into strengths. Threats are growing franchises in the area, government policies, or what is happening in the areas around store locations.