MGT 599 SLP 3 Internal Analysis Kraft Foods Essay

Kraft Heinz Company is currently the fifth largest food and beverage company in the world and the third largest in North America. It operates globally in producing high quality foods and beverages for consumers in more than 200 countries (Kraft Heinz Company, 2017). With its co-headquarter in Pittsburgh and Chicago, USA, the company has divided 4 big regions under the global team, which are AMEA (Asia, Middle East, Australia and New Zealand), NA (North America), LATAM (Latin America), and Europe. As it operates in the packing food industry, the company has a characteristic of having low profit margin with high volume.

In the United States, the food retail industry is absolutely massive. According to Statista, this industry brings in nearly 5.27 trillion dollars annually and 594.4 billion of that is from grocery store sales. In this market, the 20-ton gorilla in the room is Walmart, racking in nearly 20% of the entire market at around 118 billion dollars in 2013 according to the Harvard Business School case study. Following Walmart, Kroger and Costco own the biggest next largest slices bringing in 76 billion and 71 billion respectively. In this highly competitive market that has some of the smallest margins of any industry it can be tough to get ahead and even tougher to grow. However, Trader Joe’s has managed to pierce what was once a very small world

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

With giants such as Walmart, and Kroger running the grocery store industry it’s difficult for companies such as Smuckers to bargain for shelf-space and prices. Brand name items drawn to the center of the store are what leverages these companies to succeed in the industry. After numerous acquisitions and strategic alliances, Smuckers developed a solid core of product lines which experienced success rapidly. Product lines that experienced the most success as a result of strong positioning in the industry included their Coffee labels, flour and baking products, Oils and food spreads. A 9-Cell Industry Attractiveness/Business Strength Matrix shows that the Industry attractiveness is relatively moderate. With many competitors and strong buyer power from large grocery chains such as Kroger, companies such as Smuckers have explored different strategies that have proved successful in what can be described as a saturated industry. The case insinuates that there may be opportunities in the industry in regards to special markets and perhaps Oils and Baking with sugar free products, but otherwise the recession, although it drove families to buy store bought as opposed to eating out, has had its effects on the food service industry as well.

To most consumers Whole Foods is known as a chain grocery store specializing in organic and natural foods. Some may go as far as say the name is synonymous with quality. This comparison is the result of Whole Foods’ marketing their brand successfully to consumers demanding their specialized foods. As with any organization, Whole Foods may consider evaluating their strategic objectives and decide if necessary course corrections are needed to reach their objectives and goals. Through a fundamental and technical analysis, I will discuss Whole Foods’ mission, vision, and goals, their competitive environment, and some factors within their strength, weakness, opportunity, and threat analysis. With such data and information I

General Mills (NYSE:GIS), our company, is a global consumer foods company. We develop distinctive value-added food products and market with our unique brand names. We work continuously to improve our established products and to create new products that meet our customers’ potential needs and preferences. Our company has $14.88 billion in sales last year. Our sales has grown substantially throughout the years due in large part to our popular brand names, this however is only part of the reason that we has been so successful. We markets global brands such as Green Giant, Old El Paso, Häagen-Dazs, Yoplait, Cheerios, Betty

Technological resources are in the form of patents, copyrights or trade secrets (Grant, 2016). As well as intellectual capital, which is a value driver of a business (Chahal and Bakshi, 2016).

One way Kraft decided to changes its mac and cheese product was by removing artificial flavors, preservatives and synthetic colors without dramatically changing the taste, color and texture. This change came about after some people found that this product carried

“The full line of products that Yoplait offers today is wide and diverse. They offer a yogurt line that consists of the original yogurt, grande, whipped, light, and ultra light. Yumsters is a line for younger children, which includes a spoon attached to their yogurt (Nestle LC1).” When considering General Mill’s brand Yoplait they have an absolute cost advantage because of their reputation for quality which in turn establishes brand loyalty. “Yoplait is a first-mover in the yogurt industry. They have offered many new innovative products to their consumers from Go-GURT to their Nouriche Smoothies. Yoplait created the first ever yogurt placed in a tube called Go-GURT, which has become the yogurt for those that are on the go and always in a rush. Within the last year of introducing Nouriche, the product’s sales have increased by 35%. Yoplait just recently began offering a yogurt that contained sterols, which is a cholesterol-lowering plant (Nestle LC1).” Finally, there are many different flavors, health benefits, packaging, and niche segments that firms utilize to differentiate their products, and this is a central factor for barriers to entry.

After Quaker purchased Snapple, the company decided Snapple was ready to transition from a fashion brand into a lifestyle brand because of its high sales revenues. However, Quaker’s transition efforts did not turn out as planned and the Snapple products lost the support of their loyal customers, weakening the brand image. Quaker ignored, or otherwise failed to nurture, the consumer relationship with the Snapple brand, and product sales suffered significantly. Two key drivers in the beverage business are distribution and promotion and both of these drivers suffered during the Quaker ownership of Snapple.

Whole Foods needs to reduce prices due to the new competitive landscape. Since the grocery industry runs on very low profit margins, in order to reduce prices the company needs to reduce costs. Whole Foods can leverage its size along with the company 's value proposition of working with local farmers to develop more efficient collaborative networks. "The creation of partnerships in integrated networks opens up opportunities to take advantage of complementary costs structures, the respective partner 's technical expertise, market knowledge and brand equity (reputation)" (Swink, Melnyk, Cooper,& Hartley,2014, p.11). The purpose of this paper is to offer recommendations to

The external analysis provides the company and observers basis to identify threats and opportunities that exist in the outside environment from the company. A basic question to ask is would the threat or opportunity still be there if the company wasn’t and if you can answer that question with a yes answer then you have potential threats and opportunities to consider in the analysis of the company. These items need to evaluate to minimize the threats and to maximize the opportunities. During your analysis you must take a panoramic evaluation of political issues, funding sources, the economy, future trends, and physical environment. These are just some of the areas that you can draw information for making educated decisions for the company.

The Kraft Foods company is an organization that through acquisitions has added a variety of companies with not only a mix of products, but also an amazing knowledge base. Kraft products are found and manufactured all over the world. As of 2009, the company had 9 brands that exceeded over $1 billion in revenue annually and more than 50 brands with over $100 million (Company Spotlight, 2009). Kraft North America is home to more than 303 distribution centers and there are 13 distribution centers around the world (Company Spotlight, 2009). In 2009 Kraft employed over 98,000 people, of those “2,400 are food scientists, chemists and engineers” (Company Spotlight, 2009, pg. 96).

When Sanjay Khosla left Fonterra Group in 2007 to spearhead Kraft Foods’ business in developing countries, he was tasked with discovering a way to realize the potential for growth in developing markets that had eluded Kraft and so many other large, successful

Strategic Alliance is the collaboration of two companies who came together to implement an idea that will benefit both parties (Strategic alliance, 2009). It is crucial that both parties understand what’s really at stake in order to make their partnership successful. In this paper, the writer took the time to analyze a partnership between Subway restaurants and Coca-Cola products. In addition, we will look at the economic benefit for each company. When dealing with businesses there is a potential for ups and downs during the operations process. The author will examine this collaboration between Subway and Coca-Cola while using Porter’s Five Forces framework including a PESTEL (Political, Economic, Social, Technological, Environmental and Legal) analysis of these two companies.