TUI UNIVERSITY
Module 3 SLP
MGT 599 Strategic Management
Dr. Nanette Metz
Business Dictionary defines internal analysis as “a review of an organization’s strengths and weaknesses that focus on those factors within its domain” (2014). Conducting an internal analysis allows organizations to adapt and change the way they conduct business in order to remain competitive. Internal analysis obtains information from financials, operational and marketing departments to help management determine strategic planning for future growth. In this paper the author will discuss an internal analysis of Kraft Foods.
Tangible Resources Investopedia defines tangible assets as assets having a physical form,
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Additionally Kraft Foods opens their plant facilities to other company’s allowing for the “develop of ingredients and applications for their products” (Kraft Foods, 2014).
Intellectual Resources
Intellectual resources encompass the collective knowledge of the organization that is gained overtime through experience and education (Xaxx, n.d.). Kraft Foods has a very diverse portfolio which includes ownership of numerous patents worldwide which covers basic packaging techniques to processes relating to specific products and the products themselves (Kraft Foods, 2014). These patents protect the unique products of Kraft Foods that distinguish them from their competitors.
Goodwill
Kraft Foods is a household name that has been around for over 100 years providing consumers with quality products they demand (Kraft Foods, 2014). Conducting research on trends and demands has generated trust, respect and goodwill from their consumers allowing Kraft Foods to become number two in the food industry (Kraft Foods). In addition to goodwill Kraft Foods has developed strategic alliances with extremely powerful customer, i.e. Wal-Mart, which account for 23% of their total net revenues (Kraft Foods Financial Report, 2013). Kraft Foods understands that the loss of these relationships will generate “decreased sales, financial position and operating results” (Kraft
“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.
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.
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
This case involves a mid-sized, regional grocery store chain called Reed Supermarkets. Reed has 192 retail stores, two regional distribution centers and 21,000 employees in five states in the Midwest of the United States. This case discusses Reed’s market strategy for the Columbus, Ohio, market in particular, which is one of Reed’s largest markets. The Columbus market has grown slightly over the past five years, while Reed’s market share has dwindled slightly in the market. Reed has watched their market share stagnate with the entrance of new competitors (10% growth in stores) and a dramatic shift in customer preferences to value or
Heinz manufactured products in three categories: Ketchup and Sauces, Meals and Snacks, and Infant Nutrition. Heinz’s strategy was to
Boulder Brands is a consumer-packaged foods company providing healthy food to major retail channels. The company is headquartered in Boulder, CO, but has manufacturing facilities in the U.S., Canada and the U.K. Boulder Brands owns and operates Glutino®, Udi’s Gluten Free®, Earth Balance®, Level Life™, EVOL foods and Smart Balance®. This report will analyze the financial statements and accompanying notes for Boulder Brands’ fiscal year 2013 (January 1, 2013 – December 31, 2013). To effectively examine the financial standing of Boulder Brands this report will compare Boulder Brands financial statements to Annie’s financial statements for the fiscal year (April 1, 2013 – March, 31, 2014). Like Boulder Brands, Annie’s is a natural food company focusing on the production of organic macaroni and cheese, snack crackers, graham crackers and fruit snacks. Annie’s is headquartered in Berkeley, CA and sells their products in the U.S. and Canada. General Mills acquired Annie’s in September 2014. Both companies take a sustainable approach to the production of healthy, natural food.
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).
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
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.
The Kraft macaroni and cheese is marketed towards many people, but largely parents with small children. This product is highly convenient when it comes down to ease of preparation. In recent years, Kraft has made changes to market a main focus with the interest of health and food die with their product. As Kraft Macaroni & Cheese grew over the years, new products had become brands in and of themselves. This created a fragmented product line and inefficient use of marketing resources.
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.
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 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).