Porters 5 on Kraft Foods

• Kraft Foods Inc., is the largest food and beverage company in North America and the second largest in the world. Was founded in 1903 by James L. Kraft.

The Kraft Company has been around for a long time now. Personally I believe you must have a protective firm, not allowing other companies to steal your ideas and product. This will give the firm advantage over others.

c. Private companies may issue stock and have shareholders. And are invested by individuals. However, their shares do not trade on public exchanges and are not issued through an initial public offering.

The company may now be known as just Kraft Foods Group but the slogans “make today delicious” and the old statements about healthy enjoyable food still stands true. Just like everything in life, things must adapt and grow with time. So being the best food and beverage company means having healthy and delicious food.

As I mentioned above, Mondelez was created to fit a need that Kraft Foods Inc. had to increase their growth globally. Kraft Foods Inc. established their name in 2007 when they broke apart from Altria Group. Kraft became the second-largest processed food company in 2012 with annual revenues of more than $54 billion in 2012 (Gamble, 2016). However, significant growth in the company was not much different from that in 2007 when they became independent. It is the belief of the company’s upper management and board that the reason for their stagnation was due to the fact that their corporate strategy was not focused on the growth of the company.

The “Stock Market” is a term that actually describes several markets such as the New York Stock Exchange NASDAQ, where the stocks of companies are traded. Shares in a company are sold and the shareholders then become part owners of the company. Offering shares of stock raises money for continued research and development of company products or services.

It is pretty simple why companies’ do choose to go public. “Companies go public usually to have access to more money” (Martin, 2017). Companies have two ways they can increase funding. They can sell bonds or sell shares. Although when it comes to selling bonds a company has to remember that they still have to pay interest on the money they have borrowed and pay it all back (Martin, 2017). This is why the majority of companies chose to raise the money by selling shares instead. Companies want more money for new investments, new innovations, and to be able to build up their savings too. Plus, companies need more money for when they start new projects.

Mission: Kellogg is a worldwide business dedicated to construct Long-Term expansion in their bottom-line and to ornament its universal Leadership Position by supplying healthful Food Products of better-quality worth.

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.

Kraft Heinz Incorporation was established on July 2015 as a consequence of the merge between Kraft Foods and Heinz (Kraft Heinz Canada, 2016). Henry Heinz in 1869 started to produce his first product know as bottled horseradish whereas J. L. Kraft & Bros in 1909 started to produce the wholesale cheese. In 1915, J. L. Kraft & Bros began to sell processed cheese in tins. Moreover, Mondelez on October 2012 was separated from Kraft. However, Mondelez took the global snack business and Kraft kept the North America grocery market. After that, 3G Investment together with Berkshire Hathaway, on July 2013, acquired H. J. Heinz (Kraft Heinz Canada, 2016).

Founded as a cheese manufacturer in 1903 and Kraft Foods Inc. (Kraft Foods) was the largest food and beverage company in North America and the number two player in the world. Its operations consisted of Kraft Foods North America and Kraft Foods International, and its business was divided into five product categories: beverages, convenience meals, cheese, grocery, and snacks. In 2004, Kraft Foods had operations in more than 155 countries and previously been a division of Philip Morris Companies (since renamed Altria Group), it had become a public company in June 2001. Along with its size and impressive brand portfolio, Kraft Foods boasted a strong distribution network and a

Sales had been flat for the first five years of the 2000s and were in decline. "In 2007, Kraft Foods China was an unprofitable, $100 million business that was not growing," noted Sanjay Khosla, Kraft Foods’ president of developing markets, in an interview published by the Boston Consulting Group. Kraft was even thinking of pulling the product out of the Chinese market completely, due to poor sales.

After the company has been approved the new shareholders have to elect a board of directors whom are going to run the company on their behalf. The directors are been elected to do the day to day running of a company, and because of their expertise and skills. After the broad of directors are elected of the shareholders they take over they responsible of the running of the company. Each share equals one vote, but in most cases small numbers of shares have little to say as in most cases large investors who hold the majority of shares have the power and saying in the company. The number of shares in one company, which equals 100% differ from company to company, and the price per share differ as well. There are two different types of companies: private limited companies and public limited companies. Shares cannot be traded without the approval of the board of directors in a private limited company. The shares are also only sold to friends or family member with a prior agreement and not to the general public. Normally a private limited company has the letters “Ltd” after its name, On the other hand a public limited company is selling their stocks on the Stock Market to the general public. Public limited companies sometimes carry the letters “PLC” after its name. The value of a company is all shares added together and have to equal 100% of the shares. This is how the value of a company constantly is change, as a result

The decision by a company to go public and sell its stock to the public is normally an expensive process, especially for small companies. This decision is guided by a consideration of the advantages and disadvantages involved in going public. A privately held company may decide to sell its stock to the public through an initial public offering due to several reasons. First, such a company may engage in an initial public offering when it seeks to raise extra capital through the sale of ownership to the public ("Initial Public Offerings Investor Guide", par, 2). However, the most common reason is that the capital generated through this process doesn't need to be repaid though debt securities like bonds

The Kellogg’s company shows a serious commitment to ethics. In 2007, they were the top U.S. company for ethics in the food and beverage industry; third globally.[1] Their role in the food and beverage industry has been maintained for over 100 years, and they produce their products globally, spanning 180 countries. They produce food items such as cookies, crackers, cereal, baking needs, and many other snack items commonly consumed.