The Generic Business Strategy Used By Kraft Foods

1377 Words Aug 26th, 2014 6 Pages
TRIDENT UNIVERSITY

Terence Johnson

MGT 599 – Strategic Management

Module 4 – Case Assignment

Professor – Dr. Janice Johnson

8 April 2013

EXECUTIVE SUMMARY:

Purpose: Critically evaluate the generic business strategy used by Kraft Foods. Additionally examine internal and external components of the business environment such as strengths, weaknesses, opportunities, and threats. Consider whether the business’s broader strategy aligns with smaller strategy choices made within the firm.

Background: Kraft Foods is currently the largest food company in the United States and the second largest food company in the world. The organization leverages business strategies that rely on creating value for the customer through an integrated cost leadership and differentiation strategy. The company uses a Lean Six Sigma approach to improve upon internal processes, decrease costs associated with wasteful or outdated processes, and provide products that represent good quality when compared with those offered by the competition.

Identified Strategy: Kraft Foods currently uses a combined approach to the cost leadership and differentiation strategies outlined by Michael Porter.

Recommendations: Based on an assessment of Kraft Foods approach to leveraging strengths to overcome weaknesses it appears that the company is effectively using the Lean Six Sigma method to operate in a cost-efficient manner. The company may consider addressing the weakness associated with the…
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