Financial Ratio and Company

Only available on StudyMode
  • Topic: Financial ratio, Revenue, Kraft Foods
  • Pages : 17 (4506 words )
  • Download(s) : 172
  • Published : December 27, 2012
Open Document
Text Preview
Kraft Foods Inc. - 2009
Case Notes Prepared by: Dr. Mernoush Banton
Case Author: Kristopher J. Blanchard

A.Case Abstract

Kraft Foods Inc. (www.Kraftfoodscompany.com) is a comprehensive strategic management case that includes the company’s calendar December 31, 2008 financial statements, competitor information and more. The case time setting is the year 2009. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Northfield, IL, Kraft Foods Inc. is traded on the New York Stock Exchange under ticker symbol KFT.

B. Vision Statement (Actual)

One company growing by nourishing lives and finding a better way today one bite at a time

C. Mission Statement (Actual)

Make Today Delicious.

Mission Statement (Proposed)

As a global company (3), we strive ourselves in producing superior products and services (2) to our customers. With superior technology (4) and dedicated employees (9), we are constantly working on introducing new and innovative products, meeting our customer’s expectation (6) and ensuring to achieve higher than expected return to our shareholders (5). Our desire is to be the number of choice for our loyal customers (7, 8).

1. Customer
2. Products or services
3. Markets
4. Technology
5. Concern for survival, profitability, growth
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees

D.External Audit

CPM – Competitive Profile Matrix

 | Kraft| Nestle| ConAgra|
Critical Success Factors| Weight| Rating| Weighted Score| Rating| Weighted Score| Rating| Weighted Score| Price competitiveness| 0.14| 2| 0.28| 3| 0.42| 1| 0.14| Global Expansion| 0.08| 3| 0.24| 4| 0.32| 2| 0.16|

Organizational Structure| 0.02| 2| 0.04| 3| 0.06| 1| 0.02| Employee Morale| 0.03| 3| 0.09| 2| 0.06| 1| 0.03|
Technology| 0.08| 3| 0.24| 4| 0.32| 2| 0.16|
Product Safety| 0.11| 1| 0.11| 3| 0.33| 2| 0.22|
Customer Loyalty| 0.10| 4| 0.40| 3| 0.30| 2| 0.20|
Market Share| 0.08| 3| 0.24| 4| 0.32| 2| 0.16|
Advertising| 0.09| 4| 0.36| 3| 0.27| 2| 0.18|
Product Quality| 0.10| 4| 0.40| 3| 0.30| 2| 0.20|
Product Image| 0.11| 4| 0.44| 3| 0.33| 2| 0.22|
Financial Position| 0.06| 3| 0.18| 4| 0.24| 2| 0.12| Total| 1.00|  | 3.02|  | 3.27|  | 1.81|

Opportunities
1. More people are dining out, and food producers are devoting more attention to products designed for restaurants, vending machines, and other foodservice providers 2. Be able to sell to restaurants at a higher margin

3. Consumers are shifting toward food containing less trans fat or fewer calories, or those containing only organic ingredients 4. Bottled water has become well established in the market and enhanced waters containing vitamins or supplements are gaining popularity 5. Consumer prices for baked goods increased 10.7 percent in January 2009 compared to January 2008 6. Input costs for bakers, included commodities such as wheat, eggs, and natural gas, have declined recently 7. The U.S. market for packaged and processed foods has seen large profits in retail sales, and this number is expected to see steady growth 8. Worldwide, demand is also on the rise for packaged type of food as more people adopt a lifestyle that includes less time for the preparation of food 9. The greatest asset of any retail and consumer product company is its reputation and perceived value among consumer .

Threats

1. Obesity is increasing drastically in both children and adults and accordingly consumers are deviating from having snacks, cheeses and such 2. Rising costs of petroleum cause an increase in cost for companies in the food industry and in the agriculture end 3. Food safety programs have been...
tracking img