Kraft Canada

Topics: Food, Kraft Foods, Cadbury plc Pages: 10 (3206 words) Published: March 7, 2013
Summation of Key Research
Strategic Direction

Vision/mission| Vision: Helping people around the world eat and live better Mission: to provide fun, healthy food for people to enjoy|
Strategic goals| -Becoming a global snacks powerhouse and unrivaled portfolio of brands people love. The complementary nature of our portfolio is at the heart of the three strategies that will drive our growth: 1. Delight global snacks consumers. Consumers around the world are pressed for time and are looking for on-the-go options. They’re also looking for simple indulgences and healthier options. And there’s nothing better than a delicious snack, like LU biscuits, Planters nuts, Trident gums, and Cadbury or Milk chocolates to satisfy those desires. 2. Unleash the power of our iconic heritage brands. Our iconic heritage brands are loved by consumers worldwide. Roughly 80 percent of these heritage brands hold number one or number two positions in their respective categories and are household names. 3. Create a performance-driven, values-led organization. To win in the market, we need to win with our customers and consumers, and with our colleagues, communities and suppliers. We’ll do this by living our values: We inspire trust; We act like owners; We keep it simple; We are open and inclusive; We tell it like it is; We lead from the head and the heart; We discuss. We decide. We deliver.-Four priorities will shape their long-term strategy: focusing on growth categories; expanding their footprint in developing markets; expanding their presence in instant consumption channels; and enhancing margins-Our focus on snacks and confectionery products fits well within our strategy of growth in instant consumption channels. Four priorities will shape their long term strategy:1. Focusing on growth categories to further transform into a leading snack, confectionary and quick meals company. This is being achieved through exciting lower growth and/or lower margins businesses and reinvigorating high cash flow businesses to fund growth;2.Expanding our footprint in developing markets to benefit from population growth trends, trading up by consumers and achieving the scale to establish cost-efficient infrastructure in key geographies3.Expanding their presence in instant consumption channels in order to gain share versus grocery channels in the U.S and European Union; and4.Enhancing margins by improving our portfolio mix and reducing costs while investing in quality | Core values| Core Values: Treating employees well and providing a workplace that is safe, rewarding and inclusive is Kraft’s proven recipe for keeping great people and inspiring them to do good things.Innovation: Satisfying real-life needs with unique ideas Quality: Fulfilling a promise to deliver the best

Safety: Ensuring high standards in everything we make
Respect: Caring for people, communities and the environment
Integrity: Doing the right thing
Openness: Listening to the ideas of others and encouraging an open dialogue|

Porter’s Five Forces

Bargaining Power of Buyers| -Moderate:-Processing companies are seen as players and supermarkets/hypermarkets as main buyers since these distribute the largest single share of the markets volume-Top 4 chains account for approximately 80% of food retail-Buyer power is much higher, retailers are unlikely to be swayed by brand loyalty, price sensitivity is high, drivers will be mitigated where consumers are loyal to particular brands-Attempted backward integration: retail stores developing their own brands however packaged foods and meats are significant part of a food retailer’s business weakening buyer powerSource: Datamonitor. (2008). Packaged foods & meats in canada: Industry profile.| Bargaining Power of Suppliers| -No More than Moderate:-Purchase raw materials on open market where firms have little control over prices or they can negotiate supply contracts (fixed terms with negotiated prices)-Large processing firms...
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