Kraft Food's Case Study

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KRAFT FOOD COMPANY

Chapter I

INTRODUCTION

A. COMPANY’S HISTORY
According to Frank (2010), in 1903, there was a man named James Lewis Kraft who had begun cheese delivery service at Chicago area after he had been eased out from a cheese company at Buffalo. Every morning, he will buy cheese wholesale and resold it to the local vendors in order to avoid the cheese melt or spoil. The business was successful and several of his brothers who are known as Charles H., John H., Fred Walker and Norman had joined the company named J.L Kraft & Bros. Co. in 1909 as permanent employees (MAC 2011). James L. Kraft is a president of the company who had invented a revolutionary process in 1915.This process helps to pasteurize the cheese, thus it would not spoiled easily and can be transported long distances (NNDB 2009).Fundamentally, according to Phillip (2010), in 1920, Kraft purchased a Canadian cheese company and changed it to Kraft Cheese Company in 1924. Kraft Cheese Company had obtained a lot of sales which enable J.L Kraft to expand the company into Germany, Australia and Britain. During World War II, Kraft had supplied 4 million pounds of cheese to Britain. It had showed that Kraft was a main food supplier at that time. In 1945, the Kraft Cheese Company became Kraft Food Company (NNDB 2009).

B. COMPANY’S DESCRIPTION
Kraft Food Company’s headquarter had been located at Cheltenham, United Kingdom since Kraft has a close connection with the rest of Europe. The manufacturing site had been established at the Ban bury as a global manufacturing base that will supply a variety type of products worldwide in 155 countries including Malaysia, China and United State (Kraft Food Inc. 2010). Kraft Food Company was having more than 100,000 diverse employees all over the world. Currently, Kraft Food Company is a second largest food and beverage company in the world after Nestle.

C. TYPE OF PRODUCTS
Furthermore, according to Joel (2010), Kraft Food Company is popular with cheese and dairy, snack foods and confectionary, beverage and convenient foods. However, Kraft Food Company is basically focusing more on cheese and dairy products such as cottage cheese and sour cream. Kraft produces a wide variety of natural cheese and American cheese slices. Besides that, Kraft also been known as snack food brands especially cookies and crackers. Some of popular snacks food offers by Kraft are Kraft cheese Nips, Wheat Thins crackers, Corn Nuts and Garden Harvest toasted chips (Kraft Food 2011). Instead of that, sweet and confectionary food brands produced by Kraft are Oreo cookies, Kraft Mayo with olive oil, Jet-Puffed Marshmallows and Kraft salad dressings whereas for beverage and convenient foods are Kraft Macaroni and Cheese, California Pizza Kitchen and DiGiorno frozen pizzas, Yuban Coffee and Maxwell House (David 2009).

Chapter II

STRATEGY FORMULATION

A. VISION AND MISSION STATEMENTS

1. Kraft Foods Mission Statement: "Make Today Delicious" In order to fulfill this mission Kraft Foods Inc. focuses on consumers in everything that they do. The company also understands that actions speak louder than words, so at Kraft Foods, they: - inspire trust.

- act like owners.
- keep it simple.
- are open and inclusive.
- tell it like it is.
- lead from the head and the heart.
- discuss
- decide
-deliver.
2. Kraft Foods Vision Statement: "Helping People Around the World to Eat & Live Better" Their vision captures the essence of who they are. Everything they do flows from their vision. They just don't happen to be a business that sells food – it's what they're all about. Their vision is about meeting consumers' needs and making food an easier, healthier, more memorable, and enjoyable part of the life.

Revised Mission Statement
Here at Kraft Foods we strive to produce superior products and services (2) to our customers (1) ranging from wholesalers to households. The 21st century is sure to bring more...
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