Mgt599 Case 3

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TRIDENT UNIVERSITY

Jonathan M. McClure

Module Two SLP

MGT599 - Strategic Management

Dr. Carr Oduro

February 20, 2013

INTRODUCTION

Once a firm determines its corporate level strategy, it must decide on its business level strategy. An international firm must decide on only what business level strategy it wants in one market but also whether it wants to have the same business level strategy for each country in which it competes or whether to give its managers in other countries the responsibility for creating their own business strategies.

KRAFT FOOD SPLIT

In the summer of 2011, corporate giant Kraft Foods surprised Wall Street by announcing that it would split itself in two. One company, which would keep the current moniker, would operate in North American grocery business and include iconic brands like Kraft Macaroni & Cheese, Oscar Mayer meats and Maxwell House coffee. The other company would be tagged with Mondelez International and it would consist of the global snack business that includes tasty brands such as Oreo cookies and Trident gums, as well as the numerous brands that came with the 2010 Cadbury acquisition (Woods, 2012).

One of the main reasons for Kraft to split into its new Kraft Foods and Mondelez International units was to free the latter to pursue the beckoning opportunities in the global snacking business without being tied down to the slower-growth, mature North American groceries business, which now alone comprises Kraft Foods (Buss, 2012). To combat what it sees as a tough U.S. economy, Kraft plans to increase sales by boosting advertising and offering more products at reduced prices.

SUPPLY TECHNOLOGY

Kraft Foods, a forward-thinking giant when it comes to consumer taste, was anything but when it came to IT. Simply put, the company was mired in the old-school culture of rigid centralized information technology. Not anymore. Multiple organizations in the supply chain often independently create...
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