Mgt599 Case 3
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 forecasts for the same
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 forecasts for the same
References: Banker, S. (2012). Kraft Foods Leverages Downstream Data to Drive Supply Chain Collaboration. Logistics Viewpoints. Retrieved from http://logisticsviewpoints .com/2012/10/15/kraft-foods-leverages-downstream-data-to-drive-supply-chain-collaboration/ Boone, T. and Ganeshan, R. (2001). New Directions in Supply Chain Management : Technology, Strategy, & Implementation.AMACOM Books. http://site.ebrary .com/lib/tourou/Doc?id=10005789&ppg=87 Buss, D. (2012). The Kraft, Mondelez Dilemma: Which Brands to Trim, Which Brands to Boost? Brandchannel. Retrieved from http://www.brandchannel.com/home/ post/2012/11/05/Kraft-Mondelez-Post-Split-110512.aspx Ferrari, B. (2011). Kraft Foods’s Pending Corporate Split Has Global Supply Chain Implications. Retrieved from http://www.theferrarigroup.com/supply-chain-matters/2011/08/05/kraft-foodss-pending-corporate-split-has-global-supply-chain-implications/ Ireland, R. (2004). Supply Chain Collaboration : An Implementation Guide. Ross Publishing, Retrieved from http://site.ebrary.com/lib/tourou /Doc?id=10124761&ppg=33 Woods, J. (2012). Kraft or Mondelez: Whose Future Is Tastier? InvestorPlace Media. Retrieved from http://investorplace.com/2012/11/kraft-or-mondelez-whose-future-is-tastier/