EFE MATRIX
EXTERNAL FACTOR EVALUATION (EFE) MATRIX
OPPORTUNITY
THREATS
POLITICAL
Global inequalities
Meeting the need of the present without comprising future has to be taken into account by food industry without undermining bottom line balance sheets
Food cost climbing and global warming
ECONOMY
Rising cost of petroleum
Input cost for bakers included commodities have declined.
Bakeries may be passing along the cost of suppliers purchased on contracts signed before commodity price began to fall.
Industry so competitive, difficult for these company to raise their price accordingly and profit margins have suffered as a result.
SOCIAL
Environmental concern, social responsibility and economic viability
Food producers are devoting more attention to products designed for restaurants, vending machines and other food services providers.
Customer view food as an expression of their cultural and social identity.
Customer asking a lot more from producers than just good quality.
More people dine out. Bad news for grocery retailers
TECHNOLOGY
Development of health food
Packaged and processed foods
Market for packaged and processed foods has seen large profits in retail sales and this number is expected to see steady growth.
Concern of childhood obesity
Food safety programs have been adopted on issues of chemical and bacterial contamination and new food-borne pathogens remain a public health concern.
COMPETITORS
Second largest food processing company in the world
Competitors: Nestle, ConAgra Foods, Heinz Company and Sara Lee
Primarily a North American company
Competing with generic products and retailer brands, wholesalers and cooperatives
US dollar gains strength overseas will make Kraft Food products more expensive.
INTERNAL FACTOR EVALUATION
STRENGHT
WEAKNESSESS
MANAGEMENT
Restructure organization divisional by geographic region.
Some analyst feels that product divisional structure more effective for Kraft.
Weakest performing segment
OPPORTUNITY
THREATS
POLITICAL
Global inequalities
Meeting the need of the present without comprising future has to be taken into account by food industry without undermining bottom line balance sheets
Food cost climbing and global warming
ECONOMY
Rising cost of petroleum
Input cost for bakers included commodities have declined.
Bakeries may be passing along the cost of suppliers purchased on contracts signed before commodity price began to fall.
Industry so competitive, difficult for these company to raise their price accordingly and profit margins have suffered as a result.
SOCIAL
Environmental concern, social responsibility and economic viability
Food producers are devoting more attention to products designed for restaurants, vending machines and other food services providers.
Customer view food as an expression of their cultural and social identity.
Customer asking a lot more from producers than just good quality.
More people dine out. Bad news for grocery retailers
TECHNOLOGY
Development of health food
Packaged and processed foods
Market for packaged and processed foods has seen large profits in retail sales and this number is expected to see steady growth.
Concern of childhood obesity
Food safety programs have been adopted on issues of chemical and bacterial contamination and new food-borne pathogens remain a public health concern.
COMPETITORS
Second largest food processing company in the world
Competitors: Nestle, ConAgra Foods, Heinz Company and Sara Lee
Primarily a North American company
Competing with generic products and retailer brands, wholesalers and cooperatives
US dollar gains strength overseas will make Kraft Food products more expensive.
INTERNAL FACTOR EVALUATION
STRENGHT
WEAKNESSESS
MANAGEMENT
Restructure organization divisional by geographic region.
Some analyst feels that product divisional structure more effective for Kraft.
Weakest performing segment