Mgt599 Mod 3 Slp Internal / Swot Kraft

Topics: Food industry, Food, Kraft Foods Pages: 6 (2304 words) Published: August 15, 2013
Running Head: INTERNAL ANALYSIS/SWOT KRAFT FOODS GROUP

Internal Analysis/SWOT of Kraft Foods
MGT 599
Module 3
Session Long Project
Abstract
A corporate strategy is an organizations ability to define where they are headed in the future. This can be accomplished through an Internal Analysis and SWOT Analysis which will facilitate sound business decisions.

The third installment, requires the submission of information with regard to the Kraft Foods Group Tangible (Physical, Financial, Human, and Other), and Intangible (Technical, Intellectual, Goodwill, and Other) Resources; to include their architecture, Reputation, and Innovation capabilities. Tangible Resources

Physical Resources – Kraft Foods made a move in 2012 to break-off their confectionary side of the industry giant into its own entity and will begin trading under the new name, Mondelez International Inc (MDLZ). This move allowed the Dow Jones committee to replace Kraft Foods with the United Health Group Inc in the 30 component average. The change was in direct correlation to the company who is now broken into two components and not a good fit in their current market.

This shift in the market came about just two-weeks after the spilt who allowed the spin-off Kraft (KFT) to join the S&P 500 in which Kraft is a part of both the NASDAQ 100 and S & P 500 respectively in Oct of the same year replacing Alpha Natural Resources on the major S&P indices under the MDLZ symbol. (Wall Street Journal) (Fox Business) Financial Resources – Kraft has undoubtedly had a financial transformation; with the acquirement of Cadbury it has opened unlimited doors for growth and revenue’s are surely going to soar. RP News Wires indicates that 2013 Kraft Foods will be delivering $1 billion in incremental revenue synergies – in addition to the $750 million in cost synergies. Much of Kraft’s revenue is now being generated in the overseas market i.e. Brazil, China, India and Mexico this large-in-part to growth in the GDP.

Over the next three years Kraft should see savings in procurement, manufacturing, and logistics which will drive their productivity and have gains in excess of four percent of all costs of goods sold. The thought that balanced overhead growth and gains in productivity should offset their total input costs which could possibly lead the expansion to their gross margin. If Kraft Foods is correct in their estimates it should keep them as a top-tier performer amongst all in the global food industry. (Reliable Plant) Human Resources – The food industry is often one of the most sought out and competitive industries in the market and around the globe. The demand consumers have for the highest of food quality, they want healthy, the most cost effective, convenient foods and they expect it to be delivered with the current most up-to-date/advanced technology.

Kraft has done a very good job at incorporating talent from within, soliciting ideas from team members to help revolutionize how they do business. Their attention to the market and the constant evolution to the food industry is a main reason as to why they are number two in the world.

Annual revenues are in excess of $50 million annually in over 160 countries. This coupled with their HR specialists who consistently search for new external talent, a personnel type who have the vision to streamline the production process and generate growth through strategy.

In their search, Kraft foods came to rest with IBM and their ability to lend advancements in technology and business solutions to help further push the Kraft Foods’ to expand in their functionality, and geographic locations while streamlining costs and generating revenues. (IBM) Other – Kraft Foods’ profits soar on gains but sales dampen though expected to remain on track even in the down-trodden economy. Recent investment news indicated Mondelez International Inc., has had a surge in a buyback plan with current investors who...

References: The New Kraft Food Group, CAGNY Conference, February 19, 2013, Retrieved 12 August 2013,
http://www.sec.gov/Archives/edgar/data/1545158/000119312513064376/d488553dex991.htm
Global Collaboration – Connected Innovation, Idea Connection, Fostering Innovation at Kraft Foods, By: Sandy Staggs, October 27, 2008, Retrieved, 13 August 2013,
http://www.ideaconnection.com/interviews/00058-Fostering-Innovation-at-Kraft-Foods.html
The Wall Street Journal, United Health to Replace Kraft in Dow Industrials, By: Kaitlyn Kiernan, September 14, 2012, Retrieved, 11 August 2013,
http://online.wsj.com/article/SB10000872396390444023704577651302317438124.html
GreenBiz.com, Kraft Foods’ third-party alliances key to sustainability strategy, By: Nina Kruschwitz, September 19, 2012, Retrieved, 12 August 2013
http://www.greenbiz.com/blog/2012/09/18/kraft-alliances-key-sustainability
Kraft, Kraft Food Ingredients, Technical Resources (2013), Retrieved, 11 August 2013
http://www.kraftfoodingredients.com/KFI/default/AboutKFI.aspx
Landor, Landor Associates redesigns packaging across Kraft Macaroni & Cheese line, December 09, 2010, Retrieved, 13 August 2013,
http://landor.com/#!/about/news/press-releases/landor-associates-redesigns-packaging-across-kraft-macaroni-cheese-line/
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