Module 4: Case Assignment
MGT 599 Strategic Management
October 4, 2013
Business planning refers to a procedure through which both small and large companies determine actions that lead to the growth of revenue and increase the profits. The two most essential aspects of business planning are; setting goals and making strategic choices to achieve the goals. Every firm has specific resources that are available to it. Such resources may include human resources, distribution channel, productive capacity and financial resources. Strategic choices are the steps that companies use to obtain these resources. Strategic choices involve a sequence of events such as defining what services and products to sell, how to sell them, where to sell them and the target market in which the products will be sold. Strategic choice could also include, achieving competitive advantage. The success of a company depends on the strategic choices that are made by the owners of a company (Algasae, 2012). Introduction
Strategic choices are mostly concerned with the manner in which company make decisions and the many factors that will influence these decisions. Strategic choices involve identification and evaluation of processes that lead to the final decisions for the company. The identification of the process is sometimes difficult to determine and requires that management determine the future focus for the organization. The managers are always required to determine the action plans that can facilitate the identification process. Porter’s generic strategies can be used to determine what direction the company would like to proceed in. An effective and efficient strategic choice process helps organizations to make sustainable strategic decisions. While an effective business strategy makes an organization to cope with the available limited resources. The most successful companies are those that allocate the limited resources to projects that have a positive impact on the improvement and the growth of the revenue (Iansiti & Levien, 2004). In this paper we will discuss Porter’s generic strategy, which is used by the Kraft Foods Group (KFG). Secondly we will discuss the SWOT analysis of KFG. Lastly, we will look at how the company can take advantage of the environmental opportunities to gain a competitive advantage of their peer companies. Kraft Foods Group
KFG Incorporated is an independent public grocery manufacturing and processing company, headquartered in Illinois. The company began its operation in 2012 with a de-merger from Kraft Food Incorporated. KFG is mainly focused on grocery products. It operates as a consumer beverage and packaged food firm in North America. Its products include but are not limited to cheese, beverages, meals, refrigerated meals, snacks nuts and desserts. Porter’s Generic Strategies
Porter's generic strategies illustrate how a firm pursues competitive advantage in the chosen market scope. Generic strategies show the choices that are made concerning both types of competitive advantage and the scope. There are three different types of generic strategies: cost leadership, differentiation and focus. The strategies are used to design the future strategy of a firm. Cost leadership strategy helps a company to sell its products cheaper than its competitors and differentiation helps a company to offer unique products (Hammonds, 2007). However, differentiation and cost leadership strategy are not always compatible. Focus strategy helps a company to emphasize on a single market and can be combined with the other two strategies to form focused differentiation or a focused cost leadership. KFG uses focused differentiation to achieve competitive advantage by developing unique products within the market. KFG not only excel in producing a more quality product than their completion but furthermore they have exceeded in establishing their...
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