MBA Assignment
Kraft Foods
Jeremy Tear 10/2/2012
The assignment attached covers the imaginary launch of Philadelphia Cheese in India. There is no doubt that Kraft will do this within the next 3 years as one of the fundamental reasons for the acquisition of Cadburys’ was to access this market effectively. The word count ignoring the title page, and the references and appendix is 4167.
Kraft Foods Inc. is the largest confectionery, food, and Beverage Corporation headquartered in the United States. It markets many brands in more than 160 countries. 11 of its brands annually earn more than $1 Billion worldwide: including, Cadburys’, Philadelphia Cream Cheese and Oreos,. The company, headquartered in Northfield, Illinois, a Chicago suburb, it is listed on the New York Stock Exchange.
In 2009, Kraft Foods launched a hostile bid for Cadbury, the UK-listed chocolate maker. Kraft needed Cadbury to provide scale for the snacks business, especially in emerging markets such as India.
A “quick” SWOT analysis on the whole corporation will help in setting some strategic direction for the group defining a potential brand development opportunity for full evaluation. Strengths Scale & Positioning in Key food categories Financial strength and Business Scale Diverse range of leading brands Sales in 160 countries 25% Global revenues from emerging markets Opportunities Operates in many fast growing categories International Markets Cadbury Acquisition opens up new markets New Categories, products (organic, health) Weaknesses Difficulty in Launching Brands Most growth in acquisition or new markets Low growth in the USA Strong Competition from Nestle, Mars, etc
Threats Competition from Nestle, Mars Value in leading brands Lower consumer discretionary spending Volatile resource costs
There is an assumption that a fundamental decision to develop the port folio through the use of existing or newly acquired resources and that this decision has