MGT 599 Case 2 Enternal Analysis Kraft Foods
TUI UNIVERSITY
Module 2 Case
MGT 599 Strategic Management
Dr. Nanette Metz
Executive Summary Kraft Foods is the second largest consumer packaged food and beverage company in North America with revenues of approximately $18B. After 110 years Kraft Foods has excelled as an organization and become a well recognized household name. Through the continued utilization of the Porters Five Analysis and PEST Analysis Kraft Foods has been able to determine internal and external threats and opportunities to help them remain on top of their industry. Rivalry in the food industry is extremely high due to numerous well established brands and presents a major threat to Kraft Foods. Threat of substitution within the food industry as a whole is a medium threat level to Kraft Foods. New entrants into the food industry face many challenges, i.e. extreme start up and operational costs, that make it prohibitive for them thus insuring a low level of threat for Kraft Foods. Bargaining power of suppliers and consumers both present a moderate threat to the company. Throughout the years Kraft Foods has utilized the PEST Analysis to monitor for external threats and opportunities allowing them to predict and adapt to changes. Political and social factors present Kraft Foods with a low threat. Due to the unpredictability of the economy this presents a moderate threat to Kraft Foods and the company must continually analyze the economy for threats and opportunities. With ever changing consumer demands for healthy foods and a healthy environment Kraft Foods has spent a considerable amount of money on research and technological advances to meet those demands. The external threat of technology presents a moderate threat to Kraft Foods.
Introduction
In the every changing and expanding food industry it is imperative organizations conduct strategic marketing to remain on top of their industry and make better plans for their future. Strategic
Module 2 Case
MGT 599 Strategic Management
Dr. Nanette Metz
Executive Summary Kraft Foods is the second largest consumer packaged food and beverage company in North America with revenues of approximately $18B. After 110 years Kraft Foods has excelled as an organization and become a well recognized household name. Through the continued utilization of the Porters Five Analysis and PEST Analysis Kraft Foods has been able to determine internal and external threats and opportunities to help them remain on top of their industry. Rivalry in the food industry is extremely high due to numerous well established brands and presents a major threat to Kraft Foods. Threat of substitution within the food industry as a whole is a medium threat level to Kraft Foods. New entrants into the food industry face many challenges, i.e. extreme start up and operational costs, that make it prohibitive for them thus insuring a low level of threat for Kraft Foods. Bargaining power of suppliers and consumers both present a moderate threat to the company. Throughout the years Kraft Foods has utilized the PEST Analysis to monitor for external threats and opportunities allowing them to predict and adapt to changes. Political and social factors present Kraft Foods with a low threat. Due to the unpredictability of the economy this presents a moderate threat to Kraft Foods and the company must continually analyze the economy for threats and opportunities. With ever changing consumer demands for healthy foods and a healthy environment Kraft Foods has spent a considerable amount of money on research and technological advances to meet those demands. The external threat of technology presents a moderate threat to Kraft Foods.
Introduction
In the every changing and expanding food industry it is imperative organizations conduct strategic marketing to remain on top of their industry and make better plans for their future. Strategic
References: CSI Market. (2014). Retrieved August 4, 2014 from http://csimarket.com/stocks/competitionNO3.php?code=KRFT Hathaway, J., Mrak-Blumberg, E., Wexler-Beron, E Kraft Foods. (2014). Retrieved August 4, 2014 from http://www.kraftfoodsgroup.com/DeliciousWorld/index.aspx Mind Tools Organic Trade Association. (2011, June). Industry Statistics and Projected Growth. Retrieved August 3, 2014 from http://www.ota.com/organic/mt/business.html Porter, M Pratt, I. (2007, July 23). Understanding the Bargaining Power of Your Suppliers. EZine Articles. Retrieved August 3, 2014 from http://ezinearticles.com/?Understanding-the-Bargaining Power-of-Your-Suppliers&id=4251948 PriceWatersCooper Quick MBA. (2010). Hierarchical Levels of Strategy. Retrieved August 4, 2014 from http://www.quickmba.com/strategy/levels/ Sullivan, D USDA. (2008, June). Food Manufacturing. Retrieved August 5, 2014 from http://trade.gov/td/ocg/report08_processedfoods.pdf Wilkinson, J