MGT 599 SLP 2 External Environment Analysis Kraft Foods
TUI UNIVERSITY
Module 2 SLP
MGT 599 Strategic Management
Dr. Nanette Metz
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 marketing drives organizations to their peak of success and draws customer loyalty. The Porter Five Analysis and PEST analysis are two of the tools utilized by strategist to enhance organizational success. The Porter Five model examines the internal workings of the organization as well as the industry letting organizations know about potential threats. The PEST analysis on the other hand examines the macro-environment, looking at potential political and social threats to industry. The utilization of these two models together will better equip organizations to face ever changing industries and see potential threats. Below the author will discuss the different aspect of each model as well as provide useful web links to gather additional information.
Porter Five Forces Analysis The Porter Five Analysis was developed by Michael Porter as a tool utilized by organizations to help identify the structure and competitiveness within an industry (Porter, 2008). It encompasses five different forces that shape the industry; threat of new entrants, threat of substitute products, bargaining power of buyers, bargaining power of suppliers and rivalry among existing competitors (Porter). The ability to analyze and understand trends and threats within an industry is critical for “effective strategic planning” that will render organizational success (Porter). Below is an analysis of Kraft Foods utilizing the Porter Five analysis model.
Buyer Power With so many different varieties of brands available to consumers it is essential that organizations research consumer needs and demands in order to remain successful. As competition increases within the industry,
Module 2 SLP
MGT 599 Strategic Management
Dr. Nanette Metz
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 marketing drives organizations to their peak of success and draws customer loyalty. The Porter Five Analysis and PEST analysis are two of the tools utilized by strategist to enhance organizational success. The Porter Five model examines the internal workings of the organization as well as the industry letting organizations know about potential threats. The PEST analysis on the other hand examines the macro-environment, looking at potential political and social threats to industry. The utilization of these two models together will better equip organizations to face ever changing industries and see potential threats. Below the author will discuss the different aspect of each model as well as provide useful web links to gather additional information.
Porter Five Forces Analysis The Porter Five Analysis was developed by Michael Porter as a tool utilized by organizations to help identify the structure and competitiveness within an industry (Porter, 2008). It encompasses five different forces that shape the industry; threat of new entrants, threat of substitute products, bargaining power of buyers, bargaining power of suppliers and rivalry among existing competitors (Porter). The ability to analyze and understand trends and threats within an industry is critical for “effective strategic planning” that will render organizational success (Porter). Below is an analysis of Kraft Foods utilizing the Porter Five analysis model.
Buyer Power With so many different varieties of brands available to consumers it is essential that organizations research consumer needs and demands in order to remain successful. As competition increases within the industry,
References: Hathaway, J., Mrak-Blumberg, E., Wexler-Beron, E. (2006, April 4). Strategic Report for The Kraft Foods Corporation. Pandora Group Out of the Box Consulting. Retrieved July 23, 2014 from http://economicsfiles.pomona.edu/jlikens/SeniorSeminars/pandora/reports/kraft.pdf Mind Tools. (n.d.). PEST Analysis. Retrieved July 24, 2014 from http://www.mindtools.com/pages/article/newTMC_09.htm Philipson, T. (2005). Government Perspective: Food Labeling 1,2,3. The American Journal of Clinical Nutrition, 82. Retrieved July 23, 2014 from http://ajcn.nutrition.org/content/82/1/262S.full Porter, M. (2008, January). The Five Competitive Forces that Shape Strategy. Harvard Business Review. Retrieved July 23, 2014 from http://hbr.org/2008/01/the-five-competitive-forces that-shape-strategy/ar/1 Sullivan, D. (n.d.). Food Industry: The Bargaining Power of Suppliers. Chron Small Business. Retrieved July 24, 2014 from http://smallbusiness.chron.com/fast-food-industry bargaining-power-suppliers-78188.html