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
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/