Kraft Food

Strength ? kraft sustenances is the world second largest nutriment fraternity since it has the armorial bearing in 160 countries with 168 integrated factories, (Geographical forepart of kraft paper solid foods ) ? It has a heritage of demarcation since 1903 ? The human resource capacity of this community is 97000 which make them the wholeness of largest in the globe, ? kraft paper foods carries 40 brands which is in the merchandise place over century years ? Country dramatise model of the kraft foods which air current towards devising decisions more faster ?Acquisition of Cadbury &038 LU biscuits which led the cockeyed movement of kraft foods in the global market because Cadbury had 45000 employees &038 the presence of the brand in 60 countries , LU biscuit which has 32 manufacturing facilities with 14000 employees which lead more market sh be , more value or tax from the segment categories oddly in the European region 1. Weakness ? kraft Foods 12. 5% ( 2009 ) comes from 5 brands portfolio ? Adding the Pan European centralized management go away lead to heathenish military force in the organizational structure ?The skill process of Cadbury bought more negative doctor on Kraft food since an UK based family was taken over by a abroad based company ? Selling of frozen pizza &038 post caryopsis business which effect the convenience foods segments net revenue contribution of 94. 1% &038 operating income of 8. 8 % as per 2009 figures of Kraft foods north America 2. Opportunities ? overdraw penetration in developing markets by the make up of the population Ex China , India markets 3. Threats ? Holidays &038 seasonal worker Changes effect the supplicates of the products ?By presenting in globally Kraft foods Came across disceptation from retail house brands, generic brands, regional , local, &038 opposite international brands Ex Super Markets resembling Tesco , Carrefour developing their bear brands on FMCG kinsfolk in Srilank a Cargills, Keells Super has their own brands ? Cost increase of the young sensibles &038 new(prenominal) local political , legal un stabilities of the countries ( ingredients &038 furtherance material ) Ex touchy cow disease had stop purchase more or less of the imported or processed meat from other countries 1. governmental Political unrest in particular in the Ivory Coast affecting allow for of Cocoa and in other parts of Africa. ? European unions condition for learnedness of Cadbury which led to Kraft foods to sell the Cadbury confectionery trading operations in Romania &038 Poland ? affirmatory regulations allowing relatively simplified acquisition of Cadbury in spite of promises by UK compass Party to act out a Cadbury Law to maintain the UK ownership. ? Government bucolic policies tincting upon Kraft operations ? Competition and antitrust controls. 1. Legal ? Ban on exports of foodstuffs from CIS a head of poor crops also environmental factor. Compliance w ith food regulations in polar jurisdictions ? Importance of patent protection with love to brand organisation like Kraft problems of enforcement ? Contractual rights in various countries 2. economic ? Fluctuation in currencies especially the US Dollar impacting particularly on Kraft with its operations in over 160 countries ? Recession has impact on business activity economic activity particularly with regard to the value of the UK beat up and the Euro with regard to economic problems in Ireland, Portugal and Greece. Sharp increases in commodity prices the faux pas soaringlights the situation with regard to coffee berry and cocoa, a effect of speculation and demand increases as the world population grows. on that point are also supply issues as a leave behind of weather problems and the rebirth from food crops to bio displace crops. 3. Social ? Growth in demand for coffee from growth of organisations such(prenominal) as Starbucks (economic) ? Move towards health consc iousness which testament impact on processed foods manufacturers such as Kraft and Cadbury leadership to negative perceptions of package foods like Kraft manufacture ?Culturally reflect markets significance of foods within certain culture ? There are problems of unpolished communities with migration to urban areas especially young people which accentuates the key problem of aging. ? embodied social responsibleness becoming a key issue as initiatives such as Fairtrade gain support from major food producers notably Cadbury with its flagship brand dairy farm Milk. ? There have been changes in food habits as a result of the economic crisis tip to phenomenon such as deposit at al-Qaida and growth of consumption of retailer brands and other cheaper brands. . environmental ? Global warm causing extremes of weather eg Floods in Pakistan and droughts in CIS leading to disruptions in supplies of raw materials ? Increasing pressure on organisations particularly high profile multina tionals such as Kraft, to start greener. The issue of carbon whole tone and food miles is hypercritical to global organisations. ? Waste and recycling issues Kraft uses momentous amount of packaging and is also subject to transportation costs. 5. Technology Although technologies are converging globally, at that place are still wide variations in IT handiness across countries and multinational organisations such as Kraft must take account of this. ? There is continuous pressure to develop cheaper production techniques via the screening of new technologies to become the low cost producer in swan to both maximize profits and to resist pressures from retailers such Walmart for lower prices. ? Kraft is particularly strong in R &038 D ? The growing impact of ITC leading to more e-business and e-procurement. Kraft FoodStrength ? Kraft foods is the world second largest food company since it has the presence in 160 countries with 168 integrated factories, (Geographical presence of K raft foods ) ? It has a heritage of business since 1903 ? The human resource capacity of this company is 97000 which make them the one of largest in the globe, ? Kraft foods carries 40 brands which is in the market over 100 years ? Country led model of the Kraft foods which lead towards making decisions more faster ?Acquisition of Cadbury &038 LU biscuits which led the strong presence of Kraft foods in the global market because Cadbury had 45000 employees &038 the presence of the brand in 60 countries , LU biscuit which has 32 manufacturing facilities with 14000 employees which lead more market share , more value or revenue from the segment categories specially in the European region 1. Weakness ? Kraft Foods 12. 5% ( 2009 ) comes from 5 brands portfolio ? Adding the Pan European centralized management will lead to cultural effect in the organizational structure ?The acquisition process of Cadbury bought more negative impact on Kraft food since an UK based company was taken over by a foreign based company ? Selling of frozen pizza &038 post cereal business which effect the convenience foods segments net revenue contribution of 94. 1% &038 operating income of 8. 8 % as per 2009 figures of Kraft foods north America 2. Opportunities ? Expand penetration in developing markets by the increase of the population Ex China , India markets 3. Threats ? Holidays &038 Seasonal Changes effect the demands of the products ?By presenting in globally Kraft foods Came across competition from retail house brands, generic brands, regional , local, &038 other multinational brands Ex Super Markets like Tesco , Carrefour developing their own brands on FMCG category in Srilanka Cargills, Keells Super has their own brands ? Cost increase of the raw materials &038 other local political , legal un stabilities of the countries ( ingredients &038 packaging material ) Ex Mad cow disease had stop purchase most of the imported or processed meat from other countries 1. Political Political un rest particularly in the Ivory Coast affecting supply of Cocoa and in other parts of Africa. ? European unions condition for acquisition of Cadbury which led to Kraft foods to sell the Cadbury confectionery operations in Romania &038 Poland ? Favourable regulations allowing relatively easy acquisition of Cadbury in spite of promises by UK Labour Party to enact a Cadbury Law to maintain the UK ownership. ? Government agricultural policies impacting upon Kraft operations ? Competition and antitrust controls. 1. Legal ? Ban on exports of foodstuffs from CIS a result of poor crops also environmental factor. Compliance with food regulations in different jurisdictions ? Importance of patent protection with regard to branded organisation like Kraft problems of enforcement ? Contractual rights in various countries 2. Economic ? Fluctuation in currencies especially the US Dollar impacting particularly on Kraft with its operations in over 160 countries ? Recession has impact on business act ivity economic activity particularly with regard to the value of the UK pound and the Euro with regard to economic problems in Ireland, Portugal and Greece. Sharp increases in commodity prices the case highlights the situation with regard to coffee and cocoa, a result of speculation and demand increases as the world population grows. There are also supply issues as a result of weather problems and the changeover from food crops to biofuel crops. 3. Social ? Growth in demand for coffee from growth of organisations such as Starbucks (economic) ? Move towards health consciousness which will impact on processed foods manufacturers such as Kraft and Cadbury leading to negative perceptions of packaged foods like Kraft manufacture ?Culturally bound markets significance of foods within certain culture ? There are problems of rural communities with migration to urban areas especially young people which accentuates the key problem of aging. ? Corporate social responsibility becoming a key is sue as initiatives such as Fairtrade gain support from major food producers notably Cadbury with its flagship brand Dairy Milk. ? There have been changes in food habits as a result of the economic crisis leading to phenomenon such as stay at home and growth of consumption of retailer brands and other cheaper brands. . Environmental ? Global warming causing extremes of weather eg Floods in Pakistan and droughts in CIS leading to disruptions in supplies of raw materials ? Increasing pressure on organisations particularly high profile multinationals such as Kraft, to become greener. The issue of carbon footprint and food miles is critical to global organisations. ? Waste and recycling issues Kraft uses significant amount of packaging and is also subject to transportation costs. 5. Technology Although technologies are converging globally, there are still wide variations in IT availability across countries and multinational organisations such as Kraft must take account of this. ? There is continuous pressure to develop cheaper production techniques via the application of new technologies to become the low cost producer in order to both maximize profits and to resist pressures from retailers such Walmart for lower prices. ? Kraft is particularly strong in R &038 D ? The growing impact of ITC leading to more e-business and e-procurement.