Executive Summary
There are four different modules which have been covered already in this particular assignment and it is required to cover all of these four modules to complete this particular assignment. From this entire analysis, it is found that high competition and not having an effective employee’s based approach are two major problems associated with the company which would be overcome accordingly with the help of taking effective economic decisions mentioned in the recommendation section.
Introduction
Kraft Foods Group Inc is an American based Grocery manufacturing and processing conglomerate with its headquartering located in Chicago, IL, the United States (US). Kraft foods were made with the demerger of Kraft Food Inc in the fiscal year 2012. The newly maintained and established Kraft Food Group is a North American based American Grocery Company, while the other counterpart, which is Mondelez is a multinational snack and confectionery company. Kraft Food Inc is an independent company and its shares are actively trading on the National Association of Security Dealers in Automated Quotation (NASDAQ) market. Total revenue earned by the company in the year 2013 was US$ 18.218 billion with net income amounting to US$ 2.715 billion in the same year. The company has around 23,000 employees are working with them. There is a need to analyze with the SWOT analysis and other important mission and vision and analyze that whether or not the organization is strategically fit with the current strategies.
Main Body
There are different parts which would be taken into consideration for the same analysis and considering all of the points are important to assess the existing strategies of the company and then take effective decisions on the basis of these points and strategies.
Analysis of Organizational Design and Strategic Control System
It is more than important for an organization to have and devise such strategies on their operations from which they can sustain effectively in a given market. The design of an organization should be effective because it is important for an organization merely for the purpose of decision making (Collis & Montgomery, 2005). Apart from taking effective decisions, the system that uses to enhance the strategic control stance of a company is also important.
Analysis of Fit and Lack of Fit
In this particular analysis, it is required to analyze whether or not the stance of Kraft Foods are fit or lack of fit on the company’s overall financial and strategic position. Kraft foods Inc is one of the largest organizations of the world which has numerous product range in the market. The mission statement of the company is to become the best food and Beverage Company in the North American market with a special consideration of Customer’s orientation. There are certain evidences are found from the module analysis and discussion that one of the major strengths of the company is having of higher number of products in the market in order to attract a high number of customers from the North American market in particular. SWOT analysis reveals that the main sectors of products of the company are cheese, grocery, beverages and refrigerated items (Johnson, Scholes & Whittington, 2008). The brands of Kraft Foods Inc are high in demand and effective in the market of North America and it has the tendency to become one of the largest beverage and Food Company of the said region. The brands of Kraft Food Inc are generating more than US$ 1 billion in the market of North America which is a sign that the company is about to get fit with their current mission statement in particular. Capturing the whole market of North America and flourished in it is not a small target for the company, but the products of the company even the minor products are doing an exceptional job as far as complying with their current mission to become a highly effective market for Kraft Food Inc in the near future. The essence of customer orientation is found in the products and even in the marketing strategy of the company which is an effective sign from the standpoint of the company, which is again identifying that the company is absolutely fit in terms of complying with its current mission with their current customer orientation approach and strategy (McCabe, 2010). Having an effective research and development team with strong marketing ability would certainly enable the company to get them fit with the current mission statement of the company. Cost effectiveness is one of the most important provisions from the viewpoint of a company and from the standpoint of a consumer as well which could be found with the help of cost efficient strategies. The company has enormous diversification in their products which gives immense technical, distribution, marketing and other economies that translate directly into lower costs for the company and push them further towards in achieving the mission of the company. In terms of achieving the mission objective of the company, Kraft Foods Inc devoted effectiveness in their current operational strategy and elements such as low bargaining power of consumers and suppliers are some of the major facts that have positive repercussions on the strategic and financial capability of the company (Sutton, 1980). Due to vast technology and effectiveness, the company is maintaining their stance to become economically active even in the food and beverage market in the North American section.
One of the major concerns for Kraft Foods Inc is escalating competition in the market of North America as there are other major players as well which are contributing effectively in the market. The names of such individual players are Nestle, Kellogg, Pepsi Co., Mars, Hershey’s, and General Mills. All of these competitors have a tremendous and high market share and it could break the chain of Kraft Foods Inc with their loyal and devoted customers, if effective and timely decisions would not have been taken by the company in order to sustain in the industry (Saee, 2007).
Changes would like to Made
There are certain changes which we would like to make as a Chief Executive Officer (CEO) of Kraft Foods Inc
First of all, there is a need to develop and implement some competitive strategies to compete with the big players of the market, like Pepsi, Coca Cola and Nestle. Product Diversification or moving towards a new pricing strategy like “PENETRATION” would be effective for the company in near future
The company has to empower their employees to raise the issues associated with them and should implement a perfect Management Bi Objective (MBO) approach from which these decisions could have been taken
The company must be turned out to be vigilant in terms of promoting their products by utilizing both electronic and paper media
Conclusion
Kraft Foods is one of the largest companies of the world and the company has the tendency to compete with some of the largest market makers of the industry. With the help of effective recommendations mentioned above, the company has the chance to cover all of the issues.
References
Capon, N., Farley, J., & Hulbert, J. (1987). Corporate strategic planning (1st ed.). New York: Columbia University Press.
Collis, D., & Montgomery, C. (2005). Corporate strategy (1st ed.). Boston, Mass.: McGraw-Hill/Irwin.
Harrigan, K., & Harrigan, K. (2003). Vertical integration, outsourcing, and corporate strategy (1st ed.). Washington, D.C.: Beard Books.
Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring corporate strategy (1st ed.). Harlow: Financial Times Prentice Hall.
McCabe, S. (2010). Corporate strategy in construction (1st ed.). Chichester, U.K.: Wiley-Blackwell.
Saee, J. (2007). Contemporary Corporate Strategy: Global Perspectives (1st ed.). Perth: Routledge.
Sutton, C. (1980). Economics and corporate strategy (1st ed.). Cambridge: Cambridge University Press
