kraft foods - welcome to dr. kim boal's website!kimboal.ba.ttu.edu/mgt 4380 fl 2010/006/… ·...
TRANSCRIPT
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Team 5Ashley Gonzenbach
Diana PerkinsBrian Byrne
Amanda Long
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Foods Production and Distribution company
Mission Statement“Anywhere, anytime, everyday. No
matter what the occasion, we take food to heart. Our higher purpose, make today delicious, is about much more than the products we make. It defines us, unites us, and inspires us to make a delicious difference in our company, in our communities, and in our world.”
Executive Summary
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Goals & ValuesBuild & maintain a high
performing organizationOpen, honest, and trustworthy
companyReliable to all employees &
customers
Executive Summary
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Kraft OverviewIndustry OverviewFive Forces Model – Specific Environment
Rivalry New EntrantsSubstitutesBargaining Power of CustomersBargaining Power of Supplier
External Analysis
Competitive Force Degree of CompetitionRivalry Among Existing Firms High
Threat of New Entrants Moderate
Threat of Substitute Products Low
Bargaining Power of Customers Low
Bargaining Power of Suppliers High
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General EnvironmentEconomic DemographicSocioculturalPolitical-LegalTechnological
Strategy CanvasKraft benefits from cost leadershipGrow to be a blue ocean
Four Actions FrameworkKraft should consider the factorsHelp to increase customer value
External Analysis
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Strategic Managers & Management TeamCEO Irene RosenfeldLevel 5 Leadership
Corporate StructureNorth AmericaEuropeDeveloping Markets
Corporate CultureInspire employeesCommunity Involvement
Internal Analysis
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SWOT AnalysisStrengths
Leading Brands in DiversitySecond Largest CompanyGlobal Sales
WeaknessesLaunching DifficultyPoor Stock PerformanceStrong Competition
Internal Analysis
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Competitive Advantages & Key Success Factors
Cost LeadershipDifferentiation
Internal Analysis
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Gross Profit Margin – Productivity
Fixed Asset Turnover45% Goodwill
Financial Analysis
Gross Profit Margin2004 2005 2006 2007 2008 2009
Kraft 39.20% 37.00% 36.00% 36.10% 33.80% 33.21%ConAgra 25.50% 24.60% 24.30% 25.60% 23.40% 23.40%Nestle 60.70% 65.70% 65.70% 66.00% 65.50% 56.92%Heinz 35.10% 39.80% 38.20% 35.80% 37.70% 36.54%
Sara Lee 41.60% 39.20% 40.10% 38.70% 37.00% 38.28%Average 40.73% 42.33% 42.08% 41.53% 40.90% 38.79%
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Return on EquityAdvertising Sales Ratio
Financial Analysis
2004 2005 2006 2007 2008
Kraft 1258 1314 1396 1554 1639
ConAgra 368 321 334 452 393
Nestle 2984 3034 3250 3446 3651
Sara Lee 460 425 452 433 342
Heinz 286.1 273.7 296.9 315.2 339.3
Average 1071 1073 1145 1240 1272
Advertising Expenditures
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Overall - very little problematicAlternative #1 : Reconsider
Investment in PPE to cut costs
Alternative #2: Increase Cash on Hand
Strategic Issues
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Thrives on TeamworkCollaborationStrong corporate culture
Second Largest Food CompanyBrand DiversityGlobal Sales
Expanding GrowthGrown past 3 years consistentlySustain long-term growth
Kraft Foods Conclusion