Assignment 3: MGT 599



Executive Summary

Kraft Company involved in the production of mechanized and advertising of branded foodstuff and drinks. It is the world's second leading foodstuff and beverage corporation with functions in around 160 nations all over the world. Powerful branding reputation offers Kraft's items an influential and commanding brand name remembrance and allows the corporation to rule a premium for its foodstuffs. On the other hand, ever-increasing rivalry stimulated by manufacturing consolidation could negatively concern the company's profits.

This report takes account of an investigation of the wide-ranging setting and the aggressive surroundings. Strategy analysis also manages with the organization's domestic environment. It permits the organization to assess how well it is located to take advantage of the alternatives in its outside surroundings. Correctly related, this simple postulation has commanding suggestions for the blueprint of a successful plan.

Assignment 3: MGT 599

Introduction

Kraft is considered to be a holding corporation involved in the selling of mechanized and marketing acknowledged foodstuff and drinks. It is the world's second-leading foodstuff and drinking Corporation with functions in around 150 nations all over the world. Powerful brand name representation with improvement offers Kraft's foodstuffs an influential brand name remembrance and allows the business to dominant a premium for its foodstuffs. On the other hand, ever-increasing competition stimulated by manufacturing consolidation could unfavorably influence the company's earnings.

As PEST features are fundamentally external, carrying out a PEST study is supportive before carrying out a SWOT study. SWOT analysis is an extensively employed practice throughout which managers generate a quick impression of a company's tactical state. Good match takes complete benefit of a firm's strong points and alternatives and mitigates its weak points and risks. Correctly applied, this uncomplicated theory has influential suggestions for the blueprint of a thriving stratagem (Jeffrey, 2003).

Thesis Statement: SWOT analysis is rooted on the theory that an effectual strategy draws from a perfect “match” involving a firm's in-house sources and its external condition.



Discussion

Kraft Foods -SWOT Analysis

Location of Factor

Type of Factor

Positive

Negative

Internal

Strengths

Great stress on ecological concerns.

Powerful branding representation and product improvement

Powerful distribution networking.

Stress on R & D

Business level and financial strong point

Weaknesses

Unfunded staff post retirement gains

Greater than before debt equity load

Decreased productivity

Geographic attention

Lack of advertising stratagem

External

Opportunities

Reformation

Rising demand for 'health and wellness' items and services

Development in the US coffee marketplace

Getting hold of Cadbury

Rise as worldwide confectionary and salty snacks marketplaces

Threats

Intense competition

Risk of legal actions

Decreasing US consumer trust

Dampened consumer demand

Rise in labor expenses

Critical Analysis

Food business is an incessantly on demand business that populace constantly require and desire. There is an axiom that states: foodstuff industry is one of the most recession-proof in opposition to the financial slumps as populace needs something to consume. This forms this business a flexible, consistent dependable and profitable industry. The wide range of products available in the market offers ample of opportunities for business in this line, growth and progress in line with the advancement of technology and new channel of marketing (Henry, 2008).

Strength: Kraft Foodstuffs functions in a ...