Module 4 - SLP

Module 4 - SLP

Step One

Kraft food is a well established company of manufacturing, processing and packaging food and beverages that are extensively used by the customers on a daily basis. The company has been into this business since many years and is well aware of the market trends and customer changing preferences. Over the course of these past years the company has learned to develop strategic strategies that serve best in making loyal customers. When analyzed it is determined that the company has more strengths then it possess weaknesses. And the prevailing weaknesses can be easily nullified through strategic decision and policy making. Even in the future the strength of the company can be easily sustained if both the internal and external analysis of the company is done on a frequent basis. The advantage of such analysis is that it enable the company know it's accurate position and identify its true picture of strengths, weaknesses, future opportunities and possible threats (Hathaway, Blumberg & Beron, 2006).

 

   Low cost

Differentiation

       Focus

  Preemptive

Strengths

Along with fine quality and suitable pricing, Kraft food has marked its value above other products due to its smooth distribution channels.

However, the quality has been widely established in its wide range of products offered such as cheese, snacks, grocery items, beverages and diary.

Kraft food has developed its own distribution channel that enables fine delivery and distribution of products to wholesale and supermarkets.

The operations of Kraft food have been widespread across many companies.

Weaknesses

 Declined Profitability.

The business nature of Kraft foods vigor's the company to invest a lot of money into print media and bill boards.

Geographic Concentration.

Image of Fine quality at lower Prices.

Opportunities

As the company is limited to its food manufacturing and processing, it has been estimated that keeping its growth in the same manner.

Restructuring.

Growing demand for health and wellness products worldwide.

To add more and more value to its operations company can easily acquire acquisitions and mergers with other niche companies.

Threats

Litigation risks.

Fierce Competition.

The company besides its willingness is forced to raise its product prices.

The increased trend of consumption poses serious threat to Kraft Foods.

Step Two

The advantages of an external analysis is that there is not an internal evaluation carrying out at the same time while the external factors are examined thoroughly, so this makes the analysis simple and cost is also dragged down. It provides an overall assessment of the external factors which are involved in the extensive environment of business. It also provides the framework for the strategic thinking. Many of the threats and opportunities associated with the organization are being identified in the process of external analysis. This identification can help the organization to predict the future complications and how they can be avoided (Fleming, 2010).

The organization on other hand can also recognize the opportunities and exploit it. On the contrary, the disadvantages can be the fast variation in the society makes it very tough to predict the future development of the organization. The external analysis only outlines the external factors whereas the outcome ...