Kraft analysis
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Transcript of Kraft analysis
KRAFT FOODS Inc.MEMBERS:
MARIA JUDITH ZAMBRANO
JUAN JOSÉ VÁSQUEZ DORA
Lecturer: MSc. Nestor MoránPLANEACIÓN ESTRATÉGICA INTERNACIONAL
Founded by James Kraft in 1903, is a manufacturer of consumer foods listed onthe NYSE. The company is headquartered in the Chicago suburb of Northfield,Illinois. Currently, Kraft operates in more than 155 countries. In 2012 it changedits name to Mondelēz International, keeping the name Kraft Foods Group forbusiness in North America.
Is the 2nd largest food company on this industry, they follow Nestle; this istalking internationally but in the U.S.A. they are the number 1 prefered by theconsumers.
KRAFT FOODS Inc.
PRODUCTS AND BRANDS
The company's core businesses are in beverage, cheese, dairy foods, snackfoods, and convenience foods. A selection of Kraft's major brands is as follows.
MISSION
"Our aim is to be North America's best food and beverage company, andwe'll get there by continuing to offer products consumers love, creating aperformance-based culture that motivates and excites employees andbecoming the best investment in the industry."
VISIONHelping people around the world eat and live better, offering the bestbrands, best products and best quality.
IMPROVED MISSIONKraft Foods Company’s mission is to provide excellence products with innovative,
high technology, high quality, healthy and nutritious fresh, in order to satisfy
consumer needs, providing permanent welfare and quality of life, and also the
health of the environment.
IMPROVED VISIONBe the number one food and beverage company in the customers mind, recognized
by the quality and variety of the healthy products that we offer. Have highly
qualified staff keeping the rigorous and strict quality control and Reduce our
environmental impact through life plan.
NESTLE'S MISSIONContributing to nutrition, health and welfare of people, making available high-quality
products for any time of day and for all stages of life, and managing business in ways
that create value for the company at a time to society.
NESTLE'S VISIONOur vision is to be the leading food and Beverage Company, providing our customers
with high quality and value added services at competitive prices, while ensuring
long-term profitability and viability of the organization.
COMPARE YOUR MISSION AND VISION TO A
LEADING COMPETITOR’S STATEMENTS.
The main purpose of these companies is the development of products and innovative
health solutions with the best quality to satisfy customers. However, Kraft not only cares
about its products also mentions the commitment to the environment to protect future
generations.
FINANCIAL RATIOS
Gross profit margin 37,57%
Operating profit margin 26,44%
Net profit margin 14,84%
Return on total assets 11,63%
Return on stockholders´ equity 61,72%
Earnings per share (EPS) $ 3,98
Price earnings ratio $ 15,14
http://www.marketwatch.com/investing/stock/krft/profile
Curren Ratio 1,44
Quick Ratio 0,97
Debt-to-total assest ratio 43,10
Debt to equity ratio 192,33
Long term debt to equity ratio 192,33
Inventory turnover 6,43
Fixed assets turnover 3,44
Total assets turnover 0,78
Market Capital: 35,49BROE: 12,1%
ROA: 6,7PE Growth Rate: 7,25%*
CEO
Operations & Business
Services
Corp & Legal
Affairs
Exec. VP and President
Kraft Europe
Global Human
Resources
President Kraft
International
Research, Development & quality
Exec. VP and
President North
America
Exec. VP of Strategy
Marketing Officer
ORGANIZATIONAL CHART
FLAT HIERARCHY
IMPROVED ORGANIZATIONAL CHART
Biscuits
Chocolate
Gum & Candy
Beverages, Cheese & Grocery
President Mondelēz
International
Exec. VP and President MI
Europe
Exec. VP and President
Kraft North America
Marketing Officer
Operations & Business Services
Research, Development & quality
Corp & Legal Affairs
Global Human Resources
Future
Services
Dow Corning Matrix Structure
MARKET POSITIONING MAP
https://finance.yahoo.com/q/co?s=KRFT+Competitors
CAG = ConAgra Foods, Inc.
Pvt1 = Hillshire Brands Company (privately held)
NSRGY = Nestlé S.A.
Industry = Food - Major Diversified1 = As of 2014
MARKET POSITIONING MAP
http://www.nasdaq.com/symbol/krft/competitors
Low
Qu
alit
y
Low Price
High
Qu
ality
High Price
• Make our people our competitive edge.• Rolling out integrated business planning.• Focus, improvement and innovation on the iconic brands.• Redefine efficiency by driving industry-leading productivity
VALUE CHAIN ANALYSIS
HUMAN RESOURCES
Training and ongoing training of employees of the company.
TECHNOLOGICAL DEVELOPMENT
Modern technology forfurther development of thecompany
INBOUND LOGISTICS
Adequate inventory control, proper handling of raw materials, low costs.
PROCESS
At the national and international level the
location of plants in cities can be close to customers and have distribution in time as a competitive
advantage.
MARKETING AND SALESquality low prices,
pricing strategy.OUTBOUND LOGISTICSProcess orders on time, stockpile management and reporting on time.
SERVICECommunication with
clients to receive complaints and resolve
them.
STRENGTHS WEIGHT RATING TOTAL
1.Market leader in confectionery segment 0,14 4 0,56
2. A globally recognized brand 0,12 4 0,48
3. Popular subsidiary brands like Cadbury, Kraft, Jacobs, Tang,
Maxwell House, Milka, Oreo, etc.0,08 3 0,24
4. An employee strength of about 126,000 people 0,09 2 0,18
5. Strong financial muscle 0,12 3 0,36
6. Strong R&D and innovation 0,08 3 0,24
7. Strong supply chain network 0,07 4 0,28
8. Diverse product range including confectionery, dairy products, cheese, beverages, other food products
0,10 3 0,3
9. Brand loyalty and recall 0,07 2 0,14
10.Association and sponsorship to various sports events 0,06 2 0,12
11.Presence in more than 70 countries 0,07 2 0,14
TOTAL 1.00 3,04
http://www.mba-tutorials.com/marketing/swot-analysis-marketing/1411-swot-analysis-of-kraft-foods.html
WEAKNESSES WEIGHT RATING TOTAL
1. Instances of product recall have affected the brand image 0,20 3 0,60
2. Tough competition means brand switching in the segment is
quite high0,15 4 0,60
3. Kraft foods company’s credit dangers additional
decline while food corporation reorganizes its business, which
can comprise making extra gaining that are founded via debt
0,30 3 0,90
4. High debt related to income, earlier than interest, taxes,
reduction and paying off to a higher level representing wider
credit extends.
0,20 3 0,60
5. Possibility of perceived weakness from female CEO in foreign markets.
0,15 1 0,15
TOTAL 1.00 2,85
http://www.mba-tutorials.com/marketing/swot-analysis-marketing/1411-swot-analysis-of-kraft-foods.html
OPPORTUNITIES WEIGHT RATING TOTAL
1. Acquisition of Cadbury gives an opportunity to increase each in developing countries
0,19 3 0,57
2. Increasing obesity is bolstering demand for relative low-
calorie product such as protein shakes0,13 2 0,26
3. Product line extension with launch of pet food 0,14 2 0,28
4. All workers under become aware of have been presented one by one meeting on.
0,15 1 0,15
5. Using of inclusive variety of events, including suitable being
without a job packages and recommendation on seeking new
employment to help those who have lost their jobs.
0,07 2 0,14
6. Increased popularity of smaller package size, for health,
economic, and demographic reasons.0,15 3 0,45
7. Growing markets and changing lifestyles of consumers in
developing economies such as China means more income.0,17 4 0,68
TOTAL 1.00 2,53
http://www.mbaskool.com/brandguide/food-and-beverages/3351-kraft-foods.html
THREATS WEIGHT RATING TOTAL
1. Health consciousness amongst people possess a threat to the confectionery market
0,14 4 0,56
2.Rise in cost of raw material 0,16 2 0,32
3.Eurozone crisis and global economic slowdown 0,13 3 0,26
4.Stiff competition 0,09 2 0,18
5. Trade barriers such as protectionism and agricultural tariffs. 0,10 1 0,10
6. Foreign currency fluctuations 0,11 1 0,11
7. Higher price increases in juices 0,10 2 0,20
8. Climate changes or extreme weather 0,09 3 0,27
9. Rise of Bio-energy markets 0,08 3 0,24
TOTAL 1,00 2,24
http://www.mbaskool.com/brandguide/food-and-beverages/3351-kraft-foods.html
BOYCOTT THREAT
COMPETITIVE PROFILE MATRIX
Weight KRAFT FOODS
INC.NESTLE CONAGRA
Rating Score Rating Score Rating Score1. Advertising 0,12 3 0,36 4 0,48 2 0,242. Financial Position 0,10 3 0,30 4 0,40 2 0,203. Global Expansion 0,05 3 0,15 4 0,20 2 0,104. Market Share 0,09 3 0,27 3 0,27 2 0,185. Product Diversity 0,05 3 0,15 4 0,20 3 0,156. Consumer Demands 0,12 4 0,48 3 0,36 3 0,367. Customer Loyalty 0,09 3 0,27 3 0,27 2 0,188. Product Safety 0,10 2 0,20 3 0,30 3 0,309. New Product Development 0,09 4 0,36 3 0,27 3 0,2710. Profit Margin 0,07 3 0,21 3 0,21 2 0,1411. Attractiveness as employer
0,07 3 0,21 4 0,28 2 0,14
12. Price competitiveness 0,05 2 0,10 3 0,15 3 0,15TOTAL 1 3,06 3,39 2,41
WO STRATEGIESRaising Markets where image is not affected. (W1, O7) – New and neat Marketing Project
DevelopmentRedesign of new packages could help in
decreasing costs, therefore, less debt.( W4, O6)
SWOT ANALYSIS
1. Instances of product recall have affected the brand image
7. Growing markets and changing lifestyles of
consumers in developing economies such as China
means more income.
4. High debt related to income, earlier than interest,
taxes, reduction and paying off to a higher level
representing wider credit extends.
6. Increased popularity of smaller package size, for
health, economic, and demographic reasons.