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.

INTERNAL ASSESSMENT

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.

WEBSITE

http://www.kraftfoodsgroup.com/home/index.aspx

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

EXTERNAL ASSESSMENT

MKT POSITION

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.