Team 5Ashley Gonzenbach

Diana PerkinsBrian Byrne

Amanda Long

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

Goals & ValuesBuild & maintain a high

performing organizationOpen, honest, and trustworthy

companyReliable to all employees &

customers

Executive Summary

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

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

Strategic Managers & Management TeamCEO Irene RosenfeldLevel 5 Leadership

Corporate StructureNorth AmericaEuropeDeveloping Markets

Corporate CultureInspire employeesCommunity Involvement

Internal Analysis

SWOT AnalysisStrengths

Leading Brands in DiversitySecond Largest CompanyGlobal Sales

WeaknessesLaunching DifficultyPoor Stock PerformanceStrong Competition

Internal Analysis

Competitive Advantages & Key Success Factors

Cost LeadershipDifferentiation

Internal Analysis

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%

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

Overall - very little problematicAlternative #1 : Reconsider

Investment in PPE to cut costs

Alternative #2: Increase Cash on Hand

Strategic Issues

Thrives on TeamworkCollaborationStrong corporate culture

Second Largest Food CompanyBrand DiversityGlobal Sales

Expanding GrowthGrown past 3 years consistentlySustain long-term growth

Kraft Foods Conclusion