Internal and external environments of Kraft Food

Kraft Foods Inc. is an independent American multinational corporation that deals in food and beverage. Internal and external environments of Kraft Food are given below by assignment help experts:

Internal and external environments of Kraft Food:

Internal Environment External Environment
Strengths: Opportunities:
  • Strong brand image and product innovation
  • Strong distribution network
  • Focus on research and development
  • Diversified product portfolio (Henry, 2008).
  • 25% of global revenue from emerging markets
  • Growth in the US coffee market
  • Growing demand for ‘health and wellness’ products and services
  • Operates in many fast growing categories
  • Value in leading brands
Weakness: Threats:
  • Low growth in United States Market
  • Strong competition from Nestle, Hershey, etc.
  • Increased Debt & Equity burden
  • Growth dependent on acquisitions.
  • Competition from Mars Inc, Nestle
  • Lower consumer discretionary spending.
  • Poor implementation of Cadbury acquisition

Competitive Advantages & Strategies of Kraft Foods Inc: In today’s global business environment, Kraft Food has several competitive advantages. For instance, The Company has a strong brand image in the international market. Kraft owns several well known food brands in several food categories such as snacks, beverages, cheese and dairy, groceries, and convenient meals. The brand names are well established and have a long history that is definitely the sign of a strong competitive advantage for Kraft. On the other hand, as per the CEO of the company, Kraft size and its distribution network are also competitive advantages for the company. For instance, the company has its international operations in different fast-growing countries. In addition, company has also several stores and branches across all over the world. Hence, the size and distribution network of the company is also large as compared with its competitors. This clearly indicates that size and distribution network has the competitive advantages for the company. In order to achieve competitive advantages, company uses different strategies. For example, company uses marketing, differentiation and focus strategy for the competitive advantages. Their international operation of the company is supported by the marketing strategy that focuses on local tastes of foreign consumers.

Value Creation: On the other hand, Kraft Foods is also implementing quality standard and rules to create the value. For instance, by fulfilling the corporate social responsibilities in an effective manner, this organization is creating the value and sustains competitive advantage through business strategy. Hence, it is interpreted that both the companies are creating the value by using different strategies and methods.

Measurement Guidelines: In order to verify strategic effectiveness, Kraft Food is also using effective and important measurement guidelines. For example, Global food giant Kraft Foods is focusing on reducing its products’ carbon footprint and improving product designs through lifecycle assessment (LCA). In addition, company is also focusing and working smarter and communicating better, which is good for the environment, people and business. Apart from this, the company is also using LCA to measure how product and packaging innovations improve on previous designs and provides a common system to measure and explain strategic effectiveness. The measurement guidelines used by the company is effective and valuable, because these guidelines inform specific decisions and/or actions in a more comprehensive manner. In addition, these strategies improve well-grounded strategy and articulate organizational strategy. At the same time, measurement guidelines also improve the way company uses strategy as a decision-making filter. Hence, it is evaluated that measurement guidelines used by the company are effective.

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