Essay on Strategy Implementation
Kraft Foods Inc. is an American multinational concern, which produces and distributes its products under different labels, such as the Kraft, Alpen Gold, Maxwell House, Carte Noire, Philadelphia, Oscar Mayer, Tuc, Planters, Jacobs, Milka, JELL-O and many others. It “is the second largest food and beverage company in the world” (“Early history of Kraft Foods,” n.d., para. 1). The company’s headquarters is located in Northfield, the state of Illinois.
Kraft Foods produces and markets its products more than in 155 countries worldwide. Many brands of the company are world leaders in their respective categories:
- Cheese: the Kraft;
- Cream Cheese: Philadelphia;
- Coffee: Maxim and Maxwell House, Jacobs, Carte Noire;
- Cookies and crackers: Tuc, Nabisco;
- Chocolate: Milka, Alpen Gold, Toblerone.
It should be noted that the company is the largest producer of processed cheese in the world. It holds a leading position on the world market and is in demand with the population. According to Tony Vernon, CEO, our “results demonstrate the power of our brands, our people and our innovation. We have an excellent foundation…, and we’re confident we have what it takes to fulfill our mission of becoming the best food and beverage company in North America” (Askew, 2012, para. 6). Chief executive, Irene Rosenfeld admitted that “the Kraft brand is a perfect fit for the North American grocery business and gives it a wonderful platform on which to build an exciting future” (Rushe, 2012, para. 5).
Additionally, the company distributes its products through direct selling, as well as through its sales agent network. Mainly, Kraft Foods Inc. provides its products to different retail food outlets, supermarket chains, shopping centers, wholesalers and other convenient stores.
Kraft Foods’s vision deals with meeting its consumers’ needs and expectations and producing food that is healthy, environmentally-friendly, and delicious. The company’s vision is as follows: “Make Today Delicious.” The company is eager to be understood as the irrefutable leader in the global food market. In return, the Kraft Foods’s mission is to care and provide its clients with healthy products to enjoy. The measure of the company’s achievement is its ultimate goal – to become the undisputed leader in the manufacture of food products. Kraft Foods can say that it has achieved undisputed leadership in the eyes of others, when it will be the best choice – for the customers; indispensable partner – for clients; most desirable ally – for mergers and alliances; the best place to work – for employees; socially responsible organization – for society, given investment, ensuring sustainable growth – for investors.
Furthermore, Kraft Foods Inc. strictly adheres to the strategies, which are aimed at ensuring that:
- the company’s products are the first choice of consumers;
- it has great opportunities to form mergers and alliances;
- sales agents and retailers view the company as a devoted and irrefutable associate;
- employees are eager to work for the company;
- the company positions itself as a responsible business organization;
- the company is recognized as a producer of high-quality products.
Now let us focus attention on the Kraft Foods SWOT Analysis.
Strengths:
- Successful and well-known brand names;
- Outstanding image and reputation;
- Healthy and organic top line growth;
- High ground for revenue production;
- New innovations and skills.
Weaknesses:
- Ubiquity;
- Strong competition from other typical companies (Hershey, Nestle, etc.);
- Poor stock performance;
- Difficulties associated with launching new labels and brand names.
Opportunities:
- Cadbury acquisition – opportunity to win new markets;
- Beverage market, new categories, new products;
- The company is a leader in many fast growing categories;
- Brand value.
Threats:
- Competitive industry (Hershey, Nestle);
- Difficulties associated with expanding into new markets;
- Currency risks;
- Controversies concerning artificial food dyes.
Like any company, Kraft Foods Inc. has its organizational structure, which can be presented in such a way:
- Current CEO of Kraft – Irene Rosenfeld
- Director – Jean-Francois van Boxmeer
- Director – Ruth Simmons
- Director – Fredric Reynolds and others
- CFO – David Brearton
- Europe – Exclusive Vice President and President
- North America – Exclusive Vice President and President
- Category & Marketing – Chief Category and Marketing Officer
- Human Resources – Global Human Resources
- Legal – Legal Affairs and General Counsel
- Developing Markets – Exclusive Vice President and President
- Research, Development & Quality – Exclusive Vice President
- Strategy – Exclusive Vice President
- Supply Chain – Exclusive Vice President
- Services & CIO – Senior Vice President, Business Services and Chief Information Officer.
What is more, Kraft Foods is a perfect example of an organization with centralized decision making. The company’s senior management reserves much of the authority needed to make critical decisions. However, despite this fact, in order to optimize its goals Kraft Foods transformed the original organizational matrix to a decentralized structure.
This is a well-known fact that organizational systems are critical for monitoring strategy implementation. Kraft Foods implements different strategic controls, including information systems and measurement and reward systems, etc. Information systems play a significant role in strategy implementation. It is impossible to imagine Kraft Foods without IT technology, as information systems enable the transfer of information between manufacturers and retailers, monitor inventories and simplifies distribution and logistics. The company’s measurement and reward systems are competitive and aimed at meeting strategic objectives. Kraft Foods provides its employees with different rewards, including discounts on the products, salaries, graduate program joining bonus, further training, and more.
Kraft Foods recruits and hires motivated and talented people, providing them with challenging opportunities. All the company’s employees practice the shared values in different directions: business operation, sales, production, etc.
Therefore, the company is guided by the following shared values:
- We appreciate customer’s trust.
- We are responsible for the success.
- We work easily.
- We are open-minded.
- We tell the truth.
- We are driven by the heart and the mind.
- We discuss. We decide. We do.
Control is defined as “any process that directs the activities of individuals toward the achievement of organizational goals” (Bateman & Snell, 2009, p. 574). The properly designed, well thought out and properly implemented effective control systems will certainly lead to more progress in all the areas of business and will increase the company’s financial results. That is why Kraft Foods strives to implement effective managerial and operational control mechanisms. For example, Kraft Foods transformed the original organizational matrix to a decentralized structure in order to optimize its goals. In addition, the company constantly examines and describes the business processes, analyzes potential strengths and weaknesses of the organization.
Nowadays, employers commonly experience human resources concerns, which include diversity, training, or productivity, etc. Kraft Foods Company is not exception. That is why the company’s human resources director should focus specific attention on the policies that deal with anti-discrimination legislature. The company’s productivity largely depends on the employees’ productivity. HR management is responsible for creating a welcoming workplace environment and introducing programs, which will help to increase motivation and productivity in the workplace. Training is a critical component of employee development. That is why the company should pay particular attention to the training sessions and seminars in order to increase employees’ development and productivity and thus implement its strategies properly.
There is the fit between the company’s mission, strategy, and organizational components. The company’s business strategy is formed based on its vision and mission, which allocate resources to business and capture long-term and short-term goals. Thus, the company’s mission, strategy, and organizational components, constantly interacting, make a strategic plan for its development. These components support and complement the company’s strategy because they become the main benchmarks to conduct business in accordance with the chosen course. They are the yardstick for new ideas and concepts.
In conclusion, it is possible to say that as the CEO I would make the following changes to better assure the success of the company’s strategy: improve the stock performance, investigate what the company’s customers need, carefully study the competition, and improve the company’s sales techniques and customer service.
