Kraft Foods: Strategic Business Plan

kraft paper Foods Strategic Business Plan interpolationThis handicraft report aims to discuss an example orbiculate organization, wherein the Kraft Foods association (KFC) was used here. Topics were discussed on responses on the 2009 challenge of an external commercialize perspicacity as an shot of organization management and the evaluation of the trick out analysis technique as an existing disdain strategy, consumer sector data and market share of revenues.Its hot seat and CEO, Irene Rosenfeld, sayWeve had a very solid start to the year, and were on track to deliver our 2009 commitments. Our business momentum be rigid despite a challenging consumer environment. We are intensely focused on commit our mo solveary value savings to build our center of attention brands, improve our product mix and drive superior retail execution. This go forth further put forward our profit margins and improve market shares as the year unfolds.Being an already flourishing food maker of the industry, KFC still aims deliver its commitments in full blast, with a head strong business momentum, using business strategies on investing cost savings to be able to gallop making its set of core brands, enhance its product mix and maintain a world astray reputation in excellence as a retail manufacturer. It also ensures that its investments adds profit margins and instigate fur-bearing market shares in the next years to come with a timely full-year tax rate. Lastly, KFC has confidence in achieving its designs with a very good net revenue growth of approximately. Such performance never fails to lecture us and other competitors as sound in the food industry.Literature Review1. Kraft Foods federation BackgroundKraft Foods Company (KFC) currently produces delicious foods across 150 countries. It has 103,000 employees in hand. Product brands ranges from American brand icons like Kraft cheeses, dinners and dressings, Maxwell House coffees and Oscar Mayer meats, to global pow erhouse brands like Oreo and LU biscuits, Philadelphia cream cheeses, Jacobs and Carte Noire coffees, Tang powdered beverages and Milka, Cte dOr, Lacta and Toblerone chocolates. Now, it is the worlds second largest food company in generating annual revenues of $42 billion. Also, the company is an affiliation of the Dow Jones Industrial Average, Standard Poors 500, the Dow Jones Sustainability Index and the Ethibel Sustainability Index (Kraft Foods Company, 2009.)Kraft was founded in 1903 by James L. Kraft, with starting only as a cheese delivery service. It was transferred to Krafts brothers Charles, Fred, John, and Norman, during its down times. They workd it collective as J.L. Kraft Brothers in 1909. It then again changed the name to Kraft Cheese Co. back in 1924. With a follow suit trend in per se, there were turn abouts of Kraft Foods Co. in 1945, Kraftco lodge in 1969, and Kraft Inc. in 1976. It also merged with Dart Industries in 1980 and again change the name to Dart Kr aft, but got forgotten in 1986, where it is again Kraft Inc. From then, it was bought by Philip Morris (now is Altria) in 1988. It also enwrapped competitors General Foods and Nabisco. Finally in 2007, Altria managed Kraft Foods. During its long business run in the industry, a cope with of celebrity endorsements were done to promote its products. There were Bill Cosby (a comedian), Michelle Kwan (a champion figure skater), Lindsay Lohan (Hollywood actress) and Joe Montana (a football game star) (NNDB, 2009.)2. The Business Vision and MissionKFC slogan is Make today delicious Thats our higher purpose. At Kraft Foods, delicious is our difference. Its products are trusted during That first cup of coffee in the morning. A tasty low-fat snack. A nourishing meal on a budget. An indulgent treat. These are KFCs vision and mission (Kraft Foods Company, 2009.) Company objectives revolves nigh perspectives rewriting the organization for growth, reframe categories, exploit our sales capabi lities, drive down costs without compromising quality and strategies growth. With goal of achieving the new Kraft = growth (KFC, 2009.)It aims to meet responsibilities as a public company and promote that being a global citizen is the right thing to do and what is right for its business. They transforming the brands that consumers deplete lived with for years into new brands they exit love.Its corporate responsibility indexes are the Dow Jones Industrial Average, Dow Jones Sustainability Index and 2006-2008 Ethibel Sustainability Index. Last September 12, 2008, it started the mission program The Lunchables ag assort and First Book Launch the Million Page Mission and Help Children Receive Much-Needed Books (KFC, 2009.)DiscussionThe orthogonal Market AssessmentKFC runs on a lower floor the food industry, with a stock market ticker of NYSEKFT. Its render is located at Northfield, IL (NNDB, 2009.) Finances of KFC, as of 2008, are (in millions, except per share data) Net revenues $37,241 8.4%, direct income 4,331 (4.2%), Net earnings 2,590 (15.4%) and Diluted earnings per share 1.62 (12.4%) (KFC, 2009.)Its external market share now is a percentage of more than 99% of U.S. households. The international market sells its leading brands, which are almost all of KFC products. It has 9 brands with revenues greater than $1 billion and 50+ additional brands garner revenues beyond $100 million. To this, about an colossal number from 40 of KFC brands have an age life of 100+ years old. The billion dollar brands admit Kraft, Jacobs, LU, Maxwell House, Milka, Nabisco and its Oreo brand, Philadelphia, and Oscar Mayer With an estimate figure of 103,000 employees worldwide, it has 180+ manufacturing and processing facilities across countries. With the consumer statistics of millions times a day, computed in an account of 150+ countries, these persons eat their favorite Kraft brands. It is also a member of the Dow Jones Sustainability Index. The figure 1 below is the mar ket share of revenues in to each one type of KFC Brands as of 2007 (KFC, 2009.)Figure 1.KFC Market partake in of Revenues 2007(KFC, 2009)Existing Business dodgingKFCs follows rise analysis technique for its existing business strategy. To start with Strategy is the practice of settling on placing the organization in its competitive environment righty, with the goal to achieve and puzzle competitive advantage as well as profitably. It is the onion skin approach in business, wherein each layer of skin must be peeled off and studied on prior to the core Strategic Business Unit (SBU) element is arrived at (Elkin, 1998.)The plodding analysis is an extensively used school of thought framework for classifying an organizations strengths, weaknesses, opportunities and threats. SWOT entitles key factors to be apparently documented as a high take summary of a business (or personal) circumstance. Defining it is a summary which is simple but powerful its administration is generally used by consultants to certificate the key factors that should derived from the examination of a particular project or business. Moreover, SWOT allows an investigation to be conducted on the whole perspective view of internal as well as external conditions of a business and the political programs in which it is surging on, from the means of knowing its current Strengths and Weaknesses. An added aspect is the allowed ability of a judgment on external business environment, which can greatly influence the performance. SWOT technique aids in putting in to comprehensible explanations of strategic choices, in order to have clear executive decisions that are to be assessed and identified. Lastly, it compares existing and potential future traits of the organization and supports evaluation of the consequences from alternate(a) actions (Elkin, 1998.)RecommendationsExperts AdviseDuring the press release of Kraft Foods Q1 2009 Earnings Report in May 5, 2009. Irene Rosenfeld, its chairman and CEO, saidWeve had a very solid start to the year, and were on track to deliver our 2009 commitments. Our business momentum remains strong despite a challenging consumer environment. We are intensely focused on investing our cost savings to build our core brands, improve our product mix and drive superior retail execution. This will further enhance our profit margins and improve market shares as the year unfolds (KFC, 2009.)She further advised the KFC group on a solid drive in gaining heightened profits from operations. In the previous year, there was a drive for cost-driven pricing actions, which yielded organic net revenue growth and an exceeding expectation of a better-than-expected glitz/mix number of sales. She also advised that the business segments drive for operating gains across the globe should be focused on operating income growth, margin expansion and higher earnings per share (KFC, 2009.)This years sophisticated statements are reaffirmed 2009 GAAP EPS guidance that KFC is on track to deliver 2009 commitments that business momentum will be strong that it is greatly focused on investing cost savings to formulate core brands, enhance product mix and execute excellent retail execution that the investments adds profit margins and induce fruitful market shares as the year unfolds timely full-year tax rate and gain confidence in achieving 2009 organic net revenue growth of approximately 3 percent (KFC, 2009.)ImplicationsIt is advisable to used the environmental occasion as a new business strategic plan as an improvement from KFCs current SWOT analysis technique. It is a kind of technique which is aimed to define the key characteristics of the environment in relation from where the business operates. It presents the backcloth formula that will make visible the future strategies and plans. Its model consists of four areas of focus. Advised action under this kind of strategy is to separately map the varied environments where the diverse countries of the compan y operate.How should KFC apply environmental office into their company business process? Necessary information and records should be based from the senior management of the business from their own accounts knowledge and experience. During cases this is not possible, external knowledge should be consulted from sources to supplement the present management needs. The mapping defines general pressures and conflicts which encircle the industry wherein the business operates, main conditions of environmental group, and matters that are prevailing and are pat to bring to bear the most difficulty or authority on the upcoming direction and prospects of KFC. This is ordinarily accomplished by using H/M/L (High/Medium/Low) tagging of every factor (Elkin, 1998). In writing and formulating an environmental mapping for KFC, these questions should be asked and answered What are the characteristics of the environment(s) in which the business operates?, How are the key factors ever-changing? and W hat will be the impact on future strategic choices?ConclusionIn conclusion, Kraft Foods Company (KFC) has shown exemplary performance in the year 2009 being an example global organization. Its external market assessment has a gradual uprising line, which basing from the theories of organization management and the evaluation of its SWOT analysis technique proves that KFC uses an impelling existing business strategy, generates high consumer sector data and earns more market share of revenues than any brands in the market.Basing on the consumer sector data and market share of revenues feedback on the current performances indicators of KFC, there is a clear positive satisfaction gained from its range of products. With patterns from a strategic business plan, it is able to grip functions to promote their views, handle communications and even handle a global environmental concern.It is very sensible to use the environmental mapping as a business growth from KFCs usual technique of usin g a SWOT analysis. Not only does it endow consumers with healthy products, it is also a new strategic business plan that shows mature key characteristics of an organizational awareness for the environment for the present and future. This way in improving business performance can also determine general pressures and conflicts to deal with aside from catering to a global concern that allows main conditions of environmental group to work together with the present matters on the continued victor of KFC.