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  • June 19th, 2024

Understand Kraft Foods and Its Strategy

Kraft Foods Group is supposed to be one of the largest food corporations in the entire world. The company has become so successful for various reasons. For example, the firm has one of the most efficient human resources. The company also gives respect to its workers and motivates them to give their best in the company. The company also gets a competitive edge because of the culture of Kraft Foods Group. 

The business of the company increases because of its mission statement, values, and vision along with policies. These factors also help the company to become successful. Kraft Foods Group possesses a culture. Moreover, the company has a social responsibility and it always strives to make sure that society obtains a decent lifestyle. To do so, the company provides healthy and high-quality food. 

The firm also deals with its workers and consumers in the best possible way. Kraft may enhance its present techniques to make it far better. Let’s make a case study on Kraft Foods Group.

A Short Overview of Kraft Foods Group

Kraft Foods Group was supposed to be a global confectionery, food, and beverage industry that marketed multiple companies in over 170 nations. The most popular brands of the company like Jacobs, Cadbury, LU, Kraft, Milke, Maxwell House, Oreo, Nabisco, Oscar Mayer, Trident, Philadelphia, and Tang acquired over $1 billion per year all over the world. There are more than 40 brands of the company that are more than a century old. 

The headquarters of the company is located in Northfield, Illinois near Chicago. Kraft was documented on the New York Stock Exchange and became a component of the Dow Jones Industrial Average on 22nd September 2008 in place of the American International Group. 

The company declared in August 2011 that it is going to divide into a North American grocery derivatives business and a faster-growing multinational snacks firm. The legal successor of the old Kraft Foods is Mondelez International Inc. They named the grocery company Kraft Foods which is currently a portion of Kraft Heinz. 

History of Kraft Foods Group 

Transformation of Kraft Foods Group from Kraft Foods Inc.

Kraft Foods Inc, declared in August 2011 that they are planning to be divided into two publicly traded firms– a snack food firm and a grocery firm. 

Kraft Foods Inc. declared on 2nd April 2012 that it has filed a Form 10 Registration Statement to the SEC to divide the corporation into two firms to attend to the “North American grocery industry”.

The company started a new grocery business in North America on 1st October 2012 under the name of Kraft Foods Group. The other part of the company was named Mondelez International and it became a global snack and confectionery firm. According to P. Flickinger III of Strategic Group, this policy was found fruitful for Mondelez but ineffective for Kraft. 

Starbucks was forced to pay Kraft Foods Inc. $2.7 billion on 19th November 2013 as they terminated a contract early. The money was sent to Mondelez International Inc. 

Kraft and Heinz union

Kraft Foods Group Inc. declared on 25th March 2015 that it was going to unite with the H.J. Heinz Company which is possessed by 3G Capital and Berkshire Hathaway Inc. The share of Kraft increased 17% as soon as it disclosed the contract. The two companies united on 2nd July 2015. 

Organizational Design of Kraft Foods Group 

A company needs to make sure that it contains a design that helps the business to run. Organizational design helps a company to become successful. It is very important to have a decent organizational design to improve communication among consumers, managers, workers, and other shareholders. 

Moreover, communication is the key to the conquest of a company. Kraft Foods Group has a decentralized organizational design. It is divided into different divisions and there is a director in each division who handles the division. The all-around company is led by the CEO who speaks to the national directors who after that communicate with the division managers. 

It is the resokbsibukty of the division manager to speak to the workers. But the company has made the decision-making process centralized. 

The director covers the problems of their divisions to the planning council. They make strategic plans to develop business in different divisions. There are distinct business issues in every division. That is why they have to be handled in distinct ways. 

Systems have a great role in the implementation of the strategies of an organization. Useful Austen’s make sure that strategies are beautifully enforced and that it has been done properly. For example, it may require some money to make the strategies useful. That is why, the systems utilized in the budget planning must give the needed cash to make the strategy effective. 

Moreover, the systems help the workers to avail the best treatment from the company. We all know that employees play a vital role in the success of a company. A company is unable to move forward without workers. That is why there must be a good performance appraisal system that will assist to motivate the workers. As soon as they get inspired they will endorse the policies and make it simple for the strategies to be applied. 

Human resources are very important help for a company. They are the support of a company and they help the company to become successful. A company is unable to become successful without proper human resources. Kraft Foods Group values its human resource capital and understands that it can reach its present position because of the people. 

To implement strategies successfully, the factors like quality of the workers, their expertise, and knowledge play a very important role. That is why the company always makes sure that the workers are being treated properly so that they feel comfortable and pleased, and give all their efforts to the company. That is why human resources play a very important role in the application of Kraft Foods Group strategies. 

It is very important to consider the culture before applying a new strategy. Some cultures are rigid and some are flexible. 

The culture of Kraft Foods Group motivates variety. Moreover, the culture of the company ensures the good health and condition of the consumers. Diversity helps to make a company successful. For example, by appointing various people a company may get more unique ideas. Moreover, a mixed crew should have different knowledge. So, they will provide better strategies and implement them. Kraft Foods Group has a loyal customer base as it respects the customers properly. 

Final opinion

Kraft Foods Group has reached the top of success in America and different parts of the globe. The strategies of the company helped it to become successful. Moreover, the firm has decent human resources and a favorable organizational system that helps the company to grow. But we recommend the company make the following changes to perform better. Some of them are: 

The company has a decentralized structure and a centralized decision-making procedure. It is very important to decentralize the decision-making procedure. There are highly qualified and knowledgeable employees in the firm. So, it will be easy to make better decisions if the decision-making procedure becomes decentralized. 

The directors must be entangled in the procedure. They must be given a chance to make decisions. The workers must be involved also. This will help to make better decisions as well as motivate the workers. They will feel that they are valuable to the company. 

The company should launch products and services for every class of people. The company now only produces high-quality nutrition that is expensive. That is why by applying a low-cost strategy it will be able to grab the attention of every class of people. The company has to therefore understand the requirements of the customers very well. To delve deep into the case study of Kraft Foods Group you may get in touch with My Assignment Writing Help


  1. What occurred to Kraft Foods?

The Kraft Foods Group is a popular American food production company. It was separated from Kraft Foods Inc in 2012. The headquarters of the company is located in Illinois, Chicago. The company was united with Kraft Heinz in 2015. 

  1. What is the saying of Kraft?

The most popular slogan of Kraft Foods Group is “Bring Your Appetite For More.”

  1. What is the motto of Kraft Foods?

The company aims to deliver the best products to the customers as we as their families with complete devotion and fascination. They want to feed the whole world deliciously.

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