Jessica Bowman Brad Krueger Reed Taylor Krista Gardner Lottie Slawson

1. Jessica Bowman Brad Krueger Reed Taylor Krista Gardner Lottie Slawson

2. Company Facts • World’s second-largest food and beverage company • 140,000 diverse employees worldwide • Headquarters – Northfield, Illinois • Approximately $50 billion in revenues • Sales in approximately 160 countries • Operations in more than 70 countries • 80% revenue from #1 share positions • Eleven $1 billion brands

3. Eleven $1 Billion Brands “Creating Smiles from Coast to Coast”

4. Manufacturing and Processing Facilities Worldwide

5. Mission Statement • Our Vision...“Helping people around the world eat and live better” • Our Guiding Principals... “Put consumers first, work simply; act quickly, and play to win” • Our Values...Innovation – satisfying real-life needs with unique ideasQuality – fulfilling a promise to deliver the bestSafety – ensuring high standards in everything we makeRespect – caring for people, communities and the environmentIntegrity – doing the right thingOpenness – listening to the ideas of others and encouraging an open dialogue

6. Company Strategies for Success • Build a high-performing organization • Reframe our categories • Exploit our sales capabilities • Drive down costs without compromising quality

7. Focal Industry • Food Industry Overall • Packaged consumer goods – major market • Competitors – Nestle& Conagra Foods Global Market Powerhouses – Oreo, Nabisco, Philadelphia cream cheese, Jacobs and Carte Noire coffees Local Market – Kraft cheeses, dinners and dressings, Maxwell House coffees, Oscar Meyer meats Customers – grocery stores, restaurants, wholesalers End Users – general public Pricing Structure – affordable; drive down costs without compromising quality

8. The General Environment Segments • Economic – families are eating at home more • Demographic – 10 nationalities within top 30 leaders • Sociocultural – 34% women in management positions • CEO – Irene Rosenfeld

9. The General Environment Segments • Legal/Political – increased government policy • Food safety requirements • Technological – Global Technology & Quality Group • 2,400 food scientists, chemists, and engineers

10. Intensity of Rivalry Among Competitors in an Industry • Nestle – world’s largest food company • Competes on basis of: • Product quality, brand recognition, brand loyalty, price, & etc. • Kraft acquired Cadbury • Growth potential

11. The Threat of Substitutes • Store brands (private label products) • Similar but cheaper products • Kraft needs to maintain & improve their brand image

12. The Bargaining Power of Buyers • Wal-mart accounts for 16% of Kraft’s net revenue in 2008 • Reduce shelf space • No assurance of buying same large quantities as in the past

13. The Bargaining Power of Suppliers • Kraft purchases dairy, meat, and raw materials • Supplied by independent third parties • Kraft and their suppliers don’t have much control of prices • External factors – weather, trade barriers & government policy The Threat of New Entrants • High barriers to entry • Shelf space • Economies of scale

14. Summary • 2nd largest food and beverage company • Stable industry structure • Acquiring of Cadbury • Need to make products healthier • Focus on health and wellness

15. References • www.kraftfoodscompany.com • Yahoo! Finance • Business Week • Wikinvest.com • The Annual Reports Service – Kraft Annual Review

16. Questions??