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Michael Linehan Aaron Haberern Ethan Rand Leonard Kendall Lawrence Wooten Eddie Malecki Toni Nowak. Table of Contents. Introduction History Operating Segments Vision and Mission Statements Actual/Revised Input Stage External Factor Evaluation EFE Matrix
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Michael Linehan Aaron Haberern Ethan Rand Leonard Kendall Lawrence Wooten Eddie Malecki Toni Nowak
Table of Contents • Introduction • History • Operating Segments • Vision and Mission Statements • Actual/Revised • Input Stage • External Factor Evaluation EFE Matrix • Competitive Profile CPM Matrix • Internal Factor Evaluation IFE Matrix • Matching Stage • Strengths-Weaknesses-Opportunities- Threats SWOT Matrix • Strategic Position and Action Evaluation Space Matrix • Boston Consulting Group BCG Matrix • Domestic • Global • Internal-External I/E Matrix • Grand Strategy GSM Matrix • Data Collection Matrix • Decision • Quantitative Strategic Planning QSPM Matrix- 3 Rules • Conclusion • Recommendations • Epilogue • Questions? • Citations
Introduction History Background
History • 1903- James L. Kraft started manufacturing cheese and selling • 1914- Opened first plant • 1923- Kraft Cheese Co. acquires Fred Walker and Co. • 1928- Kraft Cheese Co. acquires Phenix Cheese Corp. • 1937- Kraft Macaroni and Cheese • 1986- Kraft purchases Tombstone Pizza Corp. • 1988- Phillip Morris Cos. purchases Kraft for $12.9 Billion • 1989- General Foods and Kraft merge to become Kraft General Food (KGF) • 1990- KGF International acquires Jacobs Suchard AG • 1992- KGF International acquires five European confectionary companies • 1993- KGF International Freya Marabou for $1.3 Billion • 2000- KGF merges with Phillip Morris • 2001- Kraft begins trading on NYSE • 2004- Kraft launches Tassimo hot beverage system • 2005- South Beach Diet Introduced • 2007- Kraft is now fully independent • 2009- Kraft Food Inc. introduced along with new corporate website
Vision and Mission Statements Actual/Revised
Actual Vision and Mission Statements • Vision Statement • Helping people around the world eat and live better. • Mission Statement • Make Today Delicious • In order to fulfill this mission Kraft Foods Inc. focuses on consumers in everything that they do. The company also understands that actions speak louder than words, so at Kraft Foods: • We inspire trust. • We act like owners. • We keep it simple. • We are open and inclusive. • We tell it like it is. • We lead from the head and the heart. • We discuss. We decide. We deliver.
Revised Mission Statement • Here at Kraft Foods we strive to produce superior products and services (2) to our customers (1) ranging from wholesalers to households. The 21st century is sure to bring more innovation, new products, and new food technology (4), thus enabling us to create and deliver better and healthier products. Kraft Foods continues to lead the food industry as the largest food supplier in North America (7) with plans to continue expansion into new and existing global markets (3). We support the goals of the company by applying the highest ethical conduct within our corporate philosophy in all our business transactions (6), treatment of employees (9), and social and environmental policies (8). We at Kraft Foods focus highly on our consumers’ lifestyles and aim to grow profitable in the worlds’ food market and provide a higher than expected return to shareholders (5). Our company takes pride in making today and the future-delicious. • Customers • Products and services • Markets • Technology • Concern for survival, growth, and profitability • Philosophy • Self concept • Concern for public image • Concern for employees
Input Stage External Factor Evaluation EFE Matrix Competitive Profile CPM Matrix Internal Factor Evaluation IFE Matrix
Competitive Profile CPM Matrix The Ratings values are as follows: 1= major weakness, 2= minor weakness, 3= minor strength, and 4= major strength. As indicated by the total weighted score of 2.46, ConAgra is the weakest, followed by a weighted score of 3.14 for Kraft and 3.47 for Nestle who is considered the leader of the food processing industry.
Internal Factor Evaluation IFE Matrix Major Weakness (rating =1) Minor Weakness (rating =2) Minor Strength (rating =3) Major Strength (rating =4)
Matching Strengths-Weaknesses-Opportunities- Threats SWOT Matrix Strategic Position and Action Evaluation Space Matrix Boston Consulting Group BCG Matrix Internal-External I/E Matrix Grand Strategy GSM Matrix Data Collection Matrix
SPACE Matrix Factors & Calculations Conclusions SP Average: -19/5= -3.8 IP Average: 19/5= 3.8 CP Average: -17/5= -3.4 FP Average: 16/5= 3.2 Directional Vector Coordinates: X-axis: -3.4 + (3.8) = .4 Y-axis: -3.8 + (3.2) = -.6
SPACE Matrix FP CONSERVATIVE AGGRESSIVE CP IP • COMPETITIVE • Backward, forward, horizontal integration • Market penetration • Market development • Product development DEFENSIVE SP
Boston Consulting Group BCG MatrixDomestic Market Share Relative Market Share Position in the Industry 1.0 .50 0.0 +20 0 -20 Industry Sales Growth Rate (Percentage) .70, 6.41% • Backward Integration • Forward Integration • Horizontal Integration • Market Penetration • Market Development • Product Development
Boston Consulting Group BCG MatrixGlobal Market Share Relative Market Share Position in the Industry 1.0 .50 0.0 +20 0 -20 Industry Sales Growth Rate (Percentage) .38, 6.41% • Market Penetration • Market Development • Product Development • Divestiture
Internal-External I/E Matrix IFE Total Weighted Scores Strong 3.0 to 4.0 4.0 3.0 2.0 1.0 3.0 2.0 1.0 Average 2.0 to 2.99 Weak 1.0 to 1.99 High 3.0 to 4.0 • Grow and Build • Forward, Backward, or Horizontal Integration • Market Penetration • Market Development • Product Development 2.57, 3.14 Medium 2.0 to 2.99 EFE Total Weighted Scores Low 1.0 to 1.99
Grand Strategy Matrix GSM Matrix Rapid Market Growth Weak Competitive Position Strong Competitive Position Slow Market Growth
Decision QSPM- 3 Rules
Conclusion Recommendations Epilogue Questions? Citations