Mgt 599 Case 3

Executive Summary

Today Kraft Food Group is a large producer of consumer food products and its portfolio contains a host of well established brands including Kool-Aid, Oscar Mayer, Velveeta, Oreo, Nabisco and numerous others. Kraft’s industry is defined as large producers of food and beverage products and operates internationally and domestically. Kraft is well established in this industry and has positioned itself well and is in a good position to expand and take advantage of its strengths and minimize the problems associated with its weaknesses. Kraft Food Group enjoys good public trust and brand reputation, but operates in a competitive and highly regulated industry. Its margins can be diminished by internal and external forces including rising labor and supply costs. In the following analysis we will discuss the market forces and provide a Strength, Weakness, Opportunity, and Threat analysis of Kraft and make recommendations as to what Kraft can do to continue to position its self in the industry to enjoy continued success.

Introduction

In this analysis I will present my internal and external analysis’s followed by recommendations for Kraft Foods Group’s continued success.

Strengths:Solid financial positionEmployees and culture | Weaknesses:Labor CostsRegulations |

Opportunities:Global GrowthAcquisitions | Threats:Volatility in Raw MaterialsChanging consumer tastes |

Strengths

Kraft has several internal and external strengths that will help it continue to be a dominant player in the food industry for decades to come.

First Kraft is in a solid financial position as noted by the Street (2014) "We rate KRAFT FOODS GROUP INC (KRFT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good...