External Analysis for Kraft Foods Essay

2733 Words Jan 8th, 2012 11 Pages



Kraft Foods or Kraft Foods Inc. (NYSE:KFT) specializes in the manufacturing and marketing of food products, including snacks, beverages, cheese, convenient meals and various packaged grocery products. (US SEC, 2010). The company operates in more than 155 countries across the globe. It has three main segments: Kraft Foods North America, Kraft Foods Europe and Kraft Foods Developing Markets. Kraft Foods is the second largest food and beverage company in the world after Nestle. Its portfolio consisted of 11 brands which earn Kraft foods more than $ 1 billion worldwide. The brands includes: Oreo, Nabisco and LU biscuits; Milka and Cadbury chocolates; Trident gum; Jacob
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The PESTEL analysis contains the analysis of Political, Economic, Social, Technological, Environmental and Legal environments of a country with reference to a particular object. The PESTEL analysis of Kraft Foods Inc. is as follows:
3.1 POLITICAL The political environment is suitable for the Kraft Foods. The company has a long history of involvement in various political and community based initiatives. This includes supporting candidates who understand and appreciate the public policies that impact their business, brands and employees. The company has started a political action committee called Kraftpac which makes funding to US. Federal, state political parties, committees and candidates. The company takes reasonable steps to make corporate contributions to the political committees, parties etc. if permitted by the law (Kraft, 2011). Kraft Foods and Kraftpac consider the following criteria (among others) in determining which candidates to support: * Positions on public policy issues important to Kraft Foods * The presence of Kraft Foods employees or facilities in a candidate’s district or state * Key committee membership or leadership position
3.2 ECONOMIC Despite the bad economic conditions of the world around, Kraft foods is making good earnings from its market involvements via its products and brands. The company is delivering high quality earnings to its shareholders

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