Essay on Kraft Foods

3116 Words Apr 18th, 2013 13 Pages
Table of Contents

Executive Summary 3 Introduction 3 History 4 SWOT Analysis 5 Global Market Expansion 7 Competitor Analysis 9 Industry Analysis 11 Recommendations 12 Conclusion 14 Exhibits 15 Bibliography 16

Executive Summary
History
Kraft Foods began in the year 1903, when James Lewis Kraft purchased wholesale cheese and began to sell it to stores in Chicago, Illinois. Later on James Lewis Kraft along with his four brothers, Charles, Fred, Norman, and John, start the company J.L. Kraft & Bros. Company. The company then decided to produce and vend the company’s own cheese goods. The company then altered its name to Kraft Foods and began selling diversified products.
Industry
The food and beverage
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Many consumers are looking for products to help them maintain good well-being. Kraft has a great opportunity so manufacture products fit for a healthy lifestyle. This helps the company gain a more diverse customer base. The beverage market is also growing. Many customers on a daily basis consume coffee. Kraft has another great opportunity to introduce more products in the coffee industry. With Kraft’s strong brand name and reliability it would be of ease to take over the beverage industry and be the number one producer of beverages worldwide. See Exhibit A for the market share of companies in the coffee industry.
Threats
There are many macroenvironmental circumstances that pose a threat to Kraft Foods. The competition in the food and beverage industry is fierce. Nestle still remains at the top as the number one food and beverage company in the world. Increasing prices on raw materials also poses a threat to Kraft. Kraft Foods Group, Inc. uses prevarication practices to diminish the influence of price flutters in its primary raw supplies; however, such practices do not absolutely safeguard Kraft Foods. Recalls in Kraft Foods products is an issue that the company has to deal with. Velveeta Shells and Cheese microwavable cups were recalled for a possibility that the cups could contain wire bristles in September 2011. Kraft also recalled a product containing pistachios, in April of 2009, after

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