Essay on MGT 599 Case 3 Internal Analysis Kraft Foods

1348 Words Aug 30th, 2014 6 Pages
TUI UNIVERSITY
Module 3 Case
MGT 599 Strategic Management
Dr. Nanette Metz

Executive Summary Kraft Foods is the second largest consumer packaged food and beverage company in the world with revenues of approximately $19B. After 110 years Kraft Foods has excelled as an organization and become a well recognized household name. Through the utilization of a SWOT analysis Kraft Foods has been able to determine internal and external threats and opportunities to help them remain on top of their industry. Competition in the food industry is extremely high and through adaptability and change Kraft Foods is able to provide their consumer with better quality and affordable foods. This adaptability has
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Although Kraft Foods has decreased their debt over the last several years they still have an extremely high debt ratio indicating enhanced financial risk (Investopedia, 2014). Their liquid ratio is also very high at 0.27% indicating they will not be able to meet all the debt obligations if due (Kraft Foods Financial Report, 2013). In addition Kraft Foods has been unable to generate sufficient returns from investments; machinery, buildings and projects. According to Vuru Financials Kraft Foods has only generated $4.72 of cash for every $100 invested (2013). The food industry has intense competition and it is imperative Kraft Foods separate and distinguish themselves from the competition.
SWOT Analysis Kraft Foods is a large multinational iconic and well established organization that has been successful for over 100 years by providing consumers with quality products at a good value. Over the years they have continually experienced financial success and diversified their portfolio. However, they are in an extremely competitive industry and offer many similar products as their competitors. With the rising cost of raw material Kraft Foods has had to absorb this additional cost in order to keep cost to consumers low, this in turn has hurt their overall financials and also increased their debt. Kraft Foods lacks behind their number one competitor, Nestle, due to their lack of visibility in the overseas market. There

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