Free Essay

Acquisition of Kraft

In: Business and Management

Submitted By joyandlaughters
Words 3547
Pages 15


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Kraft Project

...Marketing Mix of Kraft Foods When a company, like Kraft food, look at an alteration in its promotion it can believe about four ground rules, which are documented as the marketing mix or 4Ps, explained below: Products: Kraft foods are one of the most versatile companies based in America. Over the many years, Kraft food is serving as one of the most famous, delicious and prominent brand. The major products of the company are in chocolate, coffee, candies, etc. brands. The company’s products are recognized as delicious. That’s the reason company states that being delicious is their main rival factor that differentiates it with other food brands. The corporation produce and marketplaces wrap up are sold food products such as Coffee, cheese products, desserts, ready to cook foods, confectionery, juices, ready-to-cereals, desserts, convenient etc. , under the main brands such as Kraft, Jacob’s, Philadelphia, Maxwell house, Nabisco, Oscar Mayer, Post, Oreo and LU. Pricing: The pricing strategy of Kraft food is quite competitive to as compare of other food brands. The quality of food products is superior but cost effective to management. The company states that they never compromise on the quality of their branded food stuff, however they always try to introduce such ingredients while manufacturing their products that are taken from natural sources and cost effective so that both consumer & company enjoys competitive price products. Placement: Kraft......

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Mergers and Acquisition

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Kraft

...I. Introduction A company in a slowing market with high competition often needs to make drastic changes to continue to create value for its shareholders. Kraft Foods Inc. (KFT) was a processed food company that produced big name brands, such as Oreo, Maxwell House, Honey Maid, among others. In 2012, the company was the second largest processed food company in the world based on revenues, after its main competitor Nestlé. However, slow growth in many critical industry segments meant that the company was unable to increase shareholder value throughout 2011. Additionally, sales were stagnating and revenues were only increasing by raising prices. In order to address these issues, the Board of Directors at KFT announced in 2011 that the company would be restructured to create two new companies by the end of 2012. First, there would be a global snacks business that included all of KFT’s business units in Europe and developing markets, in addition to the United States snack business. This new company would be called Mondelez International (MDLZ) and the Board hoped it would be a high-growth global snacks business. The remaining business units would become Kraft Foods Group (KRFT) and would be a high-margin, slow growth, North American grocery business. The following report begins with assessing the processed food industry as a whole through a PESTEL and Porter’s Five Forces analysis. Second, a SWOT and financial analysis are used to evaluate MDLZ and KRFT. Lastly, final......

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Merge and Acquisition

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Kraft Foods

...W11035726 Total words: 2790 1. A good acquisition program helps the acquirer to identify a target partner. An acquisition program should contain a clearly defined core strategy, the goals of this activity, and a detailed risk management. The identification of the right company depends on the analysis of target market. Companies react when they recognize benefits in some certain markets. It is essential for an acquirer to analyse the market, is there any market in transition that could lead to any competitive advantages or any business capacities that could be useful (Chatterjee). Kraft has to consider which qualifications they seek in the business partner and which one complementary or expand their capacities. (Cavusgil, Knight and Riesenberger, 2008) An analysis of the macro environment of Kraft shows that they have the opportunity to become the world’s largest confectionery. This market prospect allows Kraft to minimize the threats of competitors. It is a strategy to eliminate or to minimize competitors. (Chatterjee) In food and drink manufacturing, the technology is relatively mature. The global food market shows oligopolistic structures and the competition is intense. As a result of that, the market growth almost remains static. (Ramsay, 2000) In addition, different national tastes and preferences may cause also restrictions for international expansion. (Kapferer, 1997; Yip, 1992). A lot of companies consider acquisitions as essential strategies to......

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Kraft Foods

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