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Kraft Foods UK Case Study Analysis

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Kraft Foods UK Case Study

Kraft Foods operates as a multinational confectionery, food, and beverage organization and markets its products in more than 170 countries. The business organization is a globally trusted producer of delicious food and beverage items known for their quality and unique taste. Kraft Foods also provides nutritional products of high quality which suits the need in every occasion in different countries. Kraft Foods is inspired by their purpose that is "let's make Life Delicious". It is a customer-centric organization where customers are placed at the centre while carrying out its business operations and activities. Kraft Foods is committed to building an iconic and emergence food and beverage brand in the global market. The company is dedicated to making an ethical impact in the world through sustainability initiatives and helping the world in responsible and healthier ways. The vision and mission statement of the business organization is a simple internal declaration of what it aspires to do. Kraft Foods delivers growth through revenue generation over the years and ensures that the organizational activities are carried out for a better environment and community in which it serves. We are also providing Volkswagen case study solution.

The business organization aims to delight the consumers by providing food products and beverages as per the specific needs and preferences especially through unique flavors and tastes. This enables the business organization to drive brand equity and brand loyalty. The organization's activities and operations are driven by six core beliefs that bring purpose to its life. The common language used by the employees and the shared culture in the organization reflect the purpose of the organization. Kraft Foods is on a journey of continuous growth and improvement through constant learning and betterment. It is committed to efficiency which enables the business organization to invest in new product development and furl organizational growth. Additionally, Kraft Foods attracts nurtures, and develops talent while ensuring the quality of the teams which makes a difference in the industry. We are also providing HSBC case study solution.

Kraft Foods has gained a leadership position in the packaged food industry in the UK. It offers high-quality packaged food products to the customers and has dominated several product lines in the market. The business organization implements a combination of a proactive and dynamic approach to maintain its leadership position in the market. The company incorporates various steps and actions to ensure that it retains its market share and leadership segments in the market. The management of the business organization evaluates and formulate effective strategic decisions which enable the business organization to counter the threats and other market conditions such as recession, changes in governmental policies, competitive pressures, and new entrants in the market. Kraft Foods has adopted a number of path-breaking strategies to ensure product innovation and market success in the packaged food industry. We are also providing KIA Motors case study solution.

SWOT Analysis

The SWOT analysis framework can be used by Kraft Foods to identify the internal capabilities, strengths, and limitations of the business organization. It also helps to determine the external threats and opportunities in the market.

Strengths of Kraft Foods

Successful mergers and acquisitions - Kraft Foods has gained much success and reputation in the global market through its effective mergers and acquisitions with companies like Heinz and Cadbury. Assignmenthelp.us offers case study help on Kraft foods UK case study.

Effective marketing strategy - Kraft Foods has a highly effective marketing strategy that has ensured business growth. It reaches out to a wide range of customers through effective content marketing and clutters the minds of the consumers through product information.

Wide range of product portfolios - Kraft Foods has a broad range of product portfolios with innovative packaged food items and beverages as per the local taste and preference of the consumers.

Wider distribution channel – The business organization has an excellent distribution channel across the globe and enjoys the trust and confidence of many wholesalers and retailers.

Weakness of Kraft Foods

Poor presence in organic markets - Kraft Foods has a limited presence in different organic markets which has gained much importance among consumers today with increasing health consciousness. Kraft Foods has no presence or limited presence in the organic food market which is a critical weakness.

Declining sales volume - Kraft Foods has been facing stiff competition from local and global players in the market which has resulted in reduced sales volume and revenue generation. A larger product range prevents the consumers from being loyal to one particular brand or product range.

Overburdened with excessive product portfolio – The business organization has a wide range of products and services which losses its demand over time in the age of constant innovation. Competitors take advantage of the situation and it is becoming difficult for the business organization to manage all the product range effectively.

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Opportunities of Kraft Foods

Higher growth opportunities – There is an opportunity for Kraft Foods to expand its product portfolio and expand its business operations in different countries like India. It has higher growth potential as it is a predominantly agricultural country and will ensure proximity to Raw materials.

Significant changes in consumer pattern – There are certain changes in buying habits and consumption patterns of the consumers in the market. There has been an increase in demand for organic food products and westernized consumption habits. This has increased the demand for pre-processed food items as consumers have a busier lifestyle.

Threats of Kraft Foods

Economic slowdown – The economic slowdown caused by the global pandemic situation has affected economic growth due to governmental restrictions and lockdown. This situation has affected the manufacturing process and demand situation in the market.

Competitive pressures in the market - Kraft Foods has been facing increased levels of competition in the market from significant players in the market like Nestle, Procter & Gamble, Glaxo SmithKline Beecham, and other competitors.

PESTLE analysis

The PESTLE analysis framework helps to analyze and examine the external factors such as political, social, economic, technological, legal, and environmental factors that might have a significant impact on the operations and activities of the business organization directly or indirectly. It identifies different extrinsic scenarios that might affect the business organization and its functioning in the market.

Political factors – UK has a politically stable business environment which is s favorable situation for Kraft Foods. However, the ongoing Brexit uncertainties might affect the business operations. Kraft Foods needs to observe the policies undertaken by the country in regard to the pandemic situation. There have been significant changes in the policies taken by the government catering to the pandemic situation. There have been new food safety laws and other regulations which must be observed by the business organization. It also needs to consider the trade policies and interconnections with other countries.

Economic factors – The disposal income of the consumers has decreased due to the pandemic situation. The GDP of the UK has slowed down due to decreased cash flow in the country. There are certain restrictions imposed by the government due to the pandemic situation. This situation has restricted the economic activities and resulted in increased operational costs of the business organization. Consumers have become highly price-sensitive in the market due to reduced purchasing power in the hands of the consumers.

Social and cultural factors – The food consumption habits and food purchasing behavior of the consumers in the market have changed in the last decade. There has been an increasing health consciousness among the consumers in the market and people have switched towards healthier food consumption rather than packaged or pre-processed food items. This is a major threat to the business organization. However, the threat can be turned into an opportunity by catering to the ongoing trends in the market and offering food products with healthier ingredients.

Technological factors – The emergence of new machinery and new technologies in the market provides a new opportunity to enhance business operations and improve product manufacturing. New manufacturing processes with new technologies must be encouraged in the organization along with safe practices to ensure higher efficiency. It needs to cater to all the safety measures to ensure that the food items are safe and suitable for consumption without any health hazards.

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Legal factors - Kraft Foods is exposed to various safety measures and food safety practices especially in post-pandemic situations. It needs to comply with the rules and regulations in the food processing industry laid down by the government. It also needs to comply with legal procedures in trading and manufacturing products and services. The UK has fair laws and regulations which is a favorable situation for Kraft Foods.

Environmental factors - There has been an increase in environmental consciousness among the customers as well as other key stakeholders of the business organization. The environmental harms, climate change, and intensity of disasters have increased the level of consciousness among the consumers. Consumers demand sustainable packaging and respond to sustainable business practices especially among the millennial generation.

Therefore, from the PESTLE analysis highlights, it has been identified that there are various elements that impact the performance of the business organization. The opportunities must be leveraged by Kraft Foods in order to address the threats and weaknesses.

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