Team 5
Ashley Gonzenbach
Diana Perkins
Brian Byrne
Amanda Long
 Foods Production and Distribution company
 Mission Statement
 “Anywhere, anytime, everyday. No matter what
the occasion, we take food to heart. Our higher
purpose, make today delicious, is about much
more than the products we make. It defines us,
unites us, and inspires us to make a delicious
difference in our company, in our communities,
and in our world.”
 Goals & Values
 Build & maintain a high performing
organization
 Open, honest, and trustworthy company
 Reliable to all employees & customers
 Kraft Overview
 Industry Overview
 Five Forces Model – Specific Environment
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Rivalry
New Entrants
Substitutes
Bargaining Power of Customers
Bargaining Power of Supplier
Competitive Force
Rivalry Among Existing Firms
Threat of New Entrants
Degree of Competition
High
Moderate
Threat of Substitute Products
Low
Bargaining Power of Customers
Low
Bargaining Power of Suppliers
High
 General Environment
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Economic
Demographic
Sociocultural
Political-Legal
Technological
 Strategy Canvas
 Kraft benefits from cost leadership
 Grow to be a blue ocean
 Four Actions Framework
 Kraft should consider the factors
 Help to increase customer value
 Strategic Managers & Management Team
 CEO Irene Rosenfeld
 Level 5 Leadership
 Corporate Structure
 North America
 Europe
 Developing Markets
 Corporate Culture
 Inspire employees
 Community Involvement
 SWOT Analysis
 Strengths
 Leading Brands in Diversity
 Second Largest Company
 Global Sales

Weaknesses
 Launching Difficulty
 Poor Stock Performance
 Strong Competition
 Competitive Advantages
& Key Success Factors
 Cost Leadership
 Differentiation
 Gross Profit Margin – Productivity
Gross Profit Margin
2004
2005
2006
2007
2008
2009
Kraft
39.20%
37.00%
36.00%
36.10%
33.80%
33.21%
ConAgra
25.50%
24.60%
24.30%
25.60%
23.40%
23.40%
Nestle
60.70%
65.70%
65.70%
66.00%
65.50%
56.92%
Heinz
35.10%
39.80%
38.20%
35.80%
37.70%
36.54%
Sara Lee
41.60%
39.20%
40.10%
38.70%
37.00%
38.28%
Average
40.73%
42.33%
 Fixed Asset Turnover
 45% Goodwill
42.08%
41.53%
40.90%
38.79%
 Return on Equity
 Advertising Sales Ratio
Advertising Expenditures
2004
2005
2006
2007
2008
Kraft
1258
1314
1396
1554
1639
ConAgra
368
321
334
452
393
Nestle
2984
3034
3250
3446
3651
Sara Lee
460
425
452
433
342
Heinz
286.1
273.7
296.9
315.2
339.3
Average
1071
1073
1145
1240
1272
 Overall - very little problematic
 Alternative #1 : Reconsider Investment in PPE
to cut costs
 Alternative #2: Increase Cash on Hand
 Thrives on Teamwork
 Collaboration
 Strong corporate culture
 Second Largest Food Company
 Brand Diversity
 Global Sales
 Expanding Growth
 Grown past 3 years consistently
 Sustain long-term growth