Our team developed a Quantitative Strategic Planning Matrix (QSPM) to determine the most effective alternative strategy for

Kraft. To develop this matrix, we selected two strategies taken directly from the SWOT Matrix that we felt Kraft should consider implementing and listed the key external and internal factors taken directly from the EFE and IFE. The strategies that we selected were to increase production and development of organic foods, and to use the companys reputation to increase market share in the restaurant industry. After examining each factor, we were able to find which ones would affect the choice of strategies being made, and from there we determined the Attractiveness Score to indicate the relative attractiveness of each strategy in the set of alternatives. Scores ranged from 1-4; 1= not attractive, 2= somewhat attractive, 3= reasonably attractive, and 4= highly attractive. Each factors weight was multiplied by the Attractiveness Score to come up with the Total Attractiveness Scores. By summing the Total Attractiveness Scores in each strategy column of the QSPM, we were able to determine which alternative strategy would be best for Kraft to implement. The U.S sales of organic food and beverage have increased from $1 billion in 1990 to $26.7 billion in 2009. There is much opportunity in the rapid growing organic food market that Kraft can exploit by using the strategy that increases the production and development of organic foods. More opportunities that would best be taken advantage of by this strategy would be the growing environmental consensus and the increased demand for packaged and processed foods around the world due to a change in lifestyle. People are purchasing packaged foods more often now and are taking environmental factors in to consideration that affects their purchasing decision. However, using Krafts reputation to increase their market share in the restaurant industry is the strategy that would be most attractive for exploiting the opportunity in food manufactures experiencing an increase due to more people going out to eat.

A major threat in Krafts industry is the increasing obesity rates in North America. The strategy that is most attractive to avoiding this threat is to increase production and development of organic foods. By redesigning products to be more organic and healthy, Kraft can avoid the accusation of contributing to these growing obesity rates. Implementing this strategy can also avoid the threat of North American competition primarily focusing on the food industry. With competition putting more emphasis on food, it is important that Kraft stays ahead of them by continually developing the latest and trendiest products. Organic and healthy foods are a current and growing trend. One of Krafts internal strengths that can be capitalized on by increasing organic food production and development are the companys diverse range of brands and products. An organic line of the pre-existing products as well as new products would be a great way to diversify their brands and products even more. Another one of Krafts internal strengths that is relevant to this strategy is the 2.3% increase of organic revenue in the first quarter, 2009. This shows that people are taking a higher interest in Krafts organic foods. Increasing the production and development of organic food would be the best strategy to implement to improve on Krafts internal weaknesses. One of the companys weaknesses includes their difficulty of launching new brands. It would be easier for Kraft to market a new brand if it was healthy and organic because of an increase of health conscious consumers. We summed the strategies Total Attractiveness Scores to determine the best strategy that Kraft should execute. Out of the two strategic alternatives, increasing production and development of organic foods was highest, totaling 3.68. This product development strategy would be the best choice for Kraft.