Vision Statement:

Helping people around the world eat and live better. 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

Rivalry New Entrants Substitutes Bargaining Power of Customers Bargaining Power of Supplier
Competitive Force
Rivalry Among Existing Firms Threat of New Entrants Threat of Substitute Products Bargaining Power of Customers Bargaining Power of Suppliers

Degree of Competition
High Moderate Low Low High

 General Environment

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 Kraft ConAgra Nestle 39.20% 25.50% 60.70%

2005 37.00% 24.60% 65.70%

2006 36.00% 24.30% 65.70%

2007 36.10% 25.60% 66.00%

2008 33.80% 23.40% 65.50%

2009
33.21% 23.40% 56.92%

Heinz
Sara Lee Average

35.10%
41.60%
40.73%

39.80%
39.20%
42.33%

38.20%
40.10%
42.08%

35.80%
38.70%
41.53%

37.70%
37.00%
40.90%

36.54%
38.28% 38.79%

Fixed Asset Turnover 45% Goodwill

 Return on Equity

Advertising Sales Ratio

Advertising Expenditures
2004 Kraft ConAgra Nestle Sara Lee Heinz Average 1258 368 2984 460 286.1 1071 2005 1314 321 3034 425 273.7 1073 2006 1396 334 3250 452 296.9 1145 2007 1554 452 3446 433 315.2 1240 2008 1639 393 3651 342 339.3 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