Strengths and weaknesses of food and beverage company Kraft Foods


Kraft Foods Inc. is the largest nutrients and drink company in US and the universe 2nd largest industry which is after Nestle. Kraft had been offered consumers delightful and wholesome nutrients for more than 100 old ages. Kraft Foods headquarter is in North America. Kraft Foods has many of the best-known trade names in the universe with operations in 72 states and gross revenues in 155 states. Kraft Foods has 140,000 diverse employees around the universe and this is one of the grounds why they can win.

Kraft Foods Inc. is a company which has different roots and laminitiss. The three most successful nutrient enterprisers are J.L. Kraft, who started his Chinese concern in 1930 ; C.W. Post, who founded Postum Cereal Company in 1895 ; and Oscar Mayer, who began his meat concern in 1883.

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Kraft Foods Malaysia was established in the twelvemonth of 1959 in Malaysia and started with Tyre Hong Biscuit and Confectionary mill. Kraft Foods fabrication in Malaysia and the mills located at Johor Bahru and Penang.


Kraft ‘s company vision is to impart a assisting manus to the people all around the universe in order to hold a better life and a healthy life style. Kraft ‘s vision is satisfy consumer demands and doing healthier nutrients. Kraft deliver the message to the clients that they concern about the wellness and health of everyone and wanted to supply high quality nutrient and services.

Kraft mission is to stay successful in the long-run. Constantly re-strategize the merchandises classs to fulfill the demands of consumers is necessary for Kraft to run in the hereafter. Seize the chance to work gross revenues capablenesss by coming up with different marketng schemes

Kraft ‘s corporate ends is to guarantee that the merchandises are advanced, high-quality, safe to devour, respectful to environmental demands, and the openness and unity which seek to perpetrate to the consumers


Kraft ‘s merchandises are divided into five classs which are food market, drinks, cheese & A ; dairy, snacks & A ; cereals, and convenient repasts. The well cognize trade names that Kraft have in Malaysia includes Oreo, Jacob ‘s, Chipsmore, Twisties and so on.


Every consumer might hold different gustatory sensation and penchants. Hence, utilizing a same selling cleavage, which is besides known as mass selling by offering a individual selling mix to all consumers are non able to carry through the demands and wants of all clients. In add-on, the planetary market are going competitory and high clients demands which is really dificult to fulfill. Therefore, Kraft ‘s seperate the operation in two chief sections: Kraft North America Commercial and Kraft International Commercial.

Besides, Kraft mark to the client who concern with their wellness and health. For illustration, most of the adolescents do non run into the recommended day-to-day consumption for Ca. Kraft so shift out the not-so-healthy bites advertizement such as Oreo cookies and alteration to the merchandises which meet new nutritionary standards. Kraft will besides add the Reasonable Solution label on merchandises in order to reassign the message to all parents that the goods are run intoing the nutrition standards and salvage to devour. Kraft besides doubled the Ca in traditional front-runners such as Kraft Singles and Kraft Macaroni & A ; Cheese.

Kraft ‘s concern was launched internationally and realised that the consumer behavior are depends on the local feeding and societal behavior due to the peculiar state ‘s civilizations, patterns and traditions. Therefore, Kraft ever shown regard for different civilizations, for illustration, selling ‘HALAL ‘ nutrient in Muslim Countries. Furthermore, in the nuts concern, Kraft have more of a skew towards work forces versus other trade names that may hold more of a skew toward adult females. Kraft spend a batch of clip to understand all the consumers attitudes, beliefs, etc.

For illustration, Kraft focal point on the Latino consumer as one of the nucleus consumers of the trade names. Latino consumer penchant the trade names like Oreo and Chips Ahoy. Kraft selling will be customized around the penetrations for the different consumers.


Kraft is a transnational company and holding the capableness to pull consumer all over the universe comparison to the local companies. Besides of high market portion and fiscal power, Kraft besides has greater fiscal capableness in changing bing merchandises in footings of packaging, the expression of the peculiar merchandise and others or making new merchandises, every bit good as to accommodate or upgrade latest information system engineering in fabrication, order processing and other related Fieldss in order to prolong their competitory advantage by presenting lower cost of goods and services than their rivals in this dynamic environment.

Second, Kraft has an effectual strategic selling capableness. For illustration, Kraft merchandises such as Oreo cookies have built a strong and stable patent in many states. Although Oreo has many rivals such as Cream-O, whereas the strong advertizements have indoctrinated most of the people that Kraft ‘s Oreo is the merchandises of beginning. Kraft iconic heritage trade names are loved by the consumers worldwide. Around 80 per centum of these heritage trade names keeping figure one or two places in the several classs and are household names.

Besides, Kraft besides has great leading properties. The direction squad such as the top executives, subdivision directors, and others are responsible for the daily operations and success of the company. The direction group has extended nutrient industry experience and direction deepness.


Kraft Food company faces serious job in the production sector. Kraft is non able to command the supply of the production. This is due to a sudden and unexpected increased in demand, which will do utmost supply deficits for trade goods that will ensue in major monetary value additions. For case, bad conditions and natural catastrophes have ever been an issue impacting incoming natural stuffs. The chief job is the deficit of natural stuff, Cocoa. Cocoa is a major ingredient for Kraft. Cocoa ever used in the production of cocoas, cookies, sweets and others. Because of the importantly of chocolate, hence, consistence of supply, in footings of monetary value, quality and volume is the chief consideration for Kraft. Kraft wants to better the public assistance of chocolate husbandmans and farm communities in order to keep the long-run stableness of the chocolate supply concatenation. West Africa is the state that produces 70 per centum of chocolate among the universe. Unfortunately, husbandmans face many challenges because of poorness. They do non hold equal substructure, deficiency of the educational chances and have merely small investing in chocolate agriculture. These challenges are so complex, necessitating the co-ordinated attempt from the local authorities, industry and other organisations. In add-on, this will do Kraft to meet a great loss due to the inaccuracy of supply because the husbandmans could non bring forth the existent quality and measure of chocolate.

In orders to decide this job, Kraft Foods is working as portion of the co-ordinated attempt to assist to keep the supply of chocolate. Kraft believes that to better husbandmans ‘ income can work out these jobs and besides advancing efficiency effectivity in the supply concatenation, quality and productiveness. Kraft besides works with the non-governmental organisations and industry spouses in order to assist chocolate husbandmans and their households. Kraft ‘s making out to authoritiess and supports the plans that giving instruction to husbandmans and promote responsible farm patterns. Kraft primary focal point is in West Africa, while Kraft besides is a member of chocolate sustainability plans in Latin America. Kraft wanted to authorise chocolate husbandmans, their households and communities in order to construct better lives for themselves while this can do certain that Kraft is able to keep an equal supply of quality chocolate for the coevalss to come.


There are some suggestion which can be considered by Kraft to work out the job of incompatibility and deficit of natural stuffs. First, Kraft can increase the safety stock degree. Safety stock is the measure of stock which can be used to fulfill out of the blue high demands in the stock out period. The intent of the safety stock is to forestall the occurred of stuff deficit whereas normally will non be used in production. Therefore, Kraft might necessitate to increase the safety stock in order to avoid the hazard of deficit or back order which may incur higher costs. Safety stock can besides assist to take down down the client turnover rate. In order to find the accurate safety stock degree, Kraft ‘s fabrication section can implement the Manufacturing Require Planning II ( MRP-II ) system. MRP-II is an integrated information system used by concerns to centralise, incorporate and treat information for effectual determination devising. The map of MRP-II includes concern planning, production planning and programming, order processing, and public presentation measuring and so on. With the aid of MRP-II, Kraft can better the production procedure by reduced the stock list degree, improved the used of fabrication installations, response faster in altering conditions and so on. This will increase the competitory advantage of Kraft to vie with the rival.

Besides, Kraft can prosecute with multiple providers or traders in peculiar part, so they could get stock lists from multiple traders, which will decidedly diminish the hazard of deficit due to incontrollable state of affairs. Other than that, common trust and strong relationship with all the traders are needed in order to increase the flexibleness of stuff supply direction, every bit good as to heighten the bargaining power of Kraft. Last, Kraft should besides mention to the demand and purchase planning on last twosome of old ages of gross revenues to calculate current twelvemonth of demand and supply.


Lending towards a better and healthier society are the cocernstone of Kraft Food ‘s concern values and doctrine. In add-on, Kraft besides study about the consumer ‘s demands from clip to clip and fulfill the consumers every bit much as possible. Kraft ‘s strengths such as high fiscal power, effectual strategic selling capableness and great leading properties have helped them through the obstructions. In order to accomplish the end, Kraft might necessitate to work out the job of the production.

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