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Kraft: Strategy Implementation Components

The Module 5 Background materials discussed the importance and process of strategy implementation. Four different organizational components were shown to be crucial to successful implementation. With this information, we are now ready to begin completion of the final step of strategic planning—that of strategy implementation and strategy control.

Note: Throughout this course, you should complete the SLP before you undertake the Case analysis. Before you begin the SLP, read the Background materials thoroughly.
Required Reading

Refer to the required and optional reading on strategy implementation, the theme for Module 5.
Session Long Project

In this module, we will be completing our strategic toolkit by researching sources of information about these components as they relate specifically to the Kraft Foods Group.

Your assignment is to find information about the following organizational components discussed in this module as they relate specifically to the Kraft Foods Group. Do your best not to speculate but to find factual information concerning the topical areas below. The following list of questions may help you focus your search (source: Obtaining information about organizational components critical to implementation [adapted from Aaker, D.A. (2001) Developing Business Strategies. Wiley]):

Structure

What is the organization's structure? How decentralized or centralized is it?
What are the lines of authority and communication?
What are the roles of teams, committees, and task forces?

Systems

How are budgets set?
How is planning done?
What measures are used to evaluate performance?

People

What are the skills, experience, and knowledge of the firm's employees?
What is their depth and quality?
What are their attitudes about the company and their jobs?

Culture

What are the company's values and are they widely shared and accepted by employees?
What are the key norms of behavior?
What are some significant symbols?
What is the dominant management style?
How is conflict resolved?

Keys to the Assignment

Step One: Review the questions above and do some research to see where you could find answers to them. You may not be able to answer all of the questions, but try to find at least one source per component that addresses most of its characteristics.
Step Two: Create a 3- to 4-page list of sources and indicate what information each one provides for each component. Evaluate each source in terms of its objectivity, reliability, and truthfulness.
Be sure to add introduction and conclusion

Solution Preview

Structure:
Kraft has a lean, horizontal organization. In 2013 additional business units namely Meals & Desserts, and Enhancers and Snacks Nuts were created. The purpose of this restructuring was to make the structure more flat and to give more accountability/authority to its commercial units. Kraft tries to have relatively small headquarters with shared services.
Authority is delegated to business units. Kraft has a decentralized structure with each business unit having full profit and loss responsibility. The business unit has to communicate its performance to the higher management.
The role of teams at Kraft is critical. The company sets the strategy but it is the responsibility of each business unit to decide how to achieve its goals.
One source for this component is "Global collaboration enables Kraft Foods' culture change". (1) This source describes how Kraft is a decentralized company. This is a reliable source
Systems:
Kraft uses cost centers that relate to a particular factory or unit. A manager has the full responsibility for managing the costs which are allocated to her center. The budgeting process involves collating the costs of the business in relevant cost centers. This process allows the manager to make full plans for the cost center. The budgeting process starts with forecasting the likely sales based on past information with Kraft and third party understanding of business. With this information budget is allocated to different functions of marketing, administration, production, and capital expenditure. Kraft develops separate production and profit budget.
Planning is done on the unit ...

Solution Summary

The answer to this problem explains the components of strategy implementation in the context of Kraft Foods Group. The references related to the answer are also included.

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