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Kraft Foods: SWOT Analysis

How are they used and the synergies they create that make them strategically valuable?

A) Tangible Resources
1. Phyical Resources
2. Financial Resources
3. Human Resources

B) Intangible Resources
1. Technical Resources
2. Intellectual Resources
3. Goodwill
4. Other (cultural, reputational, strategic alliances)

C) Distinctive capabilities
1. Archietecuture
2. Reputation
3. Innovation

Solution Preview

A) Tangible Resources

1. Physical Resources:
The examples of Kraft physical resources are its factories at Philadelphia, Glenview, and Branbury. Its corporate office at Northfield, Illinois is also an example of physical resources. These resources are used for manufacturing, planning, and marketing. The closeness of these resources to raw materials and the markets is the cause of synergies.

2. Financial Resources
The money available to a business for spending in the form of cash, liquid securities, and credit lines is financial resources. In case of Kraft, the total net receivable is an example of financial resources. These are $903 million in 2011. These resources enable Kraft to market its products through some of the best retailers in North America.

3. Human Resources
The example of human resource activity is the reduction of 1,600 United States positions in 2012. This reduction in positions will enable Kraft to spin off its business into two separate businesses namely snacks business and grocery business. The synergy is that the grocery business will fund its own growth whereas the snack business will become a fast growing global giant.

According to 2011 balance ...

Solution Summary

The response provides you a structured explanation of the resources of Kraft Foods. It also gives you the relevant references.