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Kraft Foods Company's Organizational Design and Strategy

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Describe the company plan and design for Kraft Foods Company's as well as their main tactical control systems, the largest human assets and issues, environmental factors (especially pertaining to culture) and how all these things add up to benefit or hinder the implementation of Kraft Foods Company's ultimate strategy.

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Organizational Design
Kraft Foods has a decentralized organizational structure. There are business units which are accountable for their profit and loss. This type of design pushes decision making down the hierarchy, allows for deployment of resources where they are needed and provides leaders with more freedom to act. The structure allows more decisions to be made by line-of-business managers. However, not all functions were decentralized. There are functions in North America that still work in a centralized manner. Information technology and human resources are run centrally because they are more efficient this way. Sales are also kept central for reasons of effectiveness.

An important part of the organizational design is the shared service model. Each function defines its services and costs. The business units get to choose the level of service they need or just opt out of it. In the earlier organizational design business units had no such flexibility.

Key Strategic Control Systems
Kraft Foods boasts of having superior financial performance. It is ...

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