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Strategic Planning for Kraft

Please use Kraft Foods when answering the following questions. Furthermore, please provide personal insight/feedback with regard to the following question, not just information obtained from the internet as I am looking for feedback from the "experts."

1. Environmental Analysis
a. internal
b. external environment for the next 10 years
2. Long Term Objectives
3. Strategic Analysis and Choice
4. Plan Goals and Implementation
5. Financial Projections and Analysis for next 5 years
6. Critical Success Factors
7. Controls and Evaluation

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1. Environmental Analysis
a. internal
The strengths of Kraft are that its net revenues are growing by 0.8% per quarter. In addition, the company's EPS has remained stable. In addition, the net income from continuing operations has increased by 16% for the six months ended 30th June 2006. These positive developments are backed by decreased interest and debt burden and a lower provision for income tax. The company has been able to contain its administrative costs and lowered interest & debt expense and a reduction in provision for income tax. The company's strength lies in its 94,000 employees who have mastered the art of brand development and integrate acquisitions into the company.
The company's weaknesses can be gauged from the first quarter report of 2006. During this quarter the operating income decreased 12% to $1.0 billion. The reasons were asset impairment, exit costs, sale of business costs and plan implementation cost. In addition, the core weakness of the company is that the commodity costs are increasing mainly related to packaging, energy and coffee and the actions taken to rectify the price gap. The weakness lies in a weak corporate culture that has been derived from the several acquisitions that have taken place over the years.
b. external environment for the next 10 years
Opportunities: During the next ten years opportunities are there for in the diet foods market. Lower prices of commodities that are direct inputs to the production process of Kraft will help lower the cost of production and increase profits. During the next ten years Kraft will have opportunities of promoting new brands, changes in consumer trends, develop new brands and product. The company will have opportunities to decrease costs and compete on the basis of prices. Specifically in the developing markets the company will be able to sell more coffee, chocolate, cheese, Tang and cookies. In the European market during the next ten years there will be increased sale of cream cheese, premium chocolate and belVita bars. In the North American markets, the company will be able to increase the sales of Grape Nuts Trail Mix, Honey Bunches, Planter's nuts, Ritz Cheese Nips, Jell-O desserts, Miracle Whip dressings and ...

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