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Kraft Foods Strategic Choices

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Using the Kraft Foods Group, we will be integrating the results of our SWOT with our chosen strategy.

Create a 5x5 table with the four strategies listed across the top and the four SWOT variables at left as follows:

Low Cost Differentiation Focus Preemptive




Select an element from any analytical models that contributes to each of the four SWOT variables. For example, for Weaknesses, you might select an element from Porter's Value Chain (say, operations).

Enter the elements you have chosen with the corresponding SWOT variable. Below, "strong competitive rivalry" has been chosen for Threats. Note that other choices could have been high barriers to entry, high bargaining power of suppliers or customers, high substitutability (from Five Forces analysis), or a specific political, economic, social, or technological factor (from PEST). Complete this process for all four SWOT variables.

Low Cost Differentiation Focus Preemptive




Strong Competiton

Indicate the impact each strategy might have on each SWOT factor you have chosen by offering a business action that will address the SWOT. For example, follow the threat "strong competitive rivalry" across all four generic strategies. How would a low-cost strategy address an industry environment characterized by intense rivalry? What about a differentiation strategy? Focus? Preemptive?

Low Cost Differentiation Focus Preemptive




Strong competitive Undercut rivals on Brand loyalty Find an underserved Beat rivals out of the
rivalry price through operational attracts repeat market segment that gate, establish dominant
economies customers rivals are unwilling position
to serve

The strategic action you choose to fill in a given blank should do two things: 1) offer a tactic for taking advantage of a strength or opportunity or for managing a threat or weakness, and 2) follow the basic thrust of the strategy in that column.

Refer to the attached files for more background information.

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Solution Summary

A 5x5 table addressing an area each from strengths, weaknesses, opportunities and threats against different strategies is provided.

See Also This Related BrainMass Solution

Application of the Porter Generic Strategy

Conduct a strategic analysis of the Kraft Foods Group. Identify the primary business strategy employed by the Kraft Foods Group. You will also be providing a critical analysis evaluating that strategy in the context of the strengths, weaknesses, opportunities, and threats.

Respond to the following:
1. Which of the four generic (Porter) strategies does the Kraft Foods Group follow, and how do you know?

2. Integrate the strategy you've identified above with the strengths, weaknesses, opportunities, and threats you identified in Modules 2 and 3. Doing so should give you some specific actions the company is taking relative to its strengths, weaknesses, opportunities, and threats. These actions are referred to as "strategic choices." Do the Kraft Foods Group's strategic choices align with the firm's generic strategy? If not, what are the points of disconnect? Think critically about this step, as no company achieves perfect alignment of its strengths, weaknesses, opportunities, and threats with its chosen strategy. It is your job to uncover the discrepancies and problems.

3. How can the Kraft Foods Group leverage its strengths and shore up its weaknesses by altering its strategic choices? How can the company take advantage of environmental opportunities and minimize environmental threats by altering its strategic choices? Be specific.

4. Complete the paper by commenting on how your view of the Kraft Foods Group's vision and mission has changed or has been reconfirmed by this process of strategic analysis. Would you make any suggestions to revise the company's mission or vision statements, or any of its goals/objectives?

5. Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as the Kraft Foods Group's consultant. This is a professional document. Follow the format below: ◦Executive summary: This is a synopsis of the main points, conclusions, and recommendations made in the longer report. If you would like a refresher on writing an executive summary, check this website: http://www.highendfinance.com/CommercialLoans/Docs/07-4%20ES%20Guidelines.doc

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