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    Porter Five Forces and PEST Analysis of Kraft Foods

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    External Environment Analysis

    Remember that the Case in this course is an ongoing exercise, meaning that we will be taking an intensive look at one company over the course of our five modules. This session, we will be conducting a strategic analysis of the Kraft Foods Group. The best preparation for doing well on the Case Assignments is to complete the Background information reading and the SLP before writing the Case.

    The outcome of this Case is to complete an external analysis of the Kraft Foods Group using Porter's Five Forces Model and a PEST analysis. Ultimately, this analysis will lead to some conclusions about opportunities and threats facing the company (the first part of the SWOT analysis).

    Required Reading

    Refer to the following reading list:

    PEST analysis. (2009). Retrieved on November 6, 2012, from: http://www.valuebasedmanagement.net/methods_PEST_analysis.html

    Porter's Five Forces: A model for industry analysis. (2007). Retrieved on November 6, 2012, from: http://www.quickmba.com/strategy/porter.shtml

    Case Assignment

    An environmental analysis can be an extensive undertaking, requiring far more time and resources than we have for this course. Therefore, be sure that you do not give an inordinate amount of attention to any one factor to the exclusion of other important ones.

    Keys to the Assignment
    •Step One: Using the sources you identified in the SLP, collect some data to support an industry analysis of each of the Five Forces in Porter's model.
    •Step Two: Using the sources you identified in the SLP, collect some data to support an analysis of each of the four elements in the PEST analysis. When considering economic data, use the most current data you can find.
    •Step Three: In a 5- to 6-page paper, write the results of your external analysis, and be sure to label each of the Five Forces as high, moderate, or low . Taken together, the Five Forces analysis and the PEST analysis should lead to conclusions about the opportunities and threats facing the Kraft Foods Group as revealed by your research. The data you report from the Five Forces and PEST analysis must be properly cited using APA style.
    •Step Four: 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 professionaldocument. 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

    ◦Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.

    ◦Main Body: The "meat" of the paper. Emphasize analysis, not just description. Use section headingsin this paper—and all papers.

    For example:
    ■Executive Summary
    ■Porter's Five Forces
    ■Threat of Entry
    ■Bargaining Power of Suppliers
    ■Bargaining Power of Customers
    ■Political Environment
    ■Economic Environment
    ■Sociocultural Environment
    ■Technological Environment
    ■Overall Impressions Concerning the Company's Environment (Opportunities and Threats)

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    Solution Summary

    This solution of 1,211 words contains an analysis of Kraft Foods using a Porter Five Forces and PEST analysis. It is structured to include an executive summary, introduction, Porter's Five Forces Analysis, Pest Analysis and Conclusion.