The report is based on the identification and evaluation of the Kraft Foods Group in terms of its values, objectives, mission, vision and stakeholder’s interests.
On July 2, 2015, Kraft completed its merger with Heinz, arranged by Heinz owners Berkshire Hathaway 3G Capital, creating the fifth largest food and beverage company in the world, Kraft Heinz Company.
The report will also carry out an analysis of the mission and vision statement and its influence on the general outcome in the organization. The report will also carry out an analysis of the quality of the company mission, vision and values. It will finally ponder on the modifications that are required so as to improve the mission statement of the company, the vision statement of the company, company objectives and goals and the statement of the company values. The research on the company information will lay the basis of foundation upon which valuable decisions are made, and recommendations are implemented.
Kraft Foods Group Incorporation operates as a consumer packaged food and Beverage Company in North America. The company was founded in 1980 and has its headquarters in Northfield, the state of Illinois, a suburb in Chicago. It is an autonomous public company listed on the Nasdaq (Shim, 2013). It focuses on the business of groceries in North America. It processes and sells beverages for refreshment, packaged fruit juice drinks, powdered drinks, coffee products and hot beverage systems. The company also offers whipped toppings, marshmallows, chocolate and baking ingredients. Kraft Foods Group provides its products primarily under the Baker’s, Cheez Whiz, Cool Whip, Cracker Barrel, Stove Top, and Velveeta brand names. The company markets the goods from its warehouse to the retailers and consumers, through sale agencies, distributing agents and other means to drug stores, club stores, value stores and other retail food outlets.
The company is the world’s second and the largest company for food with incomes of $54.4 billion and revenues of $4.8 billion. The company was united in 2000 in the Common wealth of Virginia. The company has approximately 126,000 employees worldwide, and it markets and processes packaged food products. The company sells its products to consumers in roughly 170 countries and has had operations in more than 80 countries and made its products at 220 manufacturing and processing facilities worldwide.
Goals and Objectives of Kraft Foods Group
The company has numerous objectives and goals which constitute; the spin-off that was proposed, revenues estimated from the business of groceries in North America and the snack global trade, new food regulations, environmental remediation actions, the combination with Cadbury including synergies and cost savings, the employee pension plans and other employee benefits, the company’s funding sources and capital expenditure among other goals. The food industry is highly competitive, and as such the company aims to reduce prices in response to the customer and competitive pressures. Competition in this industry is based on price, product quality, product innovation, brand recognition and loyalty, effectiveness of marketing and the ability to identify and satisfy consumer preferences. The company has a goal to amplify or reallocate expenditure on marketing programs, promotion, and development of new products to protect or increase market share. The second objective that is aimed at enhancing company value is the maintenance of company reputation and brand image with new product offerings.
The company has several iconic brands recognized worldwide. The company’s vision with the brand image goal is to extend the brand to new platforms, expand the brand image with new product offerings and maintain the brand image for the existing products (Walter, 2003). Kraft Food Group also seeks to provide higher value and quality to the consumers particularly during periods of economic uncertainty to compete against retailer brands and other economy brands. The company vision in this case is to ensure that the company does not lose market share, sales volumes or shift of the product mix to lower margin offerings due to differences in pricing and product quality compared to the competitors. Another goal is to change the relationship with significant suppliers and customers to avoid losing them to other large retailers who demand lower prices and develop their own brands.
Another main goal was for the company to split into two organizations trading in the public independently in spin-off free of tax in the grocery business to the existing shareholders. The company has another objective of carrying out its activities within the new and revised regulations by the government made to enhance food safety or to regulate imported ingredients. Since the company is a big company of food carrying out business in a governed surrounding with a continuously changing legal and regulatory model across the globe, it is subject to the risk of legal claims or other regulatory enforcement actions. The company therefore, strives to ensure that its employees, agents and contractors do not violate the laid down the set laws and regulations through the enactment of policies and procedures.
Evaluation of Goals and Analysis of the Needs of Stakeholders
The company has quality objectives, visions and values. The company is seeking to ensure that objectives are met in the best way possible and that there is no adverse effect on the company product sales, financial condition, reputation is enhanced and maintained, and the results from company operations are stable (Parker,2006). The company is also concerned that its competitors in the industry such as large retailers will not take their business away by developing their own brands and increase in market share by gaining a large number of customers for product offerings similar to those of Kraft Foods Group at a lower price and high quality. The company also wants to make sure that profitability is not affected by the volatility of commodity input prices that results in increased commodity costs that the company is unable to cover with increased prices and hence makes losses. The proposed spin –off as a goal for the company should be handled effectively since it could lead to disruptions of the company operations, loss or inability to recruit key personnel to run and grow the business and weaken the internal standards of the company. Management time and effort are required for the proposed spin-off, and this will cause a diversion of management’s time and effort that could hinder the growth and running of the core snack businesses. The proposed spin-off could also affect the company adversely materially, the financial condition and the results from operations from the company if all resources are channeled towards its completion.
The company has a goal to produce new products offerings at low prices compared to other retailers. As such, the customers desire to be offered high value quality goods that are innovative and less expensive than available alternatives. The customers also want to be guaranteed of food safety and the long run existence of the business. The customers also want variety of food stuffs and beverages that support their current lifestyle dietary needs. The shareholders on the other hand desire an increase in stock prices in the stock market and a good return from their investments in the form of dividends. The stakeholders also anticipate an increase in organizational value and also in the shareholder’s wealth. The employees require laws and regulation that are suitable to their working conditions and that are not discriminatory when they are enforced.
Recommended Changes to Improve the Vision, Mission, Values, Goals and Objectives
The company should adopt changes to ensure that there is no narrowing of prices between itself and its competitors, there are product innovations from time to time to cater for customer preferences and advertising to increase market share. The company should also convince customers to accept its products and reduce prices as a response to the customer and competitive pressures. The company should expand its business to other geographical regions around the world and satisfy customers globally with its new product offerings. The company search for new opportunities will open up foreign countries for investment and growth despite the fluctuations in currency and the ever changing foreign exchange rates. Kraft Foods should ensure that the commodity costs are lower than the prices of products in order to realize a hefty profit margin.
Kraft Foods Group is a successful American grocery company that manufactures and markets packaged food. It is the second biggest company dealing with food in the world. Kraft Foods Group has succeeded in its operations to serve numerous consumers worldwide. The company vision and mission to maintain its brand image, extend and retain its reputation is a key aspect in company growth. It has also come up with numerous ways to respond to competition and ensure that the business grows and expands without the loss of significant suppliers and customers.
The setting of new standards will enable the company to accomplish goals and objectives with ease and diversify its operations without the wastage of management time and effort.