Kraft General Foods The Merger (B) Case Study Solution

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Kraft General Foods The Merger (B) Case Help

Kraft General Foods The Merger (B) Case Study Help is a widely known name of a New york city based, world's leading organization in the food and drink market. Case Study Solution is a prominent brand name in convenient treats, foods and drinks with its presence in about 200 countries. Significant brand names of the company include; Pepsi-Cola, Frito-Lay, Tropicana, Quake and Gatorade. The core competitive benefit of the business is its capability to market the item at far and wide places. The business is doing efforts to make product development as its new source of competitive benefit.

The report contains a deep analysis of different elements of the social duties of significant companies in the food and beverage market in basic, and Case Analysis in particular. It also provides an analysis of the growing health and environmental issues including obesity, heart diseases, ecological destruction etc. in the Western countries and the role of the companies in the food and drink market to attend to these issues. The report also offers an assessment of the degree of sustainability and CSR in the Kraft General Foods The Merger (B) Case Study Help's company method together with the determination of how Case Study Solution develops worth for its customers. Additionally, the report also supplies particular tactical options for Case Analysis to incorporate the criticism over its social obligation with certain suggestions and an implementation strategy.

Concerns Recognition

The giant food and drink business was going through a criticism over its responsibility towards numerous social and eco-friendly problems including; weight problems, heart problem, environmental destruction etc. These criticisms lead, to reconsider about the business method of Kraft General Foods The Merger (B) Case Study Analysis. The David J Collis has actually realized that the total society, the lifestyle of individuals and the people at whole have actually been altered now. In this circumstance with increasing patterns towards much healthier items and the increasing ecological concerns, Case Study Analysis must alter its instructions towards healthier products. business had actually taken certain vital steps relating to the ecological impacts of its items, however, these steps are not enough to end up the criticism over the company's responsibility towards social and environmental concerns. The needed to take particular strategic actions to alter the market position of its specific well-known brand names and present Online Case Study Solution as a business producing healthy products in the market. In this regard, Case Study Analysis and other food and drink companies must utilize their power to move the consumer taste towards much healthier items to remove the constraints in the growth of food market.

Crucial Analysis

For the couple of years, customer food patterns have been changed dramatically. The shift from the use of healthy food to manufactured food has highly affected the health of the consumers. Despite of the discovery of modern-day health techniques, the overall health of individuals in couple of decades have actually been extremely affected. Presently about 1 billion of individuals In US are overweight and a minimum of 300 million of them have obesity. Children also facing the issue of weight problems. The ratios of obesity in 1980s are quite various from the existing ratios. Despite of discovery of health techniques and contemporary methods to control weight problems and other illness, the ratio of obesity has been doubled form the level of 1980. All of the information associated with the health issues with the incorporation of made food in the market explain the occurrence of the health problems associated with food system. These concerns are indirectly the outcome of numerous practices of the food and drink companies for producing value for their customers.

Worth Creation at Kraft General Foods The Merger (B) Case Study Analysis

Kraft General Foods The Merger (B) Case Study Help being a giant business in the food and drink industry, provides high worth to its clients by different ways. Case Study Help has a competitive advantage in providing its products far and large worldwide. The business is presented in about 200 nations with a big number of popular international brand names.

Furthermore, the business creates worth for its consumers by methods of supplying a great deal of yummy food including salt, fat and sugar, which are the active ingredients that are directly connected with the emotional core of the consumer's brain. The Kraft General Foods The Merger (B) Case Study Help together with other huge food and beverages business create worth for its customers by controling these ingredients in its items. Case Study Analysis in addition to other huge companies is interested in finding ways to increase the customer value from its items through exploiting the vulnerability.

In addition to it, the company also produces value by means of including the healthy point in its products. The company has actually done certain efforts in order to supply healthy products and decrease the share of Kraft General Foods The Merger (B) Case Study Solution in overall ecological destruction. Case Study Analysis has actually taken particular actions associated with the sustainability of people and environment including the 2009 statement of the enthusiastic objectives and dedications related to Case Study Help items, marketplace and the neighborhood.

All of these methods have actually succeeded at creating worth for the business consumers. These ways have likewise lead to the increased ecological issues and the criticism over the business's role in increasing health and environmental obstacles. The incorporation of ingredients like salt, fat and sugar in the business items for creating consumer value faces high amount of criticism. These ingredients are the primary cause of certain deadly illness in human including obesity, diabetes, heart diseases and so on. Increasing health associated problems have raised the criticism for Kraft General Foods The Merger (B) Case Study Help.

Useful Function of Significant Food and Beverage Business in Attending To Social and Ecological Costs Connected With the Market

Certainly, major food and drink companies including company, and so on can play a constructive role in attending to social and eco-friendly costs related to the market. The environmental expenses related to food and drink industry consist of the ecological devastation due to the increase of nitrogen which has actually led to the decreased water drinking patterns, river contamination, and increased emission of greenhouse gases from soil and so on. All these factors leads to environmental devastation which might be a big risk to the presence of mankind in future.

Significant cause of these ecological changes is mass usage of nitrogen rich fertilizers and the active ingredients by the food and beverage business. Therefore, food and drink companies need to play an useful function in addressing these concerns to remove their growth constraints associated with the criticism from the environmental neighborhoods.

In order to resolve these concerns, the companies could either minimize their use of nitrogen abundant ingredients or take specific steps to decrease the quantity of nitrogen in the general environment. The companies ought to prevent usage of nitrogen fertilizers and ought to search out the products of those farmers that do not use fertilizers for their crop. The business could also invest in reducing greenhouse gas emissions worldwide. The business might utilize sustainable energy sources at their production plant to compensate the greenhouse gas emissions from the usage of nitrogen-rich items.

In addition to the environmental expenses there are specific social expenses associated with the food and beverage market which must be resolved by the giant food and drink companies to achieve the market growth and to prevent the criticism from the ecological communities. Social costs associated with the market consists of the increasing health issues connected to obesity, cardiovascular disease, diabetes and so on. However, the giant business might play a positive function in resolving these concerns.

The companies could move towards healthier items by minimizing the amount of toxic substances in their processed foods i.e. dioxin, which could result in fatal human diseases. Along with it, the business should utilize more nutritious ingredients instead of derivatives of Corn and Soy to increase number of calories from their products. The business could also do efforts to shift customer tastes towards healthy items as they have actually managed the consumer taste for couple of decades. In this way the giant food and drink companies could play a positive function in attending to social and eco-friendly expenses connected to the industry.

Assessment of Sustainability at Kraft General Foods The Merger (B) Case Study Solution

There was a potential shift in the business method and objectives at Case Study Help. The brand-new CEO was focused on purchasing healthier items for achieving sustainable development for the company in addition to offering much healthier future for individuals and the planet both. Under the brand-new vision, the slogan of the company was likewise changed from the "fun for you" to "much better for you".

Human Sustainability

The business revealed specific objectives and dedications associated with human sustainability and the environmental sustainability. Kraft General Foods The Merger (B) Case Study Help got Quaker Oats producing TrueNorth nut treats and SoBe, and Naked Juice producing soy drinks and organic beverages to present numerous much healthier products in its portfolio. However, despite of being considered a Case Study Solution's healthy brand, the items of Quaker Oats contained several ingredients which were dangerous to health. These harmful components were not advertised which have ended up being the base for criticism over the healthy brands of Kraft General Foods The Merger (B) Case Study Solution.

In addition to the inculcation of healthy brands in its portfolio through acquisitions, Kraft General Foods The Merger (B) Case Study Analysis has taken specific sustainability actions for its market places. One of major examples in this regard is the Business's marketing technique related to schools. The business markets only low calories and healthy beverages options in schools.

Another action taken by Case Study Help towards human sustainability is the shift of its focus towards research and development for introducing new and healthy products in its portfolio. The company has actually increased its research and development budget plan and has actually presented an army of health scientists to develop certain healthy products.

Ecological Sustainability

Together with the human sustainability, Kraft General Foods The Merger (B) Case Study Help has actually taken numerous actions towards environmental sustainability. The business has actually committed to different goals related to water, land, packaging, climate modification and community. In this regard, the company committed to reduce its product packaging by countless tones to prevent high quantity of wastages. The company has dedicated to lower greenhouse gas emissions along with the achievement of efficiency in the energy usage. company has actually also attempted specific humanitarian activities consisting of a dedication to provide safe drinking water to 3 million people in developing nations by 2015.

On the basis of above analysis, it could be figured out that the business has taken numerous steps towards human and environmental sustainability. However these steps are still not enough to attain the wanted industrial growth and to minimize the criticism over the social responsibility of Kraft General Foods The Merger (B) Case Study Solution.

Alternatives

Certain long term strategic options might be obtained for the company on the basis of above analysis. These options can be examined on the basis of the reality that how the option would enable the company to achieve its goal of potential development and lower the criticism over the company. Moreover, the alternatives could be assessed on the basis of the time frame that would be taken by an alternative to be carried out together with the cost and risks related to the alternative

Alternative-1: introduction of a New Product line Associated with Healthy Foods and Beverages

The initial step that Kraft General Foods The Merger (B) Case Study Help might take is to introduce a brand-new product line associated with healthy food and beverages. Although, the business has already introduced specific heath associated brands, however, the number of these brand names in its portfolio is not prospective to minimize the criticism and achieve possible development. The business needs to present a wide range of much healthier items by utilizing its substantial research study and development expenses. The pros and cons related to the intro of a healthy line of product in the portfolio are given listed below:

Pros:

• Ability to target large number of customers i.e. health conscious customers.
• Decrease of the criticism of ecological concerned societies and community development organizations.
• Fulfillment of the social responsibility by payment of the dangerous products with healthy items.
• Could be executed within few years i.e. 3 to 5 years.

Cons:

• Threat of failure of the brand-new products in the market i.e. customers might not like the taste and might decline the much healthier products due to the addictive nature of hazardous items.
• The dangerous items in the item portfolio may make the incorporation of healthy products stop working to minimize criticism.
• Big cost of research study and development required to develop brand-new healthy products.

Alternative-2: High level Acquisition of Health associated Business

Another alternative choice to achieve the prospective growth and decrease the criticism is to obtain the health associated business at a high level. Investment in these type of business would enable Kraft General Foods The Merger (B) Case Study Analysis to introduce a big variety of much healthier products within a brief time duration with no need of significant research and advancement expenditures. The advantages and disadvantages related to alternative 3 are provided below:

Pros:

• Saving of substantial quantity of research and advancement costs for brand-new product development.
• Incorporation of brand-new items within 2 years.
• Capability to target large number of customers i.e. health mindful consumers.
• Decrease of the criticism of ecological concerned societies and neighborhood advancement companies.
• Satisfaction of the social obligation by settlement of the harmful items with healthy items.

Cons:

• The acquisition may not prove to change the image of Kraft General Foods The Merger (B) Case Study Solution as in case of Quake Oats.
• Requirement of huge quantity of capital.
• Danger of failure of the new products in the market i.e. consumers may not like the taste and might decline the much healthier products due to the addictive nature of hazardous products.
• The dangerous products in the product portfolio might make the incorporation of healthy items stop working to lower criticism.

Aletrnative-3: Replacement of Hazardous Products with Healthy Products in the Portfolio

Another alternative choice for Kraft General Foods The Merger (B) Case Study Solution is to change all of its hazardous items with healthier products. The replacement of hazardous products with healthier items would totally alter the market position of the business and would require a big number of required actions to be taken.

Pros:

• Modification of market position of Kraft General Foods The Merger (B) Case Study Help
• Ability to target large number of customers i.e. health conscious consumers.
• End of all of the criticism of environmental concerned societies and neighborhood development organizations.
• Fulfillment of the social duty

Cons:

• Threat of failure of the brand-new products in the market i.e. consumers might not like the taste and may not accept the much healthier products due to the addictive nature of hazardous products.
• Substantial cost of research and development needed to construct brand-new healthy products.
• Employee might resist over the modification in the business model and service technique.
• Number of years needed for the application.
• Shift of focus from the core competencies.

Recommendations

With the deep analysis of the company's CSR, concerns faced by the company and the existing market situation, Kraft General Foods The Merger (B) Case Study Analysis is advised to think about alternative 2 of high level of acquisition of health associated companies. As the acquisitions would allow the business to conserve of huge quantity of research study and advancement expenses for brand-new item advancement. Along with it, acquisitions would permit incorporation of new items within two years together with the capability to target large number of consumers. Additionally, the acquisitions would lead to the reduction of the criticism from the worried organizations.However, the option would need huge amount of mutual fund. Additionally, the companies may not be able to decrease the criticism. With a cautious analysis of the acquisition with an aggressive marketing projects, company might prove to be successful in accomplishing the targets.

This Kraft General Foods The Merger (B) case study is writen by : David J Collis

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