Kraft General Foods: The Merger (A) Case Study Solution

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Kraft General Foods: The Merger (A) Case Solution

Kraft General Foods: The Merger (A) Case Study Analysis is a well-known name of a New York based, world's leading organization in the food and beverage industry. company is a leading brand name in practical treats, foods and beverages with its presence in about 200 nations.

The report contains a deep analysis of different elements of the social responsibilities of major companies in the food and beverage market in general, and Case Solution in particular. It likewise supplies an analysis of the growing health and ecological concerns consisting of obesity, heart diseases, environmental devastation and so on in the Western nations and the function of the business in the food and drink industry to address these concerns. The report also offers an assessment of the level of sustainability and CSR in the Kraft General Foods: The Merger (A) Case Study Help's organisation technique together with the decision of how Case Study Analysis develops value for its consumers. The report likewise supplies particular tactical alternatives for business to incorporate the criticism over its social responsibility with specific recommendations and an execution plan.

Concerns Recognition

Case Study Solution had taken specific crucial actions relating to the environmental impacts of its products, but, these actions are not enough to end up the criticism over the company's responsibility towards social and ecological concerns. This is required to take specific tactical actions to change the market position of its particular popular brands and present Case Study Analysis as a business producing healthy products in the market. In this regard, company and other food and beverage business must utilize their power to move the consumer taste towards much healthier items to remove the restraints in the growth of food market.

Important Analysis

The shift from the usage of natural food to made food has actually extremely affected the health of the consumers. All of the data related to the health issues with the incorporation of produced food in the market explain the prevalence of the health problems related to food system. These problems are indirectly the outcome of different practices of the food and drink companies for producing worth for their customers.

Value Development at Kraft General Foods: The Merger (A) Case Study Help

Kraft General Foods: The Merger (A) Case Study Analysis being a huge business in the food and drink industry, provides high worth to its consumers by various ways. Case Study Solution has a competitive advantage in supplying its products far and wide worldwide. The company is provided in about 200 countries with a large number of well-known international brands.

The company creates value for its customers by methods of offering big number of yummy food items consisting of salt, fat and sugar, which are the active ingredients that are directly connected with the emotional core of the customer's brain. The Kraft General Foods: The Merger (A) Case Study Solution together with other giant food and beverages companies create value for its consumers by manipulating these components in its items. Case Study Solution in addition to other giant companies has an interest in finding methods to increase the consumer value from its products through making use of the vulnerability.

Together with it, the business also develops worth by ways of including the healthy point in its items. The business has actually done particular efforts in order to provide healthy items and reduce the share of Kraft General Foods: The Merger (A) Case Study Solution in general environmental destruction. Case Study Analysis has actually taken certain actions related to the sustainability of individuals and environment consisting of the 2009 statement of the ambitious goals and dedications related to Case Study Analysis items, market and the community.

All of these methods have actually achieved success at producing worth for the business consumers. These means have likewise lead to the increased environmental issues and the criticism over the company's role in increasing health and ecological difficulties. The incorporation of active ingredients like salt, fat and sugar in the business items for creating consumer worth deals with high quantity of criticism. These components are the main cause of specific fatal illness in human including obesity, diabetes, heart problem etc. Increasing health associated concerns have actually raised the criticism for Kraft General Foods: The Merger (A) Case Study Solution.

Useful Role of Major Food and Beverage Companies in Resolving Social and Ecological Expenses Related To the Market

Major food and drink companies consisting of Kraft General Foods: The Merger (A) Case Study Help etc. can play an useful role in attending to social and eco-friendly expenses associated with the market. The eco-friendly expenses connected to food and drink market 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 ecological devastation which might be a huge danger to the existence of mankind in future.

Significant reason for these environmental modifications is mass use of nitrogen rich fertilizers and the ingredients by the food and drink business. Food and drink business must play a constructive role in resolving these problems to eliminate their development restraints related to the criticism from the ecological communities.

The business must prevent usage of nitrogen fertilizers and need to search out the products of those farmers that do not use fertilizers for their crop. The companies could utilize renewable energy sources at their production plant to compensate the greenhouse gas emissions from the usage of nitrogen-rich items.

Together with the ecological expenses there are particular social expenses associated with the food and drink market which should be resolved by the huge food and beverage business to accomplish the industry growth and to avoid the criticism from the environmental neighborhoods. Social expenses connected with the industry includes the increasing health concerns associated with weight problems, heart problem, diabetes etc. However, the giant companies might play a constructive role in addressing these concerns.

The business might move towards more healthy products by decreasing the amount of hazardous substances in their processed foods i.e. dioxin, which might result in lethal human illness. In addition to it, the business must utilize more nutritious ingredients rather than derivatives of Corn and Soy to increase number of calories from their products. The companies might likewise do efforts to move consumer tastes towards healthy products as they have controlled the customer taste for few years. In this way the huge food and drink companies might play an useful role in addressing social and environmental expenses associated with the market.

Examination of Sustainability at Kraft General Foods: The Merger (A) Case Study Solution

There was a prospective shift in the corporate technique and objectives at Case Study Analysis. The brand-new CEO was concentrated on buying healthier products for accomplishing sustainable growth for the business along with providing much healthier future for individuals and the world both. Under the new vision, the motto of the business was likewise altered from the "fun for you" to "better for you".

Human Sustainability

The company announced particular objectives and commitments connected to human sustainability and the ecological sustainability. Kraft General Foods: The Merger (A) Case Study Solution obtained Quake Oats producing TrueNorth nut snacks and SoBe, and Naked Juice producing soy beverages and natural drinks to present numerous healthier items in its portfolio. However, despite of being thought about a Case Study Analysis's healthy brand name, the items of Quaker Oats contained several ingredients which were harmful to health. These dangerous active ingredients were not promoted which have actually ended up being the base for criticism over the healthy brands of Kraft General Foods: The Merger (A) Case Study Solution.

Together with the inculcation of healthy brands in its portfolio through acquisitions, Kraft General Foods: The Merger (A) Case Study Help has actually taken certain sustainability actions for its market places. Among significant examples in this regard is the Company's marketing technique related to schools. The business markets just low calories and nutritious beverages options in schools.

Another action taken by Case Study Solution towards human sustainability is the shift of its focus towards research and development for presenting new and healthy items in its portfolio. The company has increased its research study and advancement budget plan and has actually introduced an army of health scientists to develop certain healthy items.

Ecological Sustainability

In this regard, the business devoted to lower its product packaging by millions of tones to prevent high quantity of wastages. The company has committed to decrease greenhouse gas emissions along with the achievement of effectiveness in the energy use.

On the basis of above analysis, it could be figured out that the business has actually taken a number of actions towards human and environmental sustainability. These steps are still not sufficient to achieve the desired commercial development and to lower the criticism over the social duty of Case Study Analysis.

Alternatives

Specific long term tactical options might be obtained for the company on the basis of above analysis. These options can be evaluated on the basis of the truth that how the alternative would make it possible for the company to achieve its goal of prospective development and reduce the criticism over the company. Furthermore, the alternatives could be examined on the basis of the time frame that would be taken by an option to be executed together with the cost and risks associated with the option

Alternative-1: intro of a New Line of product Associated with Healthy Foods and Beverages

The initial step that Kraft General Foods: The Merger (A) Case Study Help might take is to present a new product line related to healthy food and drinks. The business has actually already introduced particular heath associated brand names, but, the number of these brands in its portfolio is not prospective to lower the criticism and attain prospective growth. The company must present a broad variety of healthier items by using its substantial research and advancement expenditures. The pros and cons associated with the introduction of a healthy product line in the portfolio are provided below:

Pros:

• Capability to target large number of consumers i.e. health conscious consumers.
• Decrease of the criticism of ecological worried societies and community development companies.
• Satisfaction of the social responsibility by payment of the harmful items with healthy items.
• Could be implemented within few years i.e. 3 to 5 years.

Cons:

• Threat of failure of the brand-new products in the market i.e. consumers might not like the taste and might decline the healthier items due to the addicting nature of dangerous products.
• The harmful items in the item portfolio might make the incorporation of healthy items fail to reduce criticism.
• Substantial cost of research and development needed to build brand-new healthy products.

Alternative-2: High level Acquisition of Health related Business

Another alternative choice to accomplish the prospective growth and lower the criticism is to obtain the health associated companies at a high level. Investment in these type of companies would allow Kraft General Foods: The Merger (A) Case Study Analysis to introduce a big variety of much healthier products within a brief time duration without any need of considerable research study and advancement expenses. The advantages and disadvantages associated with alternative 3 are provided below:

Pros:

• Saving of huge amount of research study and advancement expenses for brand-new item development.
• Incorporation of new items within 2 years.
• Ability to target a great deal of consumers i.e. health mindful consumers.
• Decrease of the criticism of ecological worried societies and community development companies.
• Fulfillment of the social responsibility by settlement of the hazardous products with healthy products.

Cons:

• The acquisition may not show to alter the image of Kraft General Foods: The Merger (A) Case Study Help as in case of Quaker Oats.
• Requirement of huge quantity of capital.
• Danger of failure of the brand-new items in the market i.e. customers might not like the taste and might decline the much healthier products due to the addicting nature of hazardous products.
• The hazardous products in the item portfolio may make the incorporation of healthy items stop working to reduce criticism.

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

Another alternative option for Kraft General Foods: The Merger (A) Case Study Solution is to change all of its dangerous items with much healthier products. This could be a big shift in business method and business design at business. The replacement of hazardous products with healthier products would totally alter the market position of the company and would need a large number of required steps to be taken. The advantages and disadvantages connected to alternative 3 are given listed below:

Pros:

• Modification of market position of Kraft General Foods: The Merger (A) Case Study Help
• Capability to target a great deal of consumers i.e. health conscious customers.
• End of all of the criticism of environmental worried societies and neighborhood development companies.
• Satisfaction of the social responsibility

Cons:

• Danger of failure of the brand-new products in the market i.e. customers might not like the taste and might decline the healthier products due to the addictive nature of harmful items.
• Big expense of research study and advancement required to develop new healthy products.
• Employee might resist over the change in business design and organisation strategy.
• Variety of years required for the implementation.
• Shift of focus from the core proficiencies.

Recommendations

With the deep analysis of the business's CSR, problems dealt with by the business and the present industry scenario, Kraft General Foods: The Merger (A) Case Study Solution is recommended to think about alternative 2 of high level of acquisition of health related business. As the acquisitions would enable the company to conserve of substantial amount of research study and development expenses for brand-new item development. In addition to it, acquisitions would allow incorporation of new items within 2 years in addition to the capability to target large number of customers. The acquisitions would result in the decrease of the criticism from the concerned organizations.However, the option would need substantial amount of investment funds. Additionally, the organizations may not be able to lower the criticism. However, with a mindful analysis of the acquisition with an aggressive marketing projects, Kraft General Foods: The Merger (A) Case Study Solution could prove to be successful in achieving the targets.

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

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