Kraft General Foods: The Merger (A) And (B) Case Study Analysis

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Kraft General Foods: The Merger (A) And (B) Case Help

Kraft General Foods: The Merger (A) And (B) Case Study Solution is a widely known name of a New York based, world's leading organization in the food and drink industry. Case Study Analysis is a prominent brand in practical treats, foods and beverages with its presence in about 200 countries. Major brands of the company include; Pepsi-Cola, Frito-Lay, Tropicana, Quaker and Gatorade. The core competitive benefit of the company is its capability to market the product at everywhere places. The business is doing efforts to make item advancement as its brand-new source of competitive advantage.

The report consists of a deep analysis of various aspects of the social duties of significant business in the food and drink market in basic, and Case Help in particular. It also provides an analysis of the growing health and environmental concerns consisting of weight problems, cardiovascular disease, ecological devastation and so on in the Western countries and the function of the business in the food and beverage industry to resolve these problems. The report also offers an examination of the level of sustainability and CSR in the Kraft General Foods: The Merger (A) And (B) Case Study Help's service strategy together with the determination of how Case Study Analysis produces worth for its customers. Furthermore, the report also offers specific tactical options for Case Solution to integrate the criticism over its social duty with specific suggestions and an application strategy.

Concerns Recognition

Case Study Analysis had taken specific important steps relating to the environmental impacts of its items, however, these steps are not enough to end up the criticism over the company's duty towards social and ecological issues. This is required to take certain strategic actions to alter the market position of its specific popular brand names and present Case Study Help as a business producing healthy items in the market. In this regard, company and other food and drink companies must utilize their power to move the consumer taste towards healthier items to eliminate the constraints in the growth of food market.

Vital Analysis

For the few decades, consumer food patterns have been changed considerably. The shift from making use of natural food to manufactured food has extremely affected the health of the consumers. Despite of the discovery of contemporary health techniques, the total health of people in couple of decades have actually been highly affected. Currently about 1 billion of the people In United States are obese and at least 300 countless them have weight problems. Children likewise facing the issue of obesity. The ratios of obesity in 1980s are quite different from the present ratios. Despite of discovery of health techniques and modern-day ways to manage obesity and other diseases, the ratio of weight problems has been doubled form the level of 1980. All of the information related to the health concerns with the incorporation of made food in the market describe the prevalence of the health issues related to food system. These issues are indirectly the result of numerous practices of the food and beverage companies for creating worth for their customers.

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

Kraft General Foods: The Merger (A) And (B) Case Study Solution being a huge company in the food and beverage market, supplies high worth to its customers by numerous means. Case Study Solution has a competitive benefit in providing its products far and large worldwide. The business is provided in about 200 countries with a large number of well-known worldwide brands.

Furthermore, the business develops worth for its consumers by methods of offering a great deal of tasty food products consisting of salt, fat and sugar, which are the active ingredients that are straight gotten in touch with the emotional core of the customer's brain. The Kraft General Foods: The Merger (A) And (B) Case Study Solution in addition to other giant food and beverages companies develop worth for its customers by controling these ingredients in its products. Case Study Solution together with other giant business is interested in finding methods to increase the consumer worth from its products through making use of the vulnerability.

Together with it, the business likewise produces worth by ways of incorporating the healthy point in its products. The business has done specific efforts in order to provide healthy products and decrease the share of Kraft General Foods: The Merger (A) And (B) Case Study Analysis in overall ecological devastation. Case Study Solution has taken certain steps related to the sustainability of people and environment consisting of the 2009 announcement of the enthusiastic goals and commitments associated with Case Study Solution products, market and the community.

All of these methods have actually been effective at producing worth for the Case Study Help customers. Increasing health associated problems have actually raised the criticism for Case Study Solution.

Useful Role of Major Food and Drink Companies in Dealing With Social and Ecological Costs Related To the Industry

Major food and drink companies consisting of Kraft General Foods: The Merger (A) And (B) Case Study Help etc. can play an useful role in addressing social and eco-friendly expenses associated with the industry. The environmental costs connected to food and drink market include the environmental devastation due to the influx of nitrogen which has resulted in the lowered water drinking patterns, river contamination, and increased emission of greenhouse gases from soil and so on. All these factors results in environmental destruction which might be a huge threat to the existence of humanity in future.

Major reason for these environmental changes is mass use of nitrogen rich fertilizers and the ingredients by the food and beverage companies. Food and beverage companies must play a positive role in dealing with these concerns to remove their growth constraints related to the criticism from the environmental neighborhoods.

In order to deal with these concerns, the business might either reduce their usage of nitrogen abundant ingredients or take certain steps to lower the amount of nitrogen in the general environment. The business should prevent usage of nitrogen fertilizers and must seek the items of those farmers that do not use fertilizers for their crop. The companies could likewise invest in decreasing greenhouse gas emissions worldwide. For instance, the companies might use renewable energy sources at their production plant to compensate the greenhouse gas emissions from making use of nitrogen-rich products.

In addition to the environmental costs there are specific social costs connected with the food and drink market which must be resolved by the huge food and drink business to accomplish the market development and to avoid the criticism from the ecological communities. Social costs related to the market includes the increasing health concerns connected to weight problems, cardiovascular disease, diabetes and so on. Nevertheless, the huge companies could play an useful role in resolving these concerns.

The business could move towards more healthy products by decreasing the quantity of poisonous substances in their processed foods i.e. dioxin, which could lead to fatal human illness. Along with it, the business need to utilize more healthy components rather than derivatives of Corn and Soy to increase number of calories from their items. The business might also do efforts to move consumer tastes towards healthy items as they have actually managed the customer taste for few decades. In this method the huge food and beverage business might play a constructive role in dealing with social and eco-friendly expenses associated with the industry.

Examination of Sustainability at Kraft General Foods: The Merger (A) And (B) Case Study Help

There was a possible shift in the business technique and goals at Case Study Help. The new CEO was focused on purchasing healthier items for achieving sustainable growth for the company in addition to providing healthier future for the people and the planet both. Under the new vision, the motto of the business was likewise altered from the "enjoyable for you" to "much better for you".

Human Sustainability

business got Quaker Oats producing TrueNorth nut snacks and SoBe, and Naked Juice producing soy drinks and organic beverages to introduce various much healthier items in its portfolio. Despite of being thought about a Case Help's healthy brand, the items of Quaker Oats consisted of a number of ingredients which were harmful to health.

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

Another action taken by Case Study Help towards human sustainability is the shift of its focus towards research and advancement for presenting brand-new and healthy products in its portfolio. The company has actually increased its research study and development spending plan and has actually introduced an army of health scientists to create specific healthy products.

Environmental Sustainability

In this regard, the business committed to minimize its packaging by millions of tones to prevent high amount of wastes. The business has dedicated to minimize greenhouse gas emissions along with the achievement of performance in the energy usage.

On the basis of above analysis, it could be identified that the company has actually taken numerous actions towards human and ecological sustainability. These actions are still not sufficient to accomplish the wanted industrial growth and to reduce the criticism over the social responsibility of Case Study Help.

Alternatives

Particular long term strategic alternatives could be derived for the company on the basis of above analysis. These options can be evaluated on the basis of the fact that how the option would allow the business to achieve its objective of potential growth and decrease the criticism over the business. Moreover, the alternatives could be assessed on the basis of the time frame that would be taken by an alternative to be carried out in addition to the expense and risks connected to the alternative

Alternative-1: introduction of a New Product line Connected to Healthy Foods and Beverages

The first step that Kraft General Foods: The Merger (A) And (B) Case Study Help could take is to introduce a new product line related to healthy food and beverages. The business ought to present a broad variety of much healthier products by using its considerable research study and advancement expenditures.

Pros:

• Capability to target large number of customers i.e. health conscious consumers.
• Reduction of the criticism of environmental worried societies and neighborhood advancement organizations.
• Fulfillment of the social responsibility by compensation of the hazardous items with healthy items.
• Could be executed within few years i.e. 3 to 5 years.

Cons:

• Risk of failure of the new items in the market i.e. customers might not like the taste and may not accept the healthier items due to the addictive nature of hazardous products.
• The harmful items in the item portfolio might make the incorporation of healthy items stop working to reduce criticism.
• Big cost of research and advancement required to develop brand-new healthy products.

Alternative-2: High level Acquisition of Health related Companies

Another alternative choice to accomplish the prospective growth and lower the criticism is to obtain the health associated companies at a high level. Financial investment in these type of business would enable Kraft General Foods: The Merger (A) And (B) Case Study Solution to present a large variety of healthier products within a brief time period without any requirement of considerable research and development expenditures. The pros and cons connected to alternative 3 are provided below:

Pros:

• Conserving of big quantity of research study and development expenses for brand-new product development.
• Incorporation of new items within 2 years.
• Ability to target a great deal of customers i.e. health mindful customers.
• Reduction of the criticism of environmental worried societies and neighborhood advancement organizations.
• Fulfillment of the social responsibility by compensation of the dangerous items with healthy items.

Cons:

• The acquisition may not prove to change the image of Kraft General Foods: The Merger (A) And (B) Case Study Help as in case of Quaker Oats.
• Requirement of substantial amount of capital.
• Threat of failure of the brand-new items in the market i.e. customers might not like the taste and may decline the healthier products due to the addictive nature of harmful items.
• The dangerous items in the item portfolio may make the incorporation of healthy products stop working to decrease criticism.

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

Another alternative choice for Kraft General Foods: The Merger (A) And (B) Case Study Help is to replace all of its hazardous products with much healthier products. This could be a substantial shift in business technique and the business design at business. The replacement of harmful products with healthier items would completely change the market position of the company and would need a a great deal of required steps to be taken. The advantages and disadvantages associated with alternative 3 are given listed below:

Pros:

• Change of market position of Kraft General Foods: The Merger (A) And (B) Case Study Solution
• Capability to target a great deal of consumers i.e. health conscious customers.
• End of all of the criticism of environmental worried societies and community advancement organizations.
• Fulfillment of the social responsibility

Cons:

• Risk of failure of the new items in the market i.e. consumers may not like the taste and may not accept the healthier items due to the addictive nature of hazardous products.
• Substantial cost of research study and development needed to develop brand-new healthy items.
• Worker may withstand over the change in the business design and company method.
• Number of years required for the application.
• Shift of focus from the core competencies.

Recommendations

With the deep analysis of the business's CSR, concerns dealt with by the company and the present market scenario, Kraft General Foods: The Merger (A) And (B) Case Study Solution is recommended to consider alternative 2 of high level of acquisition of health related business. As the acquisitions would allow the business to save of substantial quantity of research study and advancement costs for new product development. Along with it, acquisitions would allow incorporation of new items within two years in addition to the ability to target a great deal of customers. Additionally, the acquisitions would lead to the decrease of the criticism from the worried organizations.However, the option would need substantial quantity of mutual fund. Furthermore, the companies may not have the ability to reduce the criticism. With a cautious analysis of the acquisition with an aggressive marketing projects, company could show to be successful in accomplishing the targets.

This Kraft General Foods: The Merger (A) And (B) case study is writen by : Elie Ofek

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