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Kraft is initially considered the second-largest food company in the industry. The company is vast, and it comprises a total of 10000 employees, and the company operates in over 60 countries. The company has decided to reduce the amount of expenditure of the finance system, and therefore, the company has implemented the condition of the cost associated with the business under the relevant groups, which are known as cost centres.
With this innovative approach and due process, it becomes possible for the company to conduct a well-controlled and meaningful analysis, which helps the company by quite a huge margin in the income and expenses budget sector.
Now coming to the history, research says that, in 1903, a man named James Lewis Kraft had begun cheese delivery service at the Chicago area after he had been eased out from a cheese company at Buffalo. James bought wholesale cheese every morning and resold it to the local vendors to avoid the cheese melt or spoiling. Now, the business has eventually become successful, and then his brothers, who are known as Charles H., John H., Fred Walker and Norman had joined the company one by one and soon, the company named J.L Kraft & Bros. Co. In 1990 as permanent employees.
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Strengths: The company has become the leading industrial position as the market leader in the confectionery segment in the food industry. As the company is highly recognised globally, the company's financial aspect is very strong and offers research and development and innovative areas.
Weakness: The most prime and major drawback of the company is acquiring different other companies like Cadbury, which quickly reaches every consumer's doorstep. The acquisition is the crucial aspect and important opportunity associated with the companies.
Threats: The major threats of the company is associated with the company, including the health consciousness trend that grows among the consumers. People have become more health-conscious than before, so it is evident that consumers always look forward to utilising such products that are not harmful to their health.
Political: It is pretty evident that the presence of mini digital and State Law in the United States affect the company's overall business.
Economical: The most exciting part of the company, it always uses fresh material for economic production and therefore, the overall price of raw materials has increased over the years. There is also uncertainty among the economic factor which is a major problem for the company.
Social: Becoming a health concern is one of the primary reasons for getting detouched by processed foods. The present behaviour of the consumer is changing towards becoming a health concern, which becomes a major problem to increase the profitability for the future.
Technological: The company has become incredibly advanced by using technological features like artificial intelligence, robotics. These advanced technologies have been used to reduce the amount of carbon dioxide. With the help of this process, the company can implement Corporate Social responsibility.
Legal: The company needs to follow all the legal actions for industrial sake.
Environmental: Constant pressure from the government and public agencies is a major challenge.
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Ans: Kraft Food is basically a popular company with cheese and dairy, snack foods and confectionary, beverage and convenient foods. However, the industry is focused explicitly on cheese and dairy products.
Ans: There are five strategies that Kraft Foods mainly follows:
The food product strategy
The price strategy
The place and distribution strategy
The balancing of cost and equality
The advertising strategy
Ans: The marketing strategy of Kraft Foods involves the 4Ps. That is:
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