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Kraft Foods UK Case Study Budgeting And Strategy

Swot and Pestle Analysis

BUDGETING AND STRATEGY OF THE COMPANY

Craft is considered to be the second largest Food company in the industry and the company comprises of a total of 1 10000 employees and the company operates in over 60 countries. In order to reduce the amount of expenditure of the finance system the company has implemented on the condition of the cost associated with the business under the relevant groups which are known as cost centres. With the help of this process, it is possible for the company to conduct a well-controlled as well as meaningful analysis which help the company by quite a huge margin in the income as well as expenses budget Sector. The budgeting process that is followed by the company helps it in creating proper plans for only individual cost Centre that are associated with it in order to build up the budget that is associated with the whole company. With the help of this process, it is possible for the company to exercise various process by the help of which it is possible to quantify only future cost that are going to be associated with it. With the focus on the future scenario, it is possible for the company to maintain a proper focus on the various plants that need to be initiated in the future and also identify the problems that are associated with the current plans of the company. A wide number of products are sold by the company in order to meet the expectation of different customer which keep the cost of the raw material as well as cost of the production to a bare minimum of its manufacture and generate a lot of profit in this process. You should check plagiarism of your assignment.

SWOT ANALYSIS

Strengths: The company is currently holding the position of market leader in the segment of confectionery in the food industry. The company is highly recognised on global basis which is a major strength of it. The financial aspect of the company is very much strong which provides it an opportunity to improve its research and development as well as innovative areas. You can get case study help.

Weakness: The major weakness of the company includes the product recall that was conducted which affected the overall brand image of the company. There is also presence of optimum competition in the industry which is a major weakness of it.

Opportunity: Major opportunities that lies in front of the company is acquisition of different other companies like Cadbury which will increase the reach of the consumers in different developing countries around the world. Acquisition is the most important opportunity that is currently associated with the company. The company can also increase its product portfolio by launching pet foods globally.

Threats: The major threats that are currently associated with the company includes the health consciousness trend that is growing among the consumers. In the global scenario it has been identified that consumers are looking forward to utilise products that are not harmful to their health which is a major threat towards the confectionery market of the company. The overall raw materials that are utilised by the company are also increasing in price. There is also presence of eurozone crisis as well as slowdown of global economic.

PESTLE ANALYSIS

Political: There is presence of mini digital as well as State Law that are present in United States which affect the overall business of the company.

Economical: Fresh material are utilised by the company for the production of its products and the overall price of the raw materials has increased over the years. There is also uncertainty among the economic factor which is a major problem for the company.

Social: Under the social factor the present behaviour of the consumer is changing towards becoming a health concern which is a major problem for the company to increase its profitability in the future.

Technological: Under the technological aspect the company has adopted different courses of action with the help of Artificial Intelligence and technological advancement to reduce the emission of carbon dioxide by it. With the help of this process, it is not only possible for the company to implement Corporate Social Responsibility in efficient way but it also becomes easier for the company to maintain a proper scenario in the market and increase its brand value.

Legal: Presence of highly rigid as well as competition in the industry which the company needs to follow and also work in accordance to the legal actions.

Environmental: Constant pressure from the government as well as public Agencies is a major challenge.

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