Mondelez International Strategy Case Study
Mondelez International Inc. is a large manufacturer and marketing company with a variety of beverage products and snack foods. The company came into existence in 2012 when Kraft Foods Inc. went through a corporate restructuring in order to implement “high-growth global snacks.” (Gamble, 2016.) Nabisco, Oreo, Trident gum, and Oscar Mayer are a few brands that operate under Mondelez Inc.
Corporate Strategy As I mentioned above, Mondelez was created to fit a need that Kraft Foods Inc. had to increase their growth globally. Kraft Foods Inc. established their name in 2007 when they broke apart from Altria Group. Kraft became the second-largest processed food company in 2012 with annual revenues of more than $54 billion in 2012 (Gamble, 2016). However, significant growth in the company was not much different from that in 2007 when they became independent. It is the belief of the company’s upper management and board that the reason for their stagnation was due to the fact that their corporate strategy was not focused on the growth of the company. This changed in 2012 when Kraft teamed up with Mondelez International Inc. “Mondelez International’s strategy was directed at exploiting its powerful brands of snack foods across the 165 country markets where its products were sold.” (Gamble, 2016) The company aimed to fulfill their strategy by expanding the company’s product line to include cookies, chocolates, candy, gum, and
Brand building, consumer health and wellness, and advertising and promotions were all critical to success in the industry. Kraft’s ability to compete with lower priced snacks showed its ability to differentiate itself from other lower priced competitors.
Founded as a cheese manufacturer in 1903 and Kraft Foods Inc. (Kraft Foods) was the largest food and beverage company in North America and the number two player in the world. Its operations consisted of Kraft Foods North America and Kraft Foods International, and its business was divided into five product categories: beverages, convenience meals, cheese, grocery, and snacks. In 2004, Kraft Foods had operations in more than 155 countries and previously been a division of Philip Morris Companies (since renamed Altria Group), it had become a public company in June 2001. Along with its size and impressive brand portfolio, Kraft Foods boasted a strong distribution network and a
Kraft and Heinz, as two iconic brands, are famous for packaged cheese, and high quality packaged ketchup and baby foods respectively. Additionally, Kraft is facing some low quality issues now. However, Kraft needs to innovate into more natural and organic products which are different from its supply chains to meet consumer demands. Thus, it is a challenge for the new company to make consumers accept these innovated products, especially the iconic brand, Kraft, is facing is “healthy and safe” problem as
Strategic Alliance is the collaboration of two companies who came together to implement an idea that will benefit both parties (Strategic alliance, 2009). It is crucial that both parties understand what’s really at stake in order to make their partnership successful. In this paper, the writer took the time to analyze a partnership between Subway restaurants and Coca-Cola products. In addition, we will look at the economic benefit for each company. When dealing with businesses there is a potential for ups and downs during the operations process. The author will examine this collaboration between Subway and Coca-Cola while using Porter’s Five Forces framework including a PESTEL (Political, Economic, Social, Technological, Environmental and Legal) analysis of these two companies.
On the other hand, Kraft derives almost 100% of its sales from North America. This provides a great opportunity for the combined entity to sell Kraft’s brand through international markets. Unfortunately, however, there would be a limitation due to the agreement made by Kraft and Mondelez International.
Procter and Gamble is a multinational company that offers a variety of products worldwide. P&G has been in the market for 175 years with numerous and successful strategies that has enabled them to expand internationally over the years. Procter and Gamble has adopted a growth strategy over the years and aimed to improve every consumer’s lives in a small yet meaningful way. Procter and Gamble’s international strategies started with their own values. They based their values on five factors: Integrity, where the emphasized on doing always the right things, being honest and transparent with each other and the consumer, and always uphold P&G’s principles no matter what. Leadership, Have a clear vision and try to eliminate organizational barriers.
Mondelez International is an American multinational confectionery, food, and beverage company. I have been given the opportunity to analyze all ratios 8-14 for Mondelez. After a careful review of the Consolidated Balance Sheet, I am able to give the following analysis based on various ratios used to determine how well the company operates.
Mondelez International is an American multinational confectionery that focus on food and beverage based in America with a total global headcounts of 107,000. In year 2012, The Mondalez has officially crafted its name by Kraft Foods employees which originally from the words of “world and delicious” in Roman language.
Since then the company has continued to flourish; mergers and acquisitions, global investment and product innovation have seen Nestlé position itself as a “global leader in Nutrition, Health and Wellness” (Nestlé, 2015) and, according to Forbes (2016), it is the largest company within the food industry and the 33rd ranked company on the Global 2000 (Forbes, 2016). Whilst renowned for chocolate, it did not become a global leader on the strength of one product. Its portfolio includes, baby food, beverages, frozen food, prepared dishes and healthcare nutrition. Food and beverages in particular have been prevalent in the aggrandizement of the corporation.
The articles have been focused on Nestlé’s performance for its different kinds of products that have been declined its target profits. Therefore, Nestle has set up a margin goal that will help the world’s largest food package company to regain its expecting profits. It is mentioned that, the company has slowed down its growth in the different marketplace in which some products need to improve its performance according to analysis from various sources, such as RBC analyst James Edwardes Jones, and UBS analyst Pinar Ergun. According to the articles, the investors are arguing for a change of their investment for nestling in which the new CEO Mark Schneider must act
The purpose of this report is to evaluate Nestle Company industry based on the case study and comprehend how the company develop strategic intent for their business organisations following the analysis of external and internal business environments. I will analyse the strategic management process as firm used to achieve strategic competitiveness and earn above-average returns. I will discuss the strategy formulation that includes business-level strategy and corporate-level strategy.
| Mondelez has been engaging in community involvement to fight hunger and promote healthier lifestyle by contributing $1 billion in cash and food for the past 25 years. This would help brighten the company’s image. (Mondelez International Fact Sheet, 2012)
The food and beverage segment is a high growth sector that foresees a great growth in future, arising from the increasing population and an increase in their personal disposable incomes. In such a scenario, a number of players exist in the international market that need to continuously innovate so as to stay ahead of the competition or consolidate their position. The F&B segment has been ripe with mergers and acquisitions in the past and we look at the merger of Kraft and Heinz and what it would imply for the companies as well as the industry.
Refers to a case examine offered, I came across the problem prevailing between Tetra Pak and Nestle is really a crisis where crisis management has taken place between both parties. I think, the problem of the crisis I discover the Tetra Pak has lied and attempted to full cover up the problem was developed by them when Tetra Pak's experience lies in creating safe and responsible presentation for liquid food. In 2005, the printing ink scare stories centred on the remember of Nestlé' s models in Italy, France, Spain and Portugal. The remember was started following the finding of isopropylthioxanthone (ITX) in the products, requiring regulators and presentation companies to focus on the potential for harm from this compound found
Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material