Growth Strategies Case Study

Case Title:

Kraft Foods : Restructuring for Growth

Abstract:
In January 2006, Kraft Foods Inc., the world’s largest branded food and Beverage Company, announced a major restructuring plan as a cost cutting measure. Starting from the early 2000s, the company’s profit margins shrank due to escalating costs and consumer focus on low calorie foods. In order to deal with the situation, Kraft launched a restructuring plan in 2004. While the first plan was underway, the company announced another round of restructuring in 2006 and proposed to close several plants and cut jobs. It also planned to reorganise its product portfolio. This led the analysts to wonder whether the company’s restructuring plans would pay off or the company needed to introduce new products. The case starts with a brief history of Kraft Foods and moves on to the problems faced by the company. It then discusses both the restructuring plans of the company. The concluding section poses a question about how successful these plans would be in steering the company to healthy profits

Pedagogical Objectives:

• To know the problems faced by Kraft Foods, the second largest food company in the world
• To analyse the restructuring strategies of Kraft Foods
• To understand the importance of being in touch with customers
• To understand the significance of successful new product launches.

Keywords : Kraft Foods; Snacks; Beverages; South Beach Diet; Altria; Convenient meal; Grocery; Growth Strategies Case Study; Nabisco Holdings; Miracle Whip; Velveeta; Oscar Mayer; Cheese and dairy; Digiorno Pizza; Philip Morris; Tassimo

Contents : 
Introduction
About Kraft Foods
Troubled Times At Kraft
Kraft’s Restructuring Strategies
Kraft: Select North American Brands
The Making Of Kraft Foods