Introduction
This paper is aimed at evaluating such a company as the Kraft Foods Group from a strategic viewpoint. In order to do it, one should first examine the mission statement of this corporation, its vision, values and goals. These are the most critical elements of strategic planning.
This analysis is based on the information presented at the website. It is critical to show whether various elements of strategic planning reflect the interests of various stakeholders. Finally, it is necessary to identify possible changes that the managers should make in order to improve their competitive position. These are the main questions that should be examined more closely.
Mission statement and analysis
It should be kept in mind that such terms as mission and vision are often regarded by business administrators as interchangeable notions (Welch & Welch, 2008). Moreover, in some cases, companies release statements that contain both mission and vision. To a great extent, the management of Kraft Foods Group uses the same approach.
For example, Tony Vernon, who is the CEO of this organization, combines both mission and vision statement. In particular, he mentions that this corporation wants to be “North America’s best food and beverage company” (Vernon as cited in Kraft Foods Group, 2013).
Furthermore, this executive identifies the method for achieving this objective, in particular, he lays stress on such activities as “continuing to offer products consumers love, creating a performance-based culture that motivates and excites employees and becoming the best investment in the industry” (Vernon as cited in Kraft Foods Group, 2013). This is the mission statement of this corporation. Overall, one can argue that this statement has both strengths and weaknesses. There are several positive aspects that can be identified.
For example, this statement throws light on the HR policy. Furthermore, this declaration shows that the company is willing to consider the needs of investors. The only limitation is that this mission statement does not show how Kraft Foods Group can be distinguished from its competitors such as Nestle. Additionally, Tony Vernon does not identify the major attribute of the products offered by Kraft Foods Group.
Vision statement
It should be mentioned that vision statement is supposed to demonstrate what the organizations strives to become in the future. This element of strategic planning is supposed to show that the idealized version of the company. The management of this company identifies the following objective, “Our aim is to be North America’s best food and beverage company” (Kraft Foods Group 2013). One can argue that the management postulates a very ambitious goal.
Moreover, this vision is quite challenging, but this approach is important for motivating employees. These people should see that they work in an organization that can deliver superior products and retain its competitiveness for a long time. Moreover, this vision is also aimed attracting stockholders who should see that they invest capital into a very successful business that can remain profitable for a long time.
Values
It should be mentioned that the values of these business are not explicitly stated by the management. More likely, they can be identified from various statements that this organization makes. In particular, this organization attaches importance to such issues as satisfaction of clients, loyalty and commitment of employees, and security of investors.
These are the main aspects that can be singled out. Additionally, this organization attaches importance to corporate social responsibility. In particular, one can distinguish such elements as environmental sustainability, the safety of their products, and efficient corporate government. These values are critical for the long-term growth of this corporation. On the whole, such priorities are quite consistent with the short-term policies of this business.
Goals
The company wants to achieve several long-term objectives. As it has been said before, they want to be the best food and beverage company in North America. Additionally, this corporation wants to ensure reliable growth. Moreover, the management strives to improve the financial performance of this business since this indicator is important for attracting and retaining investors. This organization wants to be the leading producer mostly in the United States and Canada.
However, they do not intend to increase its market share in other regions or countries. Yet, they do not explain the reason for this marketing policy. This is one of the main shortcomings that should be considered. Moreover, the managers of Kraft Foods Group do not clearly identify short and long-term objectives of this corporation, while this information can be of great interest to potential investors or current stockholders.
Alignment of Strategic Elements with Stakeholder’s Interests
Overall, some of elements of strategic planning are aligned with the interest of some stakeholders. For example, workers want to receive compensation that reflects their individual effort. This priority is reflected in the mission statement according to which Kraft Foods Group has a “performance-based culture” that can prompt workers improve their performance.
Additionally, the company emphasizes that the interests of stockholders are of crucial importance to the management. These people want to make sure that their investment can contribute to their financial sustainability or security. Moreover, the goals and values of Kraft Foods Group indicate that they do not disregard the interests of the entire community. In this case, one can speak primarily about the environmental sustainability of production processes and safety of foods and beverages that they sell.
Thus, this business wants to position itself as a responsible corporate citizen. The main problem is that this organization does not focus on the specific values of buyers. These people can be concerned about various issues such as the price, taste, or health benefits. Yet, the managers do not explain how they company can meet these specific needs. This is the main problem that corporate executives should address.
Recommended changes
It is possible to offer several recommendations to the management of Kraft Foods Group. First of all, corporate executives should pay more attention to those qualities which distinguish this business from its rivals. These unique competences should be identified in the mission statement.
Researchers argue that business executives should concentrate on the reasons why a company can be singled out among other businesses (Hammonds, 2007). This part of strategy is vital for increasing the loyalty of various stakeholders, especially customers. This element is currently missing in the strategy of this business.
Additionally, the management should clearly identify specific benefits that the company can create for consumers. They need to show why buyers should choose their products, rather than the products of their competitors like Nestle. For instance, they can lay stress on the quality of foods and beverages. In other words, the managers should demonstrate how they promote the well-being of customers. In this way, they can purchasing decisions of clients.
Thirdly, Kraft Foods Group positions itself primarily as a North American company. However, this corporation has the capacity to become a global company. In this way, this organization can increase its profitability and attract new investors. Finally, the managers should describe their short-term objectives in greater detail. This information is important for investors who want to know what steps the organizations intends to take in order to achieve its strategic goals. These are the main recommendations that should be considered.
Conclusion
This discussion indicates that the management of Kraft Foods Group attaches importance to strategic planning. Their mission and vision are aligned with the interests of major stakeholders such as employees and stockholders. Yet, the information presented at their website does not explain how this corporation can benefit clients. Furthermore, the management should clearly identify the unique competences of this corporation and the attributes which distinguish it from similar businesses. These are the main aspects that should be considered.
Reference List
Hammonds, K. (2007). Michael Porter’s Big Ideas. Web.
Kraft Foods Group. (2013). Our Mission. Web.
Welch, J., & Welch, S. (2008). State your business: Too many mission statements are loaded with fatheaded jargon. Play it straight. Web.