KraftFoodsGroup
Executive Summary
Corporate strategies are necessary ingredients that companies have to embrace to remain competitive. A sustained competitive edge can prove hard to crack among business rivals. In the recent past, the core stratagems that formed the basis of discourse in the academic arena were maxims fronted by Michael Porter or Porter’s generic approaches with a bias on cost and differentiation. Any modern strategist is literally concern with the unique approaches including cost leadership, differentiation, focus and how to mitigate the worst case scenario. The core approaches applied by Kraft Foods Group are focus and differentiation methods. The organization’s tactical options are made in arrangement with its strengths, weaknesses, opportunities and weaknesses. Much as the company is striving to be an authority across the market, there are some measures that it has to make to reach its goals. Nevertheless, Kraft Foods Group strategic options are in tandem with its vision and mission.
Introduction
The importance of strategies in the management of organisations has been given emphasis from time to time, as a way in which organisations can be able to sustain their business operations for a long period of time Through strategic planning process, a number of organisations have managed to devise tactics of handling their business operations for the future, so as to create a better competitive position in the competitive business environment. Strategies are important tools for an organisation, it cannot itself guarantee success for an organisation, if the organisation does not go an extra mile to carry out an analysis of the business environment and determine the changes which are taking place. In most of the organisations, strategic planning has become part of their routine activities in which the organisations seek to determine their future direction in the unforeseeable future (About Us. 2013). This paper sets out to determine the core business tactics used by Kraft Foods Group at the business level. In addition, it offers a critical review on the primary strategy with respect to the organizations strategic control systems. The need for technology is critical and the management at Kraft Foods Group has no choice but to adopt modern tools of trade (Working Mother 100 Best Companies. 2013).
Kraft Foods Groups Strategic Control Systems
Designed to provide customers with services that are not only responsive but efficient, Kraft Foods Group can be regarded as unique operational systems. Normally, systems of operation in Kraft Foods Group consist of three subsystems each of which is independent: input, processing, and output. Though independent, the degree of synchronization of these three subsystems determines the level of success of the Kraft Foods Group operational system. Therefore, no effort to improve the service, quality, and responsiveness of Kraft Foods Group system of operation can become successful without focusing on the interactions of these three subsystems. The fast-food industry is becoming more competitive and multifaceted. In this industry, Kraft Groups Foods is therefore faced with two-face challenges (Kraft Foods Foundation Fact Sheet, n.d.).The first challenge is that while sales are lessening, the operating costs of fast food Companies are increasing. The other challenge is that customers are becoming increasingly demanding and also highly selective of the services they expect. These two challenges, together with a myriad of others, present Kraft Foods Group stakeholders and operation managers with a unique challenge on how to keep their premises profitable amid the shrinking market while at the same time satisfying the sophisticated customers with services that are of high quality yet efficient. Achieving this objective is seemingly impossible, but operation managers at Kraft Foods Group must pursue effective strategies for improving specific technologies and processes to enhance efficient services. This can be done by mainly focusing on improving the operational efficiency and the operational quality of the Kraft Foods Group system of operation. However, these two operational factors are usually not mutually exclusive. Most people in the fast-food industry have the misconception that operational quality is usually achieved at the expense of operational efficiency, and that the former can therefore not be justified enough. To improve operational efficiency, operation managers at Kraft Foods Group must first focus on improving the business inventory systems. This is especial possible by using technologies that will help eliminate a lot of paperwork and that will minimize the errors of monitoring inventories. Good inventory management will help to cut down on the cost of handling materials and the rate of wastage. A good inventory system must go hand-in-hand with the technique of forecasting, which includes observation of seasonality and trends (Ackerman, 2009).The fast-food industry is characterized with a lot of seasonality, whereby certain products have on- and off-peak times and seasons. With the right forecasting of these seasons, the inventory system will help reduce wastage because the customers’ trends will be understood.
A good inventory system, especially one that is not manual, will also help in better menu management and scheduling. This, together with the quantitative technique of linear programming, will solve most staffing problems, increase labor efficiency, and therefore cut labor costs. Linear programming, which helps in menu management, scheduling, and labor efficiency, optimizes meal production and profitability by using basic algebra. It creates certain relationships, for instance that between an increase and decrease in incoming materials (especially food resources) and an increase or decrease in the output or meal production. For instance, if Kraft Foods Group only has half of the required supply of cream base, then it is simply able to prepare half of its usual quantity of cream soup for the day. This will also enable the management to create menu combinations that will optimize profitability (http://www.diversityinc.com/talent-development/what-makes-Krafts-talent-development- so-successful/). To improve Kraft Foods Group operational quality, the management must focus on the three interrelated subsystems mentioned before, and quality control measures must come into play. The input subsystem is improved by monitoring the qualitative and quantitative aspects of all incoming material. This should be done using a combination of both manual and digital systems. Ensuring that incoming materials are of high quality helps in minimizing wastage and also in making sure that the output is also of good quality. The work-in-progress and the output must also be monitored, along with understanding the attitudes and needs of the Kraft Foods Group customers. To improve operational quality, the management must also adopt technological and marketing improvements (DiversityInc. 2012).
The process design is vital in improving the efficiency and quality of Kraft Foods Group operations. This is a delicate balance, because customers expect a process that is both quick and that produces a quality output. When processes become slow, customer satisfaction is minimal, as customers feel that the Kraft Foods Group is not operating at its best. Through statistical analysis, the management can detect where too many steps exist, where too many people are concentrated on a certain process, where wastage occurs, and how to get rid of these mishaps. Having too many people on the same spot of production causes things to slow down, as is having very few people for a demanding spot. Therefore, a good process design enables the management to reallocate employees throughout the company. The management should reinforce staff roles by ensuring that all members of staff understand the tasks for which they are responsible. Thus, every process will become efficient without one employee expecting another to do it. Those cooking will do so without having to worry about waiting on or serving customers. To improve efficiency, the operation management at Kraft Foods Group must maintain an open-door policy. A Corporations business needs numerous ideas to grow. This means that the management should always maintain a platform for the Kraft Foods Group staff to give their ideas on new and innovative ways of conducting business. An employee might give an idea that would improve the efficiency and profitability of a process (Ackerman, 2009).
At Kraft Foods Group, the management must also develop procedures that are very specific. For the company to run like a well-oiled machine, every staff member must understand the processes, from preparation, cooking, serving or packaging, delivery, to cleanup. This way, every employee will know where and how to fit best in the processes no matter what shift he/she comes in. Even for the wait staff, this is vital, as specific procedures on waiting on customers will enhance customer service and greater operational efficiency (Kraft Foods Inc.2012).
Finally, Kraft Foods Group cannot become successful in its operations without investing in technology. For instance, an electronic high-efficiency register will enable the wait staff to easily place orders and equally calculate tab totals. This will not only increase speed and efficiency, but also enhance the overall customer experience. It is of the essence to identify the bottlenecks across Kraft Foods Group systems, most of which begin in the company’s design and setup (KRAFT, 2013). Most bottlenecks arise from Kraft Foods Group design phase, whereby the design does not put into consideration some vital factors such as the steps that employees will take to deliver food to the customer and the place where customers will stand or line up when waiting to place their order. Most bottlenecks occur between the drive-thru and the service crews, which slows down the whole process. For instance, the drive-thru station must be self-contained, such that the customer driving through can place orders, access beverages, condiment packaging, and food delivery directly to clients. This will keep the cars in the line moving, trim down on labor costs, and improve the overall efficiency of operation. But, above all, this will enhance customer satisfaction, considering that the return customer is usually the lifeblood of Kraft Foods Group (Find A Job with Us. 2013).
Conclusion
For Kraft Foods Group to achieve a better competitive advantage in the market place, it has to be able to come up with business strategies that are unique as compared to those of its competitors. These strategies are viable means that can enable the organisation to derive success in its business operations, as long as their application meets the set goals as well as the ethical principles. Generally, the strategic choices are perfectly aligned with the vision and mission of the company.
References
About Us. (2013). Retrieved from http://www.mondelezinternational.com/About/index.aspx
Ackerman, A. (2009). [Web log message]. Retrieved from http://consumergoods.edgl.com/case- studies/Kraft-Foods-Drives-Change49354
DiversityInc. (2012). Kraft Foods No/ 18 in the DiversityInc top 50. Diversityinc, Retrieved on July 29, 2013 from, http://www.diversityinc.com/Kraft-foods/
Find A Job With Us. (2013). Retrieved from http:// http://www.kraftfoodsgroup.com/Careers/Find_a_Job_With_Us/index.aspx
Kraft Foods Foundation Fact Sheet. (n.d.). Retrieved from http://www.Kraftfoodscompany com/SiteCollectionDocuments/pdf/KraftFoods_Foundation_Fact_Sheet.pdf
Kraft Foods Inc. (2012). Financial Analysis and Stock Valuation. Retrieved from http://www.stock-analysis-on.net/NYSE/Company/Kraft-Foods-Inc
Kraft Foods, (2013). Management team. Retrieved from, http://www.kraftfoodsgroup.com/About/profile/index.aspx
Kraft Foods. (2013). Retrieved from http://www.morningstar.com/earnings/earnings-call- transcript.aspx?region=USA&t=KRFT&pindex=2
What Makes Kraft’s Talent Development So Successful? (2013). Retrieved from http://www.diversityinc.com/talent-development/what-makes-Krafts-talent-development- so-successful/
Working Mother 100 Best Companies. (2013). Retrieved from http://www.workingmother.com/best-companies/Kraft-foods-7
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