Kraft Foods and Corporate Social Responsibility Essay

2758 Words Dec 5th, 2012 12 Pages
Global Challenges Individual Assignment: Kraft Foods and CSR.

2012
Global Challenges

Table of Contents Table of Contents 1 1.0 Introduction 2 2.0 Application 3 2.1 Kraft Foods Inc. 3 2.2 PESTEL Analysis 3 2.3 SWOT Analysis 5 2.4 Porters Five Forces 5 2.5 Management at Kraft Foods Inc. 6 3.0 Corporate Social Responsibility 6 3.1 Impact of CSR on Kraft Foods Inc 6 4.0 Conclusion 7 5.0 Recommendations 7 6.0 References 8

1.0 Introduction
Management is a term that is used and heard of every day and a role that is undertaken everywhere you go. It’s the ability to maintain and produce the best from a team or from a task, the activity of completing a task using the resources that are available
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The acquisition created the world’s largest confectioner, and confectionary now makes up for 28% of their net revenues. (Kraft Foods, 2012)
In 2011 Kraft announced its intent to create two independent public companies by the end of 2012 as a strategic approach for growth; one being a high growth global snack business and the other a high margin North American grocery business.

3.2 PESTEL Analysis
‘PESTEL analysis is a useful tool to understand the macro-environment in which Kraft Food Inc. operates and how these factors affect the company. PESTEL framework helps evaluate the risks associated with market growth or decline, and the position and direction of the company.’ (Bender and Ward, 2008) It examines six different segments, which are: Political, Economic, Social, Technological, Environmental and Legal.
Although there are many factors which fall under each of the segments of the PESTEL analysis it is important to analyse them and select the most significant factors which have the greatest effect on the company.
POLITICAL
Kraft Foods Inc. is subject to various federal and state laws in the U.S relating to the protection of the environment. They also have manufacturing facilities in 70 countries and consumers in 170 countries which subjects them to individual environmental laws, health and hygiene regulations in every country which they operate.
ECONOMIC
As Kraft operates in 170 different countries, currency fluctuations and unfavourable exchange rates

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