Sunday, 23 December 2018
'Kraft Foods and Corporate Social Responsibility\r'
' world(prenominal) Ch every last(predicate)enges\r\n private Assignment: kraft victualss and CSR.\r\n2012 Global Challenges bow of Con decennaryts Table of Contents1 1. 0 foundation garment2 2. 0 coat3 2. 1 kraft viandss Inc. 3 2. 2PESTEL Analysis3 2. 3 get through the books Analysis5 2. 4 doorkeepers quint Forces5 2. 5 anxiety at kraft paper aliments Inc. 6 3. 0 incorporated tender Responsibility6 3. 1 electrical shock of CSR on kraft Foods Inc6 4. 0 ending7 5. 0 good words7 6. 0References8 1. 0 Introduction charge is a term that is utilize and heard of every day and a authority that is undertaken everywhere you go.\r\nItÃ¢â¬â¢s the ability to apply and produce the best from a team or from a task, the body process of completing a task development the resources that argon available and taking certificate of indebtedness of the situation in die. Even as mortals every angiotensin converting enzyme participates in c be in one form or an in the buff(prenominal), wh ether itÃ¢â¬â¢s in a work milieu or simply from the everyday raceway of life. In a vocation sense however, Ã¢â¬Ë focusing is the rail lines within an organisation charged with running the organisation on behalf of the beneficial proprietorÃ¢â¬â¢ (Pg no 294, Martin, 2005).\r\nThis report is going to disc over the distinct principles and postures of focussing, how it can be utilise to individual companies and pipelinees and then go on further to examine Corporate friendly Responsibility and how firms single-valued function this. Ã¢â¬ËAccording to Mintzberg (1973) in that location argon ten management roles, these argon Ã¢â¬ËMonitor, Disseminator, Spokesperson, depicthead, Leader, Liaison, Entrepreneur, Disturbance handler, Resource allocator and treaterÃ¢â¬â¢. Mintzberg proposes that every managerÃ¢â¬â¢s role combines a number of roles, rather than ten individual roles. (Boddy, 2009) For ex adenosine monophosphatele a chief operating officer of a fratern ity could be a figurehead, a spokesperson, a superstargonr as sound as the negotiator; more thanover he would assign the other roles to other circumstantial managers or colleagues. Management involves a gigantic amount of planning as its decorates out the direction of the work that need to be done and the objectives that need to be achieved. According to Boddy (2011) Ã¢â¬ËSMART acronym summarises criteria for assessing a set of goalsÃ¢â¬â¢. This covers: Specific Ã¢â¬ Does the goal set specific targets?\r\nMeasurable Ã¢â¬ Ensure you can stride the progress towards the attainment of the goal attainable Ã¢â¬ Assuring the goals are challenging that reachable Rewarded- A reward is upholded for succeed the goal Times Ã¢â¬ The time home plate of which the goal is to be achieved in Boddy (2010) proposes that Ã¢â¬ËÃ¢â¬â¢goals and objectives are the sameÃ¢â¬â¢Ã¢â¬â¢. as yet in cases standardized this it could be argued that they are different in which the goal is the overall target or aim, and the plan which impressions at what is involved to obtain this goal is do up of individual objectives at each level.\r\nA widely employ management baby-sit used within virtually every party is the Competing set Framework. Ã¢â¬ËÃ¢â¬â¢It has been named as one of the l or so important models in the bill of business and has been studied and tested in organisations for more than twenty five ageÃ¢â¬â¢Ã¢â¬â¢ (CVF, 2009). The model is do up of quartette components and each quadrant represents a different model and the roles that are played within the model; which can be seen in the diagram below in Figure 1. 1. The following section will raise how the fashion model can be utilise to individual companies. Figure 1. 1 Competing Values Framework.\r\n witnesser: Octogram. net (2005) 2. 0 Application 3. 1 kraft paper Foods Inc. Kraft Foods Inc. is the help largest food alliance in the knowledge domain generating annual revenue of ? 54. 4 billion. The phoner was founded in 1903 in Chicago, North America, where their home plate are equable based, and shares began trading on the New York Stock Exchange in 1991. They nonplus over 126,000 employees in over 70 countries and they sell products to consumers in clxx countries. KraftÃ¢â¬â¢s products are separate into five categories: snacks and cereals, beverages, cheese and dairy, grocery, and convenient meals.\r\n popular household name mark offs include Philadelphia, oreo cookie and Cadburys, which they recently acquired in 2010 for $18. 5billion. The eruditeness created the military man beingÃ¢â¬â¢s largest confectioner, and confectionary now makes up for 28% of their net revenues. (Kraft Foods, 2012) In 2011 Kraft de none its intent to create ii autarkic public companies by the end of 2012 as a strategic approach for ripening; one being a extravagantly growth global snack business and the other a high valuation account North American grocery busin ess. 3. 2 PESTEL Analysis Ã¢â¬ËPESTEL analytic thinking is a utile tool to understand the macro-environment in which Kraft Food Inc. perates and how these factors affect the party. PESTEL framework helps approximate the risks associated with commercialize growth or dec form, and the spotlight and direction of the company. Ã¢â¬â¢ (Bender and Ward, 2008) It examines six different segments, which are: Political, Economic, friendly, Technological, environmental and Legal. Although there are some factors which fall under each of the segments of the PESTEL analysis it is important to see them and select the about significant factors which have the greatest doing on the company. POLITICAL Kraft Foods Inc. s subject to various federal and demesne laws in the U. S relating to the protection of the environment. They too have manufacturing facilities in 70 countries and consumers in 170 countries which subjects them to individual environmental laws, wellness and hygiene regul ations in every state of matter which they operate. ECONOMIC As Kraft operates in 170 different countries, currency fluctuations and unfavorable exchange rates can em superpower obligate on the companyÃ¢â¬â¢s earnings, particularly with the current Eurozone crisis. Ã¢â¬ËIncreased unemployment in the U.\r\nS and other countries will lead consumers to get down spending on allowance quality productsÃ¢â¬â¢ much(prenominal) as those made by Kraft Foods Inc. (Bloomberg,2010) SOCIAL nutrition patterns are rapidly changing in emerging economies like Brazil, China and India. The volume in these countries are spending more on packaged food and this sociable drift has provided companies like Kraft to look towards emerging markets to increase revenues. (Yahoo Finance, 2010) Consumers are overly getting increasingly aware roughly wellness implications of food which can begin obesity. Ã¢â¬ËFederal Trade Commission describe that child obesity in the U.\r\nS has quadrupled in the last four decadesÃ¢â¬â¢ (RWJF, 2008). Food and Beverage companies need to respond to these changes to maintain its market share and net income. TECHNOLOGICAL Ã¢â¬ËKraft is investing heavily in bran- vernal technology to reduce carbon dioxide venting and protect the environment. They have adopted a policy where there is increase use of rail and barge transport or else of using trucks. Ã¢â¬â¢ (Kraft Foods, 2010) ENVIRONMENTAL at that place is increased mash from governments and the general public rough the way companies operate and their effect on the environment. Ã¢â¬ËIn 2008 Kraft Foods Inc. ame under pressure when Rainforest Action Network asked companies such as Kraft Foods Inc. to stop acquire palm oil from Indonesia to prevent deforestation. Ã¢â¬â¢ (CNN, 2008) judicial Kraft operates in a exceedingly regulated environment with a incessantly evolving legal and regulatory framework almost the cosmos; particularly when selling products for human consumpt ion involves inherent risks such as contamination. Ã¢â¬ËCadbury, now owned by Kraft Foods Inc. had to recall 11 chocolate types in China in 2008 when at least(prenominal) 50,000 babies fell ill and 4 died by milk tainted with an industrial chemical. Ã¢â¬â¢ (BBC, 2008) 3. SWOT Analysis Another approach that companies implement is the SWOT analysis. Ã¢â¬ËÃ¢â¬â¢The core of this approach is a simple and eminently reasonable strategy that is concerned with identifying opportunities in the enterprises remote environmentÃ¢â¬â¢Ã¢â¬â¢ (Pg No 721, Linstead, Fulop & Lilley, 2009). This analysis examines the strengths and weaknesses interior(a) to the company and then the external opportunities and threats. In Kraft Foods Inc. case the strengths that can be identified are that they are the worldÃ¢â¬â¢s second largest food company and they have strong brand right with over 100 days heritage.\r\nHowever their weaknesses are that the Cadburys eruditeness resulted in added debt pressure and they are subject to cut pharynx contender from rivals such as Nestle. From the external point of view an opportunity for the company is that they could centre refreshed products in the health related market such as introducing low plunk down or natural products. But on the other hand a threat for Kraft is that the Cadburys erudition resulted in a lot of protests and disadvantageously media from the British which resulted in a lessening of profit margins. 3. 4 hall porters Five Forces\r\nPorterÃ¢â¬â¢s five forces is an analysis framework that identifies the competitiveness intensity and the five forces most relevant to the profitability of the company. Ã¢â¬ËAccording to Porter (1980a) the ability to earn an acceptable come back depends on five forces Ã¢â¬ the ability of new competitors to enter the industry, the threat of fill in products, the negotiate power of buyers, the bargaining power of suppliers and the contestation amongst existing custom ersÃ¢â¬â¢ (Boddy, 2008, Pg No 93). This framework is present in the diagram below in Figure 2. 1. Figure 2. Porters Five Forces. Source: Wikepedia When looking at the bargaining power of suppliers with Kraft Food Inc. suppliers do not hold much power to follow through the company to extract their profits overdue to the competitive nature of the industry. Buyers however have an opportunity to extract firm profits as demand changes over the full stop of time. Due to intense competition in the market, there is a low mishap for new entrants to capture the market, and the threat of substitute products is medium as Kraft Foods Inc. hold such a large market share in the industry.\r\nFinally competitors such as Nestle and KelloggÃ¢â¬â¢s are spending enormous sums of money for the promotional material and advertising of their brands yet Kraft Foods Inc. is still the second largest in the world. 3. 5 Management at Kraft Foods Inc. As previously mentioned in the introduction, every businessÃ¢â¬â¢s management model can be applied to the Current Values Framework. When analysing KraftÃ¢â¬â¢s business strategy and management it is evident that their current dominant model is the Rational Goal toughie. This model focuses towards maximation of output and making a profit.\r\nOf course, the vast majority of companies would be dominantly working from this model as every company ask to make a profit in order to survive; although successful models of management relate to all four of the segments. Ã¢â¬ËÃ¢â¬â¢The elementary assumption of the Rational Goal Model is that clear direction leads to productive outcomes. There is a continuing emphasis on processes such as goal clarification, sensible analysis, and action taking. All decisions are drive by consideration of the bottom lineÃ¢â¬Â. (Taylor, 1911) Kraft Foods Inc. hows elements of dominantly using this model from their dirty achievement of Cadburys and with their intent to create two independent publi c companies as a strategic approach for growth. 3. 0 Corporate Social Responsibility Ã¢â¬ËÃ¢â¬â¢Corporate Social Responsibility is the business contribution to sustainable development goals. Essentially it is about how business takes account of its economic, social and environmental impacts in the way it operates Ã¢â¬ maximising the benefits and minimising the downsides. Ã¢â¬â¢Ã¢â¬â¢ (CSR, 2009) 4. 6 Impact of CSR on Kraft Foods Inc Kraft Foods Inc. as thrown into the media in 2010 with their hostile acquisition of CadburyÃ¢â¬â¢s. CadburyÃ¢â¬â¢s unions opposed to the take-over in revere that there would be big job cuts, and UK politicians even weighed in voicing their concerns. Ã¢â¬Ë hobby the acquisition five senior executives of Cadburys inject and only 30% of the leadership positions were made available to Cadburys staff. Ã¢â¬â¢ (FT, 2010). By the end of the acquisition over four hundred jobs had been cut by Kraft, this was deemed as an extremely unstable case of CSR, particularly in the social aspect; and the company have been pictured negatively in the media ever since.\r\nHowever, it is not all negative when it comes to KraftÃ¢â¬â¢s CSR. Ã¢â¬ËOver the past 25 years they have donated more than $770 million in cash and food to those suffering from hurt and malnutrition. Kraft Foods ranked 23rd in the 2011 Corporate Social Responsibility ability and were recently awarded the Gold Award for Environmental Excellence at the 4th Global CSR Awards 2012. Ã¢â¬â¢ÃÂ (Kraft, 2012) They work with non-profit organizations such as nutriment America in the U. S. and Save the Children in Southeast Asia as well as helping develop healthy lifestyles programs for children in the U. S. , Russia and many other places. 4. 0 Conclusion In conclusion the above shows us how the management theory helps us to analyse an organisation, and we can see how Kraft Foods Inc. operates successfully using the Rational Goal Model. They do however operate in a hi ghly competitive food sector, where margins are diminishing, and they have to face tough competition from branded food as well as generic food manufacturers, particularly in this economic slowdown.\r\nAlthough the company does pertain in a lot of CSR activities, a bad image always carcass with customers for a lot longer than a positive one, and they still have a negative image portrayed on themselves from the hostile takeover of Cadburys. 5. 0 Recommendation Kraft Foods Inc. could benefit from repositioning their brand image in the markets to communicate with customers to remove the negative thinking from their minds which arose after Cadburys acquisition. They should as well as consider moving towards the Human traffic model in the CVF which emphasises commitment, cohesion, and morale. The key set are participation, conflict resolution, and consensus building. In this model the organisation takes on a team-oriented climate in which decision making is characterised by deep in volvement. Ã¢â¬â¢ (Quinn, 1988) This would be beneficial in gaining trust and respect from the employees after all the conflict and job losses that arose from the acquisition of Cadburys. Another option for the company, as mentioned onwards in the SWOT analysis, is the expansion into new and developing markets which will aid the company in earning more profits to take care their debt requirements.\r\nWith the consumer market becoming more health and environmentally conscious, organic and reduced fat content products could be a box in the market for a confectioner such as themselves. 6. 0 References BBC (2008). cyanuramide found in Cadbury goods. September 2008. accessible: www. bbc. co. uk Accessed 12 may 2012ÃÂ Bender, R. and Ward, K. (2008). Corporate financial strategy. 3rd Ed. capital of the United Kingdom: Macmillan p. 52-55. Bloomberg, Homan, T. R. (2010). U. S. Employers Add few Jobs Than Forecast. December 2010. ready(prenominal): www. Bloomberg. om Accessed 24 A pril 2012. Boddy, D (2011). Management, An Introduction. 5th ed. Essex: Pearson. CNN, Gunther, M (2008). Eco-police find new targets. August 2008. addressable: www. money. cnn. com. Accessed 23 may 2012. CSR. gov. uk (2009). Available: http://webarchive. nationalarchives. gov. uk/+/http://www. berr. gov. uk/whatwedo/sectors/sustainability/corp-responsibility/page45192. html/ Accessed 22 May 2012. CVF. (2009). Competing Values Framework: An Introduction. Available: http://competingvalues. com/competingvalues. om/wp-content/uploads/2009/07/The-Competing-Values-Framework-An-Introduction. pdf defy accessed 12 May 2012. FT. Elizabeth Rigby. (2010). Kraft hit by exodus of Cadbury executives. Available: http://www. ft. com/cms/s/0/1dad970a-69c1-11df-8432-00144feab49a. html#axzz1viuO14PA. hold water accessed 18 May 2012. Kraft Foods, About us (2012) Available: http://www. kraftfoodscompany. com/About/who-we-are/index. aspx Last accessed 28 April 2012 Kraft Foods CSR (2012) Community Inv olvement Available: http://www. kraftfoodscompany. om/About/community-involvement/community-involvement. aspx Accessed 22 May 2012. Kraft Foods, Document Sheet (2011) Available: http://www. kraftfoodscompany. com/SiteCollectionDocuments/pdf/kraft_foods_fact_sheet. pdf Last accessed 20 May 2012 Kraft Food Q1 Financial Figures Ã¢â¬ http://phx. corporate-ir. net/phoenix. zhtml? c=129070&p=irol-EventDetails&EventId=4756026 Linstead, S, Fulop, L and Lilley, S. (2009). Management & Organization. 2nd ed. London: Palgrave McMillan. Pg No 721. Martin, J (2005).\r\nOrganizational Behaviour and Management. London: Thomson Learning. Octogram. (2005). CVF Framework. Available: http://www. octogram. net/quinn-model Last accessed 6 May 2012. Porters Five Forces, Wikepedia. Available: http://en. wikipedia. org/wiki/Porter_five_forces_analysis Accessed 22 May 2012. Robert Wood Johnson Foundation (2008). Food and Beverage Marketing to Children and Adolescents: What Changes are needful t o Promote Healthy Eating Habits? October 2008. Available: www. rwjf. org Accessed 22 May 2012 Taylor,\r\n'