Kraft Food Company
Kraft Food Company
Being in business is not easy. There are situations when an entrepreneur is faced with challenging situations. This means he has to make choices that are risk taking. According to Kraft Food Company, their system is not any different. They undergo challenges as like any other business. However, they have different strategies; they follow to avoid extreme situations. There are certain steps that various companies follow. The generic strategies followed by Kraft Food Company are cost leadership, differentiation, niche focus and Preemptive move (or first-mover advantage). These strategies relate to comparative advantage.
Understanding these concepts is vital. However, applying them practically may be the biggest issue. Kraft Food Company defines its norms in a manner that helps it to achieve its goals. The company makes it a point to use the least expenses and maximizes profits. For example, instead of having many workers, it uses machines that can be operated by few employees. Before a decision is made there is need to research and use the most effective ideas. In addition when applying the cost leadership strategy, the aspect of production of quality products is appreciated (Deardorff, 1997, p. 5). This attracts more consumers and profits gained. In terms of differentiation, Kraft Food Company makes it a point to produce unique products. Their foods are so tasty but the manner they are packed makes it more attractive. For example, the establishments of reusable tins make it more advantageous to buy food from Kraft Company. Niche focus is ideally important. This means that Kraft Food Company makes sure they follow a given order, makes certain kinds of food or focuses its market on specific consumers. For example, it may decide to make foods that are enjoyed most buy kids depending on area of location. Therefore, all these strategies act as competitive advantage solution. They look at what other food companies and try to be unique to be the best producers and sellers.
As earlier said there are many challenges that face businesses and companies. This includes Kraft Food Company. The challenges opportunities and benefits that a company follows will depend of the strategic choices made. This means that, thorough research has to be done and decisions should be group based. For example, Kraft Food Company may face a challenge of low demand. This is common on certain times of the year. However, there is always a solution if one digs deeper. The company can have a variety of options that can cover up for certain low seasons when sales are low. In case they dealt with foods that attract children a lot, then they can organize to bring up another company in different location. This company should focus more on producing foods that favor another group of people. The ideology is to maintain the sales in one area in case another area is less productive (Costinot, n.d., p.7). There are situations when seminars are more important. Allowing some executive employees to indulge in international meetings can give the company a heads up on where they are going wrong. In addition, there are certain Employees who feel motivated when their efforts are recognized (Cristini, 2011, p.4). Therefore giving them a treat or an abrupt increment can motivate them more. Certain challenges can be worked on while the benefits increase if the employees are appreciated.
Most organizations neglect the fact that the environment is important to the people. These include noise and smoke. Kraft Food Company has always figured ways to sustain the environment. In case of waste produce, they dump it at the correct site. Under most occasions their waste produce act as manure. Therefore, they sell them out to farmers. This increases their sales even though it may be little. In addition, they help the farmers produce more raw materials to make their finished products. This makes the community happy and healthy in the end. Through identifying their course and need for expansion they adhere to the environmental rules. Kraft Foods Company knows that sustaining the environment will expand their business. Apart from considering the community, they help themselves by being healthy. The employees are entitled to maintain high standards of hygiene. This is important because if the employees are dirty they may get diseases. In addition, some may fail to go for check up and may contaminate the products they produce. This can be a disaster as it may affect the consumers. This will mean that they are putting the company at stake. Finally, the company makes it a point to follow the sanitary and Phytosanitary measures as desired by world health organization (Warriner, n.d., p. 1). This helps them to use the right proportions of preservatives in order to be accepted for international exportation.
In conclusion, Kraft Food Company is strategic in its duties. It makes all the necessary steps to achieve the company’s goals. There is nothing special in Kraft Food Company. Instead, they are creative and apply the generic principals of comparative advantage to meet its expectations.
Reference List
Costinot, A. (n.d.). An elementary theory of comparative advantage. Retrieved January 29, 2013,
from
http://www.princeton.edu/~ies/Costinotheterogeneity.pdf
Cristini, A. (2011). Employees’ motivation and high performance workplace practices.
Retrieved Januay 29, 2013, from
http://www.sole-jole.org/12477.pdf
Deardorff, A. V. (1997). Benefits and costs of following comparative advantage. Retrieved
January 29, 2013, from
http://www.fordschool.umich.edu/rsie/workingpapers/Papers401-425/r423.PDF
Warriner, K. (n.d.). Sanitation & hygiene in food processing. Retrieved
January 29, 2013, from
http://webbertraining.com/files/library/docs/32.pdf
