Vision statement: Helping people around the world eat and live better Mission statement: Make Today

Delicious In order to fulfil this mission Kraft Foods Inc. focuses on consumers in everything that they do. The company also understands that actions speak louder than words, so at Kraft Foods: We inspire trust. (6) We act like owners. We keep it simple. (6) We are open and inclusive. (7) We tell it like it is. We lead from the head and the heart. (8) We discuss. We decide. We deliver. (7)

Objective: o o o o Sustainable/long term growth Reduced long term debt Improved international growth Decision making agility

Strategies: its products become consumers' first choice retailers and other customers view Kraft as an indispensable partner it is well placed to form alliances people are keen to work for the company it is viewed as a responsible business enterprise it is acknowledged as a high quality performer in its sector

Develop vision: To be North America's best food and beverage company. Develop mission: Continuing to offer consume favour products(1,2), creating a performance-based culture that motivates employees(9) and becoming the best investment in the industry (5).

Competitive Profile Matrix (CPM)

Critical Success Factor Advertising Financial position Global expansion Market share Product diversity Consumer demands Customer loyalty Product safety Total

Weight

KRAFT

ConAgra Foods

0.12 0.10 0.09 0.10 0.16 0.14 0.13 0.16 1

Rating 3 3 3 3 4 4 3 2

Score 0.36 0.30 0.27 0.30 0.64 0.56 0.39 0.32 3.14

Rating 2 2 2 2 3 3 2 3

Score 0.24 0.20 0.18 0.20 0.48 0.42 0.26 0.48 2.46

External Factor Evaluation (EFE) Matrix Key External Threats

Opportunities U.S. sales of organic food and beverages have increased from 1 billion (1990) to 26.7 billion (2009) Increase sales in packaged and processed foods in the restaurant industry Women are becoming more common in upper management (11.2% in 1995 to 16.4% in 2005) Long-term contracts are being renegotiated (potential advantage) Increased trends of bottle water and flavoring consumption Growing environmental consensus Threats Increasing obesity rates in North American How many employees were let go in the industry Rising oil prices used for manufacturing as well as delivery and facility operations Difficult to differentiate product pricing between competitors in the industry Customers switching to generic brands Increased intensity between competitors in European as well as other markets Declining value of the dollar with increasing value of the Euro North American competition is now primarily focused on the food industry Total

Weight

Rating

Weighted Score
0.24 0.40 0.24 0.03 0.52 0.18 0.06 0.04 01.0 0.08 0.27 0.21 0.04 0.52 3.14

0.08 0.10 0.06 0.03 0.13 0.06 0.03 0.04 0.05 0.04 0.09 0.07 0.02 0.13 1

3 4 4 1 4 3 2 1 2 2 3 3 2 4

Internal Factor Evaluation (IFE) Matrix Key Internal Threats Strengthens Positive sales and operating effectively is all 5 operating segments; Snacks, Beverages, Cheese, Grocery, Convenient Meals High priority and standards on food safety Diverse range of brands and products Strong focus on R&D Sales increase by 2.9% in North American markets Strong reputation and perceived value among customers Organic revenue increased by 2.3% in 2009 Weakness Possibility of perceived weakness from female CEO in certain foreign markets Risk of contamination in source products Drop in sales in Quarter 2 in 2009 (5.9%) High amounts of goodwill ($27.5 billion) $18.5 billion in long term debt (increased by 50% during 2009) Difficulty launching new brands Margins depend on commodity prices Total Weight Rating Weighted Score 0.24

0.06

0.06 0.08 0.08 0.04 0.12 0.07 0.02 0.12 0.08 0.07 0.07 0.09 0.04 1

3 4 4 3 4 4 2 1 2 1 1 1 2

0.18 0.32 0.32 0.12 0.48 0.28 0.04 0.12 0.16 0.07 0.07 0.09 0.08 2.57