Table of Contents
Introduction
Kraft Foods Inc. represents an American multinational company engaged in the field of food, beverage, and confectionery. The company sells numerous products in over 170 countries, whereby 12 of its products earn annually a revenue surpassing $1 billion. On 1st October, 2012, Kraft Foods Inc. split with its North American segments in a bid, allowing each company to pay more attention to its distinct growth profile, strategic priorities, product categories, complete with customized cultures, financial targets, organizational structures, operating models that readily align with own markets, business, and distinct opportunities.
The spin off has been central in enabling Kraft Foods allocate its resources and deploy its capital in a way that aligns with its unique operations focus and strategic priorities, which has, in turn, contributed to optimization of total returns. The company has close to 10 brands with over $550 million in 2011 annual sales, and another 17 brands registering over $100 million annual sales in 2011. Kraft Foods operates in an environment that can be regarded as ‘difficult’, owing to heightened competition among the diverse industry players, as well as the several significant demographic shifts and shifting consumer preferences that are increasingly transforming the market.
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The Company’s Mission Statement and Analysis
Mission statements mainly express what is the reason and purpose of the company’s existence. The company’s mission statement features three words, namely: “make today delicious” The mission mirrors what the company is in the same way as the company vision. The mission statement stimulates managers to consider the nature and scope of the business. In the statement, the company goes beyond what it usually does and incorporates meeting consumers’ expectations to the effect of making the food healthier, easier, and more enjoyable.
The company’s mission “Creating a more delicious world” can be regarded as capturing one’s imagination. Kraft Foods channels its efforts towards areas that it can render the greatest difference with its global priorities, focusing on key areas such as sustainability, food safety, health and well-being. Kraft Foods Group seeks to be reliable to all its employees and customers. The company has managed to come up with a short, precise mission statement that captures the company’s long-term direction, and reflects the overall objectives of all the stakeholders. Kraft Foods pursues to make its brands nutritionally better, and more wholesome devoid of compromising taste. The Kraft mission statement indicates it intention to be recognized as the undisputed leader within the global market for foods.
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Company’s Vision and Analysis
Vision statements are analogous to others in the sense that they outline the organization’s purpose; nevertheless, vision statements essentially spotlight the organization’s core beliefs as to the manner in which activities should be carried out, and establish an image regarding the future that the company aspires to attain. Vision statements seek to inspire and avail direction to the employees regarding the direction that the employees should undertake. Kraft’s Foods vision statement detail: “Helping people around the world eat and live better”.
Kraft Food Group mission attempts to outline own vision for the future. ‘Helping People around the World Eat and Live Better’, – this vision statement encapsulates the spirit of the firm. It demonstrates that the company cares on the customer’s life and necessitates life and needs by offering more time to undertake what they desire, and also aid them to take their meal healthier.
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The vision statement of the company is inspiring to the employees to get involved within the company. The vision easily encapsulates why and how the company makes and sells its products, and what it cares about. Similarly, it encapsulates the significance of health and wellness, and also exemplifies all the means that individuals take to eat and live better. An effective and winning vision statement is powerful and compelling, expressing confidence and inspiring views regarding the future. The significance of the Kraft Foods vision cannot be understated. The Kraft Foods Vision Statement concisely outlines the values, services, and the projected company’s vision for the future. As a global company, Kraft Foods seeks to “raise the populations up-out of hunger and poverty, towards adoption of healthier lifestyles”, based on what the company “make and how they make it.” Kraft Foods attains this through numerous points such as its supply chain (agricultural sourcing initiatives that make the company a leader in purchasing of raw materials.
Company’s Values and Analysis
Value statements highlight the ethos of a company, or the ethics under which the entity intends to conduct business. Each mission and vision statement should remain intrinsically grounded in the organization’s core values. Kraft Foods appreciates that actions speak louder than words, and, as such, Kraft Foods Group:
- We inspire trust.
- We act like owners.
- We keep it simple.
- We are open and inclusive.
Kraft Foods values can be summarized as innovation (meeting real life with distinct ideas); quality (execute the promise to deliver the ultimate best); safety (guaranteeing enhanced standards in all that it does); respect (caring for individuals, the community, and the environment); integrity (undertaking the right thing); and, openness (fostering an open dialogue and listening to the ideas advanced by others). The outlined standards shape the way in which the company conduct its business and sustain its commitment to people who work, invest, and purchase the company’s products. The company’s values, goals and objectives stimulate employees to get actively involved in the company’s endeavors through shared values and standards of action.
Goals and Objectives
A company’s goals are essentially quantifiable and measurable, achievable, and critical detailing deadlines expressed in terms of revenue, market share, and profit for the entity.
Kraft Foods objectives detail: “Make Kraft the North American Food & Beverage Company”. In pursuit of its mission and vision, Kraft Foods has outlined strategies designed to guarantee that:
- the company’s products become consumers’ first choice the company is well placed to shape rewarding alliances,
- retailers and other consumers perceive Kraft as indispensable partners, individuals are keen to work with the company,
- the company can be perceived as a responsible business enterprise and recognized as a high quality performer within its sector.
Alignment of Kraft Foods Group Mission, Vision, Values, and Goals with Stakeholders’ Interests
An organization’s mission, vision, values, and goals are critical in influencing the prosperity and growth of the organization. Studies indicate that effective organization’s mission, vision, values, and goals can enhance an organization’s profitability and can enhance shareholder equity. Kraft Foods mission, vision, values, and goals are well-articulated and aligned with the stakeholder’s interest. For instance, Kraft Foods mission and vision mirrors an entity determined to be a market leader in the food and beverage industry. In doing so, the company manifests determination to become the best investment within the industry. This sufficiently serves and embodies the interests of majority of the stakeholders. Kraft Foods manifests an aspiration to deliver profitable growth, persistent bottom-line growth, and superior dividend payout to the shareholders. The company’s mission, vision, values, and goals are indicative of an entity determined to allocate resources, leverage its sales capability, and persistent focus on cash generation.
Kraft Foods has manifested a strong drive to compensate for performance by enhancing the variable component within its compensation programs, embrace 20/70/10 performance model, and increasingly drive wider, deeper stock compensation and ownership. Although, the company’s mission statement does acknowledge the company’s strengths, it can be faulted for not concisely defining the anticipated shareholder returns. Hence, stakeholders cannot adequately project performance in terms of the anticipated returns. Given that one of the major motives for businesses centers on making profit, then it is logical that the mission statement should feature an expectation of profit through some aspects of the company’s profit performance, which may encompass aspects such as product quality, market share changes, competitive cost position, and capital structure efficiency.
Recommended Changes
The company’s mission statement does not adequately outline the boundaries detailing how resources within the organization should be allocated, and what strategic and operational objectives should be pursued. Kraft Food Group should incorporate its strategic plan that incorporates as is the case of Kraft Foods Group, is critical in aiding organization remain focused on what is pertinent.
Conclusion
An organizational mission can be regarded as the organization’s reason for existence. The mission frequently mirrors the values and beliefs of top managers within an organization. An effective mission statement inspires employees and avails a focus and direction for setting lower level objectives. Mission statements are critical to the prosperity of any organization and play a critical function in guiding the direction that employees should take in making decisions. Kraft Foods core values are indicative of an entity bearing strong belief in remaining focused, manifesting willingness and commitment to innovate, turning strong results into an enthusiasm to win, practicing teamwork, and demonstrating confidence and trust among all employees. The pursuit of the mission and vision has motivated Kraft Foods to accelerate growth of its key brands, broaden awareness of its brands, reinforce the portfolio of brands, enhance the quality and service at the lowest possible cost, and institute company values that reinforced by committed employees.
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