External Environment Analysis: Kraft Foods Group Case Study

Pages: 5 (1400 words)  ·  Bibliography Sources: ≈ 4  ·  File: .docx  ·  Level: Master's  ·  Topic: Business

Generally, the obtainability of substitutes is small. One substitute over Kraft Foods Group, Inc. is eating out at restaurants. Another substitute would be if consumer grew their own vegetables and fruits. Last of all, another substitute would be purchasing natural foods and not the treated foods that the company sells.

Rivalry of Competitors in the Industry

The food chain market is known to be kind of big. There are a few productions that are really good strong competitors of the company. The amount of rivalry among opponents is extremely high. Some opponents of the organization includes; General Mills, Kellogg, PepsiCo Hershey, and Nestle. The company has turned out to be one of the most prosperous and brand trustworthy manufactures in the world. This has made Kraft Foods Group, Inc. One of the top competitors in the food chain industry. The company has continued to advance and change in order to meet the continuously altering needs of their customer. The deep-imbedded history of the company popular brands has supported its progressions in the food industry. Kraft Foods Group, Inc. is persistently discovering new products for instance low-fat and fat-free products in a collection of divisions, to better suit the needs of their customers.

The PEST analysis

A PEST analysis is known for being business measurement device that measures and examines the aspects of Political, Economic, Social and Technological which then transformed to the proper application of strategic decisions previous the outcomes of PEST analysis.

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Political factors

Political factors are the elements that consist of government barriers and intervention in terms of tax/price that could help the government or the citizen. Distant from that, it likewise take account of the policy and systems that government accept in respects of business friendly for the most part in food industry. The likes of introducing rule, regulation and events, policy of attainment, merger and acquisition that could affect the continuous supply of foods to the nation are part of political factors.

Economic factors

Case Study on External Environment Analysis: Kraft Foods Group Assignment

Economic factors consist of stability, purchasing powers, income status, unemployment rates, income parity, exchange rate, interest rates etc. This will surely will have some kind of an effect on the actions and decision taken by Kraft Foods Group, Inc. frugally. As food is part of need and demand by individuals around the world, as every needs food to living and survive, we could say the business is not much delicate on the financial volatility and change.

Social factors

Social factors consist of the patterns and trends of demands which because of the nationality, religious and cultures. Having brand awareness on a nation could differ with each other's, demographic, age, income distribution, preferences, global and local attitudes towards definite things are dissimilar. Speaking of the food the industry, it is recognized that local preferences will regulate the receipt of food products. Furthermore, the local taste and likes must be met and this will involve the companies and business to appreciate the local market place before boarding into the local ones.

Technological factors

It is quite obvious that the technological factors really do have some kind of an effect on the production and success of the plant and operation. When it comes to the food industry we are looking at the progression and enhancement in terms of technology engaged in food industry that accordingly recover the yield, making it more reliable and efficient. Product innovation and improvement is likewise produced with the aid of new systems technology, or techniques, this will then help the industries to harvest high quality and better food products in terms of health taste, ingredients, and safety.


Kraft Foods Group, Inc. vision is at all times is to make today enjoyable. The company makes some of the best-known brands all over the world. Products such as dinners, dressings and Kraft cheeses, Philadelphia cream cheese; Oscar Mayer meats; Nabisco cookies Maxwell House coffee; and different kinds of crackers and cookies, not to mention things such as LU biscuits and Milk chocolates. They managed to create reliable, growth that is consistent. That is what they are doing at Kraft, and their approaches are… [END OF PREVIEW] . . . READ MORE

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