Resource Based View Analysis Kraft Foods

Published: 2022/01/11
Number of words: 1466


Kraft Foods Group Inc an American franchise, has its headquarters in Chicago. The organization satisfies the needs of its customers through offering various products in the foods and grocery section. Their production consists of processing and manufacturing of grocery. The franchise has been able to persuade a huge number of customers through its brand. Some of the popular brands for the organization include Cool Whip, Cheez Whiz and Country Time (Boston, 2013). The company’s strategy includes the satisfying their employees needs. It is the responsibility of the team at Kraft foods Inc to make an impact on the society.

Impacts on the society for any manufacturing organization ultimately improve its competitive edge. It is a fact that in the maintenance of such and class, organization management needs to quantify internal resources. The classifications of such needs of the resource-based view include diverse aspects. Such aspects include the classification of tangible and intangible assets of the organization (Madhani, 1999). The management teams need to identify potential resources in an organization. Such analysis need to build on the strategy of the organization. If an organization understands its potential, it may design activities of overcoming market challenges.

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According to Priem & Butler (2001), the criteria of such evaluation of organizations potential would include an analysis of company’s value and in the protection of resources. Therefore, internal analysis of Kraft foods reveals its resources. This analysis reveals the potential of the firm on diverse perspectives. According to Harvard Business Review (1999), these perspectives include its physical location, finance levels and its team of employees. The other strengths of Kraft foods relates to its patents on their innovations. Its internal strengths include Kraft Group Inc ability to maintain high integrity levels and compliance of statutes (Kraft, 2014). On the other hand, the organization is a champion in the management of food quality, manufacturing sustainably and maintain high states of corporate governance.

Kraft Group Inc Physical Resources

Kraft Group Inc a popular grocery manufacturing and processing plant in the United States, has various strengths in resources. In relation to the analysis of these resources, the organization operates in North America. The physical location of the organization makes it a leading player in the grocery industry. According to Kraft (2013), this is because the geographical location of the firm favors its market strength. On the other hand, the organizations saw the need to start the action at the international level. Therefore, in relation to this strategic goal, the organization renamed to Mondelez international. The introduction of this subsidiary organization has made the organization compete with other players on the international platform.

Financial Resources

In relation to its financial management, Kraft foods as at the end of the year 2013 had revenue of $18.218 billion. The operating income as at that year was at $ 4.591 billion while its value in total assets was at $ 23.148 billion. A closer look at its total equity standing reveals that the organization has a total value of $5.187 billion on the same year. Kraft foods as an organization came into operation in 1903. The organization was a dream of James Kraft who immigrated to the country from Canada and saw an opportunity.

After years of operation, the management team saw the potential of the market thus lead to the installation of an operation plant in Illinois. The design of the products of Kraft Group Inc stipulates the use of minimum resources for maximum returns. Since its main cheese product does not need refrigeration, it is a competitive firm.

Human Resources

An analysis of Kraft’s Inc group human resources reveals that the organization is a fair employer. Kraft Group Inc has many retail outlets, beverage outlets as well as food branches. In order to propel the activities of the firm, Kraft Group in has over 100,000 employees across its branches. The organization has over 180 processing facilities and plants for employee’s career fulfillment. In order to remain competitive in the market, Kraft Inc promotes good employment practices (Thomas, Smith, & Diez, 2013). Some of these best practices include advertising positions on various media. Employees have the opportunity to choice their preferred area of operation. Employee benefits are another area of importance for the organization. The benefit an employee of Kraft Inc enjoys includes a comprehensive payment package.

This package is applicable to both full time and part-time employees. The comprehensive package in terms of definition by the management of Kraft Group Inc includes medical insurance, health benefits, retirement benefits as well as educational assistance (Pr, 2012). On the other hand, for future prosperity of the organization, the company’s executive concentrates on training employees. Training of employee ensures creativity in teams as well as improvement of products’ quality.

Technical Resources

Kraft (2014) states that, Kraft Group Inc technical resources make it competitive in the global and the American market. In relation to this resource, Kraft Inc has a team dedicated in the production of high quality products. The organization has laboratories for testing new products as well as ensuring the maintenance of quality. The use of technical resources has seen the organization manufacturing and production units use low cost technologies. These teams of experts ensure the regulation of the quality as well as innovating (Kraft, 2013). The influence of the technical team in the organization is almost abrupt. This is because through their works in developing ingredients, Kraft’s Inc development teams have initiated diverse tastes of cheese, enhancers, confections and other flavors.

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Goodwill, Cultural and Strategic alliances

According to Pr (2012), Kraft Group Inc’s strategic analysis on its goodwill reveals diverse aspects. The organization enjoys market shares in Canada and in USA. In respect to its quality and safety, the organization ranks in these regions. On matters related to culture, Kraft Group Inc, maintains a rich culture that spans over decades. The culture of the organization further extends on the international scale translating to a fascinating diversity. It is then imperative to note that the organization’s mandate ensures alliances with other partners. These alliances have seen the organization open new segments in North America as well as other regions on the globe.

Distinctive Capabilities

Magwood (2011) states, in terms of the distinctive capabilities of the organization, Kraft Group Inc architecture employs blue and red logos. The company’s branches have unique codes on their upfront, which maintains blue and red logos. In respect to its reputation, Kraft Group Inc has the reputation of traversing diverse markets. Its reputation relates to its position as the best grocery manufacturing organization in the region. Its reputations, further influence customers on an international scale; thus Consumers can enjoy products or even trade on the security exchange for companies products. Another important feature of the organization relates to its innovation capability (Ford, Kraft, & Tewari, 2003). Kraft Group Inc produces high quality products. The production of such products relates to its ability to innovate. In respect to these phenomena, Kraft Inc has innovative segments in the organization. The team has been effective for decades through research and development


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Kraft Foods Group, Inc. (2014). Kraft Foods Group, Inc SWOT Analysis, 1-9

Kraft Inc (2013). Kraft Foods Group, Inc SWOT Analysis, 1-8

Madhani, P, M ( 1999) Resource Based View (RBV) of Competitive Advantages: Importance, Issues and Implications. KHOJ Journal of Indian Management Research and Practices, Vol. 1, No. 2, pp 2-12, May-August. Available at SSRN:

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Pr, N. (2012). Kraft Foods Inc. Board Of Directors Approves Spin-Off Of North American Grocery Business. Pr Newswire Us http://Eds.A.Ebscohost.Com

Priem, R. L., & Butler, J. E. (2001). Is the resource-based “view” a useful perspective for strategic management research?. Academy of management review26(1), 22-40.

Thomas, H., Smith, R. R., & Diez, F. (2013). Human capital and global business strategy. Cambridge University Press.

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