Kraft Food Inc. Free Essay, Term Paper and Book Report
A company in a slowing market with high competition often needs to make drastic changes to continue to create value
for its shareholders. Kraft Foods Inc. (KFT) was a processed food company that produced big name brands, such as Oreo,
Maxwell House, Honey Maid, among others. In 2012, the company was the second largest processed food company in the world
based on revenues, after its main competitor Nestl. However, slow growth in many critical industry segments meant that the
company was unable to increase shareholder value throughout 2011. Additionally, sales were stagnating and revenues were only
increasing by raising prices.
In order to address these issues, the Board of Directors at KFT announced in 2011 that the company would be
restructured to create two new companies by the end of 2012. First, there would be a global snacks business that included
all of KFTs business units in Europe and developing markets, in addition to the United States snack business. This new
company would be called Mondelez International (MDLZ) and the Board hoped it wo......
Word Count: 4406
Page Count: 17.6 (250 words a page / double spaced)
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