Management Organization Behavior - Kraft Foods Company

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- The 5 steps of the comprehensive change model that Kraft made to offer more nutritional foods.

The 5 Stages of the comprehensive change model are related for any type of behavioral change. The change model was developed in the 1970s to chart the changes in smokers trying to quit. By understanding that stages, it’s easier to predict obstacles, stay focused and develop motivational techniques. For Kraft case we will look at how Kraft changing to offer more nutritional foods through the 5 stages of the comprehensive change model.

The first stage is denial, Kraft Foods Company resist in changing to more nutritious foods. Because they can’t see the solution and they can’t see the problem. And they also believe that only a small percentage of people are staying away from junk food.

The second stage is contemplation, in contemplation stage Kraft spend time thinking about the problem. They weighing pros and cons of changing to produce more nutritious foods. They tend to think more about possibility benefits in the future. In this case, Kraft have found that more consumers are looking for more nutritious foods into their diets. So Kraft believe that making a change to offer more nutritious foods is only costs them in short-term but it’s will benefits them in long-term.

The third stage is Preparation stage, which is a stage that Kraft planning to take action and making the final adjustments before they begin to change. Kraft increase the nutritional value of its foods by offering organic options and less-fat for some products including Kraft Macaroni & Cheese, and Nabisco Wheat Thins. For Triscuits and Oreo no longer include

trans-fatty acids. Jell-O and other sweet products they use low-calories sweeteners instead of sugar. A single-serving 100-calories packs contain less fat, less sugar, and less salt per serving.

The forth step is action. After Kraft knows where they want to be and what kind of products should they produce, Kraft take an action toward what they are planned. In order to increase more nutritious products they making several investment on health and wellness products, including Balance nutritious-energy bars, Boca soy-based, and Nature cereal. In 2004, Kraft began distributing all-natural Tazo tea to grocery retailers in the United States. Also includes fruit juices and zero-calorie flavored drinks, and Kraft also sold out it sugar confectionary & candy business to Wm. Wrigley Jr. Company.

The last stage is maintenance where Kraft has succeeded in applying their changes. And they are enable to strengthen performance of their new strategies for many years.

- New ventures

A venture is a new way of how company deal with any challenges obstacle. Kraft Company made a few venture by first Kraft Company was sold to Phillip Morris (Altria Group) which is a tobacco company. And this two companies was merged and under the control of Phillip Morris. After that Phillip Morris changed the name from Kraft Foods to Kraft General Foods. Until 2006, Altria Group spin off Kraft as a separate company. Irene Rosenfeld who has spent 20 years climbing the corporate ladder at Kraft and left to become CEO of Pepsi-Co’s Frito-Lay in 2004, and returned to Kraft as CEO in 2006 at the time that Altria Group spin off Kraft. When Rosenfeld came to Kraft, she talked to employees and watched consumers of Kraft products cook and eat them. She says that people do in fact want to eat healthier foods, but they don’t want to make a trade-off on taste. That why Kraft Company made a noticeable change in consumer’s diet, the company started to make a change in strategy by offering nutritious foods such as cut-out trans-fatty acid, reducing salt, use low-calories sweeteners instead of sugar, and less fat. Kraft Foods Company made a change in foods ingredient but it doesn’t affect the taste. Because as the Kraft’s CEO stated above.

- Kraft’s corporate and business strategies

Kraft Foods Company set out a vision of where it want to be and how it wishes to be viewed by others. The Kraft vision is to be recognized as the undoubted leader in the global market for foods. Therefore, Kraft thinks of strategies to ensure that its products become consumer’s first choice. Kraft want the retailers and other customers view Kraft as an important partner. And Kraft also ensure that people are want to work for the company and viewed as a responsible business enterprise. In order to achieve these goals Kraft aim to accelerate growth of core brand, extend awareness of these brands into developing countries, strengthen the portfolio of brands and improve quality and services at the lowest cost, as well as, develop company values that are supported by committed employees. To achieve its objectives Kraft has structured its organization in ‘Category Team’ to ensure a cross-functional approach to its decision making.

Kraft strategy also focus on improving mission and improving vision, to improve its mission Kraft is to provide excellence products with innovative high technology, high quality, healthy and more nutritious foods, in order to satisfy consumer needs, providing quality of life and also the health of environment. By improve its vision, Kraft is to be the number one food and beverage company in the customers mind, recognized by the quality and variety of the healthy products that Kraft offer.

- Type of departmentalization that Kraft have

After jobs are specialized, they must be grouped into logical units, which is the process of departmentalization. Companies benefit from this division of activities such as control and coordination are easier and top managers can easily see more how various units are performing. Departmentalization allows the firm to treat each department as a profit center. The type of departmentalization that Kraft have are product departmentalization and customer departmentalization. Product departmentalization is Kraft producing many products by themselves and sell it by their own. Customer departmentalization is involve organizing departments around the need of their customers.

- Conclusion

Kraft foods business strategies are about improving themselves by producing products depend on their customer needs without bothered by other competitors. The change of its structures and strategy made a lot of benefits for Kraft. Kraft Foods understand about how to make a change clearly. Beside, Kraft also strengthen their organization and apply an accurate strategies to meet the consumer needs.

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