Kraft Foods Group’s Strategic Controls

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Table of Contents

Executive Summary
Introduction
Strategic Control in Kraft Foods Group
Kraft Foods Group Organizational Structure and Strategy Execution
Kraft’s organizational culture and strategy implementation
Workforce of the Company
Strategic Control Systems
Conclusion
References

Executive Summary

Although it may seem ineffective to develop a strategic plan without devising means of implementing the strategy to achieve the anticipated outcomes, the strategic plan forms the foundation of management.

Organizations must understand that for an implementation process to be successful, the culture of an organization, a competent and devoted workforce, the structure of the organization, and the presence of strategic control systems are fundamental.

Organizational culture involves shared visions that impel the workforce to achieve the intended aims in the plan. The organization structure involves the arrangement of authority that is normally important in making informed decisions in the plan.

A motivated, dedicated, and competent workforce inclusive of managers is important as planning requires substantial human resource and their competencies. The strategic control systems are important in an organization because they ensure that the activities and processes focus on mission, vision, and goals, which are central to the success of an organization.

Introduction

The contemporary business world continues to experience immense corporate competition, with companies formulating means of achieving the best organizational outcomes (Falshaw, Glaister, & Tatoglu, 2005). As business uncertainties, financial crunches, political frustrations frequently influence the development and success of modern corporations, the need for proper planning and managing of organizations is rising.

In a bid to counter the endless management crises that have persisted earlier, strategic management or planning has recently proven to be one of the most effective ways of organizing and controlling modern companies.

To elevate business performance in the most technical manner, strategic planning has been an effective tool that is useful in revitalizing and transforming business corporations, nonprofit organizations, and even in governments (Hill & Jones, 2011).

While most organizations have adopted the strategic management approaches, knowledge about its formulation essentials and its execution remains considerably low. This essay, therefore, provides an analysis of the requisites of strategic implementation through the case study of Kraft Foods Groups.

Strategic Control in Kraft Foods Group

Strategic planning and control entails a series of planning processes with the articulation of future informed projections that the organization anticipates to achieve. According to Falshaw, Glaister, & Tatoglu (2005, p. 10), formal strategic planning is the “process of determining the mission, major objectives, strategies, and policies that govern the acquisition and allocation of resources to achieve organizational aims.”

This is because strategic planning encompasses a clear clarification of the company’s mission (the intent of the organization), the vision (anticipated achievements), realistic goals and objectives, and well-defined aims (Ridwan & Marti, 2012).

Since the process affiliates with the major components of success within organizations, appropriate and reasonable integration of the strategic management plan provides organizations with unique development opportunities (Falshaw, Glaister, & Tatoglu, 2005).

Fundamental to such notions, it is important to provide a critical evaluation of the appropriateness or ambiguities existing among Kraft’s mission, strategy, and other essential components of strategic management crucial to its implementation.

Kraft Foods Group Organizational Structure and Strategy Execution

Strategic implementation depends on a set of components that are fundamental to the achievement of the outcomes in the planning. As assumed in the standard theory of strategic management, the process concentrates on planning of mission and objectives, identifying policies, and analyzing essential components of the strategic implementation (Falshaw, Glaister, & Tatoglu, 2005).

In attaining the anticipated outcomes of the strategy designed for the organization, leadership and the structure of the organization is paramount. Based on the website of the Kraft Foods Group, the company has a hierarchical management team with executive chairperson, chief executive officer, and chief financial officer, who are responsible for the everyday operations (Kraft Foods Group, 2014).

In the implementation, “managers compare and contrast the various alternatives and possible strategies against each other with respect to their ability to achieve a competitive advantage” (Hill & Jones, 2011, p. 10).

In addition, the Kraft Foods Group has a competent chief marketing manager, supply chain managers, human resource managers, corporate and legal affairs officer, and other top managers.

The implementation of a strategy involves being practical at the functional, corporate, and the business levels to accomplish a strategic plan. In the strategic implementation process, the foremost role of the managers is to put the strategies designed into actions (Hill & Jones, 2011).

The Kraft’s top executive team has exceptional experience in handling company planning and controlling of all processes that aim at achieving its aims and objectives.

The top management in a strategic plan, as Hill and Jones (2011) state, is normally in charge of making informed decisions, and decides whether to reaffirm the prevailing goals, objectives, and strategies, or to suggest realistic changes.

The Kraft Foods Group has a competent top executive team with expertise in analyzing the financial issues, marketing strategies, firm investment progress, consumer issues, internal and external challenges for the company, and several other essential factors (Kraft Foods Group, 2014).

The presence of hierarchical order means Kraft has a centralized structure with bureaucratic principles where the competent management is responsible for making informed decisions.

Kraft’s organizational culture and strategy implementation

In the implementation process, the culture of an organization remains to be a paramount factor that contributes directly to the achievement of the stated strategy. According to Hill and Jones (2011), “strategy implementation also entails designing the best organization structure, culture, and control systems to put a chosen strategy into action,” (p. 11).

Corporate culture may determine the preparedness of the company in achieving the goals or objectives designed. Company values, traditions, and customs are major components of the corporate culture that determine the manner in which employees, managers, consumers, and the community interact (Ridwan & Marti, 2012).

The Kraft Foods Group has existed with components of corporate culture that entail well-articulated organizational mission, organizational values, inspirations, and norms that employees should adhere.

The Kraft Foods Group has a mission that targets the company to become the best investment within the food and beverage industry. A mission as a corporate culture normally motivates employees and managers towards achieving the stipulated goals, objectives, and strategic outcomes.

Corporate culture entails shared values among employees and managers towards the betterment of the company.

Apart from the mission statement, the Kraft Foods Group has a culture of nurturing quality of products where employees must respect corporate responsibility by participating in promotions of healthy lifestyles and protecting the environment from depletion (Kraft Foods Group, 2014).

In promoting healthy lifestyle as a food processing industry, employees understand the values of practicing food production while enhancing and encouraging food safety and quality, good nutrition and well-being, and sustainability of the products (Kraft Foods Group, 2014).

All employees adhere to the corporate culture by ensuring that consumers receive the most required respect and attention. Such values keep the employees focused on producing quality of desired products, and hence, fulfilling the intent of the strategic plans.

Workforce of the Company

All operations in organizations depend largely on human capital and the concerted efforts of the workforce to achieve the intended outcomes. Strategic implementation requires committed individuals to agree upon essential execution processes, design implementation policies, and make refined decisions (Bryson, 2010).

Apart from the competent management team designed hierarchically, the company is an employer of a proficient workforce that has remained moved by the corporate culture towards achieving best outcomes in the company (Kraft Foods Group, 2014).

Achievement of the perfect outcomes in the strategic implementation relies on different human capital competencies that are normally imperative in the entire execution process. The physical, mental, and psychological contribution of the workforce contributes largely towards achievement of a more successful implementation.

The Kraft Foods Group has an efficient workforce with approximately 23,000 talented and dedicated employees and managers who constantly assist in the company’s progress (Kraft Foods Group, 2014). The management has expertise in financial issues, analyzing market trends, and providing solutions to counter operational challenges.

Achieving good outcomes in the implementation of the strategic plan does not only require great numbers within the workforce, but also competent and motivated people (Falshaw, Glaister, & Tatoglu, 2005).

With the available human resource department that has already sharpened the dedicated workforce, implementation of the strategy that the Kraft Foods Group desired would seem achievable. Decision making in the strategic planning is normally critical and firms require empowerment and motivation of the subordinates to take these broad steps and aid in decision-making (Bryson, 2010).

The Kraft Foods Group has a long lasting culture of ensuring that employees remain motivated by promoting their wellness, their workplace safety, and the needed comfort for them to remain committed to the successful strategic implementation (Kraft Foods Group, 2014).

In ensuring employee wellness, the Kraft Foods Group Company guarantees its employees comfortable health programs. Enhancing workplace safety and comfort in Kraft Foods Group Company entails the use of programs that support safe working practices, informing employees, nurturing their talents, and realizing their strengths.

Strategic Control Systems

The strategic management plan requires control of the strategy itself, through the use of strategic control that ensures the successful execution of the intended plan (Bryson, 2010). Implementation of any strategic plan in an organization relies on the effectiveness of the strategic control systems that necessitate support for the execution of the intended plan (Ridwan & Marti, 2012).

“The strategy-making process ends with the design of the organizational structure, culture, and control systems necessary to implement the plan that the organization has chosen a strategy” (Hill & Jones, 2011, p. 8). Communication and information systems, accounting and budgeting sectors, and the measurement and reward systems play an imperative role in the implementation process (Falshaw, Glaister, & Tatoglu, 2005).

The Kraft Foods Group has an active financial system, human resource department, which carries out appraisals in the company, and a communication and information system. The three systems are central to the provision of the necessary resources, analysis of the implementation progress, control of major processes, and measurement of outcomes.

Conclusion

While strategic planning may seem an imperative management practice essential in controlling modern organizations, the presence of such strategies may appear futile if companies fail to devise means of executing these plans.

Strategic management involves planning for anticipated activities and having an effective strategy implementation plan. Planning means of achieving the plan is the most fundamental aspect during the finalization of the strategic management process.

From the case of the Kraft Foods Group Company, it is evident that any strategic plan must have some consistency in its planning and implementation. The culture of a company, organizational structure, the workforce, and the control systems are paramount elements in the implementation process of an organization with a strategic plan.

References

Bryson, J. (2010). The Future of Public and Nonprofit Strategic Planning in the United States. Public Administration Review, 70(1), 255-267.

Falshaw, J., Glaister, K., & Tatoglu, E. (2005). Evidence on formal strategic planning and company performance. Management Decision, 44(1), pp.9-30.

Hill, C., & Jones, G. (2011). Essentials of Strategic Management. Southwestern, United States: Cengage Learning.

Kraft Foods Group. (2014). About Kraft Foods Group. Web.

Ridwan, S., & Marti, J. (2012). The Study on Strategic Planning and Organizational Performance in the Regional Government Owned Banks in Indonesia. International Journal of Humanities and Applied Sciences, 1(3), 98-102.

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