BriefDescription about Kraft Case Introduction Leadership Corridor Model Analysis Of The Case Conclusion In Perspective Of Other Organisation
Kraft Foods, Inc is the largest confectionery, food, and beverage corporation headquartered in the United States. Kraft Foods was formed on December 10, 1923 by Thomas H. McInnerney & is headquartered in Northfield, Illinois. It was initially set up as an ice-cream industry but through acquisitions it expanded into a dairy industry. By 1930 it exceeded Borden to become the largest dairy company in the world.
The companys core businesses are in beverage, cheese and dairy foods, snack foods, confectionery, and convenience foods. Few major brands of kraft are Kraft Dinner, Oscar Mayer, Maxwell House, Cadbury, etc. Each brand of Kraft generate a revenue of about $ 1 billion. 50 additional brands have revenues greater than $100 million. In 2010, Cadbury was bought over by Kraft which resulted in the boycott of all its products.
The case talks about Kraft’s Leadership Corridor Process. Need for such development process. Leadership development: “On the job, for the job.” Implications on other Organizations.
Leadership Corridor Bottom Line Loose – Tight Company Before Responsibility Management Individuals Up or into Exposure Exposure Creative the right Dissattisfactionto outside to top role talent managers Movement Learning around from staff the matrix function
Bottom – Line Responsibility Objective: Cost Control & Brand Building. Category Business Directors This stage has two touch points:- Exposure to outside talent Exposure to top managers
Loose – Tight Management Objective: Room for creativity Induce profitability with tough financial & operational controls. It has two touch points:- Movement around matrix Learning from staff functions
Company Before Individuals Objective: Improve the company’s products & processes It has two touch points:- Creative Dissatisfaction Up or into the right role
In Perspective of Kraft Complete understanding of the entire gamut of business across every employee. Increase in intellectual capital along with new business ideas & better practices. Developing expertise in business management Focusing on making the business to be a pioneer. Creation of staff slots to keep talent onboard. Tight Integration: Reduced cost, build brands & develop people
In Perspective of Other Organizations Loose – tight management was applied to high level managers. Since the model was tailor made as per Kraft, so organizations needed to modify the model as per their needs. E.g.:- Case of Gillette Cost cutting is secondary objective & is usually reactive.