Kraft Foods: Industry Analysis & Growth Comparison

Different industries leave alone be produce different levels of produce and growth and certain times during their existence. The fluctuations of these levels advise be referred to as Industry Life Cycles. These wheel arounds atomic number 18 normally see by all companies, and contain four coiffes: Start-up, Consolidation, Maturity, and Relative Decline. galore(postnominal) industries, however, do not feel the effect of an industry manners cycle, collectable to the particular industry they argon in. kraft make-up Foods, Inc. is classified in the Food Manufacturing Industry. This industry can be classified as a defensive industry, or unitary that has little sensitiveness to economic cycles. Examples of defensive industries include intellectual nourishment producers and processors, pharmaceutical firms, and humans utilities. It can be concluded that close defensive industries do well during economic recession because they atomic number 18 necessary to nightspot and w ill consistently produce revenue. However, duration these industries are usually insensitive, they are not completely immune to business cycle conditions. Using certain factors, kraft typography Foods will be examine and compared to its competitors of the same industry in order to see what stage of the career cycle kraft and its industry are in. kraft papers major competitors are Heinz, Nestle, ConAgra, Kellogg, General Mills, and Sara Lee.

Averages of these companies annual verse will be compared to kraft papers (Note: The annual meter for all 6 companies can be found on Table A). The five factor s that will be used for parity are net tol! erance profit, return-on-equity, operating margins, total debt to equity, and regularize of return. A time life of 8 years, or since the first-class honours degree of Krafts existence in the NYSE, has been used. The report concludes that Kraft Foods and its competitors are in the consolidation phase of the industry life cycle. However, indicators and supererogatory factors can be found that support and controvert this argument. When products or industries become more standardized, usually their net...If you want to get along a full essay, order it on our website: OrderCustomPaper.com

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