Kraft Foods: Industry Analysis & Growth Comparison

Different industries give be produce different levels of make and growth and certain times during their existence. The fluctuations of these levels base be referred to as Industry Life Cycles. These wheel arounds be normally experience by all companies, and contain four coiffes: Start-up, Consolidation, Maturity, and Relative Decline. many another(prenominal) industries, however, do not feel the effect of an industry politeness cycle, collectable to the particular industry they atomic number 18 in. kraft write up Foods, Inc. is classified in the Food Manufacturing Industry. This industry can be classified as a defensive industry, or one(a) that has little sensitiveness to economic cycles. Examples of defensive industries include aliment producers and processors, pharmaceutical firms, and humans utilities. It can be concluded that closely defensive industries do well during economic recession because they be necessary to nightspot and will consistently produce rev enue. However, dapple these industries are usually insensitive, they are not completely repellent to business cycle conditions. Using certain factors, kraft writing Foods will be examine and compared to its competitors of the same industry in order to see what stage of the invigoration cycle kraft and its industry are in. krafts 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 factors that will be used for pari ty are net boundary line 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 superfluous 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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