Kraft Foods: Industry Analysis & Growth Comparison

Different industries impart be produce different levels of return and growth and certain times during their existence. The fluctuations of these levels advise be referred to as Industry Life Cycles. These wheel arounds be normally go through by all companies, and contain four coiffes: Start-up, Consolidation, Maturity, and Relative Decline. more industries, however, do not feel the effect of an industry dexterity cycle, collectable to the particular industry they be in. kraft composition Foods, Inc. is classified in the Food Manufacturing Industry. This industry can be classified as a defensive industry, or maven that has little sensitiveness to economic cycles. Examples of defensive industries include food producers and processors, pharmaceutical firms, and humans utilities. It can be concluded that more or less defensive industries do well during economic recession because they are necessary to nightspot and will consistently produce revenue. However, epoch th ese industries are usually insensitive, they are not completely insubordinate to business cycle conditions. Using certain factors, kraft paper Foods will be examine and compared to its competitors of the same industry in order to see what stage of the conduct cycle kraft paper 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 krafts (Note: The annual meter for all 6 companies can be found on Table A). The five factors that will be used for parity are net borderline 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 surplus 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 on a full essay, order it on our website: OrderCustomPaper.com

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