Strategic Recommendation for Kraft Heinz

Strategic Recommendations for Kraft Heinz
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Strategic Recommendation for Kraft Heinz             The Kraft Foods Group has undergone various changes in recent years. After being in a difficult business position for months and facing the challenge of changing customer tastes over the years, the company merged with H.J. Heinz. The new outfit became known as Kraft Heinz. The move led to a surge in the Kraft Foods Group’s stock. On the that hand, H.J. Heinz had been facing tough economic times over the years, leading to the sacking of hundreds of workers and the closing down of various factories. The merger also opened up new markets for the business since H.J. Heinz had an international presence. In an attempt to boost operations, the company improved efficiency within its factories. The move led to improved profit margins, giving the company an edge over its competitors (Baskin & Gasparro, 2018). Acquisition of the Canadian company, Ethical Bean, was a part of the company’s effort to increase its global presence and diversify its offerings. However, while most of these changes have boosted the standing of the company, others have not been as successful. Besides, the modern business environment is characterized by great unpredictability and volatility that require an organization to consistently come up with new strategies. Moreover, due to the increased competition, organizations must seek to develop a competitive advantage in order to survive the competition and thrive in the industry. This paper will look at the standing of the company in the past few years and then come up with strategic recommendations that can help the company establish and maintain a competitive advantage over its rivals.             Kraft Heinz has faced a number of issues in the recent past. There is a need to address the issues and come up with strategic plans to address them for the sake of the company’s future. The company’s woes occurred majorly as a result of the strategies undertaken to reduce expenses and boost profits following the merger. Shrinking markets is one of the major challenges that the company is facing. This is as a result of an insufficient response to the changing customer tastes and needs. Increasingly, consumers are avoiding processed foods in favor of organic foods. This has led to a decline in sales of the company’s products and has also negatively affected its profits and growth strategies. Competition from international rivals such as Unilever and Nestle are also among the major challenges that the company must address to remain in the game. While the leadership of Kraft Heinz has talked about the need to grow the company, lack of a strong innovation culture, as well as highly vulnerable brands within the commoditized categories, have always impeded the efforts. Only a few new products have generated significant sales in the company such as Heinz mustard and Devour frozen meals. Moreover, though the company has tried to clean up the ingredients used in its products, modify the flavors, and improve packaging, the move has not generated the needed success....