Irene Rosenfeld: Setting New Directions for Kraft Foods

Excerpts

In early 2006, amid the global economic recession, Kraft was facing some serious problems. High commodity prices and increasing competition from private labels impacted revenues. Increased focus on lay offs and cost cutting affected Kraft’s product quality, making its brands weak and causing the company to lose market share. The company was struggling in emerging markets... Cadbury Takeover Rosenfeld was keenly observing the developments in the global confectionery market as she was looking to expand Kraft into faster growing markets. She was interested in Cadbury's brands and found its business in developing countries attractive. She began studying the possibility of buying Cadbury. Meanwhile at Cadbury, Roger Carr (Carr) had been appointed chairman in July 2008...

Rosenfeld, whose childhood ambition had been to become the president of the US, charted a steady rise in the global food industry. According to industry observers, she was a strong, goal-oriented leader and a risk taker. They felt she was deeply competitive and ambitious. Labeled as low-key and hard nosed, Rosenfeld was considered to be a fearsome achiever in business. Some industry observers said that she was not the typical American businesswoman but a "classic example of still waters running deep"...

Rosenfeld's efforts in transforming Kraft were reflected in the company's growing financial performance. Kraft generated close to US$50 billion in revenue in 2010, driven by some of Rosenfeld's risky business moves such as the Cadbury takeover. In the third quarter ended October 2011, Kraft's net revenues grew by 11.5% to US$13.2 billion. Operating income was US$1.7 billion. Though the company was doing well, some investors felt that Kraft was facing an identity crisis as it had two distinct product portfolios- the Global Snacks business and the North American Grocery business. They felt that these businesses differed in their strategies, growth profiles, and operational focus. The snack food business was focused on developing markets while its grocery business concentrated on revenue growth in North America...

Exhibit I: A Brief Note on Kraft Foods
Exhibit II: Profile of Irene Rosenfeld
Exhibit III: Growth Diamond
Exhibit IV: Kraft Foods 'Organizing for Growth' Model
Exhibit V: Kraft Foods Inc.: Selected Financial Data-Five Year Review
Exhibit VI: Stock Price Chart of Kraft Foods
Exhibit VII: Fortune's 10 Most Powerful Women in Business

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