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Abstract

The case study discusses how Irene B Rosenfeld (Rosenfeld), CEO of US-based snack-food company Kraft Foods Inc (Kraft), turned around and transformed Kraft into a global consumer food behemoth. Since taking up the position of CEO in 2006, Rosenfeld had fundamentally changed the footprint and prospects of Kraft. She repositioned the company to deliver top tier growth by revamping some iconic brands, transforming the product portfolio, and consolidating the company’s presence in developing markets. In February 2010, Rosenfeld successfully led the Cadbury acquisition to make Kraft a market leader in the global confectionery market. A 29-year veteran of the food industry, Rosenfeld was successful in bringing about a transformational change at Kraft. Under her strategic leadership, Kraft emerged as the second largest food company in the world with its products being sold in more than 160 countries. As a next step in the company’s evolution, Rosenfeld intended to split Kraft into two independent public companies, a high margin North American Grocery business and a high growth Global Snacks business. She contended that the split would help Kraft in consolidating its position in the fast growing snacks category and also offer the company’s shareholders two different investment opportunities. Analysts’ reactions to this decision were mixed. This case can be used in Organizational Behavior/ General Management/ Strategic Management curriculum. The case will enable students to: 1) Study the leadership and management style of Rosenfeld; 2) Evaluate the strategies adopted by Rosenfeld in turning around Kraft; 3) Examine the role played by Rosenfeld in the Cadbury takeover; 4) Understand the role of a leader in changing the fortunes of a company; 5) Study the personal characteristics and traits of Rosenfeld that contributed to her success; 6) Discuss and debate Rosenfeld’s decision to split Kraft into two independent companies; 7) Explore the implementation issues going forward. The teaching note does not contain an analysis of the case.
Location:
Size:
Large
Other setting(s):
2006-2011

About

Abstract

The case study discusses how Irene B Rosenfeld (Rosenfeld), CEO of US-based snack-food company Kraft Foods Inc (Kraft), turned around and transformed Kraft into a global consumer food behemoth. Since taking up the position of CEO in 2006, Rosenfeld had fundamentally changed the footprint and prospects of Kraft. She repositioned the company to deliver top tier growth by revamping some iconic brands, transforming the product portfolio, and consolidating the company’s presence in developing markets. In February 2010, Rosenfeld successfully led the Cadbury acquisition to make Kraft a market leader in the global confectionery market. A 29-year veteran of the food industry, Rosenfeld was successful in bringing about a transformational change at Kraft. Under her strategic leadership, Kraft emerged as the second largest food company in the world with its products being sold in more than 160 countries. As a next step in the company’s evolution, Rosenfeld intended to split Kraft into two independent public companies, a high margin North American Grocery business and a high growth Global Snacks business. She contended that the split would help Kraft in consolidating its position in the fast growing snacks category and also offer the company’s shareholders two different investment opportunities. Analysts’ reactions to this decision were mixed. This case can be used in Organizational Behavior/ General Management/ Strategic Management curriculum. The case will enable students to: 1) Study the leadership and management style of Rosenfeld; 2) Evaluate the strategies adopted by Rosenfeld in turning around Kraft; 3) Examine the role played by Rosenfeld in the Cadbury takeover; 4) Understand the role of a leader in changing the fortunes of a company; 5) Study the personal characteristics and traits of Rosenfeld that contributed to her success; 6) Discuss and debate Rosenfeld’s decision to split Kraft into two independent companies; 7) Explore the implementation issues going forward. The teaching note does not contain an analysis of the case.

Settings

Location:
Size:
Large
Other setting(s):
2006-2011

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