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Advantages and Disadvantages to Kraft Foods - Case Study Example

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This paper tells that Kraft Foods will benefit from producing lower calorie versions of the existing chocolate bars. The move will exhibit the company’s commitment to addressing issues related to obesity by promoting healthy eating habits. The customers of the company, as well…
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Advantages and Disadvantages to Kraft Foods
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Advantages and Disadvantages to Kraft Foods

Download file to see previous pages... Therefore, if Kraft Foods starts producing healthier products, it will establish positive relationships with different stakeholders. The move will also depict that the company is committed to corporate social responsibility (Lussier 2008, p. 223).
On the other hand, the company is likely to lose some of its customers because the new versions of chocolate will have a different taste. Notably, the esteemed customers of the company have been consuming its products because of their unique taste. However, lowering the calorific value of the chocolate versions will alter the product taste. Many customers may not like the new taste. The company will also incur new costs in production. Worth noting is the fact that the company will need to source ingredients that will be used in the production of lower-calorie chocolates. In addition, the company will need to spend on advertising and promotion strategies in order to introduce the new versions into the market.
In my opinion, the UK government is likely to introduce legislation that will require taxation of high-fat food products like chocolate. Since the government has experienced the financial burden resulting from medical costs associated with the high morbidity cases resulting from obesity, it is likely to take new measures. The government is also concerned about the health of children and adolescents who are more affected by high-fat food products such as chocolate bars. Therefore, there are higher chances that the government will intervene (Lussier 2008, p. 223).
Denmark repealed its fat-tax law after the realization that it contributed to increased consumer prices for the high-fat products. The tax did not motivate companies to produce healthier products. On the contrary, the tax law increased consumer prices, and the consumers had to bear the financial burden. ...Download file to see next pagesRead More
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