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Module 5 SLP - Assignment Example

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According to Henry (2008), the Kraft Foods Group has various products and manufacturers food and beverage products that include refreshment beverages, cheese, convenient meals, and coffee and other grocery products. The corporation is one of the most diverse food manufacturers…
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Module 5 SLP
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Download file to see previous pages The beverages section has yuban coffees, kool-Aid, Maxwell House and the Tassimo hot beverage. The refrigerated meals include hot dogs, Claussen pickles, and bacon. These products are retailed in over 170 countries that have seen its revenue grow to over one billion dollars (Allen & Albala, 2007). The company seems to have adopted mergers and acquisitions in order to introduce new products in different markets and to increase the level of its operations.
Kraft foods group has adopted a decentralized organizational structure that can be categorized into three broad categories. These include the corporate core, the business unit, and the shared services. The business core is the highest level of authority. It sets the overall strategy of the corporation, sets performance standards, decides on the business portfolio and manages talent. The business units, on the other hand, develop short-term business strategies, run the businesses and are responsible for the financial performance of the business (Henry, 2008).
The company can be said to be using a functional organizational structure. Employees within these functions perform specific duties. These employees in functional divisions report to a single authority. The top management integrates the duties of different functional departments in order to achieve cohesion that is critical to the achievement of a common goal.
Each functional division in the organization sets its budget that is usually useful for one year. The budget majorly shows the expected income and expenditure for a particular period. Kraft Foods Group controls its expenses by grouping costs into cost centres for analysis. The budgeting process begins with forecasting of sales based on past information. Costs of different departments such as sales, administration and marketing are then allocated followed by capital expenses that are likely to be incurred. The budgeting process ends with developing a projected balance sheet and a profit ...Download file to see next pagesRead More
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