Business
RBV Analysis of Kraft Foods
Kraft Foods is a large corporation with interests in many sectors of the food and beverage markets. The basis of the firms' success, and challenges, can be appreciated by looking at the firm from an internal perspective using the resource-based view (RBV). In a resource-based view analysis a firm can be seen as more than its output, instead it is viewed in the context of its combined assets and competences and the way in which they are configured, or can be reconfigured, in order to compete and create value.
The resources themselves may be considered in two main categories; the tangible and the intangible resources. The different asset types may be assessed individually, with consideration of the way they are configured.
Tangible resources
Physical assets
A major category of Kraft Food assets, and an asset group on which the firm is highly reliant on, are the physical assets. Physical assets are the tangible assets that include the real estate and property, machinery and equipment. The company has a major advantage compared to many other firms, with the number and type of facilities own. At the end of 2013 company operated a total of 36 different manufacturing facilities, 34 located in the United States, and to in Canada (Kraft, 2014). The company owns all of these facilities, rather than leasing, not only created a strong asset class, but also creating a strong asset foundation, giving the organization significant control over their supply chain. Some of the facilities are specialized production facilities, where only one product can be produced, but others provided provide a degree of flexibility, producing several products with in similar categories. Cheese can be made in 12 locations, beverages and 8 locations, meals and deserts in 10 locations, and refrigerated meals in nine locations. Snacks, nuts and enhancers can be manufactured in 8 locations (Kraft, 2014). In addition to these production facilities, the company also has access to resources that are not owned through third parties, using outsourcing agreements in order to increase overall levels of production (Kraft, 2014).
The production facilities are supported with a network of 39 distribution centers, 36 located in United States, and three located in Canada, of these 4 are owned, and 35 are released. The leasing of the distribution centers provides organization with...
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