Implementing an organizations strategy is a difficult initial process. There are factors to consider, for example: Is this strategy a change from the previous strategy? Is this strategy a difficult change or slight redirection from last? Does the organization have the right people on the bus? Lastly, does management and leadership support the strategy? In this session long project I will discuss the organizational components critical to the implementation of Kraft’s preemptive and low cost strategy.
Within the framework of organizational systems there are three systems: business strategy, organizational structure, and organizational culture and rewards. Within Kraft’s organizational systems there is the development and autonomy of the teams. The managers of the teams are responsible for many functions. Such responsibilities include developing budgets. This opportunity creates multiple benefits. One is to create ownership within the teams, create value and ownership within the teams, and provides leadership development for its managers. Managers set out a clear plan, involving target figures for defined periods of time, communicate their targets clearly, motivate employees to achieve these targets, control performance by monitoring actual outcomes against planned targets, and meet the organization’s objectives. (The Times 100, N.d.) Kraft does not stop there. To not set its inexperienced managers up for failure, Kraft ensures that managers have assistance. In order to create cooperation and improved communication individual managers have detailed discussions to achieve collective agreement regarding budget discrepancies, allocations, and lack of funding for expected pitfalls. This opportunity displays Kraft as an organization with a consultative approach to constructing budgets.
In 2006 Irene B. Rosenfeld, Chairman & Chief Executive Officer of Kraft Foods, outlined her vision for Kraft. First, she had to re-organize the company to prepare for growth. Rosenfeld and her team completely flipped Kraft's internal organizational model, decentralizing its decision-making and empowering division heads outside of corporate headquarters. (Bhasin, 2011) Kraft made a major change in their internal organizational structure. The new global structure will bring together three organizational dimensions to better leverage Kraft's global scale. This restructuring included; a new global marketing and category development group to accelerate growth and global expansion, a geographic-based commercial units responsible for driving strong results country by country’ and key functions would now be worldwide in scope to increase effectiveness and drive cost savings. All three groups would work together in alignment with the company's five global consumer sectors. (Business Wire, 2004) The spin-off again played a major role in Kraft. Vital decisions included realigning the U.S. Sales...