Professional Documents
Culture Documents
01 Kraft Analysis
01 Kraft Analysis
- 2009
Case Notes Prepared by: Dr. Mernoush Banton Case uthor: Kr!stopher ". B#anchard
A.
Case Abstract
Kraft Foods Inc. $%%%.Kraftfoodsco&pany.co&' !s a co&prehens!(e strate)!c &ana)e&ent case that !nc#udes the co&pany*s ca#endar Dece&ber +,- 200. f!nanc!a# state&ents- co&pet!tor !nfor&at!on and &ore. /he case t!&e sett!n) !s the year 2009. 0uff!c!ent !nterna# and e1terna# data are pro(!ded to enab#e students to e(a#uate current strate)!es and reco&&end a three-year strate)!c p#an for the co&pany. 2ead3uartered !n Northf!e#d- I4- Kraft Foods Inc. !s traded on the Ne% 5or6 0toc6 71chan)e under t!c6er sy&bo# KF/.
B.
8ne co&pany )ro%!n) by nour!sh!n) #!(es and f!nd!n) a better %ay today one b!te at a t!&e
C.
Mission Statement $ ctua#' Ma6e /oday De#!c!ous. Mission Statement $Proposed' s a )#oba# co&pany $+'- %e str!(e ourse#(es !n produc!n) super!or products and ser(!ces $2' to our custo&ers. 9!th super!or techno#o)y $:' and ded!cated e&p#oyees $9'- %e are constant#y %or6!n) on !ntroduc!n) ne% and !nno(at!(e products- &eet!n) our custo&er*s e1pectat!on $;' and ensur!n) to ach!e(e h!)her than e1pected return to our shareho#ders $<'. 8ur des!re !s to be the nu&ber of cho!ce for our #oya# custo&ers $=- .'. ,. 2. +. :. <. ;. =. .. 9. Custo&er Products or ser(!ces Mar6ets /echno#o)y Concern for sur(!(a#- prof!tab!#!ty- )ro%th Ph!#osophy 0e#f-concept Concern for pub#!c !&a)e Concern for e&p#oyees
D.
External Audit
Copyr!)ht > 20,+ Pearson 7ducat!on
Kraft
Critical Success "actors #ei!$ t %atin ! #ei!$te d Score %atin !
estle
#ei!$te d Score
ConA!ra
%atin ! #ei!$ted Score
Pr!ce co&pet!t!(eness ?#oba# 71pans!on 8r)an!@at!ona# 0tructure 7&p#oyee Mora#e /echno#o)y Product 0afety Custo&er 4oya#ty Mar6et 0hare d(ert!s!n) Product Aua#!ty Product I&a)e F!nanc!a# Pos!t!on &otal
0.,: 0.0. 0.02 0.0+ 0.0. 0.,, 0.,0 0.0. 0.09 0.,0 0.,, 0.0; '.((
2 + 2 + + , : + : : : +
0.2. 0.2: 0.0: 0.09 0.2: 0.,, 0.:0 0.2: 0.+; 0.:0 0.:: 0.,. ).(*
+ : + 2 : + + : + + + :
0.:2 0.+2 0.0; 0.0; 0.+2 0.++ 0.+0 0.+2 0.2= 0.+0 0.++ 0.2: ).*+
, 2 , , 2 2 2 2 2 2 2 2
0.,: 0.,; 0.02 0.0+ 0.,; 0.22 0.20 0.,; 0.,. 0.20 0.22 0.,2 '.,'
-pportunities ,. More peop#e are d!n!n) out- and food producers are de(ot!n) &ore attent!on to products des!)ned for restaurants- (end!n) &ach!nes- and other foodser(!ce pro(!ders 2. Be ab#e to se## to restaurants at a h!)her &ar)!n +. Consu&ers are sh!ft!n) to%ard food conta!n!n) #ess trans fat or fe%er ca#or!es- or those conta!n!n) on#y or)an!c !n)red!ents :. Bott#ed %ater has beco&e %e## estab#!shed !n the &ar6et and enhanced %aters conta!n!n) (!ta&!ns or supp#e&ents are )a!n!n) popu#ar!ty <. Consu&er pr!ces for ba6ed )oods !ncreased ,0.= percent !n "anuary 2009 co&pared to "anuary 200. ;. Input costs for ba6ers- !nc#uded co&&od!t!es such as %heat- e))s- and natura# )as- ha(e dec#!ned recent#y =. /he B.0. &ar6et for pac6a)ed and processed foods has seen #ar)e prof!ts !n reta!# sa#es- and th!s nu&ber !s e1pected to see steady )ro%th .. 9or#d%!de- de&and !s a#so on the r!se for pac6a)ed type of food as &ore peop#e adopt a #!festy#e that !nc#udes #ess t!&e for the preparat!on of food 9. /he )reatest asset of any reta!# and consu&er product co&pany !s !ts reputat!on and perce!(ed (a#ue a&on) consu&er .
&$reats ,. 8bes!ty !s !ncreas!n) drast!ca##y !n both ch!#dren and adu#ts and accord!n)#y consu&ers are de(!at!n) fro& ha(!n) snac6s- cheeses and such 2. C!s!n) costs of petro#eu& cause an !ncrease !n cost for co&pan!es !n the food !ndustry and !n the a)r!cu#ture end +. Food safety pro)ra&s ha(e been adopted recent#y as !ssues of che&!ca# and bacter!a# conta&!nat!on and ne% food-borne patho)ens re&a!n a pub#!c hea#th concern :. Because the !ndustry !s so co&pet!t!(e- !t !s d!ff!cu#t for these co&pan!es to ra!se the!r pr!ces accord!n)#y- and prof!t &ar)!ns ha(e suffered as a resu#t due to %ea6 econo&y and !ncrease !n une&p#oy&ent- &any consu&ers ha(e s%!tched fro& brand na&e to )ener!cs <. Due to !ncrease !n fue# char)es- the cost of d!str!but!on can !ncrease as %e## ;. ?#oba# %ar&!n) beco&!n) a &aDor po#!t!ca# !ssue and food producers are s!&u#taneous#y cast as perpetrator and potent!a# hea#er External "actor Evaluation .E"E/ Matrix
#ei!$t
%atin!
#ei!$ted Score
0.0;
0.2:
0.0= 0.0=
+ 2
0.2, 0.,:
0.0=
0.2,
+ 2 :
0.09
0.2=
0.0;
0.,.
0.09
0.+;
0.0=
0.2.
:.
0.0:
0.,;
<.
0.0; 0.0<
+ 2
0.,. 0.,
&otal
'.((
).'1
Positionin! Map
Pr!ce $2!)h'
Con )ra
Brand 4oya#ty $4o%' Brand 4oya#ty $2!)h'
Pr!ce $4o%'
E.
2nternal Audit
Stren!t$s ,. 2. +. :. <. ;. =. fter t%o !nc!dents of conta&!nat!on- the co&pany (o#untar!#y reca##ed &ore than 2 &!##!on pounds of nuts and has te&porar!#y shut do%n !ts &anufactur!n) p#ants Increase !n sa#e !n the de(e#op!n) !nternat!ona# &ar6ets by 2E /he co&pany operates !n < d!fferent bus!ness se)&ents: snac6sbe(era)es- cheese- )rocery and con(en!ent &ea#s Desp!te econo&!c do%nt!&e- the co&pany*s re(enues !ncreased to F:2.2 b!##!on 200.- %h!#e earn!n)s !ncreased to F2.9 b!##!on Increase !n current asset fro& 200= to 200. by a#&ost F;00 &!##!on Decrease !n current #!ab!#!t!es by around F; b!##!on fro& 200= to 200. Kraft se##s o(er ,00 d!fferent brand na&es #ea3nesses ,. 9or6ers at one of Kraft*s &anufacturers !n I##!no!s turned up a batch of fru!ts and nuts that %ere conta&!nated %!th sa#&one##a !n Dece&ber 200= %!th s!&!#ar !nc!dent !n 0epte&ber 200. 2. Drop !n sa#es !n the co&pany*s snac6 d!(!s!on fro& 200= to 200. by 2.+0E +. Drop !n sa#es !n the 7uropean Bn!on &ar6et by :.,E fro& 200= to 200.
Copyr!)ht > 20,+ Pearson 7ducat!on
:. Desp!te 9.. percent !ncrease !n pr!ce- Kraft Foods #ost 0.+ percent &ar6et share dur!n) 200. <. /he co&pany has o(er F2=.< b!##!on !n ?ood%!## ;. Increase !n #on)-ter& debt by about <0 percent !n 200. fro& 200= =. No ne% !nno(at!(e product !ntroduct!on !n recent years .. Ne% C78 !n 200; "inancial %atio Anal0sis $Dece&ber 2009'
4ro5t$ %ates 6 Kraft 2ndustr0 S7P 8((
0a#es $Atr (s year a)o 3tr' Net Inco&e $5/D (s 5/D' Net Inco&e $Atr (s year a)o 3tr' 0a#es $<-5ear nnua# ().' Net Inco&e $<-5ear nnua# ().' D!(!dends $<-5ear nnua# ().'
Price %atios
Current PG7 Cat!o PG7 Cat!o <-5ear 2!)h PG7 Cat!o <-5ear 4o% Pr!ceG0a#es Cat!o Pr!ceGBoo6 Ha#ue Pr!ceGCash F#o% Cat!o
Profit Mar!ins 6
?ross Mar)!n Pre-/a1 Mar)!n Net Prof!t Mar)!n <5r ?ross Mar)!n $<-5ear ().' <5r Pre/a1 Mar)!n $<-5ear ().' <5r Net Prof!t Mar)!n $<-5ear ().'
"inancial Condition
DebtG73u!ty Cat!o Current Cat!o Au!c6 Cat!o Interest Co(era)e 4e(era)e Cat!o Boo6 Ha#ueG0hare
dapted fro& %%%.&oneycentra#.&sn.co&
Av! P9E
Price9 Sales
Price9 Boo3
,2G0. ,2G0= ,2G0; ,2G0< ,2G0: ,2G0+ ,2G02 ,2G0, ,2G00 ,2G0.
:.: ;.< ..< ..< ..+ ,,., ,,.+ ;.: ..= :.:
2nterest Covera!e
,2G0. ,2G0= ,2G0; ,2G0< ,2G0: ,2G0+ ,2G02 ,2G0, ,2G00 ,2G0.
F,<.,, F,=..0 F,=.:< F,=.=2 F,=.<: F,;.<= F,:.9+ F,+.<+ F9.;< F,<.,,
0.9, 0.== 0.+; 0.+; 0.:, 0.:< 0.<2 0.;, ,.=. 0.9,
..+ ..; 9.9 9.. ..9 ,,.. ,2.. ..0 ,:.2 ..+
2.9 +.< <., <.0 :.< <.= <.. +.: +.. 2.9
+.0 <.: ;.. =.2 ;.. ..9 =.0 +.: ;.< +.0
0.0. 0.0;
: :
0.+2 0.2:
0.0.
0.+2
: : +
2. +. :. <.
, 2 2 , , , 2
&otal
".
S#-& Strate!ies
Stren!t$s #ea3nesses
,.
fter t%o !nc!dents of conta&!nat!on- the co&pany (o#untar!#y reca##ed &ore than 2 &!##!on pounds of nuts and has te&porar!#y shut do%n !ts &anufactur!n) p#ants 2. Increase !n sa#e !n the de(e#op!n) !nternat!ona#
Copyr!)ht > 20,+ Pearson 7ducat!on
,. 9or6ers at one of Kraft*s &anufacturers !n I##!no!s turned up a batch of fru!ts and nuts that %ere conta&!nated %!th sa#&one##a !n Dece&ber 200= %!th s!&!#ar !nc!dent !n 0epte&ber 200. 2. Drop !n sa#es !n the
&ar6ets by 2E +. /he co&pany operates !n < d!fferent bus!ness se)&ents: snac6sbe(era)es- cheese)rocery and con(en!ent &ea#s :. Desp!te econo&!c do%nt!&e- the co&pany*s re(enues !ncreased to F:2.2 b!##!on 200.- %h!#e earn!n)s !ncreased to F2.9 b!##!on <. Increase !n current asset fro& 200= to 200. by a#&ost F;00 &!##!on ;. Decrease !n current #!ab!#!t!es by around F; b!##!on fro& 200= to 200. =. Kraft se##s o(er ,00 d!fferent brand na&es
-pportunities S;- Strate!ies
+.
:.
<. ;.
=. ..
co&pany*s snac6 d!(!s!on fro& 200= to 200. by 2.+0E Drop !n sa#es !n the 7uropean Bn!on &ar6et by :.,E fro& 200= to 200. Desp!te 9.. percent !ncrease !n pr!ce- Kraft Foods #ost 0.+ percent &ar6et share dur!n) 200. /he co&pany has o(er F2=.< b!##!on !n ?ood%!## Increase !n #on)-ter& debt by about <0 percent !n 200. fro& 200= No ne% !nno(at!(e product !ntroduct!on !n recent years Ne% C78 !n 200;
#;- Strate!ies
,. More peop#e are d!n!n) ,. De(e#op a ne% product out- and food producers #!ne- focus!n) on or)an!c are de(ot!n) &ore !n)red!ents $8+- 8;- 0:attent!on to products 0<- 0=' des!)ned for 2. c3u!re a s&a## restaurants- (end!n) co&pet!tor that se##s to &ach!nes- and other restaurants and G or foodser(!ce pro(!ders !nter&ed!ary channe#s 2. Be ab#e to se## to $8,- 82- 8;- 8.- 02restaurants at a h!)her 0+' &ar)!n +. Consu&ers are sh!ft!n) to%ard food conta!n!n) #ess trans fat or fe%er ca#or!es- or those conta!n!n) on#y or)an!c !n)red!ents :. Bott#ed %ater has beco&e %e## estab#!shed !n the &ar6et and enhanced %aters
,. I&pro(e the 3ua#!ty by educat!n) the %or6ers on ho% to test and sa&p#e products before they are sh!pped $9,89'
<.
;.
=.
..
9.
conta!n!n) (!ta&!ns or supp#e&ents are )a!n!n) popu#ar!ty Consu&er pr!ces for ba6ed )oods !ncreased ,0.= percent !n "anuary 2009 co&pared to "anuary 200. Input costs for ba6ers!nc#uded co&&od!t!es such as %heat- e))sand natura# )as- ha(e dec#!ned recent#y /he B.0. &ar6et for pac6a)ed and processed foods has seen #ar)e prof!ts !n reta!# sa#es- and th!s nu&ber !s e1pected to see steady )ro%th 9or#d%!de- de&and !s a#so on the r!se for pac6a)ed type of food as &ore peop#e adopt a #!festy#e that !nc#udes #ess t!&e for the preparat!on of food /he )reatest asset of any reta!# and consu&er product co&pany !s !ts reputat!on and perce!(ed (a#ue a&on) consu&er
S;& Strate!ies #;& Strate!ies
&$reats
8bes!ty !s !ncreas!n) drast!ca##y !n both ch!#dren and adu#ts and accord!n)#y consu&ers are de(!at!n) fro& ha(!n) snac6s- cheeses and such 2. C!s!n) costs of petro#eu& cause an !ncrease !n cost for co&pan!es !n the food
,.
,. I&pro(e d!str!but!on !n 7uropean &ar6et %!th ne% and !nno(at!(e or)an!c products $020+- 0:- 0<- /,- /2- /+' 2. 8pen add!t!ona# s&a## d!str!but!on center !n 7urope and other re)!ons %here sa#es are !ncreas!n) !n order to reduce d!str!but!on costs
,. I&p#e&ent a better 3ua#!ty contro# !nterna##y and %!th supp#!ers to reduce food conta&!nat!on $9,- /+/;' 2. D!scont!nue products !n snac6 d!(!s!on that are not se##!n) $92- 9:- /,/2- /<- /;'
+.
:.
<.
;.
!ndustry and !n the a)r!cu#ture end Food safety pro)ra&s ha(e been adopted recent#y as !ssues of che&!ca# and bacter!a# conta&!nat!on and ne% food-borne patho)ens re&a!n a pub#!c hea#th concern Because the !ndustry !s so co&pet!t!(e- !t !s d!ff!cu#t for these co&pan!es to ra!se the!r pr!ces accord!n)#y- and prof!t &ar)!ns ha(e suffered as a resu#t due to %ea6 econo&y and !ncrease !n une&p#oy&ent- &any consu&ers ha(e s%!tched fro& brand na&e to )ener!cs Due to !ncrease !n fue# char)es- the cost of d!str!but!on can !ncrease as %e## ?#oba# %ar&!n) beco&!n) a &aDor po#!t!ca# !ssue and food producers are s!&u#taneous#y cast as perpetrator and potent!a# hea#er
4.
SPACE Matrix F0
Conservative
= ; < : + 2 ,
A!!ressive
C0
I0
-= -; -< -: -+ -2 -, -, -2 -+ -: -< -; , 2 + : < ; =
Defensive
-=
Competitive
70
"inancial Stabilit0 ."S/ Ceturn on In(est&ent 4e(era)e 4!3u!d!ty 9or6!n) Cap!ta# Cash F#o% "inancial Stabilit0 ."S/ Avera!e Competitive Stabilit0 .CS/ Mar6et 0hare Product Aua#!ty Custo&er 4oya#ty Co&pet!t!on*s Capac!ty Bt!#!@at!on
+ , : : : ).*
Environmental Stabilit0 .ES/ Bne&p#oy&ent /echno#o)!ca# Chan)es Pr!ce 7#ast!c!ty of De&and Co&pet!t!(e Pressure Barr!ers to 7ntry Environmental Stabilit0 .ES/ Avera!e 2ndustr0 Stabilit0 .2S/ ?ro%th Potent!a# F!nanc!a# 0tab!#!ty 7ase of Mar6et 7ntry Cesource Bt!#!@at!on
-< -+ -2 -: -: ;).<
-2 -+ -+ -:
< + : :
/echno#o)!ca# Kno%-2o% Competitive Stabilit0 .CS/ Avera!e 5-a1!s: F0 J 70 K +.2 J $-+.;' K -0.: L-a1!s: C0 J I0 K $-+.2' J $:.0' K 0..
-: ;).*
: =
>.
Quadrant III
Quadrant IV
,. Mar6et de(e#op&ent 2. Mar6et penetrat!on +. Product de(e#op&ent :. For%ard !nte)rat!on <. Bac6%ard !nte)rat!on ;. 2or!@onta# !nte)rat!on =. Ce#ated d!(ers!f!cat!on
2.
IH
IH
HI
HII
HIII
IL
?.
@SPM
c3u!re a s&a## co&pet!tor that se##s to restaurants and G or !nter&ed!ary channe#s AS &AS : 0.2:
Ke0 "actors -pportunities ,. More peop#e are d!n!n) out- and food
#ei!$t
0.0;
producers are de(ot!n) &ore attent!on to products des!)ned for restaurants- (end!n) &ach!nes- and other foodser(!ce pro(!ders 2. Be ab#e to se## to restaurants at a h!)her &ar)!n +. Consu&ers are sh!ft!n) to%ard food conta!n!n) #ess trans fat or fe%er ca#or!esor those conta!n!n) on#y or)an!c !n)red!ents :. Bott#ed %ater has beco&e %e## estab#!shed !n the &ar6et and enhanced %aters conta!n!n) (!ta&!ns or supp#e&ents are )a!n!n) popu#ar!ty <. Consu&er pr!ces for ba6ed )oods !ncreased ,0.= percent !n "anuary 2009 co&pared to "anuary 200. ;. Input costs for ba6ers- !nc#uded co&&od!t!es such as %heat- e))s- and natura# )as- ha(e dec#!ned recent#y =. /he B.0. &ar6et for pac6a)ed and processed foods has seen #ar)e prof!ts !n reta!# sa#es- and th!s nu&ber !s e1pected to see steady )ro%th .. 9or#d%!de- de&and !s a#so on the r!se for pac6a)ed type of food as &ore peop#e adopt a #!festy#e that !nc#udes #ess t!&e for the preparat!on of food 9. /he )reatest asset of any reta!# and consu&er product co&pany !s !ts reputat!on and perce!(ed (a#ue a&on) consu&er &$reats ,. 8bes!ty !s !ncreas!n) drast!ca##y !n both ch!#dren and adu#ts and accord!n)#y consu&ers are de(!at!n) fro& ha(!n) snac6s- cheeses and such 2. C!s!n) costs of petro#eu& cause an !ncrease !n cost for co&pan!es !n the food !ndustry and !n the a)r!cu#ture end +. Food safety pro)ra&s ha(e been adopted recent#y as !ssues of che&!ca# and bacter!a# conta&!nat!on and ne% food-borne patho)ens re&a!n a pub#!c hea#th concern :. Because the !ndustry !s so co&pet!t!(e- !t !s d!ff!cu#t for these co&pan!es to ra!se the!r pr!ces accord!n)#y- and prof!t &ar)!ns ha(e suffered as a resu#t due to %ea6 econo&y and !ncrease !n une&p#oy&ent- &any consu&ers ha(e s%!tched fro& brand na&e to )ener!cs <. Due to !ncrease !n fue#- the cost of d!str!but!on can !ncrease as %e##
0.0= 0.0=
, : ---
: , ---
0.0=
0.0;
----+
----0.2=
----,
----0.09
0.0:
0.09
0.09
0.+;
0.,.
0.0;
0.2:
0.0;
0.0.
0.+2
0.0.
0.09
+ ---
0.2= ---
2 ---
0.,. ---
0.0=
0.0:
0.0:
0.0.
0.0;
0.0;
0.,.
;. ?#oba# %ar&!n) beco&!n) a &aDor po#!t!ca# !ssue and food producers are s!&u#taneous#y cast as perpetrator and potent!a# hea#er &-&AA Stren!t$s ,. fter t%o !nc!dents of conta&!nat!on- the co&pany (o#untar!#y reca##ed &ore than 2 &!##!on pounds of nuts and has te&porar!#y shut do%n !ts &anufactur!n) p#ants 2. Increase !n sa#e !n the de(e#op!n) !nternat!ona# &ar6ets by 2E +. /he co&pany operates !n < d!fferent bus!ness se)&ents: snac6s- be(era)escheese- )rocery and con(en!ent &ea#s :. Desp!te econo&!c do%nt!&e- the co&panyIs re(enues !ncreased to F:2.2 b!##!on 200.%h!#e earn!n)s !ncreased to F2.9 b!##!on <. Increase !n current asset fro& 200= to 200. by a#&ost F;00 &!##!on ;. Decrease !n current #!ab!#!t!es by around F; b!##!on fro& 200= to 200. =. Kraft se##s o(er ,00 d!fferent brand na&es #ea3nesses ,. 9or6ers at one of Kraft*s &anufacturers !n I##!no!s turned up a batch of fru!ts and nuts that %ere conta&!nated %!th sa#&one##a !n Dece&ber 200= %!th s!&!#ar !nc!dent !n 0epte&ber 200. 2. Drop !n sa#es !n the co&panyIs snac6 d!(!s!on fro& 200= to 200. by 2.+0E +. Drop !n sa#es !n the 7uropean Bn!on &ar6et by :.,E fro& 200= to 200. :. Desp!te 9.. percent !ncrease !n pr!ce- Kraft Foods #ost 0.+ percent &ar6et share dur!n) 200. <. /he co&pany has o(er F2=.< b!##!on !n ?ood%!## ;. Increase !n #on)-ter& debt by about <0 percent !n 200. fro& 200= =. No ne% !nno(at!(e product !ntroduct!on !n recent years .. Ne% C78 !n 200; SBB&-&AA SBM &-&AA A&&%AC&2VE ESS SC-%E
0.0<
---
---
---
---
'.((
0.0;
*.() -------
'.== ---
0.0. 0.0;
+ : ------: ---
, + ------2 ---
0.0.
+ : ----: : ---
, 2 ----2 2 ---
'.((
K.
%ecommendations
De(e#op a ser!es of products &a!n#y &ade %!th or)an!c products and are hea#thy !n nature by ha(!n) #o% carb- #o% saturated fat and su)ar. Introduce the ne% product under !ts o%n bus!ness un!t !n case the co&pany dec!des to e1pand !ts #!ne or se## !t off.
M;
A.
EPS9EB2& Anal0sis
F &ount Needed: F,00 &!##!on 0toc6 Pr!ce: F2=.,. /a1 Cate: 2..2E Interest Cate: ;.,=E $ (era)e 7ffect!(e Cate' N 0hares 8utstand!n): ,.< b!##!on
Common Stoc3 "inancin! Recession Normal Boom F+-.00-000-000 F:-000-000-000 F:-<00-000-000 0 0 0 +-.00-000-000 :-000-000-000 :-<00-000-000 ,-0=,-;00-000 ,-,2.-000-000 ,-2;9-000-000 2-=2.-:00-000 2-.=2-000-000 +-2+,-000-000 ,-<0+-;=9-,=; ,-<0+-;=9-,=; ,-<0+-;=9-,=; '.,' '.1' *.'8 +( Percent Stoc3 ; )( Percent Debt Recession F+-.00-000-000 :-9+;-000 +-=9<-0;:-000 ,-0=0-20.-0:. 2-=2:-.<<-9<2 ,-<02-<=<-:2+ '.,' Recession F+-.00-000-000 ;-,=0-000 +-=9+-.+0-000 ,-0;9-.;0-0;0 2-=2+-9;9-9:0 ,-<00-000-000 '.,* +( Percent Debt ; )( Percent Stoc3 Recession F+-.00-000-000 ,-2+:-000 +-=9.-=;;-000 ,-0=,-2<2-0,2 2-=2=-<,+-9.. ,-<0,-,0+-=<+ '.,* Debt "inancin! Normal Boom F:-000-000-000 F:-<00-000-000 ;-,=0-000 ;-,=0-000 +-99+-.+0-000 :-:9+-.+0-000 ,-,2;-2;0-0;0 ,-2;=-2;0-0;0 2-.;=-<;9-9:0 +-22;-<;9-9:0 ,-<00-000-000 ,-<00-000-000 '.1' *.'8
M.
Epilo!ue
Cecent#y- Kraft announced that they %!## be cutt!n) the sa#t !n !ts product are so#d !n North &er!ca by a(era)e of ,0 percent o(er the ne1t t%o years. /h!s dec!s!on %as based on consu&ers de&and!n) for hea#th!er products and better !n)red!ents !n the food they consu&e. Kraft !s p#ann!n) to co&p#ete the reduct!on of sa#t o(er the ne1t t%o years. Kraft a#so has &ade an offer to ac3u!re Cadbury %h!ch &any ana#ysts ha(e rated as a pos!t!(e &o(e on beha#f of Kraft Foods- Inc. and accord!n)#y- the stoc6 pr!ce %as ra!sed by F+ fro& F++ to F+;.