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Kraft Foods PESTLE Analysis

Published by MBA Skool Team in Companies category Last Updated: August 09, 2023Read time:

Here is a detailed PESTLE analysis of Kraft Foods which examines political, economic, social, technological, legal & environmental factors.

Political Factors:

The political factors in the Kraft Foods PESTLE Analysis can be explained as follows:

Kraft Foods is an American company which is in the food manufacturing and processing business. It has its operations in many nations. To operate smoothly there should be political stability in the nations where it operates. The company should also have good connections with the both political parties in its parent country and also with the governments of the host nations for its smooth operations. the company should also observe the policies taken by nations in regards to the pandemic. The government in US has changed recently so the company should also take account of the policies taken by the new government. The company should also look at the trade policies and interconnections between nations.

Image: company website

Economic Factors:

Below are the economic factors in the PESTLE Analysis of Kraft Foods:

Kraft Foods has its presence all over the world, and hence there are many economic policies which define its business. Due to pandemic, the disposable income of the people has decreased a lot.

The economy of the nations also decreased. The GDP growth has been in negative trends in many nations. Due to this the cash flows of the company has decreased. Due to second wave of the pandemic, there are restrictions in some nations. Due to this restriction, the economic activities haven’t started completely. Due to this pandemic, the intensity of the impact of foreign exchange rates on company has increased. The operation costs of the company also increased due to pandemic. The company should also focus on the economic stimulus provided by the governments of different nations.

Social Factors:

Following are the social factors impacting Kraft Foods PESTLE Analysis:

The behaviour of the consumers has changed a lot these days. People food habits has tremendously changed in the last decade. People are consuming snacks in between meals. The people also going towards the healthy snack these days which is a crucial thing to note for the company. the change in demographics and change in food habits from place to place also a crucial thing for the company to introduce a new snack. Kraft Foods should also look at the growth of youth in a nation. The company should also look how people minds changes towards the ingredients and tending towards the healthy ingredients.

Technological Factors:

The technological factors in the PESTLE Analysis of Kraft Foods are mentioned below:

Kraft Foods manufactures lots of products with less time. To attain this, the company should depend on the sophisticated process. As the technology has been improving, new manufacturing process should be attained. The company should also focus on the safe practices. As the company is in the food business, it should undergo all the safety measures to ensure that the snack item is good to eat. To this company should practise sophisticated safety measures.

The company should also focus on the research and development to introduce and develop new products and process to manufacture those products.

Following are the legal factors in the Kraft Foods PESTLE Analysis:

Kraft Foods is in the food business which has to maintain many safety measures. There are many rules and regulations to be followed to operate in the business. The rules and regulations of the nations on food business are different from one nation to another nation. the company should ensure it should follow all these rules. The company should also ensure that it follows all the legal procedures to establish the manufacturing plants. The company should also follow the legal procedures in the trading the goods from one nation to another nation.

Environmental Factors:

In the Kraft Foods PESTLE Analysis, the environmental elements affecting its business are as below:

Kraft Foods manufacture lots of products with the help of non-renewable energy resource. This will aid for the increase of carbon foot print which increases the temperatures of the globe. Due to this climate change, the intensity of the disasters has increased a lot.

It also disrupts the supply chain a lot which is crucial for the manufacturer company like Kraft Foods. The company should also focus on reducing usage of the plastics as it used a lot for the packaging. Instead, the company should use disposable plastics.

To conclude, the above Kraft Foods PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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