Alternative Solutions:

One of the problems that Heinz and Krafts merger is facing is changing to meet the consumer’s needs. Today people are showing more interest in natural and healthier options. Heinz and Kraft should meet these needs and make changes to appeal to the consumers today. This could increase their profits quite a bit. They could do vertical integration where they are the ones who own the operation starting from the raw materials to the factories and all the way to the consumer. This way they are able to keep a close watch and guarantee that it is a good quality and natural product (if they went that route) which would make the consumers happy and satisfied.

In order to lower costs especially with Kraft, they could look into outsourcing more of their manufacturing and processing plants. This could lower the cost structure, increase product differentiation, and focus on the distinctive competencies that are vital to its long-term competitive advantage and profitability. When it costs less to produce these products in other countries it will save them some money. With outsourcing it also allows the managers to focus their energies and the company’s resources on performing core activities with the most potential to create value and competitive advantage. Broadening Kraft internationally could be a huge benefit and could increase sales and profits significantly.

Evaluate each alternative. Critically assess the alternatives defined above. Describe the implications and key steps for implementation of each alternative. Consider external and internal factors and other relevant trends. Once again, utilize course texts and other resources to enhance your assessment