Situation Analysis

Situation Analysis

In 1898, The National Biscuit Company was formed in the US through the merger of several regional baking companies. In 1952, the now familiar red Nabisco triangle first appeared on the upper left corner of National Biscuit Company products. National Biscuit Company changed its name to Nabisco in 1971. In 1981, Nabisco, Inc. merged with Standard Brands (founded in 1929) to become Nabisco Brands. To expand their global presence and to strengthen their position in the fast-growing consumer snacks sector, Philip Morris Co. Inc. acquired Nabisco Holdings in December 2000. Philip Morris purchased Nabisco for $14.9 billion in cash plus assumed $4 million in debt (Grant 243).

Nabisco is the world's largest manufacturer and marketer of cookies and crackers, based on retail sales. Eventually, Philip Morris integrated the Nabisco brands with its Kraft Food operations (Cookies 4). In March 2001, Philip Morris created a new holding company for the combined operations known as Kraft Foods Inc. (lacking the comma of the previous Kraft Foods, Inc). The previous Kraft Foods was renamed Kraft Foods North America (Grant 243).

The people of Kraft have recognized that the business has an important role in society- a responsibility that included understanding and meeting the public's expectations, helping to address important social, environmental and economic issues and making a difference in local communities and the world. They firmly believe that "Our success will depend importantly on our willingness and ability to listen, get feedback on what we're doing from those both inside and outside Kraft and act responsibly on issues of important concern."

Beginning in the early 1990's