strategy original cost cutting efforts employee value and customer satisfaction

Strategy original cost cutting efforts employee value

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strategy, original cost-cutting efforts, employee value, and customer satisfaction need to be revised. Jick and Peiperl, 2011, concur that the focus has shifted from “large-scale, first-order change to the second-order, more continuous variety” (p. 503). Kraft Heinz must continue to change. While preparing this paper, a major change has occurred at Kraft Heinz that may help to rejuvenate the declining conglomerate; CEO Bernardo Hees has been replaced by Miguel Patricio, a global brand expert expected to revitalize the flagging brands represented by Kraft Heinz. Patricio, slated to take over the reins in July, 2019, believes that cost control---which does not mean cutting costs---is about growing the top line and the bottom line simultaneously (Kraft
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THE KRAFT HEINZ COMPANY: A BEHEMOTH IS BORN 10 Heinz hires global brand expert Patricio as CEO, 2019, par. 7). For successful change to occur, Patricio seems ready to shift the company from a “mechanical (follow the steps) to an organic (support what is called forth) way of working” (Jick and Peiperl, p. 616). Strategic Planning Issues Prior to the Kraft Heinz merger, it is apparent that the senior leadership were unaware of the ramifications the merger could cause. The merger’s intent, as previously stated, was to have the buying power of a mega company and at the same time cut costs. “Even so, outright cost-cutting is not a sustainable path to long-term growth” (Howell, 2016, par. 2). “As for scale, it boosts buying power and may increase leverage in negotiations with customer, but it doesn’t drive innovation” (Watson, 2015, par. 10). Kraft Heinz needs to have a strategic plan in place to create innovation with their cost cutting measures to allow for true growth and a larger foothold in the consumer market. Public Image Mergers are supposed to be times that companies can celebrate by showing success and allowing shareholders to see a brighter and more profitable future. The whole vision and intent of the Kraft Heinz merger was simply to cut costs to make the company more profitable. However, in this case, an apparent violation was found in the financials of the newly merged organization--- Kraft Heinz shocked investors when it posted a gigantic loss due to the write-down of its Kraft and Oscar Mayer brands, slashed its dividend, and disclosed an SEC probe into its accounting (Monica, 2019, p. 1). 2 Corinthians 1:12–14 is a great guide in being open and transparent, “Now this is our boast: Our conscience testifies that we have conducted ourselves in the world, and especially in our relations with you, with integrity and godly sincerity. We have done so, relying not on worldly wisdom but on God’s grace. For we do not write you anything you cannot read or
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THE KRAFT HEINZ COMPANY: A BEHEMOTH IS BORN 11 understand. And I hope that, as you have understood us in part, you will come to understand fully that you can boast of us just as we will boast of you in the day of the Lord Jesus” (NIV). The best approach in any crisis, if the company is found conducting unethical or illegal business
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  • Summer '19
  • The Bible, H. J. Heinz Company, Ketchup, kraft heinz company, The Kraft Heinz Company

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