Critical Success

Factor
Weight
Kraft Nestle ConAgra
Rating Score Rating Score Rating Score
1. Advertising 0.25 3 0.75 4 1 2 0.5
2. Financial Position 0.1 3 0.3 4 0.4 2 0.2
3. Global Expansion 0.25 3 0.75 4 1 2 0.5
4. Market Share 0.1 3 0.3 3 0.3 2 0.2
5. Product Diversity 0.15 4 0.6 4 0.6 3 0.45
6. Consumer
Demands
0.15 4 0.6 3 0.45 3 0.45
Total 1 3.3 3.75 2.3

Competitive profile matrix is a vital strategic management tool to compare the firm with
the major companies of the industry. Competitive profile matrix displays the well-defined picture
to the firm about their strong points and weak points relative to their competitors. The primary
competitors to Kraft are Nestle and ConAgra, so we used those two companies in this matrix.
After an in depth analysis of the external and internal environment we came up with these critical
success factors: Advertising, Financial Position, Global Expansion, Market Share, Product
Diversity, and Consumer Demands. After we came up with that factor, we must rate each field.
The rating in the CPM represents the response that the firm has towards the critical success
factors. The response scale is from 1 4. The response is poor represented by 1.0, the response is
average is represented by 2.0, the response is above average represented by 3.0, the response is
superior represented by 4.0.
In this industry we felt that Kraft has an above average effort in their advertising field. But felt
that Nestle does a little more in their efforts. We see more different types of advertising by
Nestle, whether its newspaper ads or commercials. Also their advertising is more eyes catching
and appealing to the public eye. ConAgra receive a 2 because they arent really in the scene in a
global aspect. Financial position, we rated this based upon their net sales. Nestle is the leader in
the food diversified industry so it is obvious that their response is a 4 because they are leading
the pack. Kraft wasnt too far behind so they are above average because they are ahead majority
of everyone else in this industry. ConAgra is lower in this field for the fact that they dont offer
as much as these other two companies. The next factor we found important was global
expansion. ConAgra received a low rating for this because they have decided to mainly focus on
the North America. They arent focused about going global at this time. Nestls headquarter in
Switzerland; they are based off international and global expansion. Many of their products are in
undeveloped countries. The next factor we focused on was market share. We found this
important because companies need to be able convert sales targets into market share because this
will exhibit whether forecasts are to be attained by growing with the market or by capturing
share from competitors. We felt as if using that information that all three companies displayed
either average of slightly above average in this area. For product diversity Kraft does an
exceptional job, they have over 20 brands that cover the board of products. Kraft however
doesnt have any bottled water, but they have a powder portfolio for water that leads the
industry. Nestle has a very diverse product line also, where as ConAgra has a diverse product
line but not as many brand names as these two companies. The final factor is consumer demands,
which refers to how much of something that a consumer desires. A company needs to know the
consumer demand so they know how much of a product to make. Each of these companies, I
feel are above average in this area. Kraft continues to expand and be innovative with their
products. An example is currently they have just launched their new product Mio that is a water
flavoring substance. Nestle is also great in this area, especially when it comes to their baby
nutrition products. They continue to make these products that babies need to survive and bring
them to developing countries.
The weight attribute in CPM indicates the relative importance of each of the factors to
being successful in the firms industry. The sum of all weighted score is equal to the total
weighted score; final value of total weighted score should be between ranges 1.0 (low) to
4.0(high). The average weighted score for CPM matrix is 2.5 any company total weighted score
fall below 2.5 consider as weak. The companies total weighted score higher then 2.5 is
considered as strong in position. In this case Kraft received a total weight of 3.3, Nestle a weight
of 3.75, and ConAgra a weight of 2.3. This indicates that Nestle is the premier company in this
matrix, but Kraft still is a strong company in this industry. With ConAgras weight being below
the average 2.5 it is clear that they are considered weak in this industry.