Finance

kraft is a food-focused social club with many well cognize trademark names. In 1987 net sales were $9.9 billion which was an gain of 27% over the previous year., and net income increase by 11% to $435 one thousand million. This follows an earlier attempt to diversify where in 1980 kraft merged with Dart Industries and then acquiring Hobart Corporation in 1981. However, by the end of 1986 kraft had returned to a food-focused strategy. Philip Morris is a company that is dependant on the tobacco industry. Most of Philip Morris income is from its Marlboro, Benson & Hedges, and Virginia boil down cigarette brands. Though tobacco sales have increased by 15 percent in 1987, Philip Morris wishes to diversify kayoed of the tobacco commercial enterprise, as evidenced by their 1969 acquisition of 53 percent of Miller Brewing Companys super C shares with the remaining shares following in 1970, and their purchase of seven-up in 1978 and General Foods in 1985.

These acquisitions have had mixed results, with Philip Morris selling its Seven-Up operations in 1986 and General Foods having a declining profit from 1986 to 1987 of $624 million to $605 million. As Philip Morris is seeking to diversify out of the tobacco business and into the food industry, the acquisition of Kraft would strengthen their position as they would then become the largest food company in the world. Kraft is internationally recognised with many well known brand names such as Miracle Whip, Seven Seas, and its range of Kraft salad dressings. If you want to get a full essay, order it on our website: Ordercustompaper.com

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