Thursday, May 2, 2019
Advantages and Disadvantages to Kraft Foods Case Study
Advantages and Disadvantages to Kraft Foods - Case Study ExampleTherefore, if Kraft Foods starts producing healthier products, it get out establish coercive relationships with different stakeholders. The move bequeath also depict that the caller-out is committed to corporate social function (Lussier 2008, p. 223).On the other hand, the company is likely to lose some of its customers because the new-fangled versions of chocolate will deem a different taste. Notably, the esteemed customers of the company have been consuming its products because of their unique taste. However, lowering the calorific look upon of the chocolate versions will alter the product taste. Many customers may not like the new taste. The company will also incur new costs in production. Worth noting is the fact that the company will need to source ingredients that will be used in the production of lower-calorie chocolates. In addition, the company will need to spend on advertising and promotion strategies i n order to introduce the new versions into the market.In my opinion, the UK presidential term is likely to introduce legislation that will require revenue enhancementation of high-fat solid food products like chocolate. Since the government has experienced the financial burden resulting from medical costs associated with the high morbidity cases resulting from obesity, it is likely to take new measures. The government is also concerned about the health of children and adolescents who are more affected by high-fat food products such as chocolate bars. Therefore, there are higher chances that the government will intervene (Lussier 2008, p. 223).Denmark repealed its fat-tax virtue after the realization that it contributed to increased consumer prices for the high-fat products. The tax did not motivate companies to produce healthier products. On the contrary, the tax law increased consumer prices, and the consumers had to bear the financial burden.