Resources are the inputs into a production process. Tangible resources, such as physical and financial resources are critical for the success of Kraft. Along with tangible resources, intangible resources are more often just as important for companies to make a profit. Intangible resources include technological and intellectual resources. Distinctive capabilities are those items that cannot be copies or replaced, such as architecture, reputation, and innovation.
Tangible Resources Tangible resources refer to physical assets that an organization possesses and can be categorized as physical resources, financial resources, and other resources. Below are the tangible resources associated with Kraft Foods Group.
Kraft…show more content… and Canada who are very important assets to the company working continuously for growth and development of the company. Kraft Foods Group also has $18 billion in annual sales. Kraft also needs to remain in good standing with banks and vendors in which they borrow money from in order to continue to expand their company. Along with the outside vendors in which Kraft may do business with, they need to rely on internal funds and their ability to generate profits to continue expanding. The specific departments (ie. Accounting and Finance) that manage the funds of the organization are a great asset to Kraft Foods as they are the ones managing the funds and ensuring Kraft is making a profit while still paying out the necessary funds to ensure the business operates as it…show more content… This would include software they use for both their machines as well as computers. By having the latest technology, Kraft will be able to continue succeeding in performing everyday tasks as well as ensure the machines are running properly. Along with technology for computers and machines is patented and unpatented technology that also needs to be addressed.
Some intellectual resources Kraft Foods Group needs to ensure they continue to make a profit is the strong knowledge of the employees. This allows for operations to run smoothly without any major issues. Having knowledgeable staff to perform daily operations is a crucial part of the success of a company, just as it is for Kraft. The knowledge of the employees can be used to produce wealth for the company, multiple the output of physical work, and enhance the value of other types of resources.
Another intangible resource for Kraft Foods Group is the customer/supplier/distributor relationship. Kraft needs to remain in good standings with their distributors as well as the retailers that sell their goods. Without having a good relationship, Kraft would not be able to distribute their products to the retailers. Retailers can also drop Kraft as a vendor and no longer sell their