When Irene Rosenfeld unveiled her turnaround plan, she knew Kraft would need to win back customers both at home and abroad. To concentrate on the company’s core brands, Rosenfeld sold off Minute Rice, Milk-Bone pet snacks, and Cream of Wheat and Post cereals. Also sold were Kraft’s Fruit2O water and Veryfine beverage brands, to Sunny Delight Beverages. Rosenfeld also turned to overseas markets by buying the cookie and cereal division of French firm Groupe Danone, whose LU, Petit Déjeuner, and Tuc cookie brands were big throughout Europe. The $7.2 billion acquisition expanded Kraft’s snack food division—already its largest, representing almost one-third of its revenues—and gave Kraft an even larger global presence. Danone’s foothold in China doubled Kraft’s business in that huge emerging market. With the acquisition of Groupe Danone, Kraft’s international sales increased to over 40 percent of the company’s total sales. Rosenfeld’s emphasis on the firm’s foreign markets yielded strong growth in eastern Europe, Russia, the Middle East, and Africa. Venezuela and Argentina reported double-digit gains, and in Asia, the Oreo and Kraft cheese brands did well.

• What knowledge and skills did Irene Rosenfeld need to include global expansion into her turnaround strategy for Kraft? How did her request for all employees to rethink their products contribute?

• Why do you think Rosenfeld decided to acquire Groupe Danone rather than build new relationships and factories from scratch? What about Kraft’s products makes local responsiveness necessary?