South Africa key market for Kraft Foods

In his recent visit, Khosla announced that the company is pouring US $150 million into local manufacturing in Africa over the next three years for brands including Stimorol chewing gum and Cadbury Dairy Milk chocolate. The company is also investing in increased capabilities and capacity for the research and development facilities in Johannesburg and Alexandria, which will serve as centres of excellence, not only for Africa, but the Middle East.

Sanjay Khosla

During his visit, Khosla also outlined his Winning through Focus strategy for the company's $13-billion developing markets business, the company's growth engine. This strategy tripled the company's developing markets net revenues from 2006 to 2010 and is centred around three pillars: focus, glocal and people.

Focus is a big part of winning in a business with more than 100 brands in more than 60 countries. "We focus on just five categories, 10 power brands and 10 priority markets. South Africa is a priority market for us, where we focus on power brands like Cadbury chocolate," said Khosla. Together, these 10 markets make up the majority of the growth in the company's developing markets business.

The second strategic pillar, "glocal", combines the best of global and the best of local. "We encourage independent thinking and entrepreneurship among local leaders who understand the local market, while taking full advantage of our worldwide strengths in areas like technology, sales and marketing," said Khosla.

People is the third pillar of strategy. He is investing in the development of diverse talent and future leaders, who have the opportunity to gain experience not only in South Africa, but around the world. "South Africa is a great source of global talent. Regional and international mobility is a phenomenal development opportunity for our people." With female leaders making up 50% of the local management team, three of whom are equity candidates, "South Africa's diversity is a major competitive advantage," he concluded.

South African collaboration

Sean Murphy

Sean Murphy, recently-appointed Kraft Foods MD for the company's Southern Africa business, says that one of the biggest challenges is bringing the two companies together under one culture. New Zealand-born Murphy, previously GM in Kraft Foods Gulf region, believes his extensive experience across a range of disciplines and in a variety of countries within the group - the Middle East, South East Asia and New Zealand - will stand him in good stead.

Acknowledging that, in South Africa, Cadbury was larger than Kraft Foods, he hopes that employees from both companies will embrace what he has to offer. "Being a Kraft Foods person gives those employees the assurance that they've got someone who knows them and how they work and it gives Cadbury people the opportunity to leverage me within the organisation to better understand it," he explains.

The biggest value-add for the Cadbury workforce complement, he believes is the organisation's commitment to people development and the opportunity for career growth, either within the local organisation or the company's broad international footprint.

Another priority in "moving the Southern Africa business from good to great" is growing the brands and categories. The company presently operates in four categories across multiple brands.