The loss made by Kraft Heinz Company is bound to stir up a mixed feeling from consumers and investors. While others may sympathize with company losses, others may see it as an opportunity to bolster efforts and peak up in the market. Loyal customers of the company stand to lose in terms of quality and quantity. When Kraft Heinz slashed off several brands to meet the bottom line, consumers suffered and fell short of the products. Probably the company reduced workers and other material to lower the manufacturing costs. The company’s attempt to reduce manufacturing costs might interfere with the quality of goods produced. Consumers are likely to shift to fresh diets if they anticipate that the firm’s quality will depreciate. Simultaneously, some consumers may increase their shopping to boost the company or due to publicity. Investors, on the other hand, may escape from the company to avoid losses. An investor with a lot of hope in the company may be inconvenienced when the dividends are reduced. Investors may be skeptical in waiting for the business to peak up to its initial standards.
The concepts that we have studied in the article include writing down, dividends, balance sheets, bottom line, materiality, financial statement, and procurement practices. The phrase means that the Security Executive Commission’s (SEC) report misled the consumers and investors due to its unreliability. Consequently, the company suffered after the SEC conducted their investigation and made financial statements (Eavis). Materiality applies because when Kraft posted their results in 2018, there were no market changes compared to when the commission made their declaration. The Security Executive Commission’s failure in responding to Kraft and Heinz Company affirms that they missed some information while conducting their research.
Eavis, Peter. “Kraft Heinz Stock Plunges As Tastes Change and S.E.C. Investigation Begins.” The New York Times – Breaking News, World News & Multimedia, 21 Feb. 2019, www.nytimes.com/2019/02/21/business/kraft-heinz-earnings.html.