Assignment 1.1-the Impact of Globalization on Small and Large Corporations
Leading from a Global Perspective Module 1: Business in a Globalizing World Assignment 1.1: Dialogue 1- The Impact of Globalization on Small and Large Corporations Cheryl Tomlin Nov 07, 2012 The Impact of IT and the Internet: Improves shipping and handling procedures and tracking; aids quality control; eliminates contamination; helps companies to follow rules and regulations.Impact of Global Business Regulations: In the global market place, there are four universal points- safety, benefit, legality, and economic viability.
The process might be different between countries, but the goals are the same.
Important steps have been made towards global regulatory harmonization as the food industry is driving the harmonization of ingredient regulations. (www. foodnavigator. com) Worldwide Access to Foods: Accessibility to food in a global business environment is affected by global market volatility; supply chain; where the food is being sourced; how countries are getting food; consumer demand; nutrition and health. The Availability of Scientific Research and Talent: Advances in the scientific understanding and engineering techniques have increased agricultural production and have allowed for the commercial-scale production of processed foods.
The variety of food available is no longer limited to local products as perishable foods can now be transported farther away and have increased shelf-life. For example, McDonald’s Corporation engineered food not to spoil as fast. Overseas Competition: “ Some competitors may have different profit objectives and some international competitors may be more or less susceptible to currency exchange rates. ”(www. winkinvest. com) Future Trends in Globalization Schema: Consumers are becoming more outspoken and demanding in their food choices. According to the Puratos Group, there are 10 future-proof consumer trends for the food industry.
Themes include overall quality perception; openness and transparency; local self-expression; city brands; history and tradition; portability; what is healthy based on size, volume, shape and portion; authentic small market look and feeling; convenience. (Moerdyck) In comparing Kraft Foods to Hansen’s, the former has a far greater global reach. In order to minimize marketing expense Kraft has decentralized much of its decision making to local management teams enabling them to make decisions quickly- critical to maintaining an edge in a very competitive industry.
On the other hand, Hansen’s operates primarily in North America, with less diversification as Kraft Foods. Kraft has both beverage and food products while Hansen’s only markets beverages; therefore being unable to develop the same level of presence as Kraft Foods in the global market.
References: Moerdyck, Anke. Oct 24, 2012, http://blog. insites. eu. http://www. winkinvest. com/stock/Kraft_Foods. Feb 27, 2009. Fletcher, Anthony. Jul 06, 2006. www. foodnavigator. com/legislation/IFT.