Kraft a Global Food Leader
Humber college | Individual Assignment on Globalization | World Geographies and Cultures GBMP 528-02 | | Akshay Idurkar 822-529-814 | 5/23/2013 |
|
Introduction
Merriam-Webster’s dictionary defines globalization as “the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets”
The objective of this document is to show how Kraft Foods Group Inc. became one of the global leaders in the Food processing industry by using a few examples.
Impacts of Globalization 1. How has globalization affected Kraft?
This 100 years old company was worth almost $52 Billion USD (before splitting into two companies; Mondelez International, Inc. which is worth $34 Billion USD and Kraft Foods Group Inc. which is worth $18 Billion USD) (Forbes 2012). This company was started by James L Kraft in 1903, selling cheese on a horse carriage in Chicago. By 1914 it began manufacturing cheese on its own. After the split it has grown into a global enterprise which has over 23,000 employees worldwide. (Wall Street Journal 2011)
2. Is Kraft a Winner or Loser?
Kraft is definitely a winner. According to www.customerthink.com , “Kraft Generates more than 25% of its sales and earnings beyond the border of United States”. Today more than 50% of its business is outside North America (Europe 23% and developing markets 28%) (Kraft Foods 2009). These numbers re-enforces our conclusion.
3. Successful or Unsuccessful in globalization?
The number is the previous paragraph answers this question. Kraft makes food with names that people all over the world recognize. According to ideaconnection.com one of the rules of Kraft is that it follows the policy of treating “Customers as its assets and involving the consumers in an innovative engagement, which they popularly call as co-creation”. Consumer knowledge and intelligence have been viewed as key assets. Consumers have
|
Introduction
Merriam-Webster’s dictionary defines globalization as “the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets”
The objective of this document is to show how Kraft Foods Group Inc. became one of the global leaders in the Food processing industry by using a few examples.
Impacts of Globalization 1. How has globalization affected Kraft?
This 100 years old company was worth almost $52 Billion USD (before splitting into two companies; Mondelez International, Inc. which is worth $34 Billion USD and Kraft Foods Group Inc. which is worth $18 Billion USD) (Forbes 2012). This company was started by James L Kraft in 1903, selling cheese on a horse carriage in Chicago. By 1914 it began manufacturing cheese on its own. After the split it has grown into a global enterprise which has over 23,000 employees worldwide. (Wall Street Journal 2011)
2. Is Kraft a Winner or Loser?
Kraft is definitely a winner. According to www.customerthink.com , “Kraft Generates more than 25% of its sales and earnings beyond the border of United States”. Today more than 50% of its business is outside North America (Europe 23% and developing markets 28%) (Kraft Foods 2009). These numbers re-enforces our conclusion.
3. Successful or Unsuccessful in globalization?
The number is the previous paragraph answers this question. Kraft makes food with names that people all over the world recognize. According to ideaconnection.com one of the rules of Kraft is that it follows the policy of treating “Customers as its assets and involving the consumers in an innovative engagement, which they popularly call as co-creation”. Consumer knowledge and intelligence have been viewed as key assets. Consumers have
Cited: Business Today India. How-kraft-foods-won-over-customers-in-China-and-India. 31 March 2013. 22 May 2013 <http://businesstoday.intoday.in/story/how-kraft-foods-won-over-customers-in-china-and-india/1/193162.html>. Forbes. Worlds-second-biggest-food-company-kraft-approves-spin-off. 14 August 2012. 22 May 2013 <http://www.forbes.com/sites/afontevecchia/2012/08/14/worlds-second-biggest-food-company-kraft-approves-spin-off/>. Idea Connection. Open Innovation Success. n.d. 22 May 2013 <http://www.ideaconnection.com/open-innovation-success/Co-Creating-with-Consumers-Generates-Wins-for-Kraft-F-00371.html>. Kraft Foods. Kraft Foods fact sheet. Illinois, USA, 2009. Wall Street Journal. The Long Strange history of Kraft. 04 August 2011. 22 May 2013 <http://blogs.wsj.com/deals/2011/08/04/the-long-strange-history-of-kraft-foods/>.