BC607. Assignment 1.

The Impact of Globalization on Small and Large Corporations

Kraft Foods v/s Hansen’s Natural

Submitted to

Dr. Miro Smriga

By

Syed Shanavas

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Abstract

A brief study is done on Kraft Foods and Hansen Natural Corporation, to analyze and
compare the ways in which the concept of globalization has made its impact in their
respective strategies internationally.

Analysis

Kraft Foods and Hansen’s Natural are two diverse companies with different ways of
operations. From size to structure and from accessibility to global marketing these
companies have different ways of operand. The few similarities they have are that they
both operate in food industry. Kraft Foods is a large global corporation that operates
internationally with many subsidiaries and distribution network. Hansen’s Natural on the
other hand is a beverage company which is much smaller when compared to Kraft Foods
and produces natural beverage products and energy drinks from Corona California.
However, they do smart business globally in association with their third party distributors
Coca Cola.

Kraft Foods

Kraft Foods Inc. is the largest confectionary, food and beverage company in the United
States, marketing its brands in more than 155 countries. Kraft Foods, a transnational
corporation has 49% of its market share in North America and the rest is in Europe and
other areas. As more than half of the business of Kraft is outside North America, they use
diversity as an advantage of such diverse population. Kraft has 64 subsidiary name
brands and merged firms in its incorporated business operate to produce revenue for the
betterment of the global world. Kraft markets as a global company and has websites in
many languages to cater a wide variety of market, where everything is standardized.
Kraft Foods really care about the world. Kraft Foods is a leader in sustainable
development as hey promote sustainable farming work on environmental policy, climate
change and animal welfare.

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Being environmentally responsible and work to decrease energy use, Kraft Foods have
achieved a 15% decrease in manufacturing energy consumption. Kraft Foods offers
dozens of brands of chocolate, gum, candy, and snack-size cookies, crackers and nuts
through multiple distribution channels, from traditional groceries to convenience stores.
Kraft Foods operates globally with the interests of civil society at the forefront of their
business. Kraft works with non-profit organizations in the United States and Asia for
promoting healthy lifestyles and they partner with 33 countries to fight hunger, promote
healthy lifestyles and build strong communities. Kraft is always dedicated in promoting
healthy lifestyles. Kraft Foods is a massive company operating across the world and
dedicated to making this world a better place, while still being profitable.

Hansen’s Natural

Hansen Natural Corporation was incorporated in 1985 and is based in Corona, California
Hansen’s Natural is a smaller company compared to Kraft Foods and operates on a much
smaller scale with revenues in the millions compared to the billions of Kraft Foods They
employ approximately 1,400 employees in the 2009 fiscal year. Hansen’s Natural
through its various alliances with Coca Cola, Anheiser Bush has spread its wings of
global distribution into Canada, Mexico, and Western Europe. Hansen’s Natural remains
a local company and are involved minimally in world trade and global marketing and
doesn’t actively participate in global bettering activities and they work towards
continuous growth.

Hansen Natural Corporation enjoys a loyal consumer following and has preserved its
mission to, “to satisfy consumer needs for superior quality and great tasting, healthy,
natural and functional beverages”. Hansen’s Natural have expanded their products from
natural products to many types of energy drinks, including “Monster”, that are disputable
as a natural product. Hansen’s Natural has much more narrow goals and the launch of the
energy drink with sugar and caffeine has boosted sales.

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Hansen’s is not involved internationally and their products have a higher price point
making it less affordable. Hansen’s relies on its alliance with the distributors to handle
the globalization for them. Hansen Natural is able to maintain and expand its brand
integrity, establish itself as a solid and reputable company, while utilizing the expertise
and international resources of its more well-known partners to slowly expand into
international global markets.

Conclusion

The mantra for sustainability and remaining profitability for any company in this modern
era is to use the latest technological and international networking methods. The key point
is maintaining integrity in what ever activities they do as every company will have the
ability to maintain a sustainable competitive advantage in an evolving global marketplace
Success as it means, for both the companies rests in the way how they deal with the
technological changes without forgetting customer aspirations. With respect to the
globalization concept, Hansen’s Natural has done a remarkable achievement by
succeeding in marketing its products in the global market as they don’t have a large
amount of socio-economic or political resources. And with respect to the globalization
concept Kraft uses sustainable development to help shape its overall connection to the
global market.

References

• www.hansens.com
• www.kraftfoodscompany.com.
• Lee, A. (2010). BC607: Assignment 1.1 – Impact of Globalization on Small and
Large Corporations. April 10, 2010.