GLOBAL COPORATE STRATEGY

Global corporate strategy



Global Corporate Strategy

Question 1

Globalization in the food industry

Globalization in the food industry has not only profited the food industry but also the companies. International trade in the last thirty years has grown at rates never reached before, both overall and for the re-look at the component relating to processed food. The volume of world trade in food sector alone is quadrupled tripled in the period between 1976 and 2004, significantly exceeding the growth trade in agricultural raw material that, in the same period, there is little more than doubled. Until the mid-90s the rate of growth trade of processed food was very similar to the average the manufacturing sector, only in recent years it has been recorded higher rates of growth, due to a slowdown in growth in the second half of the '90s is that the food component of agriculture. A different and more interesting perspective on the dynamic marketing you may be highlighted by comparing the average volume of trade commercial value of production. An analysis of patterns of trade integration emerges quite clearly in the past trends. First, the level of integration in the manufacturing sector is about double that the food business in all countries considered. Secondly it was analyzed that the degree of trade integration is doubled in feeding than in manufacturing (Hirsh, 2008, Pp.14).

(Fig 1: Global Spending on Food as percentage of Overall Consumer Spending 2004 to 2008)

Considering the average (simple) of the countries OECD In 1970 the incidence Trade value of production was 11% in industry food and 21.4% in manufacturing. The same indicator few years back reached respectively 20.8% and 43.6%, while practically unchanged differential initial integration. Therefore, the volume Trade has grown in content than the production both sectors

In the last decade, the prevalence of obesity in the United States and most Western countries increased by 71% with at least one in five adults obese. Every time food is consumed more processed and higher caloric concentration. Americans consume half their daily calories as sugar and fat. The globalization of the market also affects the food industry, production is concentrated in a few but growing giant companies and molded the taste at international level so that it is profitable for manufacturers. Investment in advertising by the food companies is increasingly strong throughout the world. Various strategies are used to increase sales at the expense of healthy eating: it attempts to convince people to choose foods with high caloric concentration and constant ubiquitous advertising deals, offers lots more abundant in exchange for small price increases open new markets in developing countries and substitute ingredients. It is essential to note that in order to increase value added, regularly used fats and simple sugars in food processing. Like the tobacco companies in the food market and hide negative information is disclosed other questionable evidence. Clearly the urgency of an international policy of tight control over unhealthy foods. Useful measures could be the restriction of advertising or educational access to these foods, or search reduce demand ...