Analyzing Globalization's Effects on Carman's Kitchen's Operations

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Added on  2023/01/17

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This report provides an overview of Carman's Kitchen, a company known for its nutritional products, and examines the impact of globalization on its international operations. The report discusses the company's background, international presence, and associated risk factors, including high product costs, market competition, and the emergence of private labels. It analyzes how globalization has benefited Carman's Kitchen by fostering expansion, innovation, and increased product demand, leading to the diversification of its product range. Furthermore, the report justifies the identified risks, emphasizing the need for cost adjustments based on local standards of living and the challenges posed by private labels and competitive product offerings. The analysis is supported by academic sources, providing a comprehensive understanding of the interplay between globalization and Carman's Kitchen's business strategy and performance.
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Running head: GLOBALIZATION ON CARMAN’S KITCHEN
GLOBALIZATION ON CARMAN’S KITCHEN
Name of the Student
Name of the University
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1GLOBALIZATION ON CARMAN’S KITCHEN
Executive summary
This paper is going to give us an over view of the company Carmen’s kitchen and talk about
the impact of globalization on the company Carman’s kitchen and the changes in its
international operations due to the impact.
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2GLOBALIZATION ON CARMAN’S KITCHEN
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Overview of the company......................................................................................................3
International Operations of the company...............................................................................3
Risk factors of the company...................................................................................................3
Consequence of Globalization on the company.....................................................................4
Justification and explanation of the risks of the company.....................................................4
Conclusion..................................................................................................................................5
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3GLOBALIZATION ON CARMAN’S KITCHEN
Introduction
Globalization has paved way for companies to expand their products or companies in other
foreign countries to dominate the global market that lead to the profit of the company. This
paper is going to talk about the impact of Globalization on the company Carman’s kitchen
and the change in their international operations.
Discussion
Overview of the company
Carman’s kitchen is a company that is famous for their nutritional and healthy product
(Volkova and Mhurchu 2015). The founder of the company is Carolyn Creswell. The
popularity of the products under this brand has paved way for making Creswell the owner of
a $50 million company (Carmanskitchen 2019)
International Operations of the company
The breakfast and gourmet ranges by the company are loved by everyone in Australia and
around the world. They export their products in some countries in the Middle East and some
countries in the Asia Pacific. They are also available in many online sites like Amazon that
helps to reach a wider network of people.
Risk factors of the company
One of the risk factors that can harm the company is the high cost of the products in
comparison to other local products available. The other risk factor is the growing competition
in the market. There are many other brands that are offering muesli products at a cheaper rate.
The other risk is the private labels that are placed in super markets. The idea of good quality
product is expensive is slowly washing off thus low cost products are in demand these days
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4GLOBALIZATION ON CARMAN’S KITCHEN
Malysheva et al 2016). The private labels offer muesli products like Carman’s kitchen at a
cheaper rate. The other important factor of the company is the lack of experimentation in
expansion (Thvil 2014). The company provides muesli products and other nutritional
products. However, very little experiment can be done here.
Consequence of Globalization on the company
The globalization of the company has been beneficial for Carman’s kitchen has benefitted
them immensely. The small company has become a million dollar company because of the
popularity and the sales all over the world. Globalization has paved for creativity and
innovations. This has impacted the company Carman’s kitchen as well as the company use to
only produce muesli products (Henriksen, Richardson and Mehta 2016). After the popularity
and the good sales there was an increase in the demand of products. This was the main driver
for globalization and this made the company to take creative decisions as to how they are
going to bring new variations to the products to cater to a wide area of people and market.
Previously they produced muesli products and now the company has a range of breakfast and
gourmet products like porridge oats, nutritional bars, nut bars, grain crackers, protein bars
and many more.
Justification and explanation of the risks of the company
The company Carman’s kitchen is a success however it has some risk factors that can affect
the company in terms of globalization. The costs of the products are going to become a
problem as all countries do not have the same standard of living. The cost should be changed
in terms of the standard of living of the country. There are many super markets that have a tie
up with brands that give them the products to put in the super markets. These products are
available to the super markets at a very less rate. The super markets also have their in house
brands that they put up in the market. The lack in creative products in the market has become
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5GLOBALIZATION ON CARMAN’S KITCHEN
a risk factor. There are brands that are coming up with different flavours to give a tough
competition to Carman’s kitchen (Bowen, Baker and Powell 2015).
Conclusion
Carman’s kitchen has garnered a lot of appreciation because of the creative products
made by nutritional cereals and has helped health conscious people in a big way. The impact
of globalization has been economically beneficial for the company as the company has
become a million dollar company and acquired a loyal fan base in the market locally as well
as internationally.
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6GLOBALIZATION ON CARMAN’S KITCHEN
Reference
Bowen, H.P., Baker, H.K. and Powell, G.E., 2015. Globalization and diversification strategy:
A managerial perspective. Scandinavian Journal of Management, 31(1), pp.25-39.
Carmanskitchen (2019). The Carman's Story So Far | Carman's Kitchen. [online]
Carmanskitchen.com.au. Available at: https://www.carmanskitchen.com.au/our-stor
[Accessed 6 Apr. 2019].
Henriksen, D., Richardson, C. and Mehta, R., 2016. Thinking Skills and Creativity.
Malysheva, T.V., Shinkevich, A.I., Kharisova, G.M., Nuretdinova, Y.V., Khasyanov, O.R.,
Nuretdinov, I.G., Zaitseva, N.A. and Kudryavtseva, S.S., 2016. The sustainable development
of competitive enterprises through the implementation of innovative development strategy.
International Journal of Economics and Financial Issues, 6(1), pp.185-191.
Rzepka, A., 2017. Inter-organizational relations as a one of sources of competitive advantage
of contemporary enterprises in the era of globalization. Procedia engineering, 174, pp.161-
170.
Thyil, V., 2014. Distinguishing Features of a Sustainable Business Model in the Food
Industry. Business Journal for Entrepreneurs, 2014(1).
Volkova, E. and Mhurchu, C.N., 2015. The influence of nutrition labeling and point-of-
purchase information on food behaviours. Current obesity reports, 4(1), pp.19-29.
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