Ch. 7: International Strategies

An international strategy is a strategy that involves business operations within multiple countries. Kraft-Heinz company's international strategies tend to center around mergers (historically, and today). Kraft and Heinz recently underwent a merger, with the primary reason being both companies wanted to expand into international territory.

Prior to the merger, Heinz had a global platform with 61% of the total sales coming from international markets. Meanwhile, Kraft Foods generated 98% of its sales domestically. By merging, the two companies combined could sell their products in both international and domestic markets. By having a global presence and internationally expanding, both companies have thus also been able to be more competitive in regards to pricing and product offerings as well as lessen the risk they may face if the United States or another major country's economy went south (risk reduction). 

Although the merger between Kraft and Heinz allowed both companies to expand their consumer base, the food conglomerate recently tried to acquire Unilever, which is a Dutch-British transnational consumer goods company that produces food, beverages, cleaning agents and personal care products. Unilever denied KHC's initial offer, but an acceptance would have added Hellmann's mayonnaise and Ben & Jerry's ice cream to their already strong product profile. Kraft-Heinz's goal is to become a global powerhouse in the food and beverage industry and it is evident the company's international strategy is to acquire other companies with product lines that could be incorporated into their own and who also already have a strong international presence.