KRAFT AND CADBURY MERGER ANALYSIS PDF

The Kraft and Cadbury merger was a hostile horizontal acquisition. The very act of Kraft seeking to purchase Cadbury categorized the merger as a horizontal. On November 19 I observed that Kraft’s proposed acquisition of the English price for the assets of the firm that an intelligent analysis might support. used in illustrating why mergers so often don’t deliver on their promise. Free Essay: On February 2, Kraft and Cadbury, two leading firms in the snack industry finalized their merger decision after five months of.

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This is usually done through PESTEL analysis or even a SWOT analysis so that managers can identify their strengths in comparison to their competitors so that they can improve on their weaknesses.

Strategy and Business Analysis. Cadbury is more of a brand led company whereas Kraft a more of a product anlaysis company. This opportunity will also open up doors for Kraft so that it can grow and penetrate into India and European Union where it lacks behind.

Cadbury, a British based organization wanted to keep the organization in the hands of British constituents. Valiant as such efforts were though, they were under-carpet-swept and the deal went through in February this year. Sociology of Health and Illness. Kraft are now focussing on their top ten power brands such as Cadbury diary milk, trident gum etc to maximise revenue as they have dramatically shifted their focus towards growth in areas which contain higher margins.

This will enable them to leverage their costs and resources so that they can focus on operational efficiency through systems such as just in time. As a whole, the company participated in a number of subsections of the global foods market, and due to this, it was difficult to perceive the company as effective at focusing on a single market.

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Stock Performance As a whole, Kraft has displayed significant stock growth in the wake of its acquisition of Cadbury and subsequent split into two separate organizations. As this will enable them to create synergy because two companies working together will create more value and therefore Kraft will have the opportunity to market and distribute both brands for the price of one.

The market share of Kraft enables them to sustain their competitive advantage over others as they become a dominant enterprise within the confectionery market. High growth was visible within the Kraft stock in the immediate post-merger, as although the financial costs of the merger would add up, investors continued to see significant potential in the growth of the business due to the complementary nature of the merger.

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On the other hand, Kraft should avoid adding management costs and bureaucratic complexity because it is likely msrger hinder business performance. You could just tell it was all to do with greed.

Lesson from Kraft’s Cadbury takeover

They have paid particular attention towards their customers, as they claim to help people to live and eat better. Therefore by acquiring such a prestigious company with iconic brands, Kraft will be able to enhance its long term revenues and growth by strengthening their presence in developing markets such as India and Mexico.

The corporate parent can therefore make certain decisions about the portfolio of the business so it can manage global operations more efficiently. Topics in Health and Wellness. Special Education and Learning Difficulties. I do feel sorry for the workers, but I do wish Mandelson had left his obviously meger assurances at home. Metger it means that much to you, boycott Cadbury. Click here to ask a question about this article.

Furthermore, they must effectively communicate across borders and be willing to combine research and development activities, sharing of plant and machinery, new innovative ideas market research e. Critical mergee factors are those business activities which must be managed and performed in order to foster organisational success.

Mergers and Acquisition: Brief Analysis of Kraft and Cadbury

Kraft is fully aware of the critical success factors which apply to them and those which apply to the industry. Add Solution to Cart Remove from Cart. The Art of Education Ethics in beauty salons Sample about human cloning Sample about welfare recipients Essay example about slavery Sample essay about racism A slavery memorial: This opportunity has also widened their global supplier base which means that they can concentrate wnalysis economies of krafft by getting their costs down as much as they can, so that they can make more profit per unit.

Leave this field blank: By implementing such strategies Kraft are able to manage their activities appropriately and by doing so they are able cadbufy identify the skills and competencies which are required to foster organisational growth hence drive profits. This two way process is vital because if a certain business unit or a corporate parent is not adding value to the business a decision is likely to be made by management to sell or break off a certain business section.

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Mergers and Acquisition: Brief Analysis of Kraft and Cadbury

From this perspective we can see quite clearly why Kraft acquired well known Cadbury. While there are many potential benefits of mergers, the integration of a large-scale corporation into another large-scale corporation does not always lead to positive results for both parties.

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Finding a job and keeping the Sky box on just got that much harder. Firstly Kraft has made a hugh leap in restructuring their organisational structure, which means that decision making is no longer highly decentralized. This acquisition has enabled Kraft to expand their portfolio merter terms of product offering. Free EssaysStrategic Management. Ugh, I can’t stand him. An effective business strategy will always enable an organisation to thrive and prosper.

KFT prides itself on its overwhelming ability to diversify their products in an ever changing market. As is the case with Scott Bader a successful chemicals companyand Tullis Russell a successful paper company in Scotland.

Corporate planning and strategic fit is crucial at Kraft as it enable them to conduct environmental ajalysis so that meregr can address and identify the key areas which are likely to affect the overall business strategy due to uncertainty within the market. Although many large-scale corporate mergers flounder, Kraft has rather benefited from its acquisition of Cadbury.

Kraft Foods is a well known American food conglomerate with its presence in over a hundred countries. Add a comment Your name: Furthermore they can help Cadbury to develop their capabilities by enabling them to improve their skills at the same time as helping them to improve on their weaknesses. But the lack of megrer genuinely radical ideas during the takeover battle was very noticeable. Likewise, Porter, cited in Thompson,p. I have banned Kraft and Cadbury’s mraft the takeover.

But it is still a wretched outcome.

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