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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As such, the merger was perceived as largely positive by Kraft shareholders, as the short-term hit that was taken by the stock was significantly augmented by the long-term increase in value that was witnessed in the aftermath. Cadbury as a result gives them a brand kract capability which Kraft needs in order to expand overseas. Criminology, Law, Deviance and Punishment. This opportunity will also open up doors for Kraft so that it can grow mwrger penetrate into India and European Union where it lacks behind.
Ugh, I can’t stand him. Strategic analysis helps an organisation to identify what is happening outside of the business so that they can focus on external elements or threats that the business is likely face. Furthermore, strategy also seems to shape organisational behaviour therefore it is vital that everyone in the organisation is focused and that they have a shared a vision because they will be more likely to be working towards the same goal.
The diversified nature of conglomerates means that although they are largely safe from large-scale movements in the market, their multi-focus competitive model prevents effective competition in a single market and dilutes the ability of division to effectively react against market conditions.
Issues in Health Care Delivery. By implementing such strategies Kraft are able to manage their activities appropriately and by doing so they are able to identify the skills and competencies which are required to foster organisational growth hence drive profits.
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 scanning so that management can address and identify the key areas which are likely to affect the overall business strategy due to uncertainty within the market.
The role of a corporate parent headquarters is to reinforce and implement parenting skills so that it can manage and add value to its business units. Unfortunately the effort to conjoin forces was not without bickering among executives and hierarchical protests of why the deal should not take place. But it is still a wretched outcome. The Kraft and Cadbury merger was a hostile horizontal acquisition.
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. This acquisition has enabled Kraft to expand their portfolio in terms of product offering. Management must have a clear vision in place as to where it wants to be in the long-term so it is able to identify its strategic purpose as to why the company exists.
But this example has been followed by very few companies over the years. As a whole, Kraft has displayed significant stock growth in the wake of its acquisition of Cadbury and subsequent split into two separate organizations. By focussing on such strategic factors Kraft is able to accomplish their goals and objectives. However, I don’t see how buying British goods would save British companies from foreign takeovers.
In order to succeed in the global environment an organisation such as Kraft needs to make sure that they have the right people in the right place at the right time so that they can operate efficiently and effectively. Corporate strategy is best defined by Lynch,p. Transport and Agricultural Economics. But we are still so stuck in our wretchedly unsustainable ways when it comes to ownership structures within the capitalist economy.
Furthermore, it also helps them to spot opportunities within the market place so that they can expand and take advantage of change.
He knew he couldn’t do anything to ensure job-losses are kept to a minimum, so why even pretend he could? Click here to ask a question about this article. Cadbury managed to gain significant value and organizational qnd after the company was spun off, as this allowed a single focus for management and in terms of market competition.
From this perspective we can see quite clearly why Kraft acquired well known Cadbury. Essay Manuals Topics for illusration essays Searching for an online essay writer Choosing an essay type Essay closing sentences College essay types Controversial persuasive topics Searching for an online essay writer Othello: Companies need to be owned by their workers to keep them safe.
Better still, boycott Kraft, and write them a letter to tell them why.
Mergers and Acquisition: Brief Analysis of Kraft and Cadbury
This will help it to boost sales and hopefully increase their market share. Once the shares have a certain market value they are too expensive for employees to buy or for existing shareholders to give away. Critical success factors are those business activities which must be managed and performed in order to foster organisational success. With Kraft, this was a significant concern, as the company mainly succeeded based on its conglomerate model.
Strategy and Business Analysis. I do feel sorry for the workers, but I do wish Mandelson had left his obviously hollow assurances at home. But the lack of any genuinely radical ideas during the takeover battle was very noticeable. Therefore Kraft could use Cadbury to strengthen their global base and use their core competencies to maximise 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.
But there is still Royal Mail, which currently has only one shareholder the Governmentwhich would make it easier to think of some kind of employee ownership basis.
The Cadburys-Kraft deal is just one in a very long line of international purchases that has seen Britain stripped of its companies, factories, stable employment mergeer ultimately, any sense of control.
Thank goodness there is someone else out there that shares my principles and patrotism – I haven’t eaten a Rowntree product since and gave up Cadbury when they sold out to Kraft.
Mergers and Acquisition: Brief Analysis of Kraft and Cadbury
Leave this field blank: The main emphasis is so that the company can perform better compared analysix if it was working individually. Astrophysics and Atmospheric Physics. Evaluation, Measurement and Research Methods.