Kraft Foods acquired Cadbury in 2010 in a $19 billion deal. This allowed Kraft to enter emerging markets like India and China where Cadbury had a strong presence. It also gave Kraft access to Cadbury's distribution network in developing countries. However, integrating the two company's cultures posed challenges due to their different management styles and work environments.
1) In 2009, Kraft Foods launched a hostile bid for Cadbury to acquire its global snacks business and emerging market scale, especially in India. However, Cadbury actively resisted the takeover.
2) After months of negotiations and failed counter bids, Kraft increased its offer to £11.7 billion and Cadbury accepted in January 2010.
3) Integrating the two company cultures poses challenges as Kraft values multiculturalism while Cadbury prefers its British heritage. A separation model may be best to preserve Cadbury's identity.
Kraft Foods acquired Cadbury in 2010 for $19.5 billion after months of negotiations. Some key details:
- Kraft is an American food manufacturer known for brands like Oreo and Cadbury is a British confectioner famous for Dairy Milk chocolate.
- The acquisition gave Kraft access to emerging markets and Cadbury's strong brands. It also aimed to increase economic scale and profitability.
- Kraft initially offered $16.7 billion in August 2009 but Cadbury rejected it as too low. After extensions from the Takeover Panel, Kraft increased its offer and finally secured over 75% of shares to complete the acquisition in February 2010.
- Winners included Cadbury shareholders through
Kraft made a hostile takeover bid for Cadbury in 2009. After months of negotiations and Kraft sweetening its offer, Cadbury accepted Kraft's offer of £11.7 billion in January 2010. The takeover faced opposition from Cadbury management who felt the offer undervalued the company. Kraft employed various strategies like increasing the cash component and divesting some of its own brands to gain antitrust approval. Cadbury employed defensive strategies like reaching out to shareholders and highlighting its own growth potential. Integration issues after the takeover included workforce management and tax avoidance strategies by Kraft.
Mergers and Acquisitions Case: Kraft hostile takeover on Cadbury.
After reviewing operations, finance, marketing, supply chain management, this practical example supported my learning within the legal international frame.
Penultimate presentation carried out within a mostly French group, interesting :)
The implications of Kraft-Cadbury takeover: Cultural ChangeAlex Osborne
The document discusses the implications of Kraft's acquisition of Cadbury on organizational culture. It finds that while Kraft aimed to strengthen its brand and control through the takeover, Cadbury's culture emphasizing friendship and community faces risks of damage from Kraft's more performance-driven culture. Successfully implementing change will require strong leadership, communication, and a strategy respecting Cadbury staff to mitigate risks like lower morale, trust issues and weakened brand loyalty.
Kraft Foods believed the merger with Cadbury was compelling strategically and financially. The agreement was approved by the Cadbury board after a four-month negotiation between Cadbury's chairman and Kraft's CEO. Under the agreement, Kraft offered 850 pence per Cadbury share, comprising a cash payment of 840 pence plus a 10 pence dividend. However, some industry observers questioned the value of the Cadbury acquisition for Kraft.
1. Intel established itself as the early leader and standard-setter in microprocessors through innovations like the 4004 and 8086 chips. It was able to leverage this first-mover advantage over competitors.
2. Intel aggressively defended its proprietary x86 architecture through licensing restrictions and marketing campaigns against rivals like AMD. This helped it maintain control over the industry standard.
3. Intel invested heavily in cutting-edge manufacturing capabilities to continually advance process technology in line with Moore's Law. This allowed it to integrate more transistors at a lower cost over time, keeping its microprocessors ahead of competitors.
Buckmeister's proposal of using on-site customer feedback cards is recommended. Feedback cards can provide real-time customer preferences cost-effectively. Descriptive research techniques will be used, including quantitative observation methods like an NPS survey. Primary data sources are interviews, surveys, and social media monitoring. The expected outcomes are insights into customer preferences, purchasing decisions, and behaviors to identify areas for menu, marketing, and promotional improvements.
1) In 2009, Kraft Foods launched a hostile bid for Cadbury to acquire its global snacks business and emerging market scale, especially in India. However, Cadbury actively resisted the takeover.
2) After months of negotiations and failed counter bids, Kraft increased its offer to £11.7 billion and Cadbury accepted in January 2010.
3) Integrating the two company cultures poses challenges as Kraft values multiculturalism while Cadbury prefers its British heritage. A separation model may be best to preserve Cadbury's identity.
Kraft Foods acquired Cadbury in 2010 for $19.5 billion after months of negotiations. Some key details:
- Kraft is an American food manufacturer known for brands like Oreo and Cadbury is a British confectioner famous for Dairy Milk chocolate.
- The acquisition gave Kraft access to emerging markets and Cadbury's strong brands. It also aimed to increase economic scale and profitability.
- Kraft initially offered $16.7 billion in August 2009 but Cadbury rejected it as too low. After extensions from the Takeover Panel, Kraft increased its offer and finally secured over 75% of shares to complete the acquisition in February 2010.
- Winners included Cadbury shareholders through
Kraft made a hostile takeover bid for Cadbury in 2009. After months of negotiations and Kraft sweetening its offer, Cadbury accepted Kraft's offer of £11.7 billion in January 2010. The takeover faced opposition from Cadbury management who felt the offer undervalued the company. Kraft employed various strategies like increasing the cash component and divesting some of its own brands to gain antitrust approval. Cadbury employed defensive strategies like reaching out to shareholders and highlighting its own growth potential. Integration issues after the takeover included workforce management and tax avoidance strategies by Kraft.
Mergers and Acquisitions Case: Kraft hostile takeover on Cadbury.
After reviewing operations, finance, marketing, supply chain management, this practical example supported my learning within the legal international frame.
Penultimate presentation carried out within a mostly French group, interesting :)
The implications of Kraft-Cadbury takeover: Cultural ChangeAlex Osborne
The document discusses the implications of Kraft's acquisition of Cadbury on organizational culture. It finds that while Kraft aimed to strengthen its brand and control through the takeover, Cadbury's culture emphasizing friendship and community faces risks of damage from Kraft's more performance-driven culture. Successfully implementing change will require strong leadership, communication, and a strategy respecting Cadbury staff to mitigate risks like lower morale, trust issues and weakened brand loyalty.
Kraft Foods believed the merger with Cadbury was compelling strategically and financially. The agreement was approved by the Cadbury board after a four-month negotiation between Cadbury's chairman and Kraft's CEO. Under the agreement, Kraft offered 850 pence per Cadbury share, comprising a cash payment of 840 pence plus a 10 pence dividend. However, some industry observers questioned the value of the Cadbury acquisition for Kraft.
1. Intel established itself as the early leader and standard-setter in microprocessors through innovations like the 4004 and 8086 chips. It was able to leverage this first-mover advantage over competitors.
2. Intel aggressively defended its proprietary x86 architecture through licensing restrictions and marketing campaigns against rivals like AMD. This helped it maintain control over the industry standard.
3. Intel invested heavily in cutting-edge manufacturing capabilities to continually advance process technology in line with Moore's Law. This allowed it to integrate more transistors at a lower cost over time, keeping its microprocessors ahead of competitors.
Buckmeister's proposal of using on-site customer feedback cards is recommended. Feedback cards can provide real-time customer preferences cost-effectively. Descriptive research techniques will be used, including quantitative observation methods like an NPS survey. Primary data sources are interviews, surveys, and social media monitoring. The expected outcomes are insights into customer preferences, purchasing decisions, and behaviors to identify areas for menu, marketing, and promotional improvements.
Crown Cork & Seal experienced financial problems in the 1950s leading to bankruptcy but was turned around by John Connelly in 1957 through modernization and restructuring. In the late 1980s, the company pursued acquisitions and international expansion, purchasing Continental Can's operations and expanding into plastics and new markets globally. By the 1990s, Crown Cork & Seal was the largest metal container supplier through restructuring and strategic acquisitions under CEO William Avery.
Kellogg's recognized that sales of its Nutri-Grain cereal bars were declining, putting the brand in the decline stage of its product life cycle. To extend the life of the brand, Kellogg's conducted research to identify issues with the brand message, product lineup, and marketing. Kellogg's then implemented an extension strategy focused on improving the core products, packaging, pricing, and promotion. This re-launch of Nutri-Grain was successful in returning the brand to growth above market rates.
CSP is considering options for pricing, packaging, and demand forecasting for its new weight-loss drug Metabical. Three demand forecasting models were analyzed estimating the potential market between 4.3-9.8 million customers. Packaging and pricing strategies were evaluated using a matrix to determine ROI under different scenarios. Pricing at $150 targeting the ideal customer profile was estimated to achieve a 5.73% ROI, meeting CSP's objective.
Seth Horkum is the strongest candidate for the position at RSH. He has extensive experience as a top-rated sell-side analyst, strong industry knowledge of PowerChip, a commitment to loyalty, and good communication skills. While all candidates have strengths, Seth is the top-ranked by Institutional Investor, has close relationships with companies, and is eager to join and prove himself at RSH. The hiring process could be improved by giving candidates a virtual project to demonstrate their skills and organizing a debate for them to distinguish themselves.
Ken Winston faced issues as the regional office manager of Campbell and Bailyn's Boston office due to two recent organizational changes. The changes complicated processes, limited competitive advantages, and discouraged internal collaboration. Specifically, the formation of a Key Account Team (KAT) reduced customer support and created staff discontentment over the transition to specialization. A new performance system also introduced unfair advantages and frustration over compensation. Suggestions to address the issues included holding meetings to communicate the new plans, setting measurable individual goals for KAT members, establishing common company goals, and scheduling follow-up meetings.
Culinarian Cookware case study analysisSaurabh Mhase
Culinarian Cookware is considering adopting a price promotion strategy but is unsure if it will be profitable. In 2004, an external study found price promotions had a negative impact on profits. However, the sales manager believes the 2004 campaign was successful. There is a dilemma around whether price promotions would help or hurt Culinarian's market share and profits. The case analyzes Culinarian's market position, previous promotion results, and makes recommendations around a new product line and limited price promotions to target different customer segments.
Montreaux Chocolate aims to introduce a new line of premium dark chocolates in the US market. After generating 45 initial ideas and screening them down to 12 fruit-based concepts, they developed 4 refined dark chocolate concepts containing 70% cocoa with flavors like blueberry, pomegranate, and cranberry. These would be offered in a 3.5 oz candy bar and 5 oz stand-up pouch, priced at $4.49, and distributed through supermarkets, drug stores, and convenience stores nationwide. Market research with 200 consumers on each concept was positive, and Apollo's large size, growing market share, and focus on health positions them well to successfully launch this new product line.
McDonald's has grown into a global brand serving over 64 million customers daily. It focuses on maintaining consistency through its core brand elements like its Golden Arches logo, slogans, and characters. In India, McDonald's targeted families and children through offerings like Happy Meals. It has diversified its menu internationally based on local tastes and introduced healthier options to address health concerns. Recently, some of McDonald's attempts to position as healthier like a activity tracking Happy Meal promotion backfired and faced criticism. Moving forward, McDonald's aims to sustain its number one position through customer-centricity, quality, and innovation while maintaining authenticity.
Best Buy faces competition from online retailers who can offer lower prices. While Best Buy has higher operating costs for its physical stores, it also provides a valuable in-person shopping experience. The document evaluates alternatives for Best Buy and recommends that it invest in improving its stores and online platform while focusing on customer experience rather than just price to better compete against online retailers.
Château Margaux is a prestigious Bordeaux wine estate classified as a "first growth" with a reputation for producing elegant red wines. While France is losing market share to new world wines, taking control of distribution risks damaging the brand and expanding production is impossible given regulations. The status quo alternative of maintaining traditional production and distribution through merchants better protects the brand despite limited growth opportunities.
The document discusses the Microfridge product, which combines a refrigerator, freezer, and microwave. It is targeted at institutional living situations like colleges, military bases, and hotels/motels. The main markets in 1994 were colleges (55% of revenue), military (25%), and motels (18%). Microfridge faced medium competition but had patent protection. It acquired another company and replaced refrigerators with Microfridge units. While using two suppliers reduced costs, it created compatibility issues. Microfridge planned to focus on new "home away from home" products, rapidly increase sales, get $4M in equity, and repay debt to withstand future competition. Recommendations included innovating for new markets, focused product development, and exploring new
Launching Krispy Natural: Cracking the product management code Mayank Thar
It is the analysis of a Harvard Business School case about a company that initially failed to launch its product but then was able to relaunch it successfully.
McKinsey & Company: Managing Knowledge and LearningDisha Ghoshal
As part of Strategy execution, this presentation on was on how McKinsey & Company flourished throughout the years by Managing Knowledge and Learning diligently.
Cola Wars - Coke Vs Pepsi Harvard Business School Case StudyMohan Kanni
A brief presentation on case study Cola Wars where we try to analyse the past history and predict the future of their business and growth opportunities from a Marketing Management Perspective.
In response to a huge crisis in 2000, the new CEO of Procter & Gamble has to decide whether to continue with an unusual organizational design or to revert to the old matrix organization. Describes all the organizational designs used by Procter & Gamble from the 1920s onward, including geographic, product, and matrix architectures. Market development organizations, global business units, and global business services unit, each of which is heavily interdependent with the others and none of which has a clear decision-making advantage, comprise the unusual organizational design. Examination of the different organizational designs, trade-offs associated with each organizational architecture as well as the accompanying implementation problems
The soft drink concentrate business is highly profitable due to low costs of production and barriers to entry. Concentrate producers require only $25-50 million for a plant that can serve the entire US market. They face little threat from new entrants due to patented formulas and brand equity built over decades of marketing. In contrast, bottlers face higher costs, more competition, and lower profits of around 35% due to factors like needing large capital investments for plants. However, Coke and Pepsi have been able to sustain profits through brand loyalty, expanding into new markets like juices, and leveraging their brand equity globally despite slowing carbonated drink demand.
D.Light is a social enterprise that provides solar lamps to people in developing countries without access to modern electricity. It was founded in 2007 and targets the base of the pyramid population. D.Light experienced issues with brand awareness and convincing customers accustomed to kerosene to purchase unfamiliar solar technology. However, the lamps provide clear benefits like no recurring costs and allow for extended working and studying hours. As of 2014, D.Light has empowered over 37 million lives and generated over 53,000 MWh of renewable energy, saving customers over $1 billion and creating over 13 billion productive hours. Proposed solutions to further D.Light's impact include introducing cheaper LED options, running awareness campaigns, partnering with local governments, and providing
Kraft acquired Cadbury for $19.7 billion in 2010 to become the global leader in confectionery. Cadbury was founded in 1824 in Birmingham, England and Kraft was founded in 1903 in the United States. The acquisition allowed Kraft to enter new emerging markets and gain market share globally. Kraft expected cost savings and synergies from combining the companies' product portfolios and global operations. While some criticized the high price, Kraft executives believed it was necessary to outbid competitors for Cadbury.
Kraft Foods acquired UK-based Cadbury in a hostile takeover in 2010 for £11.9 billion. There was significant opposition to the deal from Warren Buffett and concerns over potential job losses in the UK. The takeover highlighted issues with the regulatory framework for foreign acquisitions of UK companies. It ultimately prompted reforms to the UK Takeover Code to increase protections for domestic firms being acquired.
Crown Cork & Seal experienced financial problems in the 1950s leading to bankruptcy but was turned around by John Connelly in 1957 through modernization and restructuring. In the late 1980s, the company pursued acquisitions and international expansion, purchasing Continental Can's operations and expanding into plastics and new markets globally. By the 1990s, Crown Cork & Seal was the largest metal container supplier through restructuring and strategic acquisitions under CEO William Avery.
Kellogg's recognized that sales of its Nutri-Grain cereal bars were declining, putting the brand in the decline stage of its product life cycle. To extend the life of the brand, Kellogg's conducted research to identify issues with the brand message, product lineup, and marketing. Kellogg's then implemented an extension strategy focused on improving the core products, packaging, pricing, and promotion. This re-launch of Nutri-Grain was successful in returning the brand to growth above market rates.
CSP is considering options for pricing, packaging, and demand forecasting for its new weight-loss drug Metabical. Three demand forecasting models were analyzed estimating the potential market between 4.3-9.8 million customers. Packaging and pricing strategies were evaluated using a matrix to determine ROI under different scenarios. Pricing at $150 targeting the ideal customer profile was estimated to achieve a 5.73% ROI, meeting CSP's objective.
Seth Horkum is the strongest candidate for the position at RSH. He has extensive experience as a top-rated sell-side analyst, strong industry knowledge of PowerChip, a commitment to loyalty, and good communication skills. While all candidates have strengths, Seth is the top-ranked by Institutional Investor, has close relationships with companies, and is eager to join and prove himself at RSH. The hiring process could be improved by giving candidates a virtual project to demonstrate their skills and organizing a debate for them to distinguish themselves.
Ken Winston faced issues as the regional office manager of Campbell and Bailyn's Boston office due to two recent organizational changes. The changes complicated processes, limited competitive advantages, and discouraged internal collaboration. Specifically, the formation of a Key Account Team (KAT) reduced customer support and created staff discontentment over the transition to specialization. A new performance system also introduced unfair advantages and frustration over compensation. Suggestions to address the issues included holding meetings to communicate the new plans, setting measurable individual goals for KAT members, establishing common company goals, and scheduling follow-up meetings.
Culinarian Cookware case study analysisSaurabh Mhase
Culinarian Cookware is considering adopting a price promotion strategy but is unsure if it will be profitable. In 2004, an external study found price promotions had a negative impact on profits. However, the sales manager believes the 2004 campaign was successful. There is a dilemma around whether price promotions would help or hurt Culinarian's market share and profits. The case analyzes Culinarian's market position, previous promotion results, and makes recommendations around a new product line and limited price promotions to target different customer segments.
Montreaux Chocolate aims to introduce a new line of premium dark chocolates in the US market. After generating 45 initial ideas and screening them down to 12 fruit-based concepts, they developed 4 refined dark chocolate concepts containing 70% cocoa with flavors like blueberry, pomegranate, and cranberry. These would be offered in a 3.5 oz candy bar and 5 oz stand-up pouch, priced at $4.49, and distributed through supermarkets, drug stores, and convenience stores nationwide. Market research with 200 consumers on each concept was positive, and Apollo's large size, growing market share, and focus on health positions them well to successfully launch this new product line.
McDonald's has grown into a global brand serving over 64 million customers daily. It focuses on maintaining consistency through its core brand elements like its Golden Arches logo, slogans, and characters. In India, McDonald's targeted families and children through offerings like Happy Meals. It has diversified its menu internationally based on local tastes and introduced healthier options to address health concerns. Recently, some of McDonald's attempts to position as healthier like a activity tracking Happy Meal promotion backfired and faced criticism. Moving forward, McDonald's aims to sustain its number one position through customer-centricity, quality, and innovation while maintaining authenticity.
Best Buy faces competition from online retailers who can offer lower prices. While Best Buy has higher operating costs for its physical stores, it also provides a valuable in-person shopping experience. The document evaluates alternatives for Best Buy and recommends that it invest in improving its stores and online platform while focusing on customer experience rather than just price to better compete against online retailers.
Château Margaux is a prestigious Bordeaux wine estate classified as a "first growth" with a reputation for producing elegant red wines. While France is losing market share to new world wines, taking control of distribution risks damaging the brand and expanding production is impossible given regulations. The status quo alternative of maintaining traditional production and distribution through merchants better protects the brand despite limited growth opportunities.
The document discusses the Microfridge product, which combines a refrigerator, freezer, and microwave. It is targeted at institutional living situations like colleges, military bases, and hotels/motels. The main markets in 1994 were colleges (55% of revenue), military (25%), and motels (18%). Microfridge faced medium competition but had patent protection. It acquired another company and replaced refrigerators with Microfridge units. While using two suppliers reduced costs, it created compatibility issues. Microfridge planned to focus on new "home away from home" products, rapidly increase sales, get $4M in equity, and repay debt to withstand future competition. Recommendations included innovating for new markets, focused product development, and exploring new
Launching Krispy Natural: Cracking the product management code Mayank Thar
It is the analysis of a Harvard Business School case about a company that initially failed to launch its product but then was able to relaunch it successfully.
McKinsey & Company: Managing Knowledge and LearningDisha Ghoshal
As part of Strategy execution, this presentation on was on how McKinsey & Company flourished throughout the years by Managing Knowledge and Learning diligently.
Cola Wars - Coke Vs Pepsi Harvard Business School Case StudyMohan Kanni
A brief presentation on case study Cola Wars where we try to analyse the past history and predict the future of their business and growth opportunities from a Marketing Management Perspective.
In response to a huge crisis in 2000, the new CEO of Procter & Gamble has to decide whether to continue with an unusual organizational design or to revert to the old matrix organization. Describes all the organizational designs used by Procter & Gamble from the 1920s onward, including geographic, product, and matrix architectures. Market development organizations, global business units, and global business services unit, each of which is heavily interdependent with the others and none of which has a clear decision-making advantage, comprise the unusual organizational design. Examination of the different organizational designs, trade-offs associated with each organizational architecture as well as the accompanying implementation problems
The soft drink concentrate business is highly profitable due to low costs of production and barriers to entry. Concentrate producers require only $25-50 million for a plant that can serve the entire US market. They face little threat from new entrants due to patented formulas and brand equity built over decades of marketing. In contrast, bottlers face higher costs, more competition, and lower profits of around 35% due to factors like needing large capital investments for plants. However, Coke and Pepsi have been able to sustain profits through brand loyalty, expanding into new markets like juices, and leveraging their brand equity globally despite slowing carbonated drink demand.
D.Light is a social enterprise that provides solar lamps to people in developing countries without access to modern electricity. It was founded in 2007 and targets the base of the pyramid population. D.Light experienced issues with brand awareness and convincing customers accustomed to kerosene to purchase unfamiliar solar technology. However, the lamps provide clear benefits like no recurring costs and allow for extended working and studying hours. As of 2014, D.Light has empowered over 37 million lives and generated over 53,000 MWh of renewable energy, saving customers over $1 billion and creating over 13 billion productive hours. Proposed solutions to further D.Light's impact include introducing cheaper LED options, running awareness campaigns, partnering with local governments, and providing
Kraft acquired Cadbury for $19.7 billion in 2010 to become the global leader in confectionery. Cadbury was founded in 1824 in Birmingham, England and Kraft was founded in 1903 in the United States. The acquisition allowed Kraft to enter new emerging markets and gain market share globally. Kraft expected cost savings and synergies from combining the companies' product portfolios and global operations. While some criticized the high price, Kraft executives believed it was necessary to outbid competitors for Cadbury.
Kraft Foods acquired UK-based Cadbury in a hostile takeover in 2010 for £11.9 billion. There was significant opposition to the deal from Warren Buffett and concerns over potential job losses in the UK. The takeover highlighted issues with the regulatory framework for foreign acquisitions of UK companies. It ultimately prompted reforms to the UK Takeover Code to increase protections for domestic firms being acquired.
Cadbury is a British confectionery company and the second largest confectionery brand in the world. It has a global market share of 14.8% and is the leading chocolate brand in Ireland and the UK. However, Mars is gaining market share and Cadbury must develop new strategies to maintain its competitive advantage. This report analyzes Cadbury's internal and external environment to identify threats and opportunities and develop strategies to gain an advantage in emerging markets like India, China, and Russia.
BCG matrix and Bowman’s strategic clock used strategies of Cadbury - By Jimit...JimitPatel53
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BCG matrix and Bowman’s strategic clock used strategies of Cadbury - By Jimit Patel
BCG matrix of Cadbury
Bowman’s strategic clock Cadbury
Cadbury marketing model
Cadbury marketing strategies
Cadbury case study
Cadbury presentation
Bowman's Strategic Clock examples
- Cadbury is a British confectionery company founded in 1824 that was acquired by Kraft in 2010.
- Kraft recognized that future growth would need to come from emerging markets and acquiring Cadbury would allow them to reach these markets quickly.
- In January 2010, Cadbury shareholders accepted Kraft's offer to acquire the company, making Kraft the largest food conglomerate in the world.
Cadbury is a global confectionery company with a vision of "Life Full Of Cadbury and Cadbury Full of Life". It participates in many consumer product categories beyond just chocolate, like snacks and gum. Cadbury started in the 1800s grinding cocoa by hand and now employs over 50,000 people worldwide. It has established itself as a leader in the chocolate market through quality products and innovative marketing campaigns in India and other key markets.
The document provides an overview of Cadbury, a global confectionery company founded in Birmingham, England in 1824. It discusses Cadbury's history and growth, product lines, marketing strategies, organizational structure, objectives, and competitors. Key facts include that Cadbury manufactures chocolate bars, cakes, ice cream and drinks and is a leader in the confectionery industry worldwide.
Cadbury Schweppes PLC is a large British confectionery and beverage company with around 65,000 employees worldwide. It was founded in Birmingham, England in 1824 and merged with Schweppes Limited in 1969. While traditionally basing many operations in high-wage Britain, the recent acquisition by Kraft has led them to strategize relocating production to lower-cost areas like Eastern Europe. Cadbury operates globally and has major brands in chocolate, gum, candy, and beverages. It focuses on profitable growth in emerging markets while managing costs through outsourcing and reconfiguring manufacturing.
The document provides an overview of Cadbury Schweppes PLC, including its operations strategy, processes, human resource management, capacity planning, lean systems, supply chain design, and location planning. Cadbury originated in Birmingham in 1824 and has since expanded globally, operating in over 60 countries with around 65,000 employees. It faces competition from other large confectionery companies and must manage various constraints in its business operations.
John Cadbury opened a grocer's shop in Birmingham, England in 1824 that sold cocoa and drinking chocolate. Cadbury later merged with Schweppes in 1969 to form CadburySchweppes. Cadbury began operations in India in 1948 by importing chocolates. It is now owned by Mondelez International and enjoys over 70% market share in India's confectionery market. Cadbury operates across multiple product categories and employs around 140,000 people globally.
The document provides an overview of Cadbury, including its vision, values, research and development efforts, marketing strategy, and conclusions. Cadbury's vision is to be the world's biggest and best confectionery company. It focuses on growth, efficiency, and capability. The company operates in over 60 countries and has key brands like Cadbury, Trident, and Halls. It invests heavily in R&D and has business units organized geographically. Marketing emphasizes global brands and categories like chocolate, gum, and candy.
Cadbury India is the wholly owned subsidiary of Cadbury Schweppes and has operated in India for over 55 years. It is the number 1 confectionery company in India with over 70% market share. Cadbury leads in the chocolate, sugar, and food drinks categories with brands like Cadbury Dairy Milk, Bournvita, and Halls. Cadbury has found success through its extensive distribution network, strong brand building, and customizing products for the Indian market. It sees further growth opportunities in India and the surrounding SAARC region.
The document discusses several mergers and acquisitions involving major companies. It provides details of Pfizer's acquisition of Allergan and reasons for the later demerger. It also summarizes Disney's acquisition of Pixar, Facebook's acquisition of WhatsApp, Sony's acquisition of ZEE TV channels, BMW's acquisition of Rover, and Kraft's acquisition of Cadbury. In each case, it outlines the key details of the deal including value, reasons for the deal, and in some cases outcomes.
Cadbury is a confectionery company founded in 1824 in Birmingham, UK. It has 89,400 employees operating in 60 countries and marketing in 96 countries. Some of its most popular brands include Dairy Milk, Perk, and Gems. Cadbury began operations in India in 1948 and has since established manufacturing units and sales offices across the country. Its vision is "Working together to create brands people love" and its mission is to provide customers with tempting and exquisite tastes. Cadbury has received several awards and has become a pioneer in India through competitive pricing, product diversification, and extensive distribution network.
1. The document provides a SWOT analysis comparing McDonald's and Burger King, the two largest fast food hamburger chains.
2. For McDonald's, strengths include successful advertising campaigns and partnerships, while weaknesses are in product development and pricing. Opportunities lie in international expansion and growing dining markets.
3. For Burger King, strengths are its large size as the second largest chain and franchise model. Weaknesses include over-reliance on US markets and franchisees. Opportunities exist in new products and emerging markets.
4. Both companies face threats from health-conscious consumers and competition from other restaurants.
1. The document provides a SWOT analysis comparing McDonald's and Burger King, the two largest fast food hamburger chains.
2. For McDonald's, strengths include successful advertising campaigns and partnerships, while weaknesses are in product development and pricing. Opportunities lie in international expansion and growing dining markets.
3. For Burger King, strengths are its large size as the second largest chain and franchise model. Weaknesses include over-reliance on US markets and franchisees. Opportunities exist in new products and emerging markets.
4. Both companies face threats from health-conscious consumers and competition from other restaurants.
Building the image of CADBURY: A case study By VISHALVishal Rishi
This document provides an overview of Cadbury's brand building strategies in India. Some key points:
- Cadbury holds a dominant market share of over 70% in the Indian chocolate market. Its flagship brand Cadbury Dairy Milk is the gold standard for chocolate in India.
- Cadbury uses communication strategies like consistent advertising campaigns and innovative extensions to build its brand image and differentiate its products.
- Market research shows Cadbury's brand awareness and consumption is much higher than competitors like Nestle. Factors like taste, quality and availability drive consumer purchase decisions.
- Cadbury positions Dairy Milk as an impulse purchase product associated with celebrations and festivals to build loyalty among consumers.
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals.
With annual revenues of approximately $50 billion, the combined company is the world's second largest food company, making delicious products for billions of consumers in more than 160 countries. We employ approximately 140,000 people and have operations in more than 70 countries.
Cadbury is a subsidiary of Kraft Foods that produces confectionery products. It was founded in Birmingham, UK in 1824 and currently has over 70,000 employees worldwide. The company generates billions in annual revenue. Cadbury's core purpose is to make delicious products that consumers can feel good about. The company has a variety of candy bars, chocolates, biscuits, drinks and other snacks. It uses various strategies like focusing on quality, innovation, and competitive pricing to market its products globally and compete with other major confectionery companies like Nestle, Mars and Hershey.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
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Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
2. Cadbury
• Started by John Cadbury in 1824
• Headquartered in Cadbury House in the
Uxbridge Business Park in Uxbridge, London
Borough of Hillingdon
• Started producing the world famous Dairy
Milk Chocolate in 1905
• In 1969 the Cadbury Group merged with
Schweppes
• Taken over by Kraft foods on 19 jan, 2010
3. Kraft Foods
• World’s second largest food company after Nestle
with presence in more than 150 countries
• Headquartered at Northfield, Illinois, US
• Current Chairman and CEO : Irene Rosenfeld
• Kraft Foods was formed on December 10, 1923
by Thomas H. McInnerney
• Famous Brands include - Philadelphia cheese,
Oreo biscuits and Trident gum
• Eleven $1 billion brands with operations in about
70 countries
4. Timeline of Deal
• Kraft's Chairman and CEO Irene Rosenfeld meets Cadbury's Chairman Roger Carr offer to
buy Cadbury in a cash and share deal which valued Cadbury's shares at 755 pence
August each, but Carr dismissed the approach, the Kraft bid was worth 300p in cash and 0.2589
28, 2009 new Kraft shares for each Cadbury share
• Kraft goes public with the bid, but by this time the value of the same offer had
slipped to 745p per Cadbury share, or 10.2 billion pounds. Cadbury promptly
September
7, 2009
rejects the bid.
• Cadbury's Carr in a letter to Rosenfeld again rejects the bid saying it was an
"unappealing prospect" being absorbed into Kraft's "low growth
September
12, 2009 conglomerate business".
• Warren Buffett, the world's second richest man and a leading shareholder
in Kraft with a 9.4 percent stake, warned the U.S. food group not to
September
16, 2009 overpay for Cadbury.
5. Timeline of Deal (contd.)
• Cadbury contacts the UK Takeover Panel to request a "put up or shut
up" request be sent to Kraft, which would give a time frame for Kraft
September
21,2009 to come up with a formal bid
• UK Takeover Panel rules that Kraft has until 1700 GMT on Nov 9 to make a
formal offer for Cadbury or walk away for six months. Cadbury reiterates its
September
30, 2009
rejection of the Kraft bid
• Kraft's third-quarter results disappoint investors with weaker-than-
expected revenue and as it cut its 2009 sales forecast. CEO Rosenfeld
Nov 3, 2009 says she will not overpay for Cadbury
• Kraft formalises its bid at the same terms for Cadbury as the original
approach -- 300p in cash and 0.2589 new Kraft share for each
Nov 9, 2009 Cadbury share -- valued at 717p
6. Timeline of Deal (contd.)
• Both Italy's Ferrero and Hershey said separately they were reviewing
a possible bid for Cadbury but gave no assurance that either would
November
18, 2009 make an offer
• Kraft posts its offer document to Cadbury shareholders starting off a two-
month fight for the British group under UK takeover rules. Kraft says its bid is
December
4, 2009
now worth 713 pence a share or 10.1 billion pounds
• Cadbury CEO Todd Stitzer tells Reuters in an interview that a
significant number of its major shareholders do not believe Kraft's bid
December
18, 2009 reflects Cadbury stand-alone value
• Kraft sweetens bid with 60p more cash but cuts shares on offer to
Jan 3, 2010
keep offer price unchanged
7. Timeline of Deal (fnshd.)
• Cadbury releases it final defense document, attacking Kraft's
management and revealing that it beat its own target for
January
14, 2010 operating margins in 2009
• Cadbury board recommends £12
January
18, 2010 million sale to Kraft
8. Reasons for the Deal
Entering Emerging market through cross
border Acquisitions
Overcoming Entry Barriers in New Markets
Increased Market Power
Valuation of Cadbury by 50% more than
market value
Breaking new grounds by Cadbury
9. Entering
Emerging
Markets
India, China, Mexico , Brazil & South Africa are
among the strongest
emerging markets
Kraft has very little footprint in these places
apart from China
Most of its revenues come from North & South
America & Europe which have very slow growth
Cadbury is a cross-border acquisition to enter
into growth markets in Asia, Middle-East & Africa
10. Entering Overcoming
Emerging Entry
Markets Barriers
Established brands:
ITC, Pepsico etc. are already established in food & ESTD.
beverages
Kraft alone would have to spend a fortune on S&M
to enter those markets
Strong brand name of Cadbury in emerging markets
would result in cost saving & easy penetration
Extensive Distribution Network:
Fragmented supply chain in developing countries
Cadbury sales out of 1.2 million kirana stores in India.
98% of food purchase done through these stores
Access to this huge network which from scratch
would have taken millions of dollars & years of time
11. Entering Overcoming
Emerging Entry
Markets Barriers
Economies of Scale
scale necessary to grow sales and distribution in
new and existing markets
$1 billion in incremental revenue synergies &
$750 million in cost synergies - by 2013
Diversification and Risk Reduction
Coverage of more diversified & promising markets
High margins --Chocolate & chewing gum. 14%
confectionary market: Gum, highest growth rate:Gum
Increased presence in the Gum market: Cadbury
market leader: share 29%, Kraft: share 0.1%
12. Entering Overcoming Increased
Emerging Entry Market
Markets Barriers Power
Overall Size and Market Share
Joint portfolio of more than 40 confectionary
brands, each with annual sales in excess of $100
million
Created the world's biggest confectionary company
Kraft Foods became the undisputed world leader in
Snacks a high-growth, high-margin category based Synergies
Increased Cost and Revenue
Horizontal acquisition: Economies of scope
More bargaining power vis-a-vis customers &
suppliers
13. Problems
Inadequate Evaluation of Target:
500p in cash and 0.1874 Kraft shares for each Cadbury
share. According to Buffet which was “a pretty full price” i.e.
much higher than actual & Kraft shares undervalued
Large Debt:
Debt of $ 9.5 billion. Recoverable within 13 years at the
then income level (3.25, 6, 10, 30 year bonds through
DB, HSBC, RBS, BNP Paribus)
Too much diversification?
Not really
Managers Overly Focused on Acquisition?
Possibly
Too Large? Should not be a problem
14. Integration
Kraft
Mananged radically different from Cadbury
How much can Kraft be expected to change its own
culture.
Honouring Cadbury's Fair Trade credentials
Unreliable precedents:
Closed the Terry's factory in York after buying it in
1993, despite promising to keep it open. Kraft is, in
fact, known to have integrity issues.
Habit of taking over great national institutions –
Danone, Cadbury
Did not close biscuit manufacturing facilities in
France for at least three years and increased
investments also
15. Cultural
• Sir Dominic and Sir Adrian Cadbury said: "In the context of
a bid, the high percentage that fail to live up to the claims
of the bidder are well documented. The risks of relative
failure in takeovers are therefore clear. Those risks are
considerably increased if the bidder fails to win the loyalty
and support of the employees on whom the continuing
fortunes of the enterprise depend."
16. Cultural (contd.)
Softer cultural problems crucial impediments to effective integration
Successful creation of leadership team is led by the CEO: requires
commitment and focus on the part of CEO to get beyond just hitting
‘synergy targets' and set time aside to develop the leadership team early on
Leadership team developed most effectively by involving employees from both the merged
entities in specific business planning activities
Building a leadership team following an acquisition is an important, painful
process that sets the tone for the wider integration
Fears at Cadbury
About taste of chocolates to work environment
Kraft's bureaucratic work structures
Orwellian feel
17. Other Aspects
Working Relationship
Irene Rosenfeld's remote management style
Turnover of Key Personnel
Exodus of experienced Cadbury management
HR Integration
Job Redundancies
Changes to compensation package
Non-resolution of Uncertainty
Lack of clear communication with acquired employees
18. Implications of Cultural
Change
Kraft Cadbury
Strengthened Brand Damaged Heritage
Drives higher performance leading to Lower Moral and Performance
better revenues
Better Control of organization Staff Burnout
Better Reputation Risk of losing benefit schemes
Efficiencies through alignment of Trust Issues
processes
Alignment of goals Changed Brand Personality
19. IT
Kraft hoped to save £430m annually, largely by integrating the companies' IT systems
Both Kraft and Cadbury rely on systems provided by SAP, one of the world leaders in
enterprise resource planning (ERP) systems
Due diligence process in any merger should include an assessment of the target company's
IT to quantify any risks to business continuity, outline the required operational and capital
expenditure for the first 12 months following the acquisition, identify the opportunities for
synergy and define the high level integration plan
Unfortunately CIO is often the last person to know about the deal!
Where a larger company takes over a smaller one, it is common to export data from the
smaller company system and merge it into the larger one
Both Kraft and Cadbury relied on SAP giving them a slight advantage, but SAP and other
ERP systems are usually heavily customised to suit different situations, so integration was
an issue
20. Market Presence
• 160 countries
• 99% households in US
• 15 ‘billion dollar’ brands
• 70 ‘mn dollar’ brands
• More than 40 brands are
100 years old
• Regional brands
• 80% are #1 or #2
21. Recommendations
• Focus on power brands
– Global Brands: Oscar Mayer, Jacobs, Tang etc.
– Local Brands: A-1 steak sauce(North America), Dairylea
cheese(U.K.), Vegemite spreads(Australia) etc.
– Acquired brands: Cadbury, Halls, Bubbaloo etc.
– Flexible business models, Nimble marketing
23. Recommendations (contd.)
• New categories
– Gum, candy
– New markets
– 360° communication strategy, range re launch, new
products
• Cadbury’s strongholds
– India & other colonial countries
–o
– Supply chain networks, distribution channels
24. Recommendations (contd.)
• Cost based synergies
– end to end productivity growth
• procurement, manufacturing, customer service & logistics.
– Integrated manufacturing facilities Overhead costs
• cross category model, simplified processes
• More acquisitions
– Years of expansion in Europe
– Successful
track record