Essay on Kraft and Cadbury Merger

3530 Words Apr 24th, 2012 15 Pages
Table of content
Table of Contents PART A 2 I. Introduction 2 1.1 How and why Kraft identified Cadbury as a potential partner? 2 1.2 Expected benefits 2 1.3 Synergies for both companies involved? 3 1.4 The risks associated with the choice of acquisition as an approach to this particular ‘partnership’ 4 1.5 Feasible alternative? 5 Involvement of National and corporate cultures 6 Critical Evaluation of both the companies about this Partnership 6 Involvement Of the Government 6 Four Key Benefits 7 Effect on Shareholders 8 Conclusion 9 PART B 10 Four aspects of doing business Internationally 10 Benefits of these aspects 11

Kraft & Cadbury

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PART A
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The Fairtrade Foundation and Cadbury have a shared vision for the future, and there are contractual commitments in place, which will form part of any intellectual property transfer between Cadbury and Kraft in any takeover. We believe that the progress we have made together in strengthening cocoa farmers to deliver long term sustainability of the cocoa supply chain, along with a fast growing level of consumer demand for Fairtrade products, not just in the UK but globally, present a unique and compelling case for continuing to pursue the Cadbury commitment to their Cocoa Partnership and to Fairtrade, and taking it even further in coming months and years."
Treehugger, 2012)
According to the Official Statement, they will perform Fairtrade for both the companies and Kraft confirmed that it would uphold Cadbury’s commitments to Fairtrade which were that:
• Dairy Milk will continue to be Fairtrade in the UK and Northern Ireland and in three more markets, Canada, Australia and New Zealand by early 2010;
• Green & Black’s (which is owned by Cadbury) will move its entire range to Fairtrade by the end of 2011.
(http://www.publications.parliament.uk/pa/cm200910/cmselect/cmbis/234/234.pdf )
But no one is quiet happy with the outcome of the merger. Because Kraft did not really act upon what they

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