Kraft Food Inc's Hostile Takeover of Cadbury Essay

3357 Words Jan 24th, 2012 14 Pages
Introduction
A multinational company of Kraft Foods is an American firm doing the business for food and beverage. It produces belong to a global markets and has many brands that over 170 countries (Kraft Foods, 2011). And its brands are divided into five main sectors: snacks, beverages, cheese, grocery, and convenient meals. The major competitors of Kraft are Nestlé S.A.; Unilever; ConAgra Foods, Inc.; Groupe Danone; H.J. Heinz Company; Sara Lee Corporation; etc.
One of the world's fourth biggest suppliers of chocolate and sugar confectionery is Cadbury, which merged with Schweppes in 1969. One of its products, which is Dairy Milk and it is very successful molded chocolate in UK. The main products of Cadbury are bars, drinks, ice-cream
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The criteria for selecting the partner are experience, compatibility, understanding, etc.
Experience: In the past, Cadbury merged with Schweppes in 1969 and until to 2008 to demerge (Cadbury, 2012). It means Cadbury had the experience for international partnership history. On the other hands, Kraft has lots of international partnership experience (Kraft foods, 2012). For example, joint venture with General Foods that created Dong Suh Foods in Korea in 1970, joint venture with Ajinomoto and formed Ajinomoto General Foods in Japan in 1973, etc.
The company’s goal of Kraft was increased their sale, developed leading consumer brands and expanded their business worldwide (Kraft Food Annual Report, 2009). The company’s goal of Cadbury was maintain its market leadership position, and expand their scale. (Paul Burns, Palgrave Macmillan, 2008). Their goals were congruent, as they also wanted to expand their business.
Relative risk of failure: For the previous history for Kraft and Cadbury that can find they already had the experience in managing Joint venture. For example, Kraft joint venture with General Foods and Ajinomoto in 1970 and 1973, Cadbury joint venture with Dr Pepper and 7UP in 1998 (Kraft foods, 2012) (BBC News, 1998).
To conclude that Kraft and Cadbury have similarity strategic goals. For example, their strategic goal also are stronger their brands and develop their global business (Kraft Food Annual Report, 2009) (Paul Burns, Palgrave Macmillan,

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