Cadbury Takeover

2620 WordsApr 8, 201211 Pages
Case Study: Cadbury Takeover Introduction: In the beginning of 2010 the US food giant took-over one of the most famous British confectionary companies, Cadbury, affectively making Kraft the largest food confectionary company in the world (Smith, 2010). According to Rigby and Masters (2010) the takeover “was one of the biggest – and most hotly contested – acquisitions in the UK”. The process was exhaustively followed by media, which criticized inability of British Government to limit takeovers of such famed British brands in the future – as it is part of the British identity. Moreover, during such process a large number of employees have suffered, not only through a large number of redundancies, but also through the change in management…show more content…
According to Lawrence Hrebiniak: “Kraft … has scared off Cadbury employees by trying to make their decentralized culture fit the US company’s highly structured approach” (Lucas and Rappeport, 2011). For Cadbury’s employees this meant increased uncertainty about their future employment overall, as well as structure of the internal relationships and management style, especially as a result of a closure of a number of factories as well as mass redundancies (Stiff and Ralph, 2011). Employees on the lower level of the hierarchy had to get used to new structure of the company, which meant that many of them have to report to different managers than previously. On top of that, due to the merger, employees of two different companies now have to work side-by-side, and considering that employees of Kraft feel “they should be dominant” (Lucas, 2011), it can reflect negatively on the relationship between employees not only vertically on the hierarchy, but also horizontally. Of course, relationships are not changing only for Cadbury’s employees, Kraft workers are also directly affected (Lucas, 2011), as takeover involved changes for them also – including closure of Kraft factories and redundancies of Kraft’s employees (Stiff and Ralph, 2011). The takeover had also impact on the employees higher up on the hierarchy. As mentioned by one of

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