Case Study on the Acquisition of Cadbury by Kraft

795 WordsJan 27, 20183 Pages
Introduction Mergers and acquisitions are fast becoming common strategies for organisations. This is mainly to generate and enhance revenue in order to gain market share. Most organisations either collaborate with other businesses or decide to go for takeover which can affect organisations structure. This report will look at the case study of the takeover of Cadbury by Kraft in 2010 and highlight the main outcome caused internally and externally. It will look at the employment values of Cadbury and how it differs from Kraft, the relationships between employers and employees and the impact of cultural change on employees and work ethics. Employment values The takeover by Kraft has faced tough response from Cadbury employees as their values differs from Kraft and employees feel it is difficult to adapt to the new environment and work under new management. Kraft needs to understand the British way of working not just on the matter of human geography but employee’s performance and how well they work with others. Kraft mentions that they “offers the best employment values to its employees and encourages teamwork, diversity, respect and trust”. Though, after deciding to cut 200 jobs, they have been accused of failing to communicate with employees. According to Dutz (1989), employment losses is likely to be higher in mergers or acquisitions mainly where the business shows considerable economies of scale. Thus to increase the performance level Kraft needs to understand

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