The Takeover Of Cadbury By Kraft

This paper is intended to explore the work ethic and value of Trader Joe’s as a company and their employees. Hands-on top managers have always been insistent in the company. Now, CEO Dan Bane created the values to reflect on the original traditions of its founder. When reading through the accomplishments of this grocery store, I was pleasantly surprised that they have managed to keep their integrity during their growth. Being a customer at Trader Joe’s myself, I find myself thinking about all the good experiences I have had every time I visited the store. Trader Joe’s has grown from a “mom and pop” grocery to a worldwide chain. Their integrity for selling a good product at a good price with great customer has proven them to be one of the grocery stores to be in high completion with other retailers in their genre. Their focus on giving their customers the options of different goods and the smiling faces of their friendly employees has risen them to a higher level of grocery shopping.

The employees have suffered through a great deal as a result of the takeover by Kraft. Kraft had to pay back its debts and achieve its profit target and therefore, it decided to shut down the British counterpart and this made 10,000 employees lose their jobs. In addition to that, Kraft also closed down the Somerdale factory of Cadbury

Hershey’s and Cadburys are moving towards the premium chocolate market through the acquisition or upmarket launches (Zietsma, 2007). The profit potential present in this sector supported by its 20% annual growth rate make it very attractive for large organizations to come forward and avail this opportunity. There is a low threat of new entrants prevailing in this chocolate industry because of the high capital requirements and expected retaliation by current manufacturers. Current players in the industry also possess some barriers to entry for new entrants by maintaining economies of scales with their large production capacity and keeping their product differentiation with their specialized and novelty chocolate products. Even though there are low switching costs and easy access to distribution channels, but still the brand loyalty of the customers including the Rogers’ Chocolate itself make it harder for new firms to come into the competition.

Cadbury is a British multinational confectionery company wholly owned by Mondelez International since 2010. It is the second-largest confectionery brand in the world after Wrigley's. Cadbury is internationally headquartered in Uxbridge, West London, and operates in more than 50 countries worldwide. It is famous for its Dairy Milk chocolate, the Creme Egg and Roses selection box, and many other confectionery products. Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea, coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin, followed by his sons Richard and George. George developed the Bournville estate, a model village designed to give the company's workers improved living conditions. Dairy Milk chocolate, introduced in 1905, used a higher proportion of milk within the recipe compared with rival products. By 1914, the chocolate was the company's best-selling product. Cadbury, alongside Rowntree's and Fry, were the big three British confectionery manufacturers throughout much of the nineteenth and twentieth centuries.

2. Kraft’s marketing strategy will benefit significantly from buying Cadbury in two different ways. Firstly, when we look at the brand portfolio of Kraft, which is the world’s second biggest food company. It is clear that there are plenty of old-timer cash cows, such as cheese, Nabisco and Suchard, but there are only very few rising stars. According to the Boston Matrix, cash cow means a product with a high share of a slow growth market, which can generate a stable

Mondelez, who is responsible in making Oreo cookies and Cadbury chocolates, recently sent a letter to Hershey’s proposing a tie-up. In that letter, Mondelez proposed a $23 billion bid for Hershey Co. to create a partnership between both the world’s largest candy making companies during a time when their companies’ sales are both under pressure.

This paper provides a written analysis of the Innovation at International Foods (IFG) case study. The paper will provide an analysis of the issues that Josh Novak, the new team manager at IFG is facing with the existing staff. Josh has come for Glow-Foods which was a smaller company that has been purchased by IFG. Josh was retained due to the innovative ideas that produced significant growth at Glow-Foods by reaching the younger market. It has now become his job at IFG to do the same. However, as Josh is becoming more acclimated to the way things are done at IFG, he and his team are being bogged down with processes and procedures that are in place. The team does not believe that will be able to do the job they were hired

The move has paid off, boosting internet sales by 17.2pc in the same period. Mr Davies said: "During Easter, sales of our excellent chocolate and ice cream products performed well and the Group expects it full year performance to be in line with expectations."

No matter what types of values run drive an individual or an organization, it is important for business to have positive morals and values to be successful. This is why Pepsi believes in “Performance with a purpose.”

The Finished Goods Network, Cadbury Schweppes manufactures the Hawaiian Punch fruit drink and packages it in ready-to-serve containers which is ready for market, shipping to one of three company-owned facilities. The packaged drink containers are then shipped to warehoused or distribution centers for delivery to retail customers. This network provides for much more control by Cadbury Schweppes. In this network, independent food brokers and sales representatives are responsible for sales to retail consumers. The retail buyer is involved in merchandising the juice drink aisle at location and the don’t service the soft drink aisle. The packaging includes 1-gallon bottle, half gallon bottle and 6.75-ounces single-serve standup pouch. Moreover,

However, regardless of the obvious benefits for Cadbury Schweppes, the acquisition presents significant risks that to me outweigh the grandiose potential of becoming number one. Not only would CS being overpaying for Adams but it appears to not be as profitable after the acquisition takes place. Adams would lose $15M in back office services it currently provides. While it is believed there would be a strong cultural fit at these two companies, CS was not prepared to provide leadership for the merged companies in the expanded Americas

Sociocultural factors relate to the idea that a manager needs to give people close to what they are expecting when selling a product or service. If customers are expecting high quality and delicious food, or manageable prices, it is the duty of the manager or even owner to give this to the consumer. In an interview with the owner a question about the core values of the organization arose; The Rose Garden’s owner responded “The organizations core values are to have dedicated service, to serve high quality delicious food and to keep prices manageable for all families to be able to celebrate special events in their lives.”.

In this paper we have examined these issues, and many more. Based off of our research and analysis of the company we were asked to make certain recommendations that may help solve strategic issues. First, Kraft must

Kraft Foods Inc. is a company that manufactures and markets food products such as snacks, beverages, packed grocery products and convenient meals. The company can be found in more than 155 countries around the globe (Pankey, 2004). Normally, it has been ranked second after Nestle. It has 11 brands which earn the company nearly $1 billion worldwide. Examples of those brands are Cadbury and Nabisco (Pai & Subramanian, 2014). By December 2010, the company had operations in more than 75 countries with nearly 233 manufacturing and processing facilities (Pankey, 2004). Currently, it is an independent public company listed in the New York Stock exchange. This paper is aimed at analyzing the competitive position of Kraft Foods Inc and its attractiveness together with possible recommendations for future action.

Whilst the definition of corporate governance most widely used is "the system by which companies are directed and controlled" presented by Cadbury Committee, (1992). More specifically it is the framework by which the various stakeholder interests are balanced, or, as the IFC (International Finance Corporation) states, "the relationships among the management, Board of Directors, controlling shareholders, minority shareholders and other stakeholders".