Kraft Food Inc's Hostile Takeover of Cadbury
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 and desserts, cakes and biscuits. The major competitors are Nestle, Mars, and Philip Morris.
The first offer for Kraft to takeover Cadbury on September 2009, and the offer price was 10.2 billion pounds (BCC News, 2009). On November 2009, Kraft offered 9.8 billion pounds to takeover Cadbury, but Cadbury’s director rejected it (BBC News, 2009). On 19 January 2010, Kraft offered the final offer to Cadbury and the valued the entire issued share capital of Cadbury at 11.9 billion pounds. 2 February 2010, Cadbury accepted the offer (Kraft Food Annual Report, 2009).
1. The following are the relevant environmental factors:
There are three areas of the layer of external environment that included Macro environment, industry, competitor and market.
Cadbury is belonged to confectionery industry, and the major competitors are Nestle, Mars. The confectionery market included chocolate, non-chocolate and gum products. According to Datamonitor’s Product Launch Analytics online database of new product Stock Keeping Units in 2009, it showed that there were 2,843 new confectionery products. The new confectionery products were 1,760 chocolate, 969 non-chocolate, and 114 gum products (Foodprocessing.com, 2010).
Introduction of framework
I used
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 and desserts, cakes and biscuits. The major competitors are Nestle, Mars, and Philip Morris.
The first offer for Kraft to takeover Cadbury on September 2009, and the offer price was 10.2 billion pounds (BCC News, 2009). On November 2009, Kraft offered 9.8 billion pounds to takeover Cadbury, but Cadbury’s director rejected it (BBC News, 2009). On 19 January 2010, Kraft offered the final offer to Cadbury and the valued the entire issued share capital of Cadbury at 11.9 billion pounds. 2 February 2010, Cadbury accepted the offer (Kraft Food Annual Report, 2009).
1. The following are the relevant environmental factors:
There are three areas of the layer of external environment that included Macro environment, industry, competitor and market.
Cadbury is belonged to confectionery industry, and the major competitors are Nestle, Mars. The confectionery market included chocolate, non-chocolate and gum products. According to Datamonitor’s Product Launch Analytics online database of new product Stock Keeping Units in 2009, it showed that there were 2,843 new confectionery products. The new confectionery products were 1,760 chocolate, 969 non-chocolate, and 114 gum products (Foodprocessing.com, 2010).
Introduction of framework
I used