Cadbury is a British-based confectionery company. Its main product is chocolate gum’s candy. In 1824 John Cadbury opened a shop in Bull Street, Birmingham. It’s headquarters in Uxbridge, England and formerly listed on the London stock exchange. In the starting time it did not start as a confectionery shop only sold tea, coffee, and homemade drinking chocolate or coca, which was homemade or he produced himself. Later he moved his product into the production of a variety of cocas and drinking chocolates being manufactured from a factory in Bridge Street. During this time a partnership was struck between John Cadbury and his brother Benjamin. Nowadays more people are enjoying from the product of Cadbury. It is operating more than 60 countries and it has more than 4600 employees. Kraft food Inc. is also the largest confectionery food and beverage corporation. It is main product is cheese it’s headquartered in the United States and it is the second largest in the world. It has many brands in more than 155 countries. It has approximately 140000 diverse employees around the world. In the first time on 7 September 2009 Kraft, food offered £10.2 billion (us 16.2 billion) indicative takeover for Cadbury but that offer was rejected because Cadbury stating that it. Undervalued the company. In the second time on January 2010 Kraft offered to purchase Cadbury for £8.40 per share, total valuing Cadbury at £11.5 billion ($19.96 billion) than Cadbury also agreed to acquisition with Kraft. Kraft acquired Cadbury with an aim of increasing its global presence and revenue secondly, Cadbury of its top competitors therefore its planned strategy to increase market share and gain access to emerging markets and growing its market in united kingdom. And it has vision of becoming the biggest and best confectionary company in the world. Q. no. 1.a
Cadbury’s is a private limited organisation which has government funding and hence totally reliable on its commercial techniques. Such companies find it extremely difficult to thrive in the present climate due to a variety of commercial and economic reasons. Due to the global recession that is affecting all businesses as a whole, the financial status of limited businesses are more drastically affected. Spending cuts, tax increases and other financial impositions burden the situation of a company, making it difficult to thrive. Financial loss will become the main step to a small company’s downfall. This could lead to debt and then ultimately end in bankruptcy. Competition is at its optimum at during the recession. This is mainly due to the fact that during a recession, consumers have very little money to spend on anything. The limited resources the consumers possess are spent on very carefully researched and absolutely necessary items. All companies selling similar products will therefore optimize their advertising campaigns to become the consumer favourite and hence sell their products more than their competitors. All these factors effect a company’s decision to become and incorporation into another company. Cadbury as a limited commercial organisation may find it almost impossible to exist alone as a single company, but once it gets incorporated or once it merges in to another larger company; the changes within itself will result in better backing and a firmer ground for the company to exist in the current opposition and challenging climate. The company with which it merges in this case Kraft; need to be a large and successful company either. Even normal companies if merges can be of an immense strength and will be able to withstand the pressure of the economy. Kraft-Cadburys strength arises from their merger. The resources available to the companies can be sold off to cut down the surplus and the finances obtained from such actions can be used for the betterment of the company. Its inventory, machinery and all other raw materials which are of no longer any use to the company will be...
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