Doing Business

ASSIGNMENT

Kraft Food Inc.

SM0376
Doing Business in Europe, Asia and the Americas
Northumbria University

Presented by

09 January 2011

NU Student Number: 11035717
SHAPE Student Number: 117011424

Table of Contents
PART A 1 Question 1

1.1 Defining Partnership…………………………………………………...…5 1.2 Advantages of Kraft chooses Cadbury as a partner……………………...….5

2 Question 2

2.1 Potential risks of this acquisition………………………………………….6 2.2 Impacts of cross-cultural risk……………………………………………...6
2.3 Impacts of country risk (as Political risk)………………………………….7
2.4 Impacts of currency risk……………………………………………………7
2.5 Impacts of commercial risk………………………………………………...8

3 Question 3

3.1 Impact of the two national cultures on this ‘partnership’…………………..8
3.2 Discussing the two corporate cultures on this ‘partnership’……………....10

4 Question 4

4.1 Impact of profitability to Kraft shareholders……………………………....11

PART B

5 Question 5
5.1 Discussing 4 aspects of doing business internationally…………………….12

6 Appendix………………………………………………………………………15

7 Reference List…………………………………………………………………19

Exhibition

Exhibit 1. Hofstede’s Cultural Dimensions regarding United States and United Kingdom……………………………………………………………9

Exhibit 2 . Ansoff’s Product/Market Matrix…………………………………..16

Figure

Figure 1 Porter’s Five Forces…………………………………………………15
List of abbreviation

EBITDA Earnings Before Interest, Tax, Depreciation and Amortization

EPS Earning Per Share

USA United States of America

1 Question 1

2.1 Defining Partnership
This is defined to the group of “Two or more persons” combine “their resources and expertise” to operate an event to be a more “efficient unit” (Adrian Palmer & Bob Hartley, 2009, p.218). Wall & Ress tell the true “Few firms can afford to be sophisticated in all areas” (Stuart Wall & Bronwen Ress, 2001, p.19). Hereby, normally partnership