Table of Contents PART A 2 I. Introduction 2 1.1 How and why Kraft identified Cadbury as a potential partner? 2 1.2 Expected benefits 2 1.3 Synergies for both companies involved? 3 1.4 The risks associated with the choice of acquisition as an approach to this particular ‘partnership’ 4 1.5 Feasible alternative? 5 Involvement of National and corporate cultures 6 Critical Evaluation of both the companies about this Partnership 6 Involvement Of the Government 6 Four Key Benefits 7 Effect on Shareholders 8 Conclusion 9 PART B 10 Four aspects of doing business Internationally 10 Benefits of these aspects 11
Kraft & Cadbury
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PART A
I. Introduction
The following analysis has been made about the merger of Kraft and Cadbury, to find out that are they both potential partners and how will they survive in the long run. What might be the risks for both of the companies that they might face after this merger? What is the role of the government in this merger? What is the impact on the shareholders, what are their thoughts about it and is it a successful merger or not. Other than Kraft and Cadbury four aspects of doing business internationally has been discussed and their influence in an international business career.
1.1 How and why Kraft identified Cadbury as a potential partner?
On 19th January 2010 Kraft the American Giant, acquired Cadbury the most popular and one of the most selling brand in chocolates for $11.5bn. The reason for Kraft to identify Cadbury as its potential partner and even after Cadbury rejected its first bid on 7th September 2009, and then came up with a higher bid, was that Kraft wanted to bring in the most loved British Chocolates to USA, because the chocolates that America produces are only loved by American’s and are not so loved around the world, while they targeted the British company because they make better chocolates plus