Philip Morris - Kraft Case
”Philip Morris - Kraft” Case
Nurettin Y¨cesu (10516099) - Pınar Dilhan Eldemir (10652007) u April 25, 2011
1
Introduction
In this case, we will analyse how a hostile takeover creates benefits for both parties. The hostile takover approach can be considered as ”taking over a company with a hostile manner” but with the offers and deals, it becomes a solution to many different structures within the company. The decisionmaking through a case as this requires experienced, rational management skills to take the right position with a right choice. The one of the world’s biggest packed food company, Kraft Foods Inc. has so many innovations and mergers on the same sector. Kraft has been started to work on the cheese sector and generated many enterpreneurships of their own sector. This shows us how Kraft is a profitable company and their management tries to stimulate the market share of the company which is reaching the top. Also they are considered that one of the biggest prime company in the world. Mostly, the products of Kraft are based on packed food. Their well-known brands are: Cracker Barrel Natural Cheese, Miracle Whip salad dressing, Velveeta process Cheese, Breyers, Philadelphia Cream Cheese, Parkay and numerous others. While the food industry is on its way to the rise, Kraft generated a power in the institutional food market and create a value on manifacturind and marketing. They also created a strategy to diversify the firms and sectors related food market into the core business line such as dairy foods, snack foods and convenience foods and beverages. Kraft was successful in their industry and has acquired many firms which are in the similar business line like international, domestic and consumer food. However Kraft has decided to make an acquisiton with an firm which 1
has unrelated products. They merged with Dart Industries which is founder of Duracell Batteries brand in 1980. Kraft and subsidiaries of Dart operated independently. Perhaps, it would not
Nurettin Y¨cesu (10516099) - Pınar Dilhan Eldemir (10652007) u April 25, 2011
1
Introduction
In this case, we will analyse how a hostile takeover creates benefits for both parties. The hostile takover approach can be considered as ”taking over a company with a hostile manner” but with the offers and deals, it becomes a solution to many different structures within the company. The decisionmaking through a case as this requires experienced, rational management skills to take the right position with a right choice. The one of the world’s biggest packed food company, Kraft Foods Inc. has so many innovations and mergers on the same sector. Kraft has been started to work on the cheese sector and generated many enterpreneurships of their own sector. This shows us how Kraft is a profitable company and their management tries to stimulate the market share of the company which is reaching the top. Also they are considered that one of the biggest prime company in the world. Mostly, the products of Kraft are based on packed food. Their well-known brands are: Cracker Barrel Natural Cheese, Miracle Whip salad dressing, Velveeta process Cheese, Breyers, Philadelphia Cream Cheese, Parkay and numerous others. While the food industry is on its way to the rise, Kraft generated a power in the institutional food market and create a value on manifacturind and marketing. They also created a strategy to diversify the firms and sectors related food market into the core business line such as dairy foods, snack foods and convenience foods and beverages. Kraft was successful in their industry and has acquired many firms which are in the similar business line like international, domestic and consumer food. However Kraft has decided to make an acquisiton with an firm which 1
has unrelated products. They merged with Dart Industries which is founder of Duracell Batteries brand in 1980. Kraft and subsidiaries of Dart operated independently. Perhaps, it would not