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  • Essay / Kraft Case Study - 1638

    In September 2009, the American company Kraft, represented by Irene Rosenfeld (CEO), made an offer to Roger Carr (Chairman of Cadbury) to acquire the English company Cadbury. Carr didn't even consider the offer once they heard the amount. It took almost two years to complete the acquisition and several changes were made to the offer. Many factors and actors were involved in the negotiation; all of this influenced the final decision.– What's the problem (quadrant I)?• What's wrong?North American (US) brand Kraft, eager to increase its international expansion (growth strategic) and its positioning, made an offer to the English confectionery Cadbury. with the intention of acquiring it.• What are the current symptoms?Kraft has 60% of the mature market in the United States with just two of its very famous products: Philadelphia cream cheese and Oreo cookies. Cadbury has a strong presence in growing markets like India and Latin America. By entering into this agreement, Kraft not only remains as strong as in the US market, but also expands into other markets with a well-known company, increasing its production capacity and brand building capability. , which sustainably secures its revenues and increases its competitive power, its positioning on the international market and the conquest of market share. The Cadbury acquisition is more valuable to Kraft than the potential outcome it has for its peer. Cadbury is choosing the route of tough negotiations due to its position, making the process a bit hostile and a bit lengthy until a final decision is made. At that time Cadbury wasn't even on sale, which of course meant Kraft had to be the first one in bringing up the • How hated facts contrast...... middle of paper ..... ed in any type of negotiation the media are very involved and play a big role in the game, since they will always disclose and filter information that is not always necessarily true, that said, it is important to trust and d 'have effective communication with the counterparty to avoid any kind of misunderstandings. I believe that both companies had their interests at the start, if the Cadbury board had been more interested in preserving the identity of the company rather than making money, then it would not There would have been no room for an agreement. Naturally, Kraft had an interest in purchasing a company that certainly promised to continue to be successful and productive. I consider it a win-win situation, the former Cadbury board got what they wanted, a fair price for their shares, and as far as Kraft is concerned, after buying the largest confectionery of the world, was a good deal.