Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Case study: Kraft's hostile takeover of Cadbury

No description
by

Olga Chubukova

on 2 April 2015

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Case study: Kraft's hostile takeover of Cadbury

Kraft's hostile takeover of


II. Kraft's takeover of Cadbury
The course of the takeover
Company takeover
Outline
I.Definition of a company takeover, different types
II. Overview of Kraft and Cadbury, the course of the takeover
III. Consequences and the ethical side of the takeover

a target company's management and board of directors agree to an acquisition by another company
Company takeover
Merger
one company takes over another and completely establishes itself as the new owner
legal consolidation of two companies into one entity
Friendly takeover
Hostile takeover
the target company does not approve of the buyout and fights against the acquisition.
hostile takeover
risk for publicly traded companies
lack of information -> risky for the acquirer company
traumatic for the target company
Examples of takeovers
Porsche by Volkswagen (2012)
The Body Shop by L'Oréal (2006)
http://www.carsuk.net/porsche-finally-becomes-a-vw-company/
http://avanguard.blogspot.fr/2006/03/loral-to-take-over-body-shop-ft.html
http://www.advisor.ca/tax/estate-planning/avoid-a-hostile-takeover-86736
Gilette by Procter & Gamble (2005)
http://brandnoise.typepad.com/brand_noise/2005/01/pggillette_figh.html
Ben&Jerry's by Unilever (2001)
http://becuo.com/ben-and-jerrys-background
http://pixshark.com/unilever-ben-and-jerrys.htm
Stonyfield by Danone (2001)
http://www.appforhealth.com/tag/appetite-for-health-giveaway/
http://www.danone.ru
Sources
http://www.wisegeek.com/what-is-a-hostile-takeover.htm
https://www.cadbury.co.uk/
http://www.theguardian.com/business/2010/jan/20/cadbury-kraft-takeover-fair-trade
http://www.telegraph.co.uk/finance/newsbysector/epic/cbry/8531542/Kraft-acted-irresponsibly-in-Cadbury-takeover-say-MPs.html
http://www.theguardian.com/business/2012/apr/04/kraft-cadbury-irene-rosenfeld-22m
http://news.bbc.co.uk/2/hi/business/8468096.stm
http://www.theguardian.com/business/2011/dec/06/kraft-axes-200-uk-jobs
http://www.theguardian.com/business/2010/may/26/kraft-censured-over-cadbury-takeover-pledge
http://www.ft.com/intl/cms/s/0/1cb06d30-332f-11e1-a51e-00144feabdc0.html#axzz3VLsboxws
http://www.theguardian.com/business/2009/sep/13/cadbury-attacks-kraft-offer?INTCMP=SRCH
http://www.theguardian.com/business/2010/feb/14/cadbury-kraft-business-select-committee?INTCMP=SRCH
http://www.sweetsandsnackseurope.com/news/kraft-to-cut-200-jobs/
https://en.wikipedia.org/wiki/Kraft_Foods
https://en.wikipedia.org/wiki/Mondel%C4%93z_International#cite_note-27
http://beta.tutor2u.net/business/blog/cadburys-law-should-uk-firms-be-protected-from-takeover
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8471076/Was-Cadbury-a-sweet-deal-for-Kraft-investors.html


http://www.salon.com/2010/01/20/kraft_cadbury_takeover_british_reaction/
founded by John Cadbury in 1824 in Birmingham, England.
It is the second largest confectionery brand in the world after Wrigley's (owned by Mars since 2008)
Total revenue - 11,346,002,000 £ (2011)
Net income - 559,432,200 £ (2011)
Number of employees - 71,657 (2008)
mergers and demergers
present in more than 50 countries
Cadbury products
http://trends-now.website/cadbury-logo-vector/
http://www.hemingways.co.uk/
Dairy milk
Wispa
Twirl
Flake
Crunchie
Roses
Fudge
Skippy
etc.
https://www.cadbury.co.uk/the-story#bournville-the-factory-in-a-garden-is-born
http://stemhorizons.org/index.php/company-profiles/item/67-mondelez-international/67-mondelez-international
https://en.wikipedia.org/wiki/Kraft_Foods
http://www.andlil.com/societe-kraft-foods-group-incorporated-140950.html
started in 1916
second-largest confectionery, food and beverage conglomerate
more than 50 brands
2012: Split into

Total Revenue
Net income
18.218 billion (2013)
2.715 billion (2013)
35.3 billion (2013)
3.92 billion (2013)
2015
new merger plans
http://www.kraftfoodsgroup.com/home/index.aspx
In September 2009 Kraft's launched a
£9.8 billion
bid for Cadbury.
Cadbury rejects the offer and launches defense campaign.
In January 2010 Cadbury accepts a revised
£11.5 billion
offer.
Krafts sweetens the offer.
III. Consequences, Ethics, Issues
I.
Public Response
http://news.bbc.co.uk/2/hi/business/8468096.stm
Criticism of Kraft over Job losses
Cadbury Cocoa Partnership
2011 - 200 jobs cut at Bournville historic factory despite the no-cuts pledge.

2010 - eventual closure of the Somerdale plant near Bristol, 400 jobs lost.
Irene Rosenfeld received 22 million dollars for hitting targets tied to cutting costs at Cadbury
(Mondelez int. + Kraft foods)
Fears over the future of Cadbury's values
2009 - Cadbury launched Fairtrade Dairy milk chocolate bars
Kraft was seen as being
hostile to the
Fairtrade Foundation
http://www.sweetsandsnackseurope.com/news/criticism-of-kraft%E2%80%99s-conduct-since-cadbury-takeover/
as a result
Kraft's battered image in the UK
-> campaign to rehabilitate its image
THANK YOU
Labour party proposes the so-called Cadbury's law
concerns over lost jobs, reduced investment and closures.
Public outrage
http://store.ukgourmet.us/cadamiwior.html
Chubukova Olga
a long sequence of major takeovers of British companies by overseas firms
Kraft was called before MPs to defend its dirty play during the takeover battle
£45 billion investment into cocoa farms in Gahna, India, Indonesia, the Caribbean.
Full transcript