Kraft Case Study

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Kraft Case Study

Introduction

Overview of Organisational Culture

Culture can be defined as the shared value, beliefs, norms and customs, religion and tradition of groups. Organisational culture is the shared pattern which is learned by the members as the integrate internally or externally to solve problems or issues, and which has worked well enough to be taught to the new members as the right way to think, perceive and feel in the same problem or issues. It is also defined as the common values, beliefs, norms and customs which differentiate one organisation from another. In this context culture is the central element on which the success of the organisation lies while undergoing mergers and acquisitions. The success depends upon the integration which takes place between the both organisations, and not on which culture dominates the other.

Analysis

Traditional employment values of Cadbury and difference from Kraft employment values

The organisational culture of Cadbury has been key elements towards the success of the organisation by maintaining and sustaining culture over a long period of time. The employment values traditionally associated with Cadbury were following.

1.Cultural Oriented: The members of the Cadbury are culture oriented people and value the belief, customs and tradition over financial objectives (Warnwe & Joynt, 2002, p.3). They perceive Cadbury as a cultural heritage organisation for UK. The members have shared norms and values which strengthened Cadbury to produce superior performances.

The Kraft organisation's members value the culture less than the Cadbury members. They seek growth and development over cultural values.

2.Group Oriented and Collectivism: At Cadbury the members of organisation are group oriented and encourage decisions made through a consensus. More than individual growth and prosperity they consider growing as a team or as a whole. The integration and synergy of the members have enabled Cadbury to achieve the organisational objectives and goals, over the past years.

Kraft is a U.S. based company and the people of U.S prefer individualism and are more focused towards personal achievements and growth (www.kraftfoodscompany.com). They like to work separately so that their efforts are recognised they receive appreciation in monetary or non-monetary terms. They are directed to achieve and maximise profitability.

3.Trust and Accountability: At Cadbury, credibility, trust and honesty were the most vital elements of the organisation's internal and external relationships and commitments. The members had faith and trust in their top management which made the strategies.

After the takeover by Kraft, their management promised to keep all of the manufacturing plant operating, and none will be closed. However, Kraft has announced the deal to close one of the U.K. plants which will lead to job losses and unemployment.

4.Communication style: Cadbury was a U.K organisation had the communication style more formal and they regard using the body language as part of their communication.

The employment values of Kraft are based on informal meeting styles and communication with not much importance to body language.

5.Community development: As Cadbury being an organisation that encourages the sense of group orientation and collectivism has great beliefs in building the community around ...