Strategic Management

By

ACKNOWLEDGEMENT

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

DECLARATION

I, (), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with the university.

Signed __________________ Date _________________

ABSTRACT

The research aims at identifying the challenges faced by the managers at Cadbury during the merger with Kraft Foods. Strategic management is considered to be an effective tool to deal with the situations occurring pre and post merger and acquisitions. Through comprehensive literature review, the research identified four types of mergers and acquisitions: horizontal, vertical, concentric, and corporate mergers. The research explored the concept of strategic management and the role of strategic management in mergers and acquisitions. Moreover, the literature highlighted different challenges which include: change resistance, job insecurity, employee retention, and downsizing, implementing organisational culture, redefining strategies, and reallocation of resources, management of financial resources, and developing new strategies. Mixed research method was employed, where primary information was obtained through questionnaire surveys. The research findings highlighted that the acquisition of Cadbury by Kraft was also a successful strategy for England and also for the newly arisen organization. It was also determined that the acquisition of Cadbury by Kraft will be generating a portfolio of more than 40 brands of confectionary that is capable of making annual sales of $ 4100 million. It is true that there were a number of challenges that existed for both the companies but the plans of the leadership would have been critical in solving the issues and w2ork effectively to put the odds in their favor. The best strategy that could be adopted for the success of an acquisition is to identify the common objectives of both the companies.

ACKNOWLEDGEMENTii

DECLARATIONiii

ABSTRACTiv

CHAPTER 1: INTRODUCTION1

Research Background1

Research Aims and Objectives2

Significance of Research2

Research Questions3

CHAPTER 2: LITERATURE REVIEW4

Mergers and Acquisitions4

Types of Mergers and Acquisitions5

Horizontal Mergers and Acquisitions5

Corporate Mergers and Acquisitions6

Concentric Mergers and Acquisitions6

Theories of Mergers and Acquisitions7

Theory of Efficiency Increase7

The Valuation Theory7

The Monopoly Theory8

Motivation for Merger and Acquisitions8

Strategic Management9

Role of Strategic Management in Mergers and Acquisitions10

Challenges of Merger and Acquisitions11

Retaining Employees11

Organisational Structure11

CHAPTER 3: RESEARCH METHODOLOGY13

Data Collection Sources13

Secondary Sources13

Primary Sources14

Sample14

Data Analysis15

Ethical Consideration15

CHAPTER 4: DISCUSSION AND ANALYSIS16

Significant Challenges17

Hostile Negotiation Process17

The Pursuing of Different Positioning Being Iconic Brands18

Perceived dominance18

Existence of a Learning Curve19

Inevitable Tough Decisions19

Making the Deal Work19

Logical Decisions20

No Offers21

Cutting Costs21

Falling in Line22

Profit Forecast22

CHAPTER 5: CONCLUSION23

Recommendations23

REFERENCES25

CHAPTER 1: INTRODUCTION

Research Background

Any kind of Merger and Acquisition is combined of diversified cultures, strategic practices and orientation in a new arrangement, ...