Kraft Food Inc. acquiring Cadbury: A Case Study of the Financial and Operational Consequence of Mergers and Acquisition

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I, (Your name), 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 university.

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TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

PART 01: PROJECT OBJECTIVES AND OVERALL RESEARCH APPROACH1

Background of the Study1

Theoretical Framework2

Problem Statement2

Purpose of the Study3

Research Questions3

Aims and Objectives3

Layout of the Report4

PART 02: INFORMATION GATHERING AND ACCOUNTING / BUSINESS TECHNIQUES5

Sources for Gathering Information5

Importance of the Topic5

Ethical Consideration5

Method Used6

Research Method and Design Appropriateness6

Research Process7

Limitations7

Accounting / Business Techniques7

PART 03: RESULTS, ANALYSIS, CONCLUSIONS AND RECOMMENDATIONS9

Results9

Financial Ratio Analysis9

Operational and Financial Analysis18

Conclusion22

Recommendations23

SLS- SKILLS AND LEARNING STATEMENT25

What did you learn from the meetings with your Project Mentor, including the presentation that you gave to your Project Mentor?25

Planning for the meeting26

Preparation26

Assertiveness in Questioning27

How have you demonstrated you're interpersonal and communication skills during the project work?28

How have you demonstrated you're interpersonal and communication skills during the project work?29

REFERENCES31

APPENDIX33

Ratio Calculation35

PART 01: PROJECT OBJECTIVES AND OVERALL RESEARCH APPROACH

This study undertakes to discuss the most important aspect of the mergers of projects. It performs an in-depth research on the topic of mergers and acquisitions, which has proven to be one of the most applicable and debatable subjects of the significant management issues of the modern days. The extensive literature researched in this dissertation discusses the acquisition of one organization by another and for this purpose, the case of Kraft and Cadbury and has been considered for the study.

Background of the Study

Managers who are faced with uncertain environments often consider strategic alliances to control costs, supplies, competitors or customers. One such form of strategic alliance is merger and acquisition, a legal process where one company purchases or combines with another to become an entity that shares resources, technologies and profits. Some distinct advantages to mergers or acquisitions are the immediate access to the resources of both companies and a reduction in competition (Wu and Zang, 2009, pp. 59). Offsetting these are the disadvantages of typically costly and risky implementation, a potential decline in productivity, and a lack of focus on the organization's primary business. Mergers in recent years, also, have been frequently used as a way for companies to increase their domestic or global presence. The current marketplace has been characterized by a number of highly publicized multibillion dollar international deals intended to expand the global reach of the participating organizations (Wright and Elenkov, 2002, pp. 599).

Merger and acquisition selection decisions are dominated by financial and strategic factors. Strategic factors commonly cited in the transportation industry include the desire to obtain routes, destinations, or operating locations ...