Scribd
Upload
1K views2 pages

Cadbury-Kraft Case Analysis

The document discusses the potential takeover of UK company Cadbury by American company Kraft. It presents two alternative courses of action for the UK government: Alternative 1 is to maintain local ownership of companies by preventing foreign investors. This would strengthen cultural heritage but could lead to a stagnant local market with less opportunity for growth. Alternative 2 is to implement strict rules and regulations limiting foreign investors, requiring them to register and comply with reporting requirements. This could establish harmonious relationships between foreign and local companies while maintaining cultural heritage, but could also lead to feelings of uncertainty. The document recommends Alternative 2, limiting foreign investors through regulations, as it would balance maintaining cultural heritage with allowing foreign investment and growth, as well

Uploaded by

justjade
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
1K views2 pages

Cadbury-Kraft Case Analysis

The document discusses the potential takeover of UK company Cadbury by American company Kraft. It presents two alternative courses of action for the UK government: Alternative 1 is to maintain local ownership of companies by preventing foreign investors. This would strengthen cultural heritage but could lead to a stagnant local market with less opportunity for growth. Alternative 2 is to implement strict rules and regulations limiting foreign investors, requiring them to register and comply with reporting requirements. This could establish harmonious relationships between foreign and local companies while maintaining cultural heritage, but could also lead to feelings of uncertainty. The document recommends Alternative 2, limiting foreign investors through regulations, as it would balance maintaining cultural heritage with allowing foreign investment and growth, as well

Uploaded by

justjade
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

POINT OF VIEW

I believe that the viewpoint of this case should belong to the UK


government, including the UK Takeover Panel. I think it is just important that
the government voices its concern since Krafts takeover attempt of Cadbury is
cautioned against the long-term effects and obligations of transparency and
accountability of foreign ownership.
STATEMENT OF THE PROBLEM
Since the UK government seemed not in favor of the takeover of homegrown chocolate champion Cadbury, how should they restrict foreign
companies like Kraft not to circumvent their local market as easily as they
could?
OBJECTIVES

To put limitations on foreign investors like Kraft on their takeover


against Cadbury.
To keep the cultural heritage Cadbury established on the UK government
especially on its local communities.
To establish harmonious relationship between foreign investors and local
companies in the British government.

ALTERNATIVE COURSE OF ACTIONS


ALTERNATIVE NO.1: MAINTAIN LOCAL OWNERSHIP OF COMPANIES
BY PREVENTING FOREIGN INVESTORS
Pros:
Strengthened Heritage
Higher moral and performance for workers
Cons:
Stagnant local market
Less opportunity for growth
ALTERNATIVE
NO.2:
IMPLEMENT
STRICT
RULES
AND
REGULATIONS LIMITING FOREIGN INVESTORS, AT LEAST, TO PUT
SOME BURDEN ON THEM ENTERING THE LOCAL MARKET OF U.K.
Pros:
There will be registration formalities such as reporting
requirements, statutory books and articles of association
Efficiencies through alignment of procedures and process
Cons:
Feelings of insecurity and uncertainty of the future
Risk of diminishing Cadburys brand

RECOMMENDATIONS
It is important to note that Cadbury was not a typical company in the
eyes of the U.K. public. In addition to producing some of the nations most loved
confectionaries, the company had deep, historic roots in local communities.
Krafts statement about Somerdale was prominent and significant within this
context and that, as the Panel said, enhanced the importance of the statement.
So I believe, it would be a best way possible for ACA No.2 to be
recommended as an alternative course of action. Im not saying that Kraft
acquiring Cadbury is bad for the local community of UK, as well as on the
shareholders and workers of Cadbury itself but to put some limitations on these
foreign investors might be a good consideration for UK government, at least, to
establish harmonious relationship between their foreign investors and local
companies. Also, it will be a good act to keep the cultural heritage Cadbury
established on the UK government especially on its local communities. It will
also produce long-term effects of obligations of transparency and accountability
of foreign ownership.

You might also like