Cadbury’s origins date back to almost two centuries when it was founded by John Cadbury who started the business by selling cocoa and tea in Birmingham, UK. Later he expanded by starting a line of beverages after a merger with Indian Schweppes changing the company name to Cadbury Schweppes. Successful product developments and launches have enabled Cadbury to boast of an extensive confectionery line consisting of Cocoa Essence, Easter Eggs, Milk Chocolate, Cadbury Fingers, Dairy Milk, Bourneville Chocolate, Milk Tray, Flake Creme Egg, Crunchie, Picnic, Curly windy, Wispa boost, Twirl and Time Out. Kraft, on the other hand, is a US company about a century old, which started off as a door to door cheese business but expanded into other confectionery items through many takeovers previously such as Ritz Crackers, Nabisco (Oreos) and Phenix Cheese Corporation (Philadelphia Cheese) to achieve success. It is second in terms of sales and popularity Continue reading
Business Strategies
The Effect of Organizational Culture on Decision Making
To define organizational culture, people should understand what culture means in a society. In a broad sense, culture is the summation of spiritual values and material values which was recognized and formed in the historical activities of the society. In a narrow sense, culture is the ideology and the organization, rules which matched with it. But the organizational culture is different from the culture in traditional meaning, and it is the result of effect from several elements such as the awareness, character, habit of the member in the organization and their scientific and cultural level. Organizational culture is the beliefs and values that are shared and it is based on the organization, and forming with the organization or dying with the organization, it exist no matter it has been presented. As a kind of culture which formed in a organization, organizational culture can be influenced by the managers, and that Continue reading
Mergers and Acquisitions – Synergies through Consolidation
Synergy implies a situation where the combined firm is more valuable than the sum of the individual combining firms. It is defined as ‘two plus two equal to five’ (2+2>4) phenomenon. Synergy refers to benefits other than those related to economies of scale. Operating economies are one form of synergy benefits. But apart from operating economies, synergy may also arise from enhanced managerial capabilities, creativity, innovativeness, R&D and market coverage capacity due to the complementarily of resources and skills and a widened horizon of opportunities. An under valued firm will be a target for acquisition by other firms. However, the fundamental motive for the acquiring firm to takeover a target firm may be the desire to increase the wealth of the shareholders of the acquiring firm. This is possible only if the value of the new firm is expected to be more than the sum of individual value of the Continue reading
Effective Logistics and Competitive Advantage
Effective logistics management can provide a major source of competitive advantage. The bases for successes in the marketplace are numerous, but a simple model has been based around the three C’s — Customer, Company & Competitor. The source of competitive advantage is found firstly in the ability of the organization to differentiate itself, in the eyes of the customer, from its competition and secondly by operating at a lower cost and hence at greater profit. Seeking a sustainable competitive advantage has become the concern of every manager who realizes the realities of the marketplace. It is no longer acceptable to assume that the goods will sell themselves. An elemental, commercial success is derived either form a cost advantage or a value advantage or, ideally both. The greater the profitability of the company the lesser is the cost of production. Also a value advantage gives the product an advantage over the Continue reading
Amalgamation – Definition and Types
Amalgamation is an arrangement or reconstruction. It is a legal process by which two or more companies are to be absorbed or blended with another. As a result, the amalgamating company loses its existence and its shareholders become shareholders of new company or the amalgamated company. In case of amalgamation a new company may came into existence or an old company may survive while amalgamating company may lose its existence. According to Halsbury’s law of England amalgamation is the blending of two or more existing companies into one undertaking, the shareholder of each blending companies becoming substantially the shareholders of company which will carry on blended undertaking. There may be amalgamation by transfer of one or more undertaking to a new company or transfer of one or more undertaking to an existing company. Amalgamation signifies the transfers of all are some part of assets and liabilities of one or more Continue reading
Case Study: Walt Disney’s Business Strategies
Walt Disney Company is a $27 billion a year Global Entertainment giant which is an American based company was started by Walter Disney in venture with his brother named Roy O Disney in 1923. In 1928, Walt Disney created Mickey Mouse for which Walt wanted to call his character “Mortimer” but his wife convinced him to be called as “Mickey Mouse” and since then Mickey has been a classical hit for Walt Disney. In 1937 Disney presented their first feature full length Musical animated movie called “Snow white and the seven dwarfs” which is still a huge hit and remained in the hearts of its consumers forever. Walt Disney recognizes what is customer value in Disney brand. They value a fun experience and homespun entertainment based on old-fashioned family values. Disney responds to these consumer preferences by leveraging the brand across different consumer markets. Let’s say that an American family Continue reading