STRATEGIC MANAGEMENT

Kraft and Cadbury Acquisition

[Name of Student]

Kraft and Cadbury Acquisition

Question no: 01

Important Factors in Forming a Potential Strategic Partner

Though the process can be very daunting and complicated, forming strategic alliances or acquiring other company involve several key considerations. Here, are just a few of the many elements to analyze before partnering with other businesses. The goal, of course, is to develop a win-win relationship.

Vision

Identifying a common vision. Where does each of company want to be in the future? How do company's goals relate to others?

Mission

Evaluate the mission, goals, and objectives of your potential ally. What is their means (way/mission) to an end (end-state vision)? Is it contrary to yours? Can you foresee a problem between their mission and yours? If so, they may not be a suitable match for you.

Core-competencies (Abilities)

Evaluate your partner's core competencies. For instance, what skills and expertise does your partner bring to the table? Are their abilities valuable to you or your organization? Also, determine your strengths and weaknesses; see if the partner can fill the gap. You want to make sure your partner has what it takes to lead you to success. Try to become affiliated with experts in a field of interest to you or your organization.

Organizational culture

Organizational culture refers to the 'psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization'. Your strategic partner's organizational culture should mesh with yours. Otherwise, you are probably setting yourself up for a clash somewhere down the line. Adopt their organizational culture, impart yours upon them, or develop a distinctive culture to serve you both. In either case, the culture should be supported and embraced by both firms.

Character

Character relates to organizational culture in many ways. However, in this case I'm specifically referring to the personality and traits of the leadership. A leader's character, whether good or bad, may influence others in your organization to take on the same. Does your prospective partner operate with integrity? Forming an alliance with a virtuous person or organization that operates in integrity will prove favorable to you or your firm in the long run.

Resources

What significant resources do your partner possess (equipment, processes, information, personnel, finances, networks, leads, or others)? Could your new ally help you achieve your vision based on their resources? Your partner's resources should add value to the partnership.

Synergies between Kraft and Cadbury

Multi corporations can improve performance and achieve competitive advantage, not just by focusing on the outside environment, but also by combining and exploiting internal resources and knowledge between different business units within a company (Ansari et al, 2006, p353).

Key motivating factor for Kraft Foods acquisition of Cadbury was to expand Kraft's global presence and tap the emerging markets. This acquisition would also lead to integrate the world's famous brands such as Kraft's Oreo cookies, Velveeta cheese and Cadbury's chocolate bars under one roof. The acquisition was expected to help both companies to compete effectively against the rivals. “Renowned industry experts also reason that a deal between Kraft and Cadbury would create a global food giant ...