Cadbury (Pre and Post Merger Performance Evaluation) - Coursework Example

? Cadbury Pre and Post Merger Performance Evaluation) Claimed as “absolute pure and thereof best” Cadbury enjoys a rich history of excellence and performance and it is the result of these characteristics that it stands as the leader in the chocolate industry. Company Profile: Operating internationally, it was established in the early days of 19th century (George 2011, 99). Setting up the project as a small scale within town outlet and providing services such as coffee, tea and other mild beverages kept expanding over time and it was this continuous effort and refined quality. In no time it gained popularity in the local scene and kept expanding by multiple proportions ultimately leading it to become world’s most famous and sought after confectionary company. The journey into 20th century: He was later on accompanied by his brother that gave further impotence to the overall novel idea and they were dubbed as the Cadbury Brothers hailing from Birmingham. The Business kept travelling within the family (Morck 2007, 600). Attaining excellence in the domain of chocolates, the family and its representatives started to focus on chocolate and gave up the coffee and beverages that were once part of the entire offer. The company has historically been active with regard to the social contributions, devoting the part of shares in charity and aiding the World War 1 soldiers are two of the prime examples in this regard. Cadbury business patterns prior to Kraft’s acquisition: Prior to the acquisition, the Cadbury operations and activities were narrowly streamlined along a consistent pattern. They were limited to the main stream markets, with no major expansion in the new and unexplored markets, with focus on core strategy, and little element of innovation on display, although this all served well and Cadbury still enjoyed success, fame and glory in the market, yet there is no limit to success and glory, and more can be added any time. This was to be added in form of the Kraft’s overtake, that adopted a change in management style, the business patterns, the partnerships and expansion policy and much more that in other words gave a totally new life to Cadbury in different angles (Zaman, 2011). Recent change of Command: Being one of the most notable English companies, it was very unlikely to be taken over by any foreign company; however the fears turned true in 2010 when an American based company “Kraft” took over (Cadbury, 2010) and introduced relatively new patterns and management styles. The takeover was received in a mixed way but mostly with a relatively negative trend in social sphere. As a result of the recent change, management style, and the patterns and rules of engagement have seen a slight change with regard to the previous patterns that were operational in past. Managing style: An international organization such as Cadbury needs a clearly defined management style and organizational activities to allow successful operational functions. Realizing its importance, Cadbury has a democratic and hierarchical management style. Each of the member enjoys complete freedom and opportunity in contributing towards the organization and making it the world’s top most chocolate selling and producing industry and organization. Hierarchy in ranks: Hierarchy is an evident form of management and leadership in most major organizations in present day. The hierarchy broadly divides the organizations in to three layers, namely top management, middle management and lower staff. Hierarchy at Cadbury is also distributed in the same manner, with top management performing the role of decision making, policy envisaging and declaration of the S.O.Ps and dealings with the international organizations and stake holders, the middle management in the industry is inducted to ensure that the top and lower management are kept intact. Post merger-acquisition scenario: Kraft engages into professional, selective and specialized processes that make them world famous and successful in this regard, overtaking Cadbury meant necessary changing and reforming of various steps in this regard Marketing as the core: For a products manufacturing industry, marketing is the core towards its success. Cadbury engages maximum marketing personal and workforce to reach out to the masses, through advertisements, publications, campaigns, and promotions of all kinds. Developing good relationships with the compatriots, marketing industries and keeping the clients demands in front as top priority are few of the factors that are implemented in the given organization. Managing change: It is quite rightly being said that the change is the only constant. It is the variable that leads to keeping up the pace with the transitions and developments. Without change, things would get stagnant and no organization can imagine its existence without the adaptability and adherence to the change. Change in rules of engagement: Many a time, it has been seen that the English and United States of American enterprises engage different patterns and procedures in the business adventures. The acquisition was bound to bring along changes in the management style and the broader policies. Centralization and De centralization: The former and prior owners differed in these two patterns. While Cadbury dealt in large number of products related to the chocolate and confectionary field, the new owners employ relatively new principles focusing on certain few. Cultural trends: New masters, new team and new policies bring along new culture with them. Kraft has brought about a professional, flexible, viable, fruitful and complementing culture amongst them, accommodating the employees and the different variables in a positive manner. Reducing the turnover rates, allowing for flexible privileges, and career development opportunities that are based on hard work and performance are few of the factors undertaken and adopted. On technical and managerial the post merger and acquisition program was intended at exploring new horizons, ones that would enable achieving more output. One of the most prevailing and visible ones was that of domination and penetration into the new and emerging markets. Exploring the new markets, introducing the Cadbury chocolates to markets and regions that knew little of, or were only imported, the new ideas and projects intended upon installing the local plants and expanding the overall web that was already internationally operative yet not in every part of the world. For example the Kraft had never explored the Chinese market previously and China serves as a potential profit returning market in almost every business that is being undertaken based on the overall business factors and commercial viability. The advantages served by global expansion are the ease of transportation, substitutes presence, reduced costs and better supply chain services and utilities. Costs consideration: The overall change in management lays major emphasis on the cost saving domain as well, this is applicable to the manufacturing processes, the distribution processes, the marketing patterns, and all other elements where slag and inventory is possibly existent. Cutting on the overheads, reducing the defects in processing processes, eliminating the redundant and non productive processes are few of the actions and steps intended and executed in the post merger and acquisition phase. Motivation theory of Cadbury: Motivational theory is highly important for successful operations of any organization. Cadbury employees’ effective motivational theory. This theory is based on Mayo and Maslow theory of motivation. Motivation is vital for reducing the shift over rates and earning the loyalty of the members of the organization. Fulfilling the needs of employees, and going by the hierarchy of needs is the basic tenet of Cadbury that drives its motivational theory and doctrine (Marchington & Wilkinson, 2005). Theories implemented and adopted in Cadbury not just pertain to the physical theories of motivation, encouragement and course, rather psychological factor as well, providing its members with the security in terms of their social protection, benefits, and other packages and privileges and timely promotion is part of the overall theory of motivation. Encouraging equal participation, motivating members to take steps based on innovation and creativity and encouraged by the top management. Keeping the esteem high and lifted through respect, encouragement, and equal opportunities is substantial. This consideration is duly taken into account in the Cadbury Company both prior to the merger and post merger phase of the company and its respective operations (Price 2011, 9). Douglas McGregor’s theory is partially visible in the Cadbury’s outfit and operations as well with regard to the motivational and inspirational factor. Recommendations: Kraft foods are sufficiently developed and professional in their mannerism, however there is always margin for improvement; implementing a synergetic effect and policy and not discarding every rule, policy and discipline of the previous unit must be taken into account and can be used for future development. Working on the motivational part is equally important to ensure maximum work extraction from the members assigned. Developing further stronger stakeholder relationship, developing effective means of communications, opening up horizons, focusing on the employees loyalty, and encouraging free and open participation as well as merit and transparency in all processes of selection, marketing, manufacturing and development must be done so in utterly professional manner. Adopting these principles would lead to maintaining the long lived legacy of the chocolate giants that has long been maintained for over two centuries. Working further to enhance the machinery, tools and techniques, brushing up of the skills of the staff assigned are few of the factors that should be taken into consideration for further success. References: Cadbury, D., 2010. Chocolate Wars: From Cadbury to Kraft - 200 Years of Sweet Success and Bitter Rivalry. s.l.:HarperCollins UK. George, O. J., 2011. Impact of Culture on the Transfer of Management Practices In Former British Colonies: A Comparative Case Study of Cadbury (Nigeria) Plc and Cadbury Worldwide. s.l.:Xlibris Corporation. Marchington, M. & Wilkinson, A., 2005. Human Resource Management at Work: People Management and Development. s.l.:CIPD Publishing. Morck, R. K., 2007. A History of Corporate Governance around the World: Family Business Groups to Professional Managers. s.l.:University of Chicago Press. Price, A., 2011. Human Resource Management. s.l.:Cengage Learning. Zaman, N. U., 2011. Cadbury's Employee Relationship Management. s.l.:GRIN Verlag. Read More