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Kraft s Cadbury acquisition - Essay Example

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Summary
Consider how the specific Indian cultural environment presents challenges to Kraft-Cadbury. Provide advice to the directors about the expected dynamics of the cultural environment on the companys operations.
The cultural environment is one of the macro environmental factors…
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Kraft s Cadbury acquisition
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Kraft s Cadbury acquisition

Download file to see previous pages... This is because, the sale of a product is a factor of the perception of the consumers, as well as the inherent tastes and preferences (Cho & Padmanabhan 2005). The differences in how certain products are also consumed and distributed are also part of the dynamics in the cultural environment that could impact a companys operations, especially in overseas situations.
Receptiveness to Western products. Receptiveness to Western products is one of the challenges that Kraft-Cadbury faces when it comes to the mergers operations within the Indian continent. Because consumption is a function of taste, preferences, etc., the Indians slow responsiveness when it comes to the new tastes that Westerners bring can provide serious setbacks to the companys prospect for growth in the country. This is apparent in Cadburys slow growth during the past years, although the brand is the largest in the country. For instance, in the confectionery industry chocolate is still not the top picks for Indians when it comes to snacks. Mithai, an assortment of traditional milk-made sweets, is still the most preferred snack by the Indians, which has left chocolate consumption low in the country when compared to other countries where Cadbury also sells its products – in the UK for example. If chocolates do not delight the Indian palates more than the mithai, the chances that Kraft in succeeding marketing its food products to compete to the more traditional local alternatives will be slim.
Distribution. The unique distribution system in the country is one cultural factor that is relevant to Kraft-Cadburys operations in India. Foods are distributed in a unique distribution channel called kirana stores – small mom and pop stores that sell products for retail. 98% of foods are still distributed among these stores, although supermarkets and hypermarkets are starting to become common. This has been a part of the countrys culture, and creating a supply-chain system in order ...Download file to see next pagesRead More
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