Financial Management of Cadbury Limited

Financial Management of Cadbury Limited Cadbury Public Limited Company has been a large global company in the confectionary industry. The company was acquired by Kraft Foods in February 2010. Initially, the company was known as Cadbury-Schweppes Public Limited Company before the separation of its US beverage unit which is currently known as Dr Pepper Snapple Group (Cadbury PLC, 2010, p. 5). This process was undertaken through a demerger that took place between the two firms. In 2007, the company was able to close its factory in Keynashan. 2008 saw Cadbury Public Limited Company sold its Monkhill Confectionary for  £ 58 million. As a result, 800 employees were transferred to save them from losing their jobs. From 2009, the company started replacing its cocoa butter with palm oil (Cadbury PLC, 2010, p.4). There was no major improvement in this strategy since it was supposed to enhance taste and texture with a long term target on increased consumer demand. As all this was going on, there was a general backlash from consumers. These strategies and new business approaches were mainly being tried out in New Zealand. After things failed to materialize, the company was forced to revert back to its initial cocoa butter that had been the core of its business. The company also resolved to source for cocoa beans by using good, open and recognizable trade channels which would not be questionable. Initially, the change to palm oil had reportedly cost the company over 12 million in sales (Cadbury PLC, 2010, p. 7). In January 2010, Kraft Foods decided to buyout Cadbury. Kraft Foods had made an offer to take over the company for  £ 10.2 billion. This was rejected because the company considered the price as undervalued. It was not until 2010 that a consensus was reached between the companies after a hostile bid. Kraft Foods had agreed to give out  £11.5 billion for the deal. To make this successful, it had to borrow  £7 billion (Kraft Foods, 2010, p. 8). In doing all this, the company had a vision of becoming a global confectionary leader. Kraft Foods decided to base itself in Pennsylvania. As a matter of fact it has a controlling stake in Cadbury chocolates in the United States. In laying more emphasis on this deal, the company had seen it as the best opportunity to increase its market access to a global market that has been increasing considerably over the recent years. This takeover had been widely criticized across all divides as they saw Cadbury as a very crucial company in Britains economy (Kraft Foods, 2010, p. 4). There had been a general view that this deal was putting 30,000 jobs at risk. There was a protest on the amount of advisory fees that banks were charging in overseeing this deal. A bank owned by the government (RBS) was able to finance 84% of the deal. February 2010 saw Kraft Foods finalize the deal by securing 71% of the companys shares (Kraft Foods, 2010, p. 3). It fell short of its expectations of having a 75% stake that could have made it delist Cadbury from the stock market and make it part of Kraft Foods. The company was later on able to achieve this (its targets) which led to the delisting of Cadbury from the stock market. After this, the CEO and the financial officer had to resign. Discussion Business Cadbury has an established business with operations in the United Kingdom, Ireland, Australia, New Zealand and the United states. The United Kingdom confectionary had eight factories with a staff of 3000 employees (Bradley, 2008, p. 5). In the UK some of the products it has been producing are done so under license; like the Cadbury biscuits under the license of Burton foods. From Ireland, chocolate produced is more than  £25 million (Costello, 2009, p. 4). This has been exported bringing in a lot of earnings. Its presence in the US is responsible with the manufacture of mints and gums. The companys Cadburys have been found and sold in the country but they are manufactured by Hersheys. This Cadbury can mostly be found in Hersheys stores (Bradley, 2008, p. 5). In addition to these, the company has factories in both Australia and New Zealand. To make it more effective the company has been upgrading its manufacturing plant in Claremont. In a more broad perspective, the company has a wide range of products that it has given to the market in a bid to enhance its business. In addition to these, it has its unique brands that have helped to generate enough revenues for the company. To cater for a large market, the company has more than 50 brands with 40 of them being more than 100 years old (MacAlister, 2009, p. 10). In the year 2004 after a decline in sales, the company was engaged in a restructuring program. To strengthen its business the company has been acquiring others to increase its market presence. Investors and product Cadbury has a large brand that has always given it a strong market presence. It has a long history of confectionary brands that have always been introduced every year to ensure that the market has variety to choose from. This means that every year has seen a new taste of brands. In addition, the company has beverages that have a long history from 1783 (Costello, 2009, p. 14).On the other hand it has favourite brands like Bassets and Bourn vita amongst others. Cadbury worldwide is a brand name that has established itself well in the market. The company trades its shares in the London stock exchange market. The last time before the company was acquired; its shares were trading at  £863 (Muspratt, 2009, p. 8). Its shares have been doing well in the market because of the long term strategy that had been adopted to increase its value. By investing in the company, investors have a reason to know that their investments will grow as the company has a global presence in a wide market. Kraft Foods has a wide range of brands for the market to suit the distinct and diverse tastes and preferences. These brands are spread out in more than 155 countries that the company has a presence in (Weisenthal, 2009, p. 9). Its strong brand presence has helped to build its core business in the market. With its 50 brands, the company has been able to serve a wide market satisfactorily without any problems. This has been well done to ensure that everybody has a good taste. As a result, consumers have been more passionate about their brands. The company trades its shares in the New York stock exchange market. In addition to these, those who have invested in the company are given dividends as the company has a dividend yield of 4.0 (Weisenthal, 2009, p. 19). Those who wish to be part of the company are encouraged to do so as information regarding its performance is provided. Financial market environment This environment is responsible for an effective marketing management. The two companies have had a good history in terms of their financial performance save for a few occasions. Before the acquisition, the company (Cadbury) had started outsourcing most of its activities including marketing. Because the company has a wide global presence it has spent a lot of money in marketing activities to increase its market share. This has not been resisted at all as it has been aimed at increasing its value with investors in mind. Marketing activities have got the necessary financial support to strengthen the companys brand in the market. After acquiring Cadburys, the company (Kraft) has ensured that it engages in active marketing campaigns to strengthen its presences. The company has a wide global market that is competitive. Because of this, the management has always provided a good budget for marketing activities. This can be well demonstrated in the TV commercials that the company has been running in different countries. Since the company has a presence in more than 155 countries it has ensured that its marketing is felt in every place (MacAlister, 2009, p. 15). Marketing has been done with an aim of increasing the companys market value which has helped to increase revenues. Because the company has a large financial muscle, a sizeable amount of money has been allocated to the management to ensure that its marketing activities are felt in the market. Business strategy The two companies have had progressive growth because of good business strategies. Cadburys has had a strategy of ensuring that it has presence in different markets to reach a wide base of customers (Holson, 2000, p. 9). To ensure that its manufacturing activities are not interfered with, it has plants in different countries for uninterrupted business activities. Because of a wide market, the company has ensured that it continues being innovative in giving customers new products every now and then to suit their divergent tastes and preferences (Weisenthal, 2009, p. 4). The company has adhered to healthy and safety practices to give itself a good name in the market. From its history it can be noted that it has introduced new products every year for continuity. Kraft Foods has been involved in a lot of research to come up with new products to increase its wide range of brands. The company has over 70 brands and this has made consumers more comfortable with their wide range became of choice (Holson, 2000, p. 2). Apart from this, the company has operations in more than 155 countries and this has enabled it to reach a wide market that it can sell its products to. It has also been involved in acquisitions to give it a wider market presence that the initial companies had. These activities have been done to enhance its financial position so that it can improve on its operations well (MacAlister, 2009, p. 5). To capture the attention of the market well with an impact, the company has engaged in promotions to enlighten the public about its products. These promotions have made consumers more knowledgeable about the company and its activities. Recommendations to develop Forex strategies With Forex exposures, the company has been unprotected in different areas. Because the company has a wide market presence (global), it is exposed to economic, translation and transaction Forex exposures. It can experience problems when their foreign accounts have appreciable loss. This problem can be brought about by currency devaluation and political events in different markets. It is recommendable for the company to always hold foreign currencies for the shortest time possible before conversions to avoid such problems. The company might develop a foreign sales channel as it continues going global as part of its strategy. This implies that it will have to come up with a way of hedging against any future devaluation. It will need to use Forex futures to project the future cash flows when they are denominated into the dollar as it is the globally acceptable currency for business. The new company should invest in currency exchange traded funds. This will protect it from Forex exposures with a long term approach to enhance investors value. The company has a long term strategy of increasing the value of shareholders to encourage more investments. In cases where the company feels threatened, it can sell short of the currency exchange traded funds. In addition, the company has to enhance their operational activities to develop a good Forex strategy. This means that the company must have clearly laid down responsibilities that will be reviewed by the management regularly. It will also need to have an effective Forex trading and reporting system as it has a global presence. To enhance this, the management has to ensure that there is effective reporting, centralized tracking and good uniform accounting policies in place. Data capture will also save the company from a lot of Forex exposures. This means that the accounting practices that are being used have to be accurate in presenting reports. On the other hand, the company must ensure that its business engages in solid data capture processes. Good policies have to be put in place supported by effective personnel as a way of ensuring sustainable Forex strategies. This means that all the policies that the company will engage in must be approved by the board before they can be used anywhere else. To enhance this, employees need to be well educated and informed. Conclusion The company has good prospects ahead because it has consolidated itself as a result of integrating acquisition strategy. This means that it has a high probability of attaining a wide market reach.

Mary Street by Peter Skrzynecki Essay

He emigrated to Australia in 1949 with his parents. Most of Skrzynecki’s poems are about his life and the change that he has experienced from moving to a different country. In 1951 the family moved to Sydney, to the working-class suburb of Regents Park, where a home had been purchased at 10 Mary Street. The poem â€Å"10 Mary Street† represents change as it shows the comparison between Skrzynecki’s life in Poland and his new life in Sydney and how he and his family have had to adapted to their new way of life and how the physical change of moving countries has changed them emotionally. Change is present in this poem as the poet uses the simile â€Å"Shut the house; like a well-oiled lock† to appreciate the order of daily ritual when departing in the morning. It indicates that the house is secure and protects the family. The simile â€Å"like adopted children† shows that the garden is not like any other garden to them. The language techniques that Skrzynecki uses in this poem are used to great effect and create a level of connection between the reader and Skrzynecki’s and how his life was. Some of the techniques used are: Similies: A simile is a figure of speech involving the comparison of one thing with another of a different kind, as an illustration or ornament, the effect that a simile has in a poem is that it paints a picture in our minds as a simile is a descriptive set of words e. g. â€Å"And smoked like a dozen Puffing Billies† Personification: A figure of speech that gives human qualities to abstract ideas, animals, and inanimate objects. It affects the reader by creating empathy, and allows the reader to associate with the poem and the message in it e. g. â€Å"In its china blue coat†

Essay on Theory Critique Crabb and Hawkins - 1241 Words

Theory Critique: Crabb and Hawkins Liberty University Summary of the Content Both authors express many overlapping elements of revealed truth in regard to the process of counseling and the problems that are derived in the life of clients and people suffering from disorders and psychologically unhealthy mindsets. Hawkins utilizes a theory of 5 concentric circles defining the human psyche and physiology. Hawkins goes on to relay his theory of counseling that utilizes 4 phases in which the counselor and the client work through the issues that hinder the client and formulate a plan of action in which the client is assisted in overcoming issues and able to become accountable and productive within the community. Crabb’s (1977) theory of†¦show more content†¦Hawkins continues to track the action plan of the counseling process and to follow its progress. He does this with a strategy in which 4 phases are modeled in a grid (Hawkins, 2012). Phase 1 is a listening and understanding phase for the counselor. In Phase 2 the counselor begins to set the direc tion and proposes and pre tests drawing out proposals from the client for an action plan thus also reality testing the client’s proposal for action as well. During Phase 3 the counselor directs a formation for a plan of action which is collaboratively structured by both client and counselor, the client must take ownership for implementation while the counselor takes ownership for the assistance in development of the plan for action. In the final Phase 4 the counselor supports the commitment for change within the client’s action plan by arranging for accountability within the community (Hawkins, 2012). Evaluation of the Strengths and Weaknesses of Crabb Dr. Crabb (1977) utilizes four aspects of integration involved in the goal of counseling, which as he expresses within his view the goal of counseling is Christ likeness based on a foundation of spiritual and psychological maturity. The four approaches are labeled by Crabb (1977) as such; 1) separate but equal,Show MoreRelatedTheory Critique of Crabb and Hawkins Essay826 Words   |  4 PagesTheory Critique of Crabb and Hawkins Jeremy Poling Liberty University Integration Dr. Crabb suggests that there are four viewpoints to integrating spirituality and psychology. The first being â€Å"Separate but Equal† This viewpoint ascertains that psychology and spirituality do not mix any more than if a person needs a filling for a cavity or the excising of their wisdom teeth, they do not peruse the scripture for direction the person goes to a dentist. 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It incorporates all of the presentations, readings, and critiques I did at Liberty University’s Theology and Spirituality in counseling course. I talk about how I integrate Psychology, Theology, and Spirituality into my Christian

The Plight of Ordinary People during the Great Depression

The Great Depression touched people at every race and income level. It seemed no one was exempt from the emotional and economic toll of the downturn. Lives were turned upside down, and many did not know how to cope. With the financial collapse, kids lost their college funds, and families lost their homes. Families had to resort to making shelter any way they could. Communities were erected in almost every state that consisted of shelters made of crates and metal sheets; these communities were known as â€Å"Hoovervilles† (Leuchtenburg, pg. 251). Others would seek refuge in caves, subways, and under bridges (Leuchtenburg, pg. 252). The life savings of many were lost before anyone could comprehend what was happening. Many businesses†¦show more content†¦164-165). For African Americans, unemployment was the highest in the countryside of the south (Kennedy, pg. 164). One fifth of those on relief were African American (Kennedy, pg. 164). Many African Americans and other minorities who sought work were met with hatred and racism because many whites felt that for every minority that obtained a job resulted in one less job for them (Letters: Requests for Money ). The injustice suffered by minorities was so perverse, that children learned at an early age that they were considered inferior by whites. This is evident in an excerpt from a letter written to Eleanor Roosevelt by a young girl from Old Saybrook, Conn.: â€Å"†¦I couldnt bring my self to ask just any body to do this. I had to ask some one who has money and some one who is good and kind to colored people and does not hate them. You know as well as I do that a lot of the white people hate the colored people, so I couldnt ask just anybody like a white girl could†¦Ã¢â‚¬  (Letters: Requests for Money ). The Indian Reorganization Act of 1934 was the New Deal for the Indian nation. The new policy was intended to ease the injustices that the Indians suffered at the hands of government. It was intended to stop the practice of forcing Indians to assimilate into western society (erasing their Indian identity and culture), as well as forcing them to live on reservations that were too small to sustain them (Kennedy, pg. 379). Human suffering penetratedShow MoreRelatedUsing Art to Comment on Social and Political Issues1666 Words   |  7 PagesNew Jersey and studied photography at Columbia University. She used photography as a way to portray events occurring in the United States. Her work brought the plight of the poor and forgotten, such as the sharecroppers, displaced farm families and the migrant workers, to public attention. Gustave Courbet was born in eastern France during the 19th century and went to Paris to study law, while there he spent his time studying works in the Louvre and became an artist. 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