Caadbury Schweppes And Cadbury Merger

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Recommended: Obesity and society issues

As a member of the Board of Cadbury Schweppes the would approve a bid of more than 4" billion due to the following reasons: This deal was an important strategic move for us to sustain and grow our market share. Many close competitors like Nestle, Mars, Kraft, PepsiCo, Hershey, etc. are potential bidders and it was concluded that if Cadbury fails to get the bid, Whoever wins - could potentially trash our business. Adams is strong in the US and the developing world - where Cadbury was weak foothold. Also, Adams has little or no presence in the rest of the world -where Cadbury was strong. So, it was a win = win situation of cost synergies. According to our internal researchers and planners, Adams is the Capstone acquisition to reach Cadbury’s …show more content…

Nonetheless, the deal is perfect for various reasons: first of all, the companies competencies and capabilities are aligned, Cadbury Schweppes has done strategic research and scans of the confectionary world. Obtaining Adams means a return to a more congruent business portfolio because Pfizer is a chemical company and sometimes the managing criteria differed. Adams and Cadbury are strategically compatible, unlike the handling of Snapple acquisition which was kept separate, Adams will be inside a confectionery company, the same type of business. Also, Adams can share with Cadbury some good practices that Pfizer had that would ultimately lead to building better cost synergies and better financial …show more content…

Obesity is a problem in 21st-century society, so the company must put efforts into developing sugar-free gums. Adams sugared gums have been deteriorating at an average of 16.5%, but the important product is the sugar-less gums growing at 7% annually; probably sugared gums disappear in a couple of years if companies can obtain the same taste with sugar-free ones. More importantly, Adams without the control of Pfizer could cut the time to put new products to market. Experts see gums as a delivery method eg. like medicines. This enforces the idea of potential R&D

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