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Global marketing ethic and culture - Essay Example

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Global marketing ethic and culture

Despite this, there are controversies about this proposed takeover as the employees of the Cadbury have lined up in London to protest against this takeover owing to the job losses that they may incur. Similarly, Kraft’s shareholders specially its largest shareholder Warren Buffet is worried about the mounting debt that the firm has taken in order to materialize this deal. Thus the issue is not just limited to the takeover of one international firm by another but it also carries with it the different ethical consequences. Apart from this there will also be issues regarding the culture as well as global marketing theory which need to be understood and analyzed in order to properly evaluate this proposed merger.
This paper will therefore attempt to provide an objective analysis of the takeover by providing detailed analysis of the markets where both the firms are operating currently, relative advantages of the takeover to both the firms as well as implications for the stakeholders of the firm besides dwelling upon some of the ethical issues.
Organizations enter into mergers and acquisitions for variety of reasons however, strategic reasons for takeovers are considered as most critical. Gaining entry into new markets, achieving synergy as well as diversification are some of the most important reasons that may be behind the takeovers of the firms.(Kummer,2008). Thus takeovers can either be strategic in nature or they can be financial in nature too. Financial takeovers are often done in order to gain quick gains due to market in-corrections and as such organizations engage themselves into such takeovers in order to gain monetary benefits rather than gaining strategic advantage over their competitors. It is also critical to note that the cross border takeovers and acquisitions are often made in order to overcome the entry barriers that may restrict the firms to gain an entry into a new market on its ...Show more

Summary

Kraft is an American company with diversified interests however; Cadbury has been an independent company with rich history of over 180 years serving mostly British and other…
Author : corine00
Global marketing ethic and culture essay example
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