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Solved: Assignment 4: Merger, Acquisition, and International Strategies (2020)

Assignment 4: Merger, Acquisition, and International Strategies

Instructions

Due Week 8 and worth 300 points

 

 

 

Choose two (2) public corporations in an industry with which you are familiar – one (1) that has acquired another company and operates internationally and one (1) that does not have a history of mergers and acquisitions and operates solely within the U.S. Research each company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.

 

 

 

Write a six to eight (6-8) page paper in which you:

 

  1. For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
  2. For the corporation that has not been involved in any mergers or acquisitions, identify one (1) company that would be a profitable candidate for the corporation to acquire or merge with and explain why this company
  3. For the corporation that operates internationally, briefly evaluate its international business-level strategy and international corporate-level strategy and make recommendations for improvement.
  4. For the corporation that does not operate internationally, propose one business-level strategy and one corporate-level strategy that you would suggest the corporation consider. Justify your proposals.
  5. Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources.

Answers

Abstract

The primary aim of this paper is to adequately identify the numerous types and levels of approaches utilized in an organization that operates works solely domestically and internationally. Furthermore, it focuses more on corporations in the food industry, especially those that have acquired other firms and functions on a global scale and one that lacks the background of acquisitions, mergers, and functions only within the country. This paper will also entail the options available for calculated objectives for both types of institutions, and the manner in which acquisitions and mergers can play a crucial role for such companies. For the organization that operates internationally, there will be a few recommendations on how to further boost their international business and corporate-level strategies. Lastly, for the local companies, there will be certain applicable proposals on one business-level and corporate-level objectives that ought to be put under consideration.

 

The Kellogg Company has continuously been committed and passionate towards the serving of nutritional cereal brands that aid in the meeting of the numerous dietary requirements of individuals world-wide since the 1900s. Its principle competency is the marketing and manufacturing ready-made cereal and convenience foods such as toaster pastries, crackers, fruit-flavored snacks, cereal bars, veggie foods, and frozen waffles (Merced. M. J, 2012). Furthermore, it is also known for its diversity in product creation under varying brand names: Rice Kipsies, Corn Pops, Kellogg’s, Froot Loops, Famous Amos, Frosted Flakes, and Austin. Its products are produced in 17 countries and marketed in more than 180 countries. Recently, this organization acquired Pringles for an estimate of around $2.7 billion from Gamble & Procter. It announced the business agreement for buying P&G’s just food label, Pringles, and the termination of the acquisition of the brand, Diamond Foods due to ongoing scandals and the current alteration within the management at the United States snack food maker (Merced. M. J, 2012).

Currently, majority of the multinational food companies have been re-focalize their approaches as well as rearranging their organizations based on the establishment of a strong portfolio in relation to snack products. This is especially Kraft Foods that has been in the process of creating the international snacks organization. Due to these procedures, the acquisition or integration of Pringles would have been a perfect fit for the sort after portfolio, and thus generating the desired organization. Pringles has maintained the title of being the world’s second biggest player in the savory snacks industry. This has been achieved through the unique saddle shape, innovative flavors, and distinct canister packaging; thus making it a favorite for more than 40 consecutive years (Merced. M. J, 2012). For this reason, P&G claimed certain interest within Pringles from the numerous suitors.

The Pringles’ work force embodies similar values as Kellogg’s of delivering excellent products and passion for growth that has ensured continuous success for more than 100 years. Hence, the general excitement and anticipation displayed by welcoming the new talented team members; with the intention of perpetuating the anticipated growth into the best global snack platform. The acquisition of Pringles has further improved the position of Kellogg as a savory snacks player in the international market. This been a vital step forward based on the established strategy for the expansion of the business and increasing the global footprint.

The highly qualified professionals from Pringles have strengthened the new partnership by acquisition. As a result, Kellogg has achieved a terrific business venture by attaining exceptional employees, iconic brand awareness, world-class manufacturing facilities, and the general huge platform resulting in exponential growth. In addition to that, this acquisition has particularly advanced the organization’s portfolio and strategic objectives in relation to being the leading global cereal business. Another important factor to consider is the added exposure and complementary products to the company’s brand such as Keebler, Cheez-It along with Special K Cracker Chips (NYTimes, 2013).

The Kellogg’s business master plan has been dependant on differentiation. It has generally been committed towards obtaining the best brands that deliver high quality and nutritious products to its consumers. They have several merchandises that include beverages, crackers, beverages, toaster pastries, waffles, bars, cereals, pancakes, and syrup. Furthermore, there are also twenty nine brands that can be located on its website.

Consequently, the most appropriate method for utilization is differentiation due to their multiple product lines; since Kellogg might not utilize the focus method. This company has not been the lower cost provider within any of their brand lines, and hence does not use the total cost leadership policy (MERCED, M. J, 2012). Nevertheless, it has a tremendous market presence regardless of the expensive prices that its products retail at. The consumers are always willing to incur the cost due to the provision of good quality commodities. Provided smaller scale along with lower number of acquisitions within the newer categories as well as markets, presently this has not been just Kellogg’s breakfast cereals that has the particular presence within the international markets, with the rest of the products still largely just marketed within the Northern America having exception of their snack bars that generate around 1/3rd of the retail value sales outside United States (MERCED, M. J, 2012).

The one primary positive vestige for the organization is the attainment of the world-wide scale equity in order to further diversify the Kellogg’s global presence in the morning-meal cereal industry. However, the manner in which the Pringles brand will fit into its portfolio along with the various levels of synergies has sometimes been questioned, especially with the current international operations. Therefore, it is also essential for Kellogg to acquire additional snacks brands for the purpose of achieving their intention of becoming a global cereal and snack player and to also further increase their portfolio.

EVOL has continuously been celebrated and acknowledged for amazing burritos and other meals such as pizzas, and flatbreads. This company was founded in Boulder in the year 2001 (Evol, 2013). It is a household brand in that it can be found in a majority of the kitchens. Boulder, CO dependent frozen foods organization committed to chef inspired foods having just the biggest quality ingredients (Evol, 2013). The company’s primary mission and vision is to reinvent the frozen foods by offering insanely nutritious and delicious products, which will further guarantee maximum satisfaction to its clients. Bright Harvest Sweet Potato Company is one of the biggest processors of frozen sweet potatoes products in the United States along with the approved supplier for the Sysco Brand; all natural, made-from scratch deliciousness (Bright Harvest Sweet Potato Company, 2013). These quality commodities have met the established nutritional and tasting standards of its clients.

They have been continuously known for being the best and largest manufacturers of frozen sweet potato products America. Their plant created and perfected the craft of producing and selling sweet potatoes patties; and thus making them the experts in that category. This, in turn, guarantees consistency as well as stability. In addition to that the production operations have occurred in the same location for more than 44 years. Regardless of that, the Bright Harvest firm has currently been undergoing the plant wide sustainability procedure (Bright Harvest Sweet Potato Company, 2013). This kind of process would adequately address the options and risks which have been uncommon in the industry while at the same time diminishing the harm to the environment through the reduction in the consumption of energy and natural resources. This results into influencing the corporate performance in a positive fashion. Therefore, this has led to it being the top processor of the sweet potatoes in the United States.

Organizations offerings involve the center cut, the candied patties along with the mashed sweet potatoes and also sweet potato casserole (Bright Harvest Sweet Potato Company, 2013). Generally, this company was founded in the year 1967 in Clarksville, Arkansas. The products created had been marketed as per Chef Francisco, Ore-Ida and Kim’s labels being part of the Heinz Company to the year 1999; if Chief Executive Officer Don Kerr acquired organization by Kerr Industries (Bright Harvest Sweet Potato Company, 2013).

EVOL Foods is rapidly growing and has multiple national distributors. It was termed as one of the Inc 500/5000 fastest expanding privately owned institutions in the year 2012 (Evol, 2013). Their primary mission has been inspiring individuals into caring of the source of the food and also the manner in which the food has been produced via showing a sample of the creation process. The organization believes that their unique flavor has been the major angle of differentiation that makes them eccentric in comparison to other conventional frozen brands. Boulder based EVOL Foods has been establishing itself on a national scale through the establishment of Target Stores Inc. Locally department natural along with organic food organization signed the distribution agreement for having their frozen burritos along with entries carried at the Target stores nationwide, official announced (Evol, 2013). Due to the addition of the new 1,600 distribution locations of the Target Stores throughout the country, the EVOL Food’s distribution network has thus expanded to around 20 percent in revenue. This business move has been one of the biggest forms of trade moves in the narrative of the organization. The EVOL Food’s founder and the chief operating officer guaranteed the attainment of this strategy. Their products, especially the frozen burritos, pasta bowls, and rice have recently been in more than the usual 10,000 stores nationwide. The present manufacturing capabilities by EVOL has been sufficient in meeting the numerous demands by the consumers. After ramping up the production for meeting requirements of initial launch, EVOL’s activity has been backed to one shift production on two manufacturing lines from 5 to 6 days in a week; he described (Evol, 2013).

The declaration by Target comes weeks after the company, EVOL, decided to introduce the pasta selection based bowls to their brand lineup. This Target deal would not only land the latter company merchandise a wide geographical footprint but also diversifies the organizations’ consumers. The rebranding strategy emerged after Revelry and Brendan Synnott, founder of the Bare Naked granola, invested in the Boulder burrito firm (Merced M, 2012).

This research paper greatly explores the Kellogg Company that attained other organizations, and later on the evaluation the strategy that was utilized in the creation of a merger or acquisition of another company for the determination of whether that business move was a wise selection. There is also a discussion of an American corporation, EVOL, which lacks these business moves. Furthermore, there is the Bright Harvest Company that would be the perfect and preferred organization to create a proper partnership with EVOL. There is also an evaluation of the international business level and corporate strategies of the Kellogg Corporation; that operates on a global scale. For the EVOL Company the evaluation is based on the one business or corporate statue strategy.

 

References

Bright Harvest Sweet Potato Company. (2013). Retrieved May 27, 2014, from

http://www.harvestfoods-inc.com: http://www.harvestfoods-inc.com/Manufacturers/bright-harvest-sweet-potato-company/

Evol. (2013). Retrieved May 27, 2014, from http://evolfoods.com:

http://evolfoods.com/about/our-story/

MERCED, M. J. (2012). Kellogg Wins Pringles After Diamond Deal Falls Apart. Retrieved

from: http://dealbook.nytimes.com/2012/02/15/kellogg-wins-pringles-after-diamond-deal-falls-apart/ .

NYTimes. (2013). Kellogg company: Company information. Retrieved from:

http://topics.nytimes.com/top/news/business/companies/kellogg_company/index.html .