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erger and Acquisiti

Business Diversification methods

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Page 1: Business Diversification methods

Merger and Acquisition

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Mondelēz International

American multinational confectionery. Formerly known as Kraft foods Inc. Mondelēz name, adopted in 2012, came from the input of Kraft Foods employees Manufacturer of chocolate, biscuits, gum , coffee and powdered beverages. Employing around 107,000 people around the world.

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Cadbury Multinational confectionery company owned by Mondelēz international. Second largest confectionery brand in world. Established in England in 1824, by John Cadbury. Famous for its Dairy milk chocolate, Roses selection box and many other confectionery products.

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Reasons for Mondelēz acquisition of Cadbury

• Cadbury offered greater access to sharp growth.

• It wants to be the leader in confectionary items.

• Cost optimization. • Kraft expected a better return.• Higher performance = Higher revenue. • Strengthens brand.

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Tata - Starbucks

Joint Venture

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STARBUCKS “A TATA ALLIANCE”

• Tata Starbucks Ltd. is a 50:50 joint venture, owned by TATA Global Beverages and Starbucks Corporation.

• The first store was opened in Mumbai on 19th October, 2012 followed by Delhi, Pune, Bangalore, Chennai & Hyderabad.

• As of June 2015, there are 72 stores across India.• Tata Global Beverages’ joint venture with Starbucks

was a strategy of growing through inorganic growth focusing on strategic alliances.

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+

TOMMY HILFIGER - MURJANI GROUP

Licensing

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+Tommy Hilfiger Mohan Murjani partnered with Hilfiger in 1985 to

launch the American designer’s brand and company in the United States.

In 2004, Murjani launched the Tommy Hilfiger brand in India and had perpetual rights in the country.

Murjani later sublicensed the apparel, footwear and handbags businesses to AMB(Arvind Murjani Brands)

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+  Tommy Hilfiger did not disclose the terms of the deal, it is believed to be between $50 million to $60 million (around Rs 250 crore), according to the sources

Tommy Hilfiger products are distributed in India through a network of more than 80 standalone stores and shop-in-shops across 30 cities, including Delhi, Mumbai, Bangalore, Chandigarh and Hyderabad.

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Franchising• It is a cooperative relationship between two entities for a long

period of time.

• The franchisor provides a license for certain products to the franchisee to sell.

• The company provides the trademarks, brand names, production, service and marketing methods and the entire business operation model for a fee.

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3MHeadquarters :- Maplewood, Minnesota, USA

Operations in :- 200 countries

Founded in :- 1902

Products offered :- 3M Car Care, Post-It, Scotchgard, Scotchbrite, Scotchtape and other car related products

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Post-It• Product type:- Stationary

• Introduced in :- 1977

• Created by :- Dr. Spencer Silver and Arthur Fry

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Multinational corporation (MNC)Are businesses that operate in more than one country

• MNC thrive in product customization.

• Therefore, the production of these particular products is decentralized.

• Moreover, ‘Research & Development’ departments is also decentralized to an extent.

• It operates through subsidiaries.

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• Is a British multinational pharmaceutical company headquartered in Brentford, London.

• It was established in 2000 by a merger of Glaxo Wellcome and SmithKline Beecham.

GlaxoSmithKline (GSK)

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Neosporin• An antibiotic product marketed for the prevention of infections and speeding the healing of wounds.• The Research and Development Centre are in

Europe,uk,Asia,usa & Canada.• Production centres include England ,

Ireland,usa,brazil,kenya,Canada,Australia,Singapore etc.

• Subsidiaries include GlaxoSmithKline Inc. , GlaxoSmithKline Pharmaceuticals Ltd , Glycovaxyn , ViiV Healthcare.

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Transnational Corporation (TNC) Any global business organization which produces specific products for different

countries with multiple production facilities.

• Unlike other corporations/companies, TNC thrive in product customization, whether it is for a specific person, region, country or a larger geographical region.

• Therefore, the production of these particular products is decentralized in multiple countries/regions.

• Moreover, this also decentralizes the ‘Research & Development’ departments into multiple divisions in every region with a different production facility

• With the division of R&D also come the division of the ‘Operations’ department in a TNC. The power of control is snatched away from the headquarters of the corporation and is handed over to departments in each independent country.

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BOSE • ‘BOSE’ Corporation is a well-known TNC which specifies in its production

and sale of audio equipment such as Speakers, Headphones, Earphones, Automobile sound systems, Home theatre systems etc.

• Founded in 1964 in Framingham, Massachusetts, U.S (Home Country) by

Dr. Amar G. Bose and operates in 47 more countries with multiple production facilities around the world.

• Revenue is mostly gathered from supreme urban countries in continents such as:

North America (Canada & U.S) Asia (Hong Kong SAR , UAE, India, South Korea, Tokyo, China) Europe (UK, France, Scotland, Ireland, Germany)

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Production Facilities

• Four Production Plants in the United States:

Massachusetts South Carolina Michigan Arizona

• Ireland • Mexico • Malaysia • China

Customized Products

• In luxurious markets such as US, Tokyo, UK, and HK, Bose Corp. utilities their high-end technology such as wireless, aviation and sport headphones. Moreover, in these countries there are a wide range products in following product lines: home theatre systems, wireless audio systems and commercial retailing

• In less expensive markets like India, China, Mexico, Bose Corp. utilities its simplicity and product (sound) quality as a differentiation factor. Although some of the same products offered in the other markets are sold, they are produced low in number with lesser features.

• Bose Corp. keeps in mind about the income distribution of some of these specific countries and adds or removes features according to the countries income distribution and other such economic factors.

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Global

• Established in 1939 at Mithapur (in Gujarat, India), TCL is a part of the Tata group.

• The company began producing Tata Salt in 1983 .

• The brand has over 43 -per cent market share, a leader in the branded, iodised salt segment.

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• Manufacturing facilities in India, UK, US and Kenya.

• Research and Development Centre located at Pune , Maharashtra.

• Subsidiaries include Tata Chemicals North America (General Chemical Industrial Products), Tata Chemicals Magadi (Magadi Soda Company), Tata Chemicals Europe (Brunner Mond and British Salt)

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International

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• Dabur (Dabur India Ltd.) , India's largest Ayurvedic medicine & related products manufacturer.

• Founded in 1884 by Dr. SK Burman, a physician in West Bengal.

• Headquartered in Dabur Tower, Kaushambi, Sahibabad, Ghaziabad - 201010 (UP), India

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Made by :

Tanya Nawab Preetina Komala Reddy Albert Alexander Mohd Abuzar Rohanth Alluri Vishwa Sai

THANK YOU