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What would be the opportunities and challenges facing Cadbury’s (Mondelez International) when considering entering the Chinese market?
The report will analyse and evaluate the challenges and opportunities Cadbury(Mondelez International) face in expanding to and operating in emerging markets (china).
Your report should:
Case Study information – Cadbury – China: a developing market
Cadbury is a British firm that is the second largest confectionery company in the world after Mars. The business was established in Birmingham in 1824 by John Cadbury. A chocolate-making factory was built at Bournville in 1879 and the Cadbury World visitor attraction opened alongside it in 1988, followed by a chocolate research centre in 2012. Cadbury’s UK operation is based at Bournville in Birmingham, while the company’s head office is in Uxbridge, London.
The company has been owned by Mondelez International (previously known as Kraft Foods) since 2010.
In 2010, Kraft Foods announced,
Kraft Foods is looking to double the number of Chinese cities in which it sells Cadbury chocolate within the next two years. The number of cities in China in which Cadbury products are sold would rise to about 40 thanks to the US food group`s distribution network, said Lorna Davis, president and chairman of Kraft`s China operations (Evening Standard, 2010)
Competitor, Nestlé, stated in its 2011 Annual Report,
“The emerging markets are populated by billions of people …We want not just to exploit our own capabilities to share in the development of these countries, but also become a truly local player … and participating in local culinary and nutritional traditions’ (Nestle, 2011).
Some useful reading:
Covering the acquisition by KFI (Kraft Foods inc) of Cadbury plc and Kraft’s strategy the journal article explores the move into the Indian market where Cadbury Dairy Milk had been the market leader in the chocolate category with a market share of 30 percent.
Kraft Foods, Inc. in India – The Cadbury Acquisition. Asian Case Research Journal, Vol 18, Issue 2, 371-399 (2014).
Consequences of Globalisation:
Sustainable development is development that meets the need of the present, without compromising the ability of the future generation to meet their own needs
Gain competitive edge
Sustainable business practice-Human Right, Environmental Management
Stake holder engagement Disclosure.
Discuss Foreign Trade Theories;