...Raymond Britton FIN-660 Case Study: RJR Nabisco March 22, 2015 The RJR Nabisco Leveraged Buyout (LBO) case study analyzes the history prior to the LBO and the post LBO corporate organization. RJR Nabisco was not performing well prior to the LBO. Financial analysis’s also implies that the shareholders of RJR Nabisco profited from Kohlberg Kravis & Roberts winning LBO bid. (Gaughan). To define a leveraged buyout or LBO, it is “a financial procedure used by a many business entities, including the management of a corporation or outside groups, such as other corporations, partnerships, individuals, or investment groups” (Gaughan). An LBO is the acquisition of another company where borrowed money is used to meet the cost of acquisition. This type of transaction allows firms to have the capability to achieve large acquisitions without obligation of having to disperse a lot of capital. LBO’s make it possible to and provide the ability to obtain less significant firms with very little capital and the attained business can take advantage from the re-organization. Additionally, LBO’s can possibly experience aggressive takeovers to the assimilated firm due to the reorganization and downsizing which can and may have a significant disruptive impact on the acquired firms workforce as well as a conflict of interest between personnel and management. The popularity of tobacco continued into the 1900’s which RJR projected and in 1913 launched four new tobacco products within...
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...Raymond Britton FIN-660 Case Study: RJR Nabisco March 22, 2015 The RJR Nabisco Leveraged Buyout (LBO) case study analyzes the history prior to the LBO and the post LBO corporate organization. RJR Nabisco was not performing well prior to the LBO. Financial analysis’s also implies that the shareholders of RJR Nabisco profited from Kohlberg Kravis & Roberts winning LBO bid. (Gaughan). To define a leveraged buyout or LBO, it is “a financial procedure used by a many business entities, including the management of a corporation or outside groups, such as other corporations, partnerships, individuals, or investment groups” (Gaughan). An LBO is the acquisition of another company where borrowed money is used to meet the cost of acquisition. This type of transaction allows firms to have the capability to achieve large acquisitions without obligation of having to disperse a lot of capital. LBO’s make it possible to and provide the ability to obtain less significant firms with very little capital and the attained business can take advantage from the re-organization. Additionally, LBO’s can possibly experience aggressive takeovers to the assimilated firm due to the reorganization and downsizing which can and may have a significant disruptive impact on the acquired firms workforce as well as a conflict of interest between personnel and management. The popularity of tobacco continued into the 1900’s which RJR projected and in 1913 launched four new tobacco products within...
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...Food Marketing Policy Issue Paper Food Marketing Policy Issue Papers address particular policy or marketing issues in a non-technical manner. They summarize research results and provide insights for users outside the research community. Single copies are available at no charge. The last page lists all Food Policy Issue Papers to date, and describes other publication series available from the Food Marketing Policy Center. Tel (860) 486-1927 Fax (860) 486-2461 email: fmpc@canr1.cag.uconn.edu http://vm.uconn.edu/~wwware/ fmktc.html No. 17 October 1998 Jawboning Cereal: The Campaign to Lower Cereal Prices by Ronald W. Cotterill Food Marketing Policy Center University of Connecticut Food Marketing Policy Center, Department of Agricultural and Resource Economics, University of Connecticut, 1376 Storrs Road, U-21, Storrs, CT 06269-4021 Jawboning Cereal: The Campaign to Lower Cereal Prices by Ronald W. Cotterill Abstract This article introduces the Forum by explaining the sequence of events related to the jawboning campaign and subsequent reductions in cereal prices. It also introduces the main issues on the vigor of competition and pricing that are analyzed in subsequent papers. Jawboning as a public policy strategy is assessed and found useful in certain circumstances such as those in the breakfast cereal industry in the mid 1990’s. The jawboning campaign was effective in advancing price competition in an industry that successfully resisted repeated antitrust...
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...Felicia Jones May 2, 2011 History of Nabisco Incorporated Nabisco Food Groups has been one of the widely known names in the food industry. Nabisco is among the world’s largest manufacturers of cookies and crackers. Nabisco Brands was formed in 1981 through a merger of Nabisco and Standard Brands. In 1985 R.J. Reynolds Industries acquired Nabisco brands in one of the largest takeovers in business history. In earlier years the company was called N.B.C. In 1941 the company took on the name Nabisco, but it was in 1971 when the name became the official corporate name. The National Biscuit Company resulted from a merger in 1898 of the midwestern American Biscuit Company whom is a result of a merger of 40 midwestern bakeries, and the eastern New York Biscuit Company, formed from eight bakeries and a smaller firm, The United States Baking Company. The company had 114 bakeries and a capital of $55. The company held a monopoly on cookie and cracker manufacturing in the United States. The first chairman of the new company was Adolphus Green. Green was a Chicago lawyer and businessman who had negotiated the American Biscuit Company merger during the first 20 years of its existence. N.B.C. developed products that could be nationally identified with the company. All of its merchandise was marked with the company’s distinctive emblem: an oval topped by a cross with two bars, which represented the triumph of good...
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.... . . . . . . . . . . . . . . . . . . . . . . . . . …. 3 INNOVATION………………. . . . . . . . . . . . . . . . . . . . . . . . . . . . ………………3-4 PEOPLE……………….. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......5 STRATEGY………………….. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..5-7 SUCCESS………………………. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-8 INTRODUCTION Kraft Foods was founded in 1903 by J.L. Kraft who began by buying cheese at wholesale markets in Chicago and then reselling it to local merchants in the area. Until 2012, Kraft Foods was primarily made up of three major businesses Kraft Foods, General Foods and Nabisco. Each of these businesses had gone through growth and mergers over the years and in 1995 the company was brought under the name of Kraft Foods and consolidated into one company. In 2004, Kraft Foods came to the realization that they needed one Enterprise Resource Planning (ERP) system to consolidate all of their business activities under one system for all locations within North America. Kraft Foods decided to implement SAP, which they had previously chosen for their manufacturing and distribution locations within Europe. SAP is a very popular ERP system that is generally used by large companies who are looking for a Best of Suite system to do a wide variety of functions. This case analysis will review the history of the SAP implementation...
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...Ads are everywhere, and they have a great influence on our minds as well as our decisions as consumers. Oreo brand is one of the big companies that consists of more than 30 varieties around the world. Oreo advertising is characterized by its updated ways of convincing consumers that they can satisfy their needs. Oreo cookies have two sides that are separated, and they are available with white cream as well as chocolate cream. Moreover, the brand parent name is imprinted on Oreo wafers; it’s an oval shape with a diagonal lines leading from the top and that is what constitutes the base of the logo. Oreo Yummy contains 6 portions that is suitable for a big family as well as a small one, also the 250ml size is suitable for children’s lunch boxes. On the packaging, a piece of Oreo a cookie floating beyond a cup of milk is drawn. The 3 Oreo's ads use several techniques to draw the attention of the consumer. The presentation of 3 different cookies satisfys all kinds of tastes and the two sides of the cookie shows that the consumer can twist it. Oreo Yummy’s packaging means that you do not need to consume it in a short time so that you can shake, twist and drink in any time you want. Oreo advertisements have 3 main values: first is the functional one that satisfies hunger; for instance, when you wake up at night you can take Oreo cookies and taste them. Second is the emotional side that satisfies not only the fun need for kids but also for adults, and the value of self-expression...
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...Kraft Food Incorporated Executive Summary Kraft Foods was established in 1903 in Chicago by James L. Kraft and is one of the largest packaging food and beverage companies in Northern America. In 2006 Kraft acquired the European business of Biscuits and the rights to Nabisco, trademarks in Europe, Middle East and Africa to include Oreo, Ritz and Chips Ahoy. Kraft is also one of the largest worldwide known with net revenues of $18.3 billion, and $2.5 billion from operations prior to taxes for last year. Kraft employs approximately 90,000 employees throughout the world. The competition in the food and beverage industry is very intense and competitive. Producing many well-known brands has enabled Kraft Foods to sustain quality growth and profitability. Kraft Foods is wide spread across 72 countries and their products have reached more than 155 countries. This SWOT analysis will determine if the company is strong or has serious weaknesses. . SWOT Analysis for Kraft Foods Strengths: a. The extensive and wide geographical presence of the company throughout the world creates a diversified portfolio of the investment and reduces the overall risk of the company. b. The Company has a strong market position due to its strong market presence in the food industry. The presence at the global level makes it easier for the company to market an international brand. The history of quality service provider makes the company one of the most wanted brands among food...
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...Marketing a n d t h e Disclosure of Information 339 CASE 5. Kraft Foods Inc.: The Cost of Advertising on Children's Waistlines The room fell silent as Dr. Ellen Wartella, Dean of the College of Communications at the Univeristy of Texas at Austin, gave Kraft executives her opinions on a presentation they had just made regarding Kraft and advertising to children. Wartella characterized Kraft's online marketing as "indefensible" and concluded that Kraft's claim that it was not advertising to children under the age of six was "at best disingenuous and at worst a downright lie."1 The executives in the room were visibly shaken by her comments. In late 2003, Kraft formed the Worldwide Health & Wellness Advisory Council, comprising 10 nutritionists and media experts, including Wartella, to investigate allegations that Kraft had been knowingly advertising unhealthy foods and to help address the rise in obesity, among other health issues. The pressure for Kraft to review its advertising policies came amidst increasing criticism from congressional panels, parent groups and other concerned citizens, that food corporations, such as Kraft Foods and McDonald's Corporation, have been knowingly targeting young children (up to age 12) in their advertising campaigns. The concern surrounding childhood obesity stems from statistics showing a 200 percent increase in childhood obesity since the 1980s. Between the 1960s and the 1980s, the percentage of overweight children hovered around 6 percent...
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..., How to Write an Oreo Cynthia Peer Eng 098 June 17, 2015 Kristena Houghtaling List of Words * Chocolatey * Creamy * Delicious * Awesome * Satisfy Sentences Created 1. Oreos are chocolatey. 2. Their centers are creamy. 3. They are delicious with ice cold milk. 4. Chocolate cakes are awesome with crumbled Oreo cookie toppings. 5. Oreos satisfy cravings for chocolate. Topic and Concluding Sentences Oreos are a great snack for chocolate lovers. In conclusion, if anyone is looking for a chocolate snack that goes with everything, they should give Oreos a chance. Drafted Paragraph Oreos are a great snack for chocolate lovers. They are chocolatey. Their centers are creamy. They are delicious with ice cold milk. Chocolate cakes are awesome with crumbled Oreo cookie topping. Oreos satisfy cravings for chocolate lovers. In conclusion, if anyone is looking for a chocolate snack that goes with everything, they should give Oreos a chance. Final Paragraph Oreos are a great snack for chocolate lovers. They are chocolatey with a creamy center. Oreos are delicious with a glass of ice cold milk for dunking them. Chocolate cakes are awesome with crumbled Oreo cookie topping. Oreos also satisfy cravings for chocolate lovers. In conclusion, if anyone is a looking for a chocolate snack that goes with everything, they should definitely give Oreos a chance. My Experience Creating my Paragraph This was truly a fun exercise to get my brain pumping...
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...major brands with more than 100 years of remarkable achievements in products such as Oscar Mayer meats, Maxwell House coffee, Jell-O gelatin, and Cadbury (Kraft, 2008). Kraft is always looking for way to continue making historic records with the launch of different new products designed to meet the ever-changing needs of the consumer. Company Background Kraft Foods Inc. is the largest food company in the United States and holds the number two position worldwide, behind Nestlé S.A. The firm has two main operating units, Kraft Foods North America and Kraft Foods International. Seven of Kraft's brands bring in more than $1 billion in revenues each year, like Kraft cheeses and other products ($4.3 billion in 2000 revenue), Nabisco cookies and crackers ($3.5 billion), Oscar Mayer processed meats (number one in the United States), Post cereals (number three in the United States), Maxwell House coffee and Philadelphia cream cheeses (number one in western Europe) (Company, 2010). Also, more than 60 other company brands generate annual revenue in excess of $100 million, including A.1. steak sauce, Altoids candy, Balance energy bars, Cheez Whiz process cheese sauce, Cool Whip whipped toppings, DiGiorno pizza, Gevalia coffee, Jell-O...
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...Oreo: US Vs China Market Oreo is a sandwich cookie that is made of two outer chocolate round biscuits filled with cream. The “Oreo Biscuit” was first introduced in the United States in 1912 in New York City by The National Biscuit Company, now known as Nabisco. Currently, Nabisco is a division of the Mondelez International brand. In its long history, the Oreo has been known by various different names including the “Oreo Sandwich”, introduced in 1921, the “Oreo Crème Sandwich” in 1948 and finally the “Oreo Chocolate Sandwich Cookie” in 1974. The very first Oreo design was a simple wreath around the embossed word Oreo. In 1952, William A Turnier, created the Oreo design that is still used today, complete with the Nabisco logo and much further embossing around the cookie. In the 1990's, concerns about the health of Oreo's, regarding the lard in the cream filling, sparked a change in the recipe. The cookie filling was now made with partially hydrogenated vegetable oil. In 1997, following a three year recipe development, Oreo made their cookies Kosher and many consumers were over-joyed by this change. Later, Oreo suffered some criticism still, and in 2006 the recipe was changed again, only with the use of non-hydrogenated vegetable oil. This put Oreo on the “accidentally vegan” list on Peta.org and has since changed its previously negative views on the cookie's health to very positive, in moderation. On March 6th 2012, Oreo celebrated it's 100th anniversary in the...
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...Stargate Institute Executive Summary Nabisco is a company that has been in existence since 1898. During their 109 years in existence, they have grown through natural growth, mergers, and acquisitions. This has allowed Nabisco to be the leading snack maker in the world. The Oreo chocolate sandwich cookie was first introduced in Hoboken, N.J. in 1911. Oreos today are far and away the world’s most popular cookie. The Oreo family accounts for approximately 10 percent of all store cookie sales--a $3 billion market. However in recent years Nabisco has been reluctant to adapt to current market trends. The company was focusing on producing new versions of existing products to make them more convenient. Situation Analysis In 1898, the New York Biscuit Company and the American Biscuit and Manufacturing Company merged over 100 bakeries into the National Biscuit Company, later called Nabisco. Founders Adolphus Green and William Moore, orchestrated the merger and the company quickly rose to first place in the manufacturing and marketing of cookies and crackers in America. To expand their global presence and to strengthen their position in the fast-growing consumer snacks sector, Philip Morris Co. Inc. acquired Nabisco Holdings in December 2000. Philip Morris purchased Nabisco for $14.9 billion in cash plus assumed $4 million in debt. Eventually, Philip Morris integrated the Nabisco brands with its Kraft Food operations. And now it includes brands such as Chips Ahoy, Fig Newtons, Mallomars...
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...COMPANY ANALYSIS In 1898, several baking companies merged to form the National Biscuit Company (NaBisCo), the maker of Oreo cookies. By 1902, Nabisco created Barnum's Animal cookies and made them famous by selling them in a little box designed like a cage with a string attached (to hang on Christmas trees). In 1912, Nabisco had a new idea for a cookie - two chocolate disks with a crème filling in between. The first Oreo cookie looked very similar to the Oreo cookie of today, with only a slight difference in the design on the chocolate disks. Nabisco Oreo sandwiches, a brand that is older than the automobile assembly line. It is estimated that an average of 4.3 billion sandwiches have been eaten each year over the last 90 years. Nabisco, a business with a rich and colorful history, is able to trace its founding back to the late 1800s. In the next century, the company experienced a sustained period of growth and became no stranger to the process of mergers and acquisitions, before finally coming to rest under the considerable umbrella of Kraft at the turn of the millennium. Company Profile Kraft Foods (NYSE: KFT) is a global leader in branded foods and beverages with 2004 net revenues of more than U.S.$32 billion. Built on more than 100 years of quality and innovation, Kraft has grown from modest beginnings to become the largest food and beverage company headquartered in North America and second largest in the world, marketing many popular brands in more than...
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...9-913-574 JUNE 11, 2013 FRANK V. CESPEDES HEATHER BECKHAM Launching Krispy Natural: Cracking the Product Management Code “Krispy Natural will provide Pemberton with its next generation blockbuster product and provide the foothold we need to dominate the salty snack market. I am counting on you to make sure our roll-out is a success.” The words of Ashley Marne, executive vice president of sales and marketing at Pemberton Products, echoed in Brandon Fredrick’s mind. It was January of 2012 and Fredrick, a marketing director for Pemberton, was reviewing test market results for a new cracker product, Krispy Natural. Pemberton had just concluded market tests in Columbus, Ohio as well as three cities in the Southeast. Fredrick was delighted that the Columbus market share results were double what the company had projected. However, the Southeast results fell well below management’s expectations. It was a late Monday night and Fredrick sat in his office preparing for a meeting with Marne, his boss. She had asked for summary analysis of the test market results and a recommendation for taking Krispy Natural to market. As Fredrick sketched out his proposal, he worried how he would draw conclusions from test market data that was so disparate. Equally as troublesome was the fact that he questioned if Marne’s high expectations were realistic. Pemberton Products Pemberton was the snack food division of Candler Enterprises, a multinational beverage and snack goods manufacturer. The...
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...Getting to have those deliciously sweet chocolate and crispy cookies with a sugary creamy filling as soon as I walked in the door, I knew the fun would begin. Sitting around the table with my family, with a glass of milk in front of each of us, each one would create a new way, a favorite way to eat those delicious cookies. She made eating Oreo cookies fun by reaching out to each of our creative sides. It was one thing that we all enjoyed, unlike vegetables. It was an enchanting time for me and I can appreciate why an Oreo cookie is an American icon. Customer Loyalty and Relationships According to "Oreo" (2010) “Since its introduction in 1912, Oreo cookies continue to be America’s most popular cookie brand.” (para. Achievements). Nabisco Company still focuses on customer loyalty and the relationship to other companies and their brands. Oreo has...
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