Saturday, April 3, 2010

Dear Managers. Sambaran Chatterjee here, head of operations. We're going to be discussing the acquisition of Cadbury chocolates by Kraft foods. I'd like to start this discussion off by generally overviewing the presumed benefits of such an acquisition from strictly the operations standpoint. Kraft foods has many subdivisons of food production. Given the popularity of Cadbury on the international level, the idea of Kraft's buying the Cadbury is understandable. From an operational standpoint, the manufacturing of chocolate is an elaborate and delicate process, involving precise temperatures and combinations. This process is expensive. For details on it, go to this website I'll have more exact numbers of production costs later, but if added to Krafts' operations lineup, Cadbury's could prove profitable due to its extreme popularity, but costs will increase. We have to dtermine if that tradeoff is worth it.

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