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Garcia: Assignment 21Kraft Heinz Takeover Bid Shakes Up BigFood and Its Slow GrowthTarleton State University Ernest Garcia MGT 3301February 18, 2017The article, “Kraft Heinz Takeover Bid Shakes Up Big Food and Its Slow Growth,” KraftHeinz decided to not merge with Campbells, General Mill and Mondelez Int. for possibly takinga buyout from Unilever. Kraft Heinz offered Unilever 153 million dollars, but Unilever
Kraft Heinz Takeover Bid 2scrapped the deal when it would make it 50 dollars a share was considered too weak (Giammona2017). Sales for Kraft Heinz are not growing, and there is the concern if they do not cut cost, then itcould lead to financial instability in the company. There is a disagreement between Unilever andKraft Heinz, Unilever wants to focus on social responsibility and the growth, whereas, Kraftintends to concentrate on the bottom line ( Giammona 2017).In 2013, Kraft and Heinz merged and was able to gain a profit from 20% to 30% over themargin. Heinz Kraft wants to cut cost and increase its target to 1.7 million dollars. Consumersare looking for food that is less processed and are skipping over long time staples that helpedcatapult the food market. Consumers are looking for more natural ingredients with less processed
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Management, H. J. Heinz Company, Kraft Heinz, Kraft Heinz Takeover