Kraft Foods and Company Essay

Submitted By Jane-Borodulina
Words: 1089
Pages: 5

Corporate Venturing

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As a strategic approach to business, companies often acquire other companies for various reasons. This demonstrates their ability to engage in corporate ventures. For example, Kraft Foods acquired Cadbury in a strategic move to increase its market base. A company identifies what it needs and does not have, but another company has. The company then looks for universal benefits to both companies in the acquisition process. In such a transaction, there are reasons that made Kraft do it and Cadbury to accept the offer. Both companies saw the benefits that would be good for them if achieved. By doing this, the company was involved in managing multiple corporate ventures. With reference to existing market trends, it is becoming highly competitive in nature (Zahra, 2005). To stay ahead, companies have to devise strategies that are unique and that will give them a fighting chance in the market. Companies work hard, tirelessly, to edge further ahead of their competition.
Entrepreneurial Organization
The Intrapreneurial organization is Kraft Foods Group, Inc. The company is an American company that has specialised in the manufacture of grocery products. The company has been in existence since the year 2012. According to Pinchot (1984), an intrapreneur refers to somebody who is a dreamer and take any responsibility for building innovation and creativity within the business environment. Kraft company exercises this trait through the actions they undertook the acquisition process. The country being less than three years old has already acquired several other companies. This is its strategy of getting ahead of the competition.
Corporate Venturing
In this case, Kraft Foods has engaged in corporate venturing by buying out Cadbury. This is one of the most common corporate ventures experienced in the business world. This venture involves a financial investment, because to Kraft it seems like it is just expanding its territory and net worth.
Development of Corporate Venturing
The company developed the corporate venturing process through various ways. The acquisition was especially beneficial to Kraft in many ways. After the acquisition process, the companies merged and became one. Cadbury ceased to exist anymore. The management of the company is modified to incorporate a larger company. There are more important responsibilities that the management should consider. For example, the company made some new additions to the management team to help cope with the increased workload. Even after the acquisition process has taken place, the normal operations of the acquired company should remain operational (Keil, 2002). The organizational structure of the company changes to suit the newly formed company after the acquisition. The acquired company had its management structures that were rendered obsolete after the acquisition. All employees were now answerable to new employers who had taken over the company. For this reason, the employees of the acquired company will change the way they run things because they will have a new set of instructions to follow. The normal operations of the acquired company are carried forward to be the responsibility of buying the company. However, the products and services are eliminated while some are retained. This is decided by the viability of various goods and services, and the ones that are in-line with the goals and objectives of the company that acquired another company. To remain competitive, the company will unveil a unique business formula that will give it a competitive edge in the market (King, 2002).
Entrepreneurial Intensity
Through the acquisition of Cadbury, Kraft has shown high entrepreneurial intensity. This refers to the degree at which the company has employed entrepreneurial practices in its operations (Elfring, 2004). Operating an acquire company requires that the acquiring company stretches its resources to manage a company…