kraft's take over

One of the biggest and most liked chocolates are being taken over, Cadbury has told its shareholders to sell there shares at 840 pence per a share, valuing the company at £11.5bn. I will be talking through the effects this will have on the stakeholders of Cadbury.


Employees
Employees are a big part of the business, they help increase the capacity utilisation of the company, especially in the secondary sectors like Cadbury's is part of. But also the employees need job security and certain other needs to be well motivated and work to the best of there abilities.

As there is a takeover there are certain scares over job cuts in Cadbury's. although Kraft's have not yet given any assurance over the company they have said they want to keep the product at the Bournville site. But is hasn't yet said that there isn't any chance of cuts but they will most likely be in Cadbury's head office.
One of the main reasons that employees and there unions are scared of job cuts are that Kraft's are in really major debt as they have had to borrow most of the £11.5bn needed. Also they have a good track record of moving production abroad so this could mean that the entire operations could be moved abroad.
The effects could mean for the employees that there job is no longer safe, and if they do keep there jobs they could be demotivated as by Mayo's theory of motivation they will have lost some of their social needs because work friends would have been laid off.


Community
The community is the people who live in the area what is being effective, the community is especially important to please as these may include your own employees or other things like suppliers.
the community obviously does not like the takeover, you can see this by them protesting outside of parliament, you can see why they are doing this though seeing as the company has been in there community since it started 186 years ago.
Another reason why they may be doing this is because the company could move away and leave the community with high unemployment as most of the employment around this area are from Cadbury's.
Shareholders
Shareholders are arguably one of the most important part of a business, as for most business there main aim is to please their shareholders and to keep there share prices high.
Kraft's original offer of a takeover was to low, at only 761 pence per a share which values the company at £10.6bn.
 The shareholders did not like this and so told Kraft's to raise there price. Kraft's then decided to raise there offer to 840 pence per a share which values the company at £11.5bn, this was acceptable and so the Cadbury's board was advising the shareholders to accept the offer. The takeover has increased the shares of Cadbury's by 3.5%.


Competitors
The competitors will be other companies like Mars and Nestle, these companies will be keeping a close eye on the takeover, and will probably be more successful from it. This is because Cadbury's is not currently concentrating on there market share and selling products, there main attention is on the takeover.
They have also made the community annoyed and so there customers loyalty will go down, this is because the community is part of your customers and there lack of loyalty could wear off on others.
All this will leave market share that is very easily picked up by competitors that could be very hard to get at any other time.


Conclusion
I think personally that this takeover has made money for the shareholders of the company and many other people, but the employees and the community the most important parts of a company are the most effect, and so because of this Cadbury's will lose market share and as a consequence they will lose a lot of money and profits.