Danone deal not a great recipe

However, due to the rising competition, Kraft has been looking towards further supplementing its brand portfolio, especially its cookie business, which, according to sources, contributed 15% to FY ’06 revenues. States Rosenfeld, “The growing high margin business will give Kraft another core growth category in Europe, a cornerstone in emerging markets & the best portfolio of iconic biscuit brands in the world.” On the other hand, Danone wishes to focus more on fresh dairy products, spring-water based beverages & mineral waters.
Analysts believe that Danone was enticing because of its penetration in India & Latin American markets. Since Danone’s business in these markets is not part of the deal, the money involved is simply outrageous! Kraft shares dropped by 2.5% in value by the afternoon of July 3 to reach $34.6. Though Kraft has promised not to close any plants for at least 3 years, French laws are notoriously cumbersome for such deals to go through easily. The tough bargaining French worker unions may add to problems, making the deal much less appetising for the $34.6 billion Kraft . And it all started with a notoriously sweet tooth!

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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“Go Green”

Institutions world over are taking initiatives in the area of green building and one such organisation is Clinton’s foundation, which is helping some of the world’s largest cities (including New Delhi) to “go green” by facilitating energy- saving upgrades to buildings. Interestingly, helping these cities are global banking institutions, which have committed $1 billion to finance the upgrades of municipal buildings in participating cities.

Ironically, India has about 30 Green Buildings out of the millions raised each year. And with the success of the Green Building designed for Wipro Technologies and the ‘tremendous response it created, Design and Development is busy with two other green projects. But then the truth remains – it’s miles to go before we sleep!

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Source: IIPM Editorial, 2007
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Home Campus Tour Contact Us Sitemap IIPM Think Tank IIPM National Brochure IIPM in Media India Today & Tomorrow

Strategic Alliance / Consulting / Intellectual Tic-up Partners Arindam chaudhuri GIDF Planman Consulting Business & Economy 4Ps Business & Marketing The Sunday Indian The Daily Indian Kkoooljobs.com