Thursday, September 12, 2019
Comparative Analysis of Keys to Successful Revenue Synergy Programmes Essay - 1
Comparative Analysis of Keys to Successful Revenue Synergy Programmes - Essay Example According to the paperÃ there is no ambiguity relatively in the difference of drivers and expectations of M&A functions changing with time and as per the ongoing economic environment. It is interesting to observe the market behaviour after the recuperation from the recession worldwide on whether companies are currently acquiring for achieving revenue synergies or cost synergies.From this study it is clear that the Kraft acquisition of Cadbury was projected to offer $1 Billion in Synergies, as declared by the Kraft Foods. The incremental revenue synergies of $1billion were excluded of $750 million to be achieved in cost synergies by 2013. These revenue synergies, according to the Kraft, would be derived from the business increase in developing regions from one/fourth of the total revenue to approximately touching one/third after the merger.Ã The confidence of the Company management is getting reflected from the acquisition, as it expects to become a long-run high-bracket performer in the food industry world wide. Presently, the Company is earning more than 50% of its revenue from outside North America, from countries like Brazil, China, India and Mexico, where GDP and demand growth are the most firm.Ã Kraft CEO, Irene Rosenfeld, also holds the same opinion from the Ã¢â¬Å"unique and complimentary combinationÃ¢â¬ of Kraft and Cadbury, stating that, Ã¢â¬Å"together with our significant presence in high-growth developing markets, will deliver consistent growth in the top tier of our peer groupÃ¢â¬ .