Kellogg's and Dell: Lessons Learned for InterClean

             Kellogg's entered the fruit snack market in 2003; the company is generally known for its breakfast cereals, including such stalwart brands as Corn Flakes. As with InterClean, the company added fruit snacks to its product line and then made an acquisition announcement within a very short period of time related to the new product line. Where InterClean did this with EnviroTech and its expertise in services, Kellogg's did it with fruit snacks and its acquisition of the fruit snack division of Kraft Foods for $30 million ("Kellogg," 2005).
             Kraft marketed some of its fruit snacks under well-known brand names that included Nabisco, Capri Sun and Jell-O. However, when Kellogg's made its acquisition, it did not acquire these names; they remain with Kraft which uses them for other products. Instead, Kellogg's purchased the facilities and resources that Kraft used in order to manufacture fruit snacks. Kellogg's also gained access to the Kraft distribution network; this might be similar to Kellogg's own distribution network for its core products as well as its fruit snacks (grocery stores and convenience stores, for example) ("Kellogg," 2005).
             In considering the Kraft acquisition and its lessons for InterClean, the primary lesson is that Kellogg clearly understood how the acquired resources would be merged into the Kellogg organization before the acquisition took place. In the case of InterClean and EnviroTech, there was much speculation at both organizations as to how the two merged companies would operate. EnviroTech expects to be taking a lead role at InterClean; not surprisingly, loyal InterClean employees are feeling threatened. InterClean's executives do not have a plan in place prior to the acquisition about how the two companies will operate as a merged entity, and clearly no cultural due diligence was performed, either. Lacking such a plan, the merged organization is likely to be characterized
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