Business Case Studies, Restructuring / Turnaround Strategies Case Study, Cadbury Schweppes Corporate Restructuring

print page
Tell A Friend
Bookmark
 

Case Categories

Share |

Restructuring / Turnaround Strategies Case Study

IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
Case Title:

Corporate Restructuring at Cadbury Schweppes: Splitting US Beverages and Confectionery

Publication Year : 2007

Authors: Vandana Singh, Amy Sonpal

Industry: Food, Diary and Agriculture Products

Region:US

Case Code: RTS0131A

Teaching Note: Available

Structured Assignment: Available

Buy This Case Study





Abstract:

In March, 2007 Cadbury Schweppes, the largest confectionary business in the world announced its decision to split its US beverages business, which owned famous brands such as Dr Pepper and Canada Dry, from the rest of the Cadbury Schweppes. The company had been under increasing pressure to split its business. The move, many analysts believed had come under a strong push from the Nelson Peltz, a US activist investor, who in March 2007 acquired almost 3% of the company’s share. Further the company acknowledging the strong portfolio of brands for its confectionary business intended to revert to its origins as a core confectionary company in the global market.

Although the strategic rationale was still misty, the split certainly would make the de-merged independent Cadbury Schweppes US beverages, an approximate £ 7.0 billion division, the third largest contender in the US soft drinks market after Coca-Cola and PepsiCo. The twin-track approach had a strong reaction from the credit rating agencies as it apparently expressed its intentions to downgrade Cadbury Schweppes ratings. The case ends on a debate whether the decision to split beverage business would prove a right one for Cadbury.

Pedagogical Objectives:

  • Understanding Corporate Restructuring Strategies
  • Discuss the Splitting off as a way of restructuring.

Keywords : Cadbury Schweppes; Corporate Restructuring; Business Portfolio Management; Strategic Business Units; Business Acquisitions and Disposals; Business Strategy; Inorganic Growth; Organic Growth; Spin-off Strategy; Core Business; Brand; Revival; Non-core Brands; Competitive Advantage; Global advantaged markets; Restructuring / Turnaround Strategies Case Study; Global Confectionery Industry; Global Beverage Industry; US Beverages Industry; Coca Cola; Pepsi; Nestle; Chocolate; Candy; Gum Markets; Carbonated Soft Drinks

Recently Bought Case Studies

    Recently Bought Case Studies
advertisement

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»






Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-500 082, Telangana, INDIA.
Mob: +91- 9640901313,
E-mail: casehelpdesk@ibsindia.org

©2020 - 25 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap