MGMT436: Based on the case study Mondelēz International: ‘Are you going to stick around, Irene’ which has been distributed to you in advance: Strategic Management Case Study, SUSS, Singapore

• Based on the case study Mondelēz International: ‘Are you going to stick around, Irene?’ which has been distributed to you in advance, answer the following questions:

1. Critically analyze the motives of corporate a strategy that can be identified in:
   a) the three principal M&A events identified in the case – the acquisition of
   Cadbury PLC, the demerger of Kraft and Mondelēz, and the divestment of the
   Mondelēz coffee business into the equity alliance of JDE;
   b) the organic development strategies for improving Mondelēz’s operating
   margins between 2012 and 2015.
2. Examine and discuss the reasons why Kraft chose the acquisition of Cadbury as a route to the global expansion of its confectionery business, rather than expanding through growing organically or through alliancing.
3. What were the strategic drivers that led to the divestment of Mondelēz’s coffee business into the JDE equity alliance?

• It is well understood that there exist two fundamental types of strategic positioning and associated forms of competitive advantage: low-cost and differentiation advantage. Choose two real-life examples, one for a firm with a low-cost advantage and one for a firm with a differentiation advantage. For each of these two firms, analyze and critically discuss the following:

1. The economic drivers that support and facilitate its strategic position
2. The threats to its successful competitive positioning.

As a reminder, focus strategies are special variations on these two basic types of strategy. Hence for your first example, you may choose a firm that pursues either low-cost leadership or focused low-cost leadership, and similarly, for your second example, you may select a firm that implements either differentiation or a focused differentiation strategy.

• It is well understood that different industries have different levels of average profitability. Put differently, there exist high-profit industries and low-profit industries. Select two industries: one high-profit and one low-profit industry. Based on your knowledge and understanding of your selected industries, use the five forces framework to analyze their structure and explain why you believe profitability has been high in one industry and low in the other.