Contents
This report is based on the following requirement - - P&G – Divestment of Pringles to the Kellogg Company
- Procter & Gamble Company announced an agreement to divest its Snacks business to The Kellogg Company in a $2.7 billion all-cash transaction in 2012. P&G’s Chairman said: “this is an excellent development for P&G, Pringles and Kellogg, creating value for our shareholders and representing an outstanding opportunity for Pringles employees with a leading company in the Food sector. Kellogg shares similar values and principles to us and we are confident that the Pringles business will thrive under Kellogg’s leadership.” Using the relevant analytical models (s), your task is divided into two level of analysis: the rationale of this divestment from P&G side and its strategic fit for Kellogg.
- As an initial primer to your assignment, you are provided with some short introductory short reading/reference sources:
- P&G Website: https://news.pg.com/press-release/pg-corporate-announcements/procter-gamble-announces-agreement-divest-pringles-kellogg-
- Reuters Website: https://www.reuters.com/article/us-kellogg-pringles/kellogg-to-buy-pringles-for-2-7-billion-idUSTRE81E0S620120215?feedName=topNews&feedType=RSS
- These initial sources can be used in addition to your research on the divestment as a company and with more general reference sources considering different strategy theories and model(s).
- The assignment will be assessed in three areas of content/analysis and the overall presentation and referencing support as follows:
- Critically review the selected theory as well as any other related framework(s) that you need to apply (40%)
- Critical analysis of strategic choice of the company in relation to the relevant theories and the selected framework(s) in the first part (50%)
- Consideration of the quality of presentation, written style and structure and referencing style. In this you should demonstrate the proper use of APA style referencing (10%)
Description
The Procter and Gamble Company is one of the biggest firms in the consumer goods industry. With a prominent market position, this company has maintained its sustainability in this competitive world. This report intends to analyze the divestment scenario of Pringles to the Kellogg Company, another leading producer of foods and cereal in the world. The following analysis would focus on the rationality of this divestment deal and whether it is a strategic fit for the Kellogg Company or not.
