Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

1

Starter – what is the story behind the photo, write what you think you

already know in the text box next to the photo:

What happened in 1998 – write that here:

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Watch the video – make any notes you think will be useful here:

A: Trends in the number and size of manufacturers hat operate in the global chocolate confectionary market over the last 20 years, including investment, business growth and takeovers

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

2

Competitive environment in 1998

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Market structure in 2017 / 2018

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Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive environment pre -release. 2018: The chocolate industry.

3

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

4

Market overview

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Takeover – defined

Caption this image:

Why did Cadbury buy Green and Black’s?

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Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

5

Caption this image:

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Watch the two video clips and make notes here:

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive environment pre -release. 2018: The chocolate industry.

6

Takeover timeline

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

7

Watch the video on hostile takeovers and make

some notes here:

Why did Kraft want Cadbury?

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Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

8

Watch the video – secrets of Cadbury and make some notes here:

Caption this image:

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

9

Why did Ferrero buy Thorntons?

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Caption this image:

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

10

Why did Hershey reject the Mondelez bid?

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Reasons for mergers and takeovers

TACTICAL STRATEGIC

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive environment pre -release. 2018: The chocolate industry.

11

#1 Tactical Attempt to ensure

increased market

share

#2 Tactical Access to

technology, staff or

intellectual property

#1 Strategic Access to new

markets

#2 Strategic Improved distribution

networks

#3 Strategic Improved brand

awareness

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive environment pre -release. 2018: The chocolate industry.

12

Two types of business growth

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive environment pre -release. 2018: The chocolate industry.

13

Organic growth new

product launches

Organic growth

Expanding into new

markets

Organic growth

advantages

Organic growth

disadvantages

Organic / internal growth

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

14

Advantages and disadvantages of inorganic growth

(growth through mergers, acquisitions and takeovers)

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

15

Plenary quiz

1 Why did MARS buy

Grupo Turin?

2 What’s another

term for internal

growth?

3 Is Divine chocolate

an example of

internal or external

growth?

4 There are two

main reasons for

takeovers – one is

strategic, what is

the other?

5 Why did Hershey

reject the

Mondelez bid?

6 What did Kraft do

to the Cadbury

Somerdale factory

after buying the

company?

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

16

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

17

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

18

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Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

19

Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

20

Morrisons case study goes in here

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Edexcel Level 3 GCE Advanced Business Paper 3: Investigating business in a competitive

environment pre-release. 2018: The chocolate industry.

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