Question

CASE ANALYSIS (30 Marks)

Mars Inc.: merger of the European food, pet care and confectionery divisions

Mars Inc. is a diversified multifunctional company whose primary products include foods, petcare, confectionery, electronics and drinks. Owned and controlled by the Mars family, this US giant is one of the world’s biggest private companies, but also one of the most secretive. Mars’ decision in January 2000 to merge its food, pet care and confectionery divisions across Europe – and eventually with headquarters in the UK – has split the marketing industry. The most well-known brands within the three divisions are:

• Foods: Uncle Ben’s rice and sauces;

• Pet care: Whiskas, Pedigree;

• Confectionery: M&Ms, Snickers, Milky Way, Mars Bar.

Mars UK says the decision to pool the businesses was taken to strike at the company’s international competitors in food and confectionery, such as Nestlé and Unilever. The move also coincides with plans to create a single European market and highlights the company’s belief that its consumers’ needs are the same across the continent. However, the combination of food and confectionery with pet care is not clear to all industry observers. One industry analyst made the comment: Generally speaking, Mars is doing the right thing by merging divisions to squeeze profits out of them. Before the advent of the euro it was acceptable to run separate companies in different European countries but not anymore. Another analyst said: ‘I can’t imagine it marketing all three sides of the business together. They’re too different.’ The only visible benefit appears to be an improvement in distribution. Tastes across European markets are very different, whether you’re selling products for animals or people It’s all very well Mars saying it will tackle competitors such as Nestlé and Unilever, but they are only rivals in food and confectionery. If Mars starts laying down too many controls by merging all its businesses – and therefore also its marketing and management strategies – it may streamline communications, but could lose the creativity available in different regions.

Questions:

1. Discuss the two views of organizing Mars’ European activities.

2. Did Mars Inc. do the right thing in your opinion? ​​(20 marks)

Answer 1

Answer-

1-Discuss the two views of organizing Mars’ European activities.

1. The main perspective on organizing Mar's European activities is that Mar's arrangement to make a solitary European market is profoundly towards making a monopolistic market since they needed to be command the European market through their shifted item offerings.

The second perspective on organizing Mar's European activities is that by combining the various divisions Mar's eventual ready to make greatest profits making it the privately owned business mammoth in the buyer items. It is a vital choice to adjust to the Euro money. Note that Mar's has settled on this key choice to consolidate the three distinct organizations is to work as one single organization across Europe where just Euro cash is substantial.

2. Did mars Inc. do the right thing in your opinion?

2. As per my assessment, Mars Inc. didn't make the best decision in light of the fact that the organization attempted to consolidate three totally various organizations to command the European nation. Despite the fact that it may have the option to rule the market, it may make clashes among the various organizations.

These three organizations are worked as a solitary element and not as three distinctive element subsequently this may bring about extraordinary work environment clashes which may ruin the presentation of business activities. Furthermore, if Mars begins setting down such a large number of controls on showcasing and the executives activities to all the three divisions, then he is passing up the inventive and advancement parts of the business which is relevant for an organization's development.

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