Cracker Jack Case Study

Cracker Jack

In the world today many companies are ganging up together to share many costs like manufacturing , marketing and advertising costs , opening up new market frontier and edging out competitors to consolidate their existence . This case study analyzes Frito-Lay which acquires the Cracker Jack from Borden that has been manufacturing it since 1964

After a quick but thorough study of Cracker Jack business potential the Frito-Lay team recommended to the company to purchase Cracker Jack and its related assets . They came up with a quick solution due to various reasons

and factors . One of them is , experts developed a variety of valuation techniques and established a fair market value (Ross , Westerfield and Jordan 2002 . Borden Foods Corporation accepted Frito-Lay 's bid due to the following reasons : Frito-Lay was the highest bidder because in the bidding exercise , the highest bidder takes it all Frito-Lay being a food or snacks manufacturing firm was better positioned to keep and maintain the oldest and best known trademarks in the food manufacturing industry and that could be the pride of Borden Foods Corporation , the founders of the trademark . Employees of Borden who were working in the manufacturing or production line of Cracker Jack were to be acquired by Frito-Lay and this could be a good gesture to retain Borden 's reputation of respecting employees . It could have been a negative score on Borden 's corporate responsibility if it dismissed these employees who were part of its sustainability for all these years . There were also...