Posted: April 22nd, 2016
negotiation continues as part of the business relationship.
More than fifty years ago, Tootsie Roll Industries began to explore foreign markets. It opened a subsidiary in Mexico in the late 1960s. Encouraged by Mexico’s warm reception to “Tutsi,” TRI opened a branch in Canada in the early 1970s.
Negotiating skills have proven pivotal to the growth of Tootsie Roll Industries. TRI has expanded its sales revenue not only by expanding its own product line, but also by acquiring established candy companies. In 1972, TRI purchased the Mason Division of Candy Corporation of America, adding well-known brands such as Mason Mints to the product line. In 1985, TRI bought Cella’s Confections, makers of chocolate-covered cherries. In 1988, TRI acquired the Charms Company, thereby becoming the world’s largest lollipop producer. TRI’s purchase of the chocolate and caramel brands of Warner-Lambert Company in 1993 increased TRI’s business by 20 percent and added such well-known brands as Junior Mints, Sugar Daddy, Sugar Babies, and Charleston Chew to the product line. Concord Confections of Toronto, which in 2004 became its latest acquisition, has now given TRI market leadership in the bubble-gum category with the popular Dubble Bubble brand. When looking at an acquisition, TRI management meets over time with the other company’s management or parent company. At successive meetings, opportunities and risks for both parties are debated and discussed. The ability of Tootsie Roll Industries and the representatives of the potential acquisition to resolve their conflicts and to negotiate to their mutual satisfaction makes or breaks the deal.
QUESTIONS FOR CRITICAL THINKING
How does Tootsie Roll Industries communicate its values to suppliers and employees?
What communication techniques demonstrate the company’s flexibility?
How do cross-functional teams benefit Tootsie Roll Industries?
Why are effective negotiating skills vital to TRI’s expansion?
Why does Tootsie Roll Industries discuss the benefits and problems entailed by the deal during acquisition negotiations?
Place an order in 3 easy steps. Takes less than 5 mins.