Cadbury Brother Limited is a prototype of owner-managed personal capitalism. In the 1960s Cadbury became a public limited company whose shares were listed on the London Stock Exchange. Furthermore, they have become a truly multi-divisional company. Therefore, they merged with Schwepps and formed Cadbury Schweppes which is a diversification strategy. Cadbury transformed itself to operate as managerial capitalism (Rowlinson,1995). In the 1970s, economists began to worry about managerial behavior, agency costs, and ownership structure (Jensen, 1988). Although shareholders can choose management teams that represent their interests, executives only care about their own interest such as bonuses and extra dividends. Causes property divorce. In 2010, Cadbury Schweppes was acquired by a US food manufacturer Kraft. They have transformed themselves to be managed by financial capitalism. The shareholder would get some goals from the management team. It is known as shareholder value that based on revenue, operating margin, capital expenditure growth, cost of capital, etc. It is the sum of all strategic decisions that leads to the performance of the company and the increase in the company's profits or the increase in the market value of its shares, which causes an increase in the amount and frequency of dividends. Due to technological improvement, the exploitation of computers and databases have increased productivity and reduced communication conflict between workers during production processes. Above all, it increases the information available to shareholders. Kraft took over Cadbury is called a horizontal acquisition. If merger within an industry can create greater gains, cross-industry acquisition (Jensen, 1988). It tends to increase their value. ...... middle of the paper ...... during the negotiation. However, providing excessive severance pay to executives will tend to encourage them to sell the company at too low a price. It causes a negative impact for shareholders and reduces production efficiency. In the long term, when the manager realizes that the firm's prospects are deteriorating, he interprets the contract that will destroy the possibility of a cooperative agreement. It leads to the effectiveness of revenue and dividends to shareholders. Due to managerial myopia fearing acquisition, the manager will sacrifice long-term benefits and increase short-term profit. Additionally, they could reduce spending on technology or research and development. It currently has a negative impact on stock prices. However, there is no evidence to support that the acquisition will reduce R&D spending.