Cadbury operations strategy

With more than years history, Cadbury has been a famous English manufacturer of the chocolate product kraftfoodscompany. This study will focus on the operation management of the company. It is believed that micro- processes have been the purview of application developers with objects orientated programming and the like; while macro- processes have been developed by integration specialists using tools such as the business analyst Thompson Below are four micro processes in the Cadbury World:.

There are two major advantages of this process chart in term of managing the customer flow from their initial arriving and the end of the journey. First of all, the general one way route from exhibition area to demonstration to retail to restaurants ensures that the majority of the activities and events would be visited by all customers because they have this only one way to walk through; secondly, the location of these areas also follows.

And because the average period of stay is about 2. Because people will be allowed to go into the areas by each 2. Because 23 people are allowed for each show, and with the reduced length in the show from 9 minutes to 5 minutes, hence.

But there are also situations in which capacity could be increased: a increased supply of facility, equipment and labor; b enhanced handling efficiency; c service time extension. Since groups are usually have 30 people, and it takes on average 10 minutes for this process, hence. Since there are normally 15 people in each group, and time spent for each group handling is 17 minutes, therefore the. Based on the fact that there werevisitors Mid August to end of December 4. Though the data for the rest 7.

Since there is obvious seasonality on the demand, the company has adopted several major methods in different areas to cope with the changes of demand.

In the restaurants, in the peak time there could be some customers who have not receive service for hours, in order to avoided these customers becoming the unhappy few, the company would extend the office hour of the restaurant to an additional 45 minutes for them to have a meal; the alternative exhibition could help distract the overcrowded visitors by providing them the transportation service to travel them to the alternative exhibition; also the company treat the staff in a humanized way and also encourage them to be more efficient when in peak time; and in the Marie Cadbury Room, there are also situations in which capacity could be increased: a increased supply of facility, equipment and labor; b enhanced handling efficiency; c service time extension.

Bottleneck could happen in the demonstration area, since in the area tour groups tend to slow down to watch the production of the chocolate, and in some cases, there are some visitors who are extremely slow in visiting could slow down the progress of all the members of the group, therefore many groups could jam in this area. One more bottleneck could also be found in the entrance of the Cadbury World because the arrival time of some groups may be delayed and the arrival of the several tour groups as well as the leaving groups who also gather in the entrance could lead to some jam situation as well as slowing down the efficiency of the entrance area.

Unit 1 External and Internal Environment Assignment – Cadbury

To conclude the above analysis, we can see that the company has adopted a very smart customer handling process by designing the flow in a very good manner, but still there are bottlenecks resulted by the seasonality of the visiting.

Below we will provide some recommendations regarding how these bottlenecks could be removed or at least be reduced in term of their influence to the business to avoid customer complaints. Regarding the bottleneck that is possible in the demonstration area, since the company has found out that the usage of portable microphones could help the tour guides to better control their groups, the company could provide these equipments to tour guides in case their equipments are not working.

Regarding another bottleneck which is the 10 minute walk between the parking and the entrance of the Cadbury World, frequent free transportation linking to these two places could be helpful to reduce the negative impacts of this bottleneck, in addition, still those who prefer to walk could still maintain their choices and relevant services and support could be offered.A company can be assessed by its strategic position in the market with respect to its competitors.

This paper consists of a n extended research analysis on the biggest confectionary organization in the world, Cadbury.

Who Are Cadbury's Main Competitors?

It will assess the critical aspects of the strategic selections which are availed to Cadbury. The paper will give the reader a significant knowledge about the various tools of research and also their importance in analysing and evaluating the markets for a business entity. The core purpose of this project is to support Cadbury to expand in its home country and also internationally with the proper use of accurate modes, theories and concepts.

The strategies of marketing model will be applied and analysed in this report to indicate the competitive and market position of Cadbury. Recommendations are also given to measure the perspective of the company on the growth of the profits and revenue along with the share of market. However the planned segmentation is also evaluated critically on the foundation of the multiple procedures to categorize the financially attractive fragment for Cadbury.

The available position in the industry is also identified with the help of strategic framework. The reaction of the competitors offers a detailed assessment of the probable reaction of the competitors along with the options to the strategic plans of Cadbury which are counteractive. John Cadbury founded this company in the year which was covered successfully and also revolutionized the processing of cocoa in the market from the year Cadbury then merged successfully with Schweppes in the year The company is now internationally acknowledged as the most reputed organisation with the acclamation of an international status, Cadbury Schweppes PLC referred to as Cadbury hereinafter.

The company also successfully employs more than 45, employees in around 60 countries worldwide. The company is positioned strategically as the fourth highest supplier of the chocolate and sugar confectionary all over the world. Research design which is used in this paper focuses mainly on the accurate tools of research like PESTEL Analysis, Porters Five Forces Model to assess the external environment of Cadbury so as to recognize the probable opportunities and threats.

To evaluate the internal environment the resources and capabilities framework is used in the report. To equalize with the opportunities and the external threats with the internal weakness and strengths TOWS matrix have been applied here. With the involvement of these tools to the Cadbury Company it will help us to recognize the probable opportunities in expanding the business and also assist it forecasting the threats which cannot be anticipated now. The market of UK confectionery is very much established market having a high demand and also levels of penetration.

Additionally, the market is very much controlled and is also influenced by the big players like Mars and Nestle. Thus it becomes very essential for Cadbury to be pre-emptive in implementing the different strategies of business which are effective after considering the various factors and also to construct an effective strategy of corporate social responsibility to achieve the competitive advantage Appleton et al.

The first and foremost fundamental step of strategic management is to analyse the current factors of the environment within which the operations of the company will be executed. The environmental factors consist of both internal and external factors.

There are two aspects of this analysis. The first aspect is to identify the environment in which the operations of the company take place and secondly, it gives valuable data to the company which helps in predicting the circumstances and situations of the future Assessing the industry using Porter's five forces, Furthermore the PESTLE framework also gives a certain amount of essential fundamental knowledge to examine the macro environment; it has some constraints in measurements terms.

They are:.More information can be found in our Cookies Policy and Privacy Policy. Though taken over by Mondelez International init has managed to retain its British headquarters and its decidedly British disposition. It appears sales have been declining as a result. Reports suggest Dairy Milk sales were down 3. The question is — will the campaign help to reconnect Cadbury with consumers?

With the public increasingly said to desire brands that display human traits i. Alongside its television advert, Cadbury has also been focusing on experiential marketing to ramp up its reinvention efforts.

Case Study: Cadbury Crisis Management (Worm Controversy)

The shop which is now continuing its pop-up tour across the country mimics the layout of the store depicted in the advert, and also sells Cadbury-themed newspapers and postcards to visitors. Cadbury is standing by its dedication to generosity by delivering all unwanted items to charity. There was no mention of Cadbury or even chocolate for that matter.

Instead of telling consumers that the product would elicit happiness, the advert itself was designed to make viewers feel good. It has to be said, the success of the ad has arguably been a double-edged sword for Cadbury. While it created huge buzz and swathes of spoofs — the brand has failed to deliver anything as memorable since. But then again, that gorilla was always going to be a hard act to follow.

So, instead of television or social media in general, it turned to Snapchat which is largely made up of an audience of 16 to 24 year olds. Cadbury created a number of bespoke brand lenses, including a pair of giant golden lips eating a Crunchie. According to reports, Cadbury spent nearly half its yearly ad budget on the Snapchat campaign. But was it worth it? With its golden disco ball filter attracting nine million views, Cadbury generated a decent amount of engagement on the platform, making it a great example of how to use fun and ephemeral content to capture the interest of a core demographic.

On Snapchat? It might seem a bit gimmicky — and some have even labelled it as a stunt to distract from the controversial decision to change the famous recipe. Check out his pancake recipe for a cracking treat this PancakeDay! After recognising that TV ads were failing to engage consumers, the brand partnered with Idomoo to create a mobile-driven campaign based on personalised video.

Participants then received a personalised video based on photos and information gathered from their Facebook profiles which they could tag and share on social media. By utilising both mobile and Facebook, Cadbury managed to tap into its digital audience and create a highly shareable campaign. Christmas and Easter are an understandably big focus for Cadbury, with other chocolate brands vying for sales of eggs and advent calendars each year.

InCadbury integrated augmented reality into its Heroes advent calendar, giving consumers an extra way to countdown to the big day. Alongside standard chocolate, a unique selfie filter was also hidden behind each window, including reindeer antlers and snow angel wings.

cadbury operations strategy

Users could access the AR element by scanning their advent calendar with the corresponding app, as well as share their selfies on social with the hashtag cadvent. Happy 1st December! Let the countdown begin… Scan your CadburyUK Heroes AdventCalendar using the Blippar app and get into the festive spirit with an exclusive augmented reality experience! Cadvent pic. Though it was run cross-channel, reports suggest that the online campaign provided ROI almost four times higher than the TV campaign.

So why did it create so much success online instead of TV? According the Cadbury, additional reach was always the main goal, with the brand able to target online users that might not have seen the advert on television. Meanwhile, it was successful in reaching younger audience and driving sales among this demographic as a result. To enter, users were required to describe Dairy Milk in one word, doing so either on a dedicated mini-site or within the Facebook app.

You must be logged in to post a comment. Leave a comment Cancel reply You must be logged in to post a comment.Later he expanded by starting a line of beverages after a merger with Indian Schweppes changing the company name to Cadbury Schweppes.

Kraft, on the other hand, is a US company about a century old, which started off as a door to door cheese business but expanded into other confectionery items through many takeovers previously such as Ritz Crackers, Nabisco Oreos and Phenix Cheese Corporation Philadelphia Cheese to achieve success. Cadbury and Kraft are both multinational operations with activities in both developed and developing countries. Cadbury has faced many ups and downs throughout its journey especially under the visionary leadership of Todd Stitzer.

Todd Stitzer working successfully for 20 years for Cadbury Schweppes has played a key role as a master mind behind the acquisitions of soft drinks industries made by Cadbury in US. He was later appointed as the chief strategy officer by John Sunderland to the confectionery side to achieve the similar success. The then competitors in the chocolates and sweets industry were the international companies Nestle, Mars, Kraft, Wrigley, Ferrero and Hershey.

Stitzer said that acquisitions alone would not solve the problems of Cadbury. He said that the revenue growth model has to be revitalized to gain in the financial performance. Stitzer had developed many strategies, took some visionary steps and led Cadbury gain the business world with his strategic thinking.

Stitzer and his management team aimed at the global domination in the Confectionery world, while the stakeholders were much worried about the financial performance. Overall with all his visionary leadership abilities and strategic decision making capabilitiesCadbury Schweppes split into pure confectionery leader Cadbury. Nelson Peltz, founder of the hedge fund Trian Fund Management also had his own role in the business of Cadbury.

Carr without consulting the stakeholders had refused the offer but Peltz who still owned the shares in the Cadbury with discussion and negotiation with Kraft finally made Cadbury lose its independence in January Due to recessionary times following fall in sales, many companies in the confectionery industry recognized the potential of merging with their competitors to become competitive and enjoy economies of scale.

Cadbury had continued to be a strong performer in the confectionery industry and shown steady performance and growth in light of the turbulent economic times. Kraft was attracted to Cadbury due its strong performance during the economic crisis. Cadbury has had strong brands whose icons are etched in the minds all over the world, an impressive category line and extensive worldwide consumer base.

Kraft proposed another bid shortly. The closing price of 9th November reflected the bid valuation of Cadbury at pence which was lower than the share price of p on that day. Ratio: 0. Cadbury rejected the offer on the basis of undervalued Cadbury which was now of a lesser value. It was in fact even lower than the current Cadbury share price. The hype created by rumors of takeover figures led to exciting speculations. Media reported Ferrero to be considering a rival bid.

All this favored Cadbury whose share price witnessed new highs. This deal will be remembered in history as one of the largest transnational deals, especially in the aftermath of credit crunch.

This consisted of pence in cash per share and the remaining amount paid to Cadbury shareholder in the form of Kraft shares. The shareholders had the power to decide the mix of amount they wanted in cash and shares.

Also, she verbally assured that under the new agreement the previous contractual rights of the employees would remain the same as before. It was the biggest cross-border acquisition of that year. Such a deal clearly pushed Kraft as number 1 dealer in confectionery.

A merger allowed Kraft to gain a footing in the fast growing chewing gum category. These constitute about one third of the market in developing countries such as Africa, China and India. Cadbury had been vulnerable to a takeover ever since it demerged its US soft drinks business. This high takeover bid was an attractive opportunity to do away with such a fear. Since a stand-alone Cadbury had limited opportunities for value creationagreement to the contract for takeover seemed like a wise decision.

Along with the obvious benefits come the many challenges and ethical issues. These are primarily high debt issues and employee layoffs.Cadbury is a multinational organisation that deals with manufacturing of confectionary products like chocolates, biscuits, cakes etc. The organisation has its headquarters in Greater London and operated in more than 50 countries worldwide. The external environment includes all the factors that have their impact on the organisation from outside the organisation.

The political, technological, economical and demographic factors of the country comprise the external environment for Cadbury. Internal environment of the Cadbury is formed by the internal forces in the company itself that affect the HRM functioning of Cadbury. Further, it provides with the knowledge of the barriers Cadbury faced during the implementation of these new approaches. The inner and outer surroundings of the organisation form its external and internal environment. The external environment of an organization includes political, economic, technological and demographic factors while internal environment includes trade unions, organisation culture, organisation structure, productivity and objectives of organisation.

All these factors affect the organisational functioning. Let us take an example of the organisation for analysing the internal and external factors.

The organisation that is studied for the purpose is Cadbury. Santangelo and Pini, John Cadbury had established this company in Afterwards the business expanded with the help of his brother Benjamin followed by his sons George and Richard. The best selling product of the company till now is dairy milk chocolate.

Some of the factors from the external environment of the organisation include:. The internal environment of the organisation is formed by its culture, structure, training and development, objectives of the organisation etc. All these factors affect the functioning of HRM in the organisation. The internal and external factors have a very great impact on the HRM practices of the organisation. Strategic human resource management is the process of integrating the HR strategies with business strategies.

It defines the plan of an organisation to attain the business goals with human resource.

cadbury operations strategy

Strategic human resource management focuses on people as well as process. It aims is to attain the competitive advantage by maintaining and managing the skilful human resource in the organisation. It is concerned with effectiveness of performance of organisation with individual performance of the employees. SHRM focuses on effective allocation of resources and matching the resources with future requirements. Chadwick, Strategic human resource management has focused on integration of the fit between the strategy of business and the HR strategy.

cadbury operations strategy

Some models determine the strategic fit. Go bind, The model defines that there should be a link between the external and internal strategies along with the association of the internal elements of the HR strategies.The chocolate market in India is dominated by two multinational companies — Cadbury and Nestle. The national companies — Amul and Campco are other candidates in this race. All these are leading national players.

The multinational companies like the Cadbury, Nestle and Perfetti are the new entrants in the sugar confectionery market. Management paradise There are several others which have a minor share in these two segments. According to statistics, the chocolate consumption in India is extremely low. If per capita consumption is considered, it comes to only gms in the urban areas. This amount is very low compared to the developed countries where the per capita consumption is more than kg. Observing this fact it would not be appropriate to consider the rural areas of India as it will be extremely low.

This low consumption is owing to the notion behind consuming chocolates. Indians eat chocolates as indulgence and not as snack food. The major target population is the children. But as the century advanced the market stagnated. This was the time when Cadbury launched its product- Dairy Milk as an anytime product rather than an occasional luxury.

All the advertisements of Dairy Milk paid a full attention to adults and not children. And this proved to be the major breakthrough for Cadbury as it tried to break the conventional ideas of the Indians about chocolate. He ordered an enquiry and went directly to the media with a statement.

Over the following 3-week period, resultant adverse media coverage touched close to clips in print and on TV news channels. Sales volumes came down drastically in the first 10 weeks, which was the festival season; retailer stocking and display dropped, employee morale — especially that of the sales team — was shaken.

The Marketing Mix At Cadbury's

The challenge was to restore confidence in the key stakeholders consumers, trade and employees, particularly the sales team and build back credibility for the corporate brand through the same channels the media that had questioned it. In defense, Cadbury issued a statement that the infestation was not possible at the manufacturing stage and poor storage at the retailers was the most likely cause of the reported case of worms.

That was followed by allegations and counter-allegations between Cadbury and FDA. Consumers seemed to ignore their chocolate cravings. A focused and intense communications program was implemented over the next six months to rebuild credibility and restore confidence among the key stakeholders.

The results:. The last two helped to restore faith in the corporate brand among the trade and employees. The incident came close on the heels of a cola controversy where a scientific laboratory declared colas unsafe due to high levels of pesticide. The jury was still out on that issue and so this incident acquired political overtones with parties decrying Cadbury as an irresponsible MNC. The immediate objective was to get the following key messages across:. The challenge was to restore confidence in the key stakeholders trade and employees, particularly salespersons and build back credibility for the corporate brand through the same channels the media that questioned it.

It was decided from the start to address the issue head-on and take whatever steps were necessary to restore confidence. Having historically maintained a low profile with the media and let its brands and its performance speak for it, the company began to cultivate relationships with the media and turn it into an ally and a credible, independent endorser to rebuild stakeholder confidence.

The day the crisis broke, the agency set up a media desk to ensure that no media query went unanswered. At a second media briefing about two weeks after the first incident was reported, Cadbury announced significant steps to restore consumer confidence called Project Vishwas Trustthis entailed:.

An Editorial Outreach program with 31 media editors across 5 most affected cities was orchestrated by the agency to get senior Cadbury spokespeople to share their version of events in one-on-one meetings.It should be noted that, with the growth of worldwide confectionary markets, Cadbury has been able to increase the production of some of its products in the last five years.

Cadbury, The objective of this report is to examine operations function of Cadbury plc for a major product line and the value chain that runs through this function. The paper identifies the key environmental factors affecting the operations management function Cadbury plc, and describes how the organisation is managing these.

The paper also provides views as to how Cadbury plc could improve its performance in responding to these environmental factors. Operations function of Cadbury plc for a major product line and the value chain that runs through this function.

Cadbury plc was formed more than years ago by teetotal Quakers in the Midlands of Britain: their religion disallowed alcohol but did allow chocolate. Cadbury is one of the leaders in the confectionary business that manufactures products such as chocolate, diary milk, candy brands, gum, and mints. Presently, Cadbury operates in 50 countries, which means the company is ranked second in the global confectionary business. The product range manufactured by Cadbury falls into three categories: chocolate, gum and candy.

One of the major parts of company business operation is to produce innovative products that can enhance market viability. Presently, Cadbury manufacture more than different kind of brand of products. Cadbury,Cadbury, The range of products manufactured by Cadbury has given the company Typically, with the range of brand portfolio that the company has developed, Cadbury has been able to improve its value over the years.

For example, the firm has been able to use innovative techniques to expand its products in the new emerging markets. In addition, Cadbury has also achieved No 1 global position, despite the proliferation of candy globally. Typically, the position that Cadbury has achieved has made the company achieve strong market shares in many countries such as Spain, Turkey and France.

Apart from Europe, Cadbury has also achieved strong market position in Japan, and Thailand. Despite the strong position that Cadbury is achieving globally, there are key environmental factors affecting operations management function of Cadbury plc. Key environmental factors affecting the operation management function of Cadbury plc. In the UK, environmental factors have become key in affecting company operations.

Climate change, carbon emissions, acid rain and other environmental factors have become the key factors affecting the operations of many companies in the UK. Typically, the UK government has made it mandatory for all companies to reduce their carbon footprints in the production system. HM Treasury,p Thus, many environmental problems are been caused by climate change: for example, the greenhouse gases produced by climate change are some of the cause of some human health problems.

HM Treasury,


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