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Company overview and review of cadbury management essay

Cadbury is world’s leading confectionery brand .Providing varieties of chocolates, gums and candies to different age groups of consumers. They employ more than 46,000 employees across 60 countries. Background tells us that Cadburys was possessed by British provider .In 1824 it was founded by John Cadbury and opened up its first outlet in Birmingham. His values and traditions can be seen in his company as well. His authentic belief in alcoholic beverages increasing poverty fee forced him to introduce chocolates, cocoa, tea at his shop as an option for folks. Around 1842, John’s brother collaborated to form Cadburys Brothers Of Birmingham but after six years they separated as a result of John’s ill health and his wife passed on .In 1889, John died and left his company to his two sons George and Richard .After couple of years George and Richard started out gaining earnings and expanded their business . Their chocolates showed increment on every stage. This year 2010 February, American Kraft Company acquired Cadburys in spite of numerous protests.

Source: Google image.

Copyright – EPA

Kraft is an American Company were only available in 1903 in Chicago as a wholesale cheese company .In 2007, Kraft started to be autonomous. According to Kraft CEO-Rosenfeld,the reason behind fusion of Kraft and Cadburys is certainly that ,"If Cadbury will standalone afterward opportunities for Cadburys benefit creation will be less and Cadburys would receive benefit from Kraft’s world’s network". On the other side Kraft would also earn profit from Cadburys Indian and Mexican markets. As soon as both fused together they will form a huge organization in confectionery industry owning 40 confectionery brands.

ORGANISATIONAL STYLE OF CADBURYS:

Cadburys success lies in their operations .They use different type of management in order to get greatest out of their labor and gain goals successfully.According to Christopher and Sumantra,"Todays operating environment in lots of worldwide businesses demands more than efficient central administration and flexible operations".Cadburys organizational style lies between hierarchical and smooth structure but additional of democratic .They doesn’t have many layers in toned structure.So decision building is quite fast and obvious. In hierarchical ,decisions are produced from top and passed on to the lower personnel.According to cadburys," guidelines from manager are offered to the clerical support assistants".Below they will be disussed at length :

Autocratic management

Democratic management

Consultative management

Paternalistic management

a) AUTOCRATIC MANAGEMENT:

In this operations decision is manufactured by bureaucratic or a manager without consulting any subordinates.Decision making is quickly because no other staff is involved to give new ideas or ideas and well managed testmyprep organization is an outcome .According to Peter (2006),"Oxford english dictionary contact Autocracy as absolute federal government by one person".Centralization management can be their trait in this .They control the rights and duties of various other divisions and departments.Body 2 shows autocratic style of management :

Managing Director

Manager

Staff

Staff

Staff

Staff

b) DEMOCRATIC MANAGEMENT:

In democratic, staff do the job in a team.Employees give different thought and ideas .This management is beneficial for cadburys since it helps them to obtain additional from their personnel by motivating them.Emloyees manufacture but work how to write a reflection paper in this administration is bit slow in comparison to autocratic because time is certainly wasted in collecting idea.

Figure 3: Shows gradual process under democratic control.

Democratic management could be decribed through Mckenzie’s 7s model :

STYLE

SKILLS

STAFF

SHARED VALUES

STRUCTURE

SYSTEMS

STRATEGY

Figure 4: McKenzie’s 7-s version (Pascale & Athos, 1981; Peters & Waterman, 1982)

McKenzie’s 7-s model is created in 1980s. This body 4 shows how firm work by sharing ideals among their staff. An Organization (Cadburys) plan to become successful by employed in a team .In line with the exterior environment they change in order to face competition or to meet consumer changing wants. Organization plan for coming tomorrows, they look where they are actually and what they need to do to get accomplishment in potential (Ansof, I .1965).

Cadburys employees do know companies goals, strategies and also have common beliefs which prevent employee’s turnover percentage and inner conflicts. They welcome brand-new ideas and different cultures. Honesty and legitimate way is found in their business all the

Way. Hardworking and competition level can be saturated in their strategy but they do it rather. Staffs keep changing to get best experienced labor. Cadburys quality assurance is guaranteed.HR keeps a check on employees, training of new staff and plans ahead .The most important is incentives and rewards for staff which impel them to function harder and hamper their rivals relating to Rafaella (2009).And managers use easy and simple ways to talk to their labor force -email, telephone, training video conferencing, record transfer etc.

c) CONSULTATIVE MANAGEMENT:

Consultative management is an assortment of both autocratic and democratic supervision. Head of group take strategies from there working push and eventually have decision by their individual. By applying this sort of management both personnel and managers are pleased because both given equal importance.

Advisory Board

General Manager Marketing Department

Research and Development Department

Finance Department

Production Department

Figure 5: Explains consultative management.

d) PATERNALISTIC MANAGEMENT:

In this management, inner environment of the organizational is normally kept extremely fatherly .Staff are if they each is a large family. Management manages employee’s free health insurance and recreation. There wants are fulfilled without giving them any rights .Paternalistic administration neutralize autocratic management style.

PROFIT & PROGRESS

Employee 1st Employee 2nd Employee 3rd Official

Figure 6: Shows teamwork leads to boom in an organization.

ISSUES AND CONCERN:

Though being truly a giant group in confectionery market and well know- how of their eyesight, mission and approach, Cadburys faced numerous challenges as well.

Problems Of Past:

They experienced a problem within HR department as a result of unskilled staff, competition from externals and personnel turnover percent was rising, but somehow Cadburys handled this problem by giving them incentives, shell out leaves and rewards. Their staffs thought and suggestions were also listened in order to make them believe that they are a family.

Cadburys entry into French market was another big trouble because of behavior of French client .According to BBC information (March, 2000) Cadbury asked Kraft to dominate there French gums and sweets products in order to gain French market. As per chief executive John Sunderland, "Kraft’s food give us access into French sweets and gums market ".

Cadburys journey from 1824 till date showed many ups and downs, today it is world’s number 1 chocolate generating company. After gaining great profit and image their goods reached a maturity level but before their product display decline in a graph they created Cadburys special event pack and bandhan (Indian market) to be able to again get yourself a growth stage.

S Introduction Progress Maturity Decline

A

L

E

S

T I M E

Figure

7: Product Life Cycle (PLC)

CURRENT PROBLEMS:

The working class desire and hunger makes them keep working hard for a better life. Over 200 years’ devices replacing men but still growing. Cadburys employ more than 46,000 workers around the world. Each Cadburys factories contain one HR to be able to provide training, incentives and also to solve staffs grievances. But just lately Cadburys replaced their employees by effective equipment which cause unemployment .Poverty, pauperism and misery increased all over.HR also facing problem in finding skilled labor which led to skill-gap. Even competition from other organization makes a shortage of competent workforce.

As per Margaret Heffernan in March 2010, trust is the driving power for everything, 8 weeks back when negotiation was heading on between Cadburys and Kraft then simply Kraft promised that they won’t close Cadburys production device having 400 workforces. But after a takeover, Kraft broke their guarantee which causes protest from Cadburys personnel all over UK". In spite of facing opposition during acquisition, Kraft didn’t gain self-assurance in consumer’s eyesight and declined in popularity. Kraft’s forget to provide importance to the traditions .To conquer this complication Kraft should gain trust and respect by breaking forget about promise normally this will causes failure of Kraft’s business in UK.

Apart out of this, Cadburys started facing problem in terms of health problem. Folks are more towards eating healthier snacks. Obesity in children and pattern towards the healthy existence, creating a problem on the market.

Figure 10: Obese Kids (Estimated) Number of children between 2-15 ("000"s)

Source: National Center for Social Health /Department of Health

Previously all snacks were asked to carry clear warnings of calories on their packaging .As per David Hinchliffe (MP, Chairman, Well being Select Committee), reported by BBC media (27 November,2003) that "consumer ought to know, how much they have to burn after absorption of so much calories".

FUTURE THREATS:

Changing behavior of customers is also a big threat to their organization .People getting ultimately more into healthy food. "In case you are healthy then you are rich "is what they have confidence in now.

COMPANY STRENGTHS

-Giant brands earn an excellent respect from their

consumers.

-Management structure

-Successful in chocolates, gums and candies

COMPANY WEAKNESSES

– close of creation units

-Contaminated chocolates produced.

-Performance in Asian marketplace was not good enough in

2003.

COMPANY OPPORTUNITIES

– can promote their products

online.

-Now with Kraft, can spread in regions where

they didn’t present their presence before.

COMPANY THREATS

-from cereals as they taking over market due to change in consumer trend.

-from companies producing low fat or sugar free of charge chocolates.

– innovating to be able to maintain relationship with consumers.

Source: SWOT Analysis, The very best ten global leaders in meals.

Cadburys need to keep a check up on consumers buying tendency .Cereals becoming there main risk like Kellogg’s and muesli. Unlike cereals, chocolates comprise fats, carbohydrates and sugar which are harmful when taken an excessive amount of. According to there website (www.cadbury.co.uk) "we don’t specialized in low fat chocolates and we usually do not produce diabetic bars beneath the Cadburys label".

Figure 13: Shows types of Kellogg’s product

RECOMMENDATION OF ACTION:

Management:

Building relationship with Cadburys

Kraft obtained Cadburys under crucial conditions .Further; closed down of Cadburys development unit leads them to face more criticism. To deal up with this issue, their management should act as a corporate .They ought to know about a culture of the alien country .Where, how and what they need should be clear to them .According to Robert J.Aiello and Michael D.Watkins, reported in Harvard business review (November-December 2000),"That almost all of M & A fail because of corporate manager’s habit, they are speedy in everything, they want to buy this company then they start looking what it’s worth, offer less and see what they are able to get it". There must be a solid team who are responsible for taking decision and accountable for explaining others about the issues and progress. Relating to Ronald and Suzanne, "successful companies have an integrating supervisor which is temporary in some and their work is to show a means out of essential situation". Whenever there can be any issue or another critical problem in Kraft’s future they must be ready with their particular integrating managers .He’s a personnel who is having a world class experience, having very good management skills and deep understanding of a provider. They make a framework and become a social communication between your two companies.

Employment to the labors

As per Jerry E.," Labor intensive techniques should be appreciated because of less cost in creation (cheap labor). And in lots of sectors, labor is plentiful relating to the administrative centre. For underdeveloped countries, work force is the main force for the production". Business before replacing labor force should look for the price of labor and machines. It won’t be worthwhile if just a little inclusion of labor will definitely cost less. Cadburys replaced labor but many labors are needed in order to build machines .It isn’t that machinery replaced labor it’s the organization, usually labor and machinery could be made to interact effectively .As per Michael,"factory personnel are better than homeworker because of more wide make use of machinery. But slow employee can be made efficient and wages increased without fresh machinery’s. Cadburys can experienced labor by increasing wages ".

Health Issue:

Dietary and Sugar Free of charge Products

Cadbury versus Whey

In 2004, World Health and wellbeing Organization reported that weight problems touched a peak stage on global level.Dietary merchandise showed a tremendous development. There happen to be few chocolate companies who have launched dietary items like Whey chocolate business (source- www.wheychocolate.com ) -"The largest breakthrough in chocolate innovation! Your taste buds won’t understand the difference, but your body will".

Source: www.wheychocolate.com

It is distinct that Cadburys will need an advancement otherwise there product life cycle is near to the end. Cadburys have an opportunity that it is already known all over ,after they introduce fat free of charge and sugar free products it will not take them long to fully capture the market.

Figure 16: Shows assumed Cadburys sugar free (future)

Cereals versus Cadburys

As trend is shifting towards even more of cereals intake, Cadburys also needs to introduce there breakfast product line, to be able to wipe them or share portion of their profit.

As per Mintel article, Kellogg’s lead two markets, manufacturing and retail talk about markets. However there is a decline in a few sector of cereals as well but it isn’t in worst condition even if. There will be two sector s, children and adult sector which remain growing up. Especially in UK, there is upward craze. And if Cadburys enter cereals they must be careful about the marketplace. Cadburys should have a strong management and good strategy to overcome them.

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