Mission Statement:

Cadbury’s mission statement says simply: ‘Cadbury means quality’; this is their promise. Their

reputation is built upon quality; their commitment to continuous improvement will ensure that

their promise is delivered.

Cadbury has established itself as a company of fairness and integrity, which always attempts to

operate as a socially responsible business. They place great value on diversity, inclusiveness and

equal opportunities for all.

Cadbury believes that only the right people with the right tools and capabilities, working together

in the right environment can deliver high quality performance.

In addition, Cadbury is committed to attracting, retaining, growing and rewarding colleagues and

potential colleagues regardless of gender, race, ethnic or national origin, color, religion, marital

status, age, sexual orientation, disability, social class and political association.

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Executive Summary:

Cadbury PLC is one of the leading suppliers of confectionary products all over the world.

Cadbury PLC was established in 1824 by John Cadbury in Birmingham. By the year 1854 John

left the business of his company to his two sons George and Richard. George and Richard

continued to expand the product line, and by 1864, they were pulling a profit.

In March 2007, it was revealed that Cadbury Schweppes was planning to split its business into

two separate entities: one focusing on its main chocolate and confectionery market; the other on

its US drinks business. On 19 January 2010, it was announced that Cadbury and Kraft Foods had

reached a deal and that Kraft would purchase Cadbury for £8.40 per share, valuing Cadbury at

£11.5bn (US$18.9bn). Kraft, which issued a statement stating that the deal will create a "global

confectionery leader", had to borrow £7 billion (US$11.5bn) in order to finance the takeover.

Cadbury prides itself on its market leading brands such as Dairy Milk, Snack and Crème Egg.

The company continually strives to drive innovation within the confectionery category and offers

its brands in a variety of formats and pack sizes, relevant to today’s changing consumer

environment. Critical to this success is innovation in the development of new products and

brands. There are many great ideas – many of them generated by chance. However, only few

products make it through to the end of the process. The further a product goes through this

process, the more expensive it becomes. As products progress, the company is making an

increasing commitment in terms of resources. Once a product is developed, the launch marketing

costs are significant; so a company must carry out extensive market research to ensure a product

has the best chance of appealing to the market.

Cadbury is global with leadership positions in over 20 of the world’s top 50 confectionery

markets Cadbury is also growing fast in its emerging markets > 12% average growth over 5

years > 11% market share. In 2008 Cadbury declares total revenue of £5.46bn and their

operating income was £638m. Their EPS was 29.8% and they declared 16.4% DPS to all of their

shareholders. They have over 70000 employees all over the world and they have 5 subsidiary

companies which operate in over 60 countries.

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Officers of the Company:

Board Members:

The Board is responsible for the overall management and performance of the company, and the

approval of the long-term objectives and commercial strategy. There are currently 9 members of

the Board – two Executive Directors and seven Non-Executive Directors. Henry (Hank) Udow is

the Company Secretary.

Chairman – Roger Carr

Chief Executive Officer – Todd Stitzer

Chief Financial Officer – Andrew Bonfield

Independent Non-Executive Director-

1. Dr. Wolfgang Berndt

2. Guy Elliott

3. Lord Patten

4. Raymond Viault

5. Colin Day

6. Baroness Hogg

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Top managers:

The Chief Executive’s Committee reports to the Board and is accountable for the day-to-day

management of the operations and the implementation of strategy. The team is responsible to the

Board for driving high level performance of the growth, efficiency and capability programmes as

well as for resource allocation.

Name Salary (Approximate)

Chief Executive Officer – Todd Stitzer $ 1.4 million

Chief Financial Officer – Andrew Bonfield $ 980,000

Chief Legal Officer - Henry (Hank) Udow $ 500.000

Chief Strategy Officer - Mark Reckitt $ 700,000

Chief Commercial Officer – Stefan Bomhard $ 750,000

Chief Human Resources Officer - Chris Van Steenbergen $ 600,000

Chief Science & Technology Officer – David Macnair $ 650,000

Chief Supply Chain Officer – Tony Fernandes $ 500,000

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Organogram of Cadbury:

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Executive Officer & HR Manager

Chief Executive Communications officer

Head of Finance & administration

Finance Officer

Team Secretary

Garnts Manager

Grants Officer

Grants Officer

Grants Administrator

Corporate Affairs Manager

Research & Partnership Manager

Migration & Europe Project

Research Officer

Development Director

Criminal Justice Program Officer

Situation Analysis:

Situation Analysis is the process of analyzing the surrounding elements of a particular entity’s

external and internal environment by which we can assume how these factors are influencing a

company’s structure, process and performance. The internal and external factors of Cadbury’s

management have a great influence on its performance and even its existence. Numerous

external and internal factors surrounding Cadbury are influencing its managerial system. As a

globally recognized international company for Cadbury these factors are more than important for

their survival.

External Factors:

External factors are the components of external environment of a company which is the large

arena that exists outside the company. For Cadbury these factors are not only surrounding the

company but also from all over the world where Cadbury had expanded its business. Some

primary big factors of Cadburys external environment are –

A. Customers:

Customers are the biggest and vital external factors for any company which is one of the major

direct forces which influence its structure, process and performance. Cadbury has a huge amount

of customers in over 10 zones all over the world. Of them 55% of the total customers are

chocolate lovers, 14% are gum buyers and 31% are candy lovers. For over 200 years Cadbury

has successfully satisfied its customer by best quality products and built a worldwide reputation

which influenced not only children but also adults to become loyal to Cadbury.

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B. Competitors:

In annual report of 2008 Cadbury has stated 5 Top competitors in their business that also had a

large market globally. They are Mars-Wrigley, Nestlé, Hershey, and Kraft. In market with all

these competitors Cadbury is in a stronger position but competitors are also very efficient in their

performance. So their efficiency is influencing the performance of Cadbury to maintain its level.

Market Shares (%)

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Cadbury

10

8 Mars-Wrigley

Nestle

6

Kraft

4

2 Ferrero

Hershey

2 4 6 8

No. 1 and no. 2 positions held in top 12 emerging markets

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C. Human Resource:

Human resource is the vast resource of people in the external environment from which company

obtains its employees. Cadbury already has employed over 70,000 people all over the world. It

selects skilled, qualified and efficient people through different sources and also provides training

facilities to improve their skills.

D. Legal Boundaries:

Legal boundaries have great effect on any company. In case of Cadbury there aren’t much legal

boundaries except different policies about price setting, international business and standard

maintaining.

E. Cultural Factors:

Cadbury has introduced its products to different culture around the world. Cadbury has gained a

positive influence in these cultures successfully. In India, Cadbury chocolate box is considered a

very fastidious gift in any festivals and social events.

F. International Forces:

As an international company Cadbury has to face international forces in operating their business

activities. Laws, tax variation, political influence, economic condition, pricing policy and many

other factors of different countries are influencing its performance and for this they had to take

apply different tactics to be suitable to these factors.

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Internal Factors:

Internal factors of a company include all the day to day forces within the organization in which

managers perform their functions. Like any company Cadbury also has its internal forces

consists of its managerial level, day to day work force, managerial skills and roles etc. The key

internal factors which have a direct influence on Cadbury’s performance are,

A. Management Levels: There are three distinctive management levels in Cadbury.

They are-

Hierarchy Management Levels

Top Management Strategic Level

Middle Management Technical Level

First-Level

Management Operations Level

Operating Employees

1. Strategic Level:

This level of Cadbury determines the long-range objectives and direction for the organization. It

consists of the top level management of Cadbury including Chief Executive Officer – Todd

Stitzer ,Chief Financial Officer – Andrew Bonfield, Chief Legal Officer - Henry (Hank)

Udow ,Chief Strategy Officer - Mark Reckitt ,Chief Commercial Officer – Stefan

Bomhard ,Chief Human Resources Officer - Chris Van Steenbergen ,Chief Science &

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Technology Officer – David Macnair ,Chief Supply Chain Officer – Tony Fernandes. (Cadbury’s

official site)

2. Technical Level:

This level of management coordinates the activities at the operation level as well as connects it to

strategic level. This level consists of the extremely skilled and experienced middle managers of

Cadbury worldwide.

3. Operational Level:

This level consists of numerous first level managers and operational workers of Cadbury

worldwide. Until 2008 Cadbury had 70,000 employees working in 10 different operational zone

of Cadbury who are contributing best quality goods with their skill and effort.

B. Managerial Skills:

For over 200 years managerial skills of Cadbury has become one of the proudest thing for this

company. Managers of Cadbury have shown efficient use of their human, technical and

conceptual skills in time to time. Gradual success of its management system and extraordinary

discipline among employees proves managers efficiency.

C. Role of Managers:

Different roles played by Cadburys managers of each level have made this company efficient,

productive and victorious through time. Major types of Roles played by the managers are,

Interpersonal Roles: Focusing on interpersonal relationships. Consists of Leadership,

Liaison

Informational Roles: Consists of monitoring role, disseminator role, spoke person roles

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Decisional Roles: Consists of entrepreneur role, disturbance handler, resource allocating,

negotiating etc.

Management Issues:

On 19 January 2010, it was announced that Kraft Foods has buy out Cadbury for $18.9bn US

dollar. This take over was widely criticized in UK. Because there has been a doubt that because

of these take over 30,000 employees will lose their jobs. But that problem is now solved because

Kraft food has agreed not to downsize employees.

Another recent issue in Cadbury is there health and safety issues. On 19 January 2006, Cadbury

Schweppes detected a rare strain of the Salmonella bacteria, affecting seven of its products, said

to have been caused by a leaking pipe. The leak occurred at its Marlbrook plant, in

Herefordshire, which produces chocolate crumb mixture; the mixture is then transported to

factories at Bournville and Somerdale to be turned into milk chocolate.

Cadbury Schweppes did not officially notify the Food Standards Agency until 19 June 2006,

shortly after which it recalled more than a million chocolate bars.

In December 2006, the company announced that the cost of dealing with the contamination

would reach £30 million.

On 29 September 2008 Cadbury withdrew all of its 11 chocolate products made in its three

Beijing factories, on suspicion of contamination with melamine. The recall affected the mainland

China markets, Taiwan, Hong Kong and Australia. Products recalled included Dark Chocolate, a

number of products in the 'Dairy Milk' range and Chocolate Éclairs.

There other management issues like organizational structure, departmentalization and leadership

are discussed below -

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Departmentalization:

Departmentalization refers to the process of grouping activities into departments.

Division of labor creates specialists who need coordination. This coordination is facilitated by

grouping specialists together in departments.

Division of labor or specialization is the specialization of cooperative labor in specific,

circumscribed tasks and roles, intended to increase the productivity of labor. Historically the

growth of a more and more complex division of labor is closely associated with the growth of

total output and trade, the rise of capitalism, and of the complexity of industrialization processes.

Later, the division of labor reached the level of a scientifically-based management practice with

the time and motion studies associated with Taylorism.

Coordination is the act of coordinating, making different people or things work together for a

goal or effect.

There are five types of departmentalization. Names of these are given below –

Functional Departmentalization.

Product Departmentalization.

Customer departmentalization.

Geographic departmentalization.

Process departmentalization.

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1. Functional departmentalization:

Grouping activities by functions performed. Activities can be grouped according to function

(work being done) to pursue economies of scale by placing employees with shared skills and

knowledge into departments for example finance, human resources, IT, accounting,

manufacturing, logistics, marketing, and engineering. Functional departmentalization can be

used in all types of organizations.

2. Product departmentalization:

Product departmentalization is based on product line. Tasks can also be grouped according to a

specific product or service, thus placing all activities related to the product or the service under

one manager. Each major product area in the corporation is under the authority of a senior

manager who is specialist in, and is responsible for, everything related to the product line.

3. Customer departmentalization:

Customer departmentalization is based on common customers or types of customers. Jobs may

be grouped according to the type of customer served by the organization. The assumption is that

customers in each department have a common set of problems and needs that can best be met by

specialists. The sales activities in an office supply firm can be broken down into three

departments that serve retail, wholesale and government accounts.

4. Geographic departmentalization:

Geographic is based on of territory. If an organization's customers are geographically dispersed,

it can group jobs based on geography.

5. Process departmentalization:

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Process departmentalization is based on product or service or customer flow. Because each

process requires different skills, process departmentalization allows homogenous activities to be

categorized.

Departmentalization at Cadbury:

A. Functional Departmentalization:

Cadbury’s functional departmentalization consists of six departments. Details of those

departments are given below –

Finance department : The head of the Cadbury’s finance department is their CFO

Andrew Bonfield. Their finance department regulates all their financial matters. This

department helps their CEO in taking decisions about whether they should accept a

project or refuse a project.

Mar keting Department : The head of Cadbury’s marketing department is their Chief

commercial officer Stefan Bomhard. Main job of marketing department is coming up

with innovative ideas to market their product by attracting customers. This department is

given the most priority in this organization because of huge competency with other

companies.

Strategic Department: The head of Cadbury’s strategic department is their chief

strategic officer Mark Reckitt. This department’s main purpose is to come up with

different ideas to achieve a certain objective.

Legal Department: The head of Cadbury’s legal department is their chief legal officer

Henry (Hank) Udow. Legal department monitors all their legal activities.

Human Resource Department : The head of Cadbury’s human resource department is

their Chief human resource officer Chris Van Steenbergen. Cadbury have almost 71,000

employees all over the world. Human resource department’s main purpose is to monitor

their employees work performance.

Research & Development Department : The head of Cadbury’s R&D department is

their chief science & technology officer David Macnair. These departments main

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purpose is to come up with to product and improve the products which are already in

market.

B. Product Departmentalization:

Cadbury plc products include chocolate, sweets (candies) mints and nut based chocolates. They

also have beverages and baking products. Their product departmentalization has four

departments. These are given below –

C. Customer Departmentalization:

Cadbury’s products are for consumers. They do not have any government or industrial

customers.

D. Geographic Departmentalization:

Cadbury have five subsidiary companies worldwide. Their geographic departmentalization is

also based on these five countries. These five countries are United Kingdom, Ireland, Australia,

United States and India.

E. Process Departmentalization:

Process departmentalization is mainly bases on products. Cadbury’s main product is Dairy milk.

They use process departmentalization for these products only.

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Departmentalization by product

Chocolate Sweets Mints and Chewing Gum

Beverages and miscellaneous

Organizational Structure:

Cadbury’s follows a downward flow of communication. So, their organizational structure can be

said is hierarchical structure. Hierarchical structure is based on distinct chain of commands from

Managing director to Clerical Support assistants (according to Cadbury). Decisions are made at

the top and pass down. Cadbury’s employee’s roles are usually based on clearly defined

procedures and roles. Cadbury organization is based on a Democratic Management style

decisions are made as a result of a consultation process involving various members of the

organization (Cadbury). Ideas would be discussed and thought through collectively. Within

Cadbury organization we can find a Democratic structure, because Cadbury tends to be found in

situation where it is felt to be important for all members of the organization to understand what

they are doing, were decisions require individual initiative, and where member of staff need to

work as a team.

In Cadbury’s organizational structure there is less complexity, less formalization and they are

almost decentralized. In that sense we can say that Cadbury’s organizational structure is Neo

classically designed.

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Leadership Style:

In the past several decades, management experts have undergone a revolution in how they define

leadership and what their attitudes are toward it. They have gone from a very classical autocratic

approach to a very creative, participative approach. Somewhere along the line, it was determined

that not everything old was bad and not everything new was good. Rather, different styles were

needed for different situations and each leader needed to know when to exhibit a particular

approach.

Three of the most basic leadership styles are:

Autocratic

Bureaucratic

Democratic

This article will briefly define each style and describe the situations in which each one might be

used.

A. Autocratic Leadership Style:

This is often considered the classical approach. It is one in which the manager retains as much

power and decision-making authority as possible. The manager does not consult employees, nor

are they allowed to give any input. Employees are expected to obey orders without receiving any

explanations. The motivation environment is produced by creating a structured set of rewards

and punishments.

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This leadership style has been greatly criticized during the past 30 years. Some studies say that

organizations with many autocratic leaders have higher turnover and absenteeism than other

organizations. Certainly Gen X employees have proven to be highly resistant to this management

style.

B .Bureaucratic Leadership Style:

Bureaucratic leadership is where the manager manages “by the book¨ Everything must be done

according to procedure or policy. If it isn’t covered by the book, the manager refers to the next

level above him or her. This manager is really more of a police officer than a leader. He or she

enforces the rules.

C. Democratic Leadership Style :

The democratic leadership style is also called the participative style as it encourages employees

to be a part of the decision making. The democratic manager keeps his or her employees

informed about everything that affects their work and shares decision making and problem

solving responsibilities. This style requires the leader to be a coach who has the final say, but

gathers information from staff members before making a decision.

Democratic leadership can produce high quality and high quantity work for long periods of time.

Many employees like the trust they receive and respond with cooperation, team spirit, and high

morale.

Cadbury’s Leadership Style:

Cadbury’s leaders want to encourage their employees in taking decision, they keep their

employees informed about the current situation of the organization, wants to provide

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opportunities for employees to develop a high sense of personal growth and job satisfaction etc.

From the above discussion we can say that Cadbury follows Democratic leadership style.

SWOT Analysis:

Cadburys Position in Emerging Market

Strengths:

They are the second largest confectionary company in the world.

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Because of being a very big organization they have high financial strength.

They have strong manufacturing structure and already established a brand name.

They are exposed to a strong domestic economy

There companies are situated in good location (in an area that enjoys both high

population and high economic growth)

They have strong brand value in domestic market

They have high barriers to entry due to level of investment required

Weaknesses:

Very few new products are created by own group

They have small range of products

There products are highly weather dependant

They are single asset company

Ongoing investment in new attractions required

Opportunities:

They can expand into new markets because of their brand value.

They could try new products.

They could try different types of product line other than confectionary.

They can expand their noncore activity (e.g. food, retail,

functions)

Other tourism/leisure activities

Threats:

Competitive pressures from other branded suppliers (national and global)

Supermarket own brands

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Rationale for being listed questionable (small market

cap and one major shareholder)

Exposed to light major market and wage inflation.

Objectives:

Cadbury believes that the business still has significant unexploited potential – both in terms of

top line growth and returns. It has the aim to achieve the vision of becoming the biggest and best

confectionary company of the world. For this they need to exploit their strength of leadership

positions to continue to grow their market share and significantly increase their margins and

returns.

Cadbury has a business plan named Vision into Action (VIA) for 2008 to 2011 which aligns the

energies and efforts of their teams around the world behind a number of objectives which will

make the most impact on Cadbury’s revenue and margin performance.

In order to generate superior returns for Cadbury’s stockholders, their VIA has six financial

objectives. These objectives are given below:

Organic revenue growth of 4% - 6% every year.

Total confectionery share gain.

Mid-teens trading margins by 2011.

Strong dividend growth.

An efficient balance sheet Growth in Return on Invested Capital (ROIC).

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To achieve these financial objectives, they have a growth and efficiency strategy which aligns

behind their focus on fewer, faster, bigger and better. This focus is being applied to all aspects of

their business.

Strategies:

They have a clear business plan called Vision into Action (VIA) which aligns the energies and

efforts of their teams behind the brands, markets and projects that will make the most impact on

their revenue, margin, and market performance. 

Cadbury organize over three priorities:

1   Growth:   Fewer, faster, bigger, better

Cadbury’s growth strategy - 'Fewer, Faster, Bigger, and Better’ - has a number of key

components. These are discussed below:

2003

2004

2005

2006

0 2 4 6 8 10 12 14

Total MarketEmerging MarketDeveloped Market

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Market Growth Rate of Cadbury (2003-2006)

Category focus for scale and simplicity:

To increase revenue growth, under its structure of managing each confectionery category on a

global basis, they will focus on their resources on key markets in each category where innovative

products will be developed and launched.

Drive advantaged, consumer-preferred brands and products:

Cadbury will increase their focus on their biggest, most advantaged brands, and on key markets.

As part of this focus, some of the smaller brands and products in the portfolio are being

rationalized over the plan period.

Accelerate white space market entry via "Smart Variety":

They aim to enter into areas of the market where they do not currently have a presence through a

model named “Smart Variety”, which uses existing distribution strength to expand into new

categories. Cadbury ultimately aims to have a strong position in all three confectionery

categories in the markets in which they operate.

Create improved customer partnerships via total confectionery solutions:

Cadbury is focusing its efforts on seven leading customers (including Wal-Mart, Tesco,

Carrefour and Lidl) and three trade channels (impulse in developed markets; traditional trade in

emerging markets; and international travel retail). These seven leading customers accounted for

14% of confectionery revenue in 2008, with revenues growing by 8%. They believe their

business is uniquely placed to support these customers. For the top three global retailers, they

have strong total confectionery positions in their key markets.

Expand product platforms and strengthen route to market through partnership and

acquisition:

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As a leading global confectionery company, Cadbury will continue to investigate available

confectionery opportunities to develop its platform. Their focus will be on expanding their

product platforms and strengthening their distribution capability by acquisitions and by

partnering with third parties. At the mean time, they will continue to integrate their recent

acquisitions.

2 Efficiency: Relentless focus on price, cost and efficiency

Cadbury recognize that they can gain much more profits by simplifying the way they do things

across all regions of their business. Because their business became a complex, their total cost

base is higher and their margins are currently below their peer group average. 

Cadbury’s goal of increasing their underlying operating margins from around 10% in 2007 to

mid-teens by end of 2011 has three core elements:

A major group-wide cost and efficient program across all aspects of their business - in sales

and administration, in the supply chain, in the regions and at the group centre. They are

aiming to reduce the complexity of their business and lessen duplicated activities;

Improving the performance in three key underperforming emerging markets – Russia, China

and Nigeria; and

Focusing relentlessly on profitable growth and where necessary, rationalizing their portfolio.

Examples of the ways in which Cadbury simplifying business to reduce costs include:

Managing chocolate, candy and gum categories and biggest brands on a global basis rather

than on an individual market or regional basis.

Combining local market and regional head offices, in the UK where they are co-locating their

central head office team with the BIMA (Britain, Ireland, Middle East &

Africa) management team in a single office;

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Combining a number of markets into a single commercial organization with large scale and

reduce overall costs such as Canada and the USA;

Outsourcing certain financing, accounting, IT and human resource processes to expert third

party operators; and

Reconfiguring their manufacturing network, so that more of their production is focused in a

fewer number of large scale plants. This will allow them to reduce costs and invest in new

state of the art factories to support their growth plan.

3   Capability:   Ensure world-class quality

Operate a category-led business enabled through consistent commercial capabilities:

The introduction and strengthening of commercial categories with the combination of simplified

organization provides a stronger focus on category-led business initiatives, which consistently

applied over Cadbury’s global confectionery business.

Invest in science, technology & innovation to deliver preferred products at competitive

cost:

Cadbury’s innovation agenda is one of the important parts of its long-term growth program and

requires investment of world-class facilities and teams. During the life of their VIA program,

various initiatives will continue to strengthen their capabilities and effectiveness in this aspect.

Drive focused decision making and speed of execution:

Cadbury will benefit from a simplified organization which reduces complexity and speeds up

decision making and help them to supply the products to market faster.

Sharpen their talent, diversity and inclusiveness agenda:

As part of their strategy, they are focusing on an active and lively agenda to influence the

competitive advantage they have now.

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Leverage partnerships to streamline processes and reduce costs:

They have significant chances to outsource various administrative functions in the areas of back-

office processing, facilities management, IT and liquid chocolate production. This can be

achieving perfectly through working with the right partners.

Sustainability Commitments:

Cadbury has identified six commitments to ensure its grow in a responsible and sustainable way

for the long-term.

Cadbury’s commitments:

Promoting responsible consumption through innovative marketing, product improvement

and better nutritional labeling.

Ensuring ethical and sustainable sourcing including the Cadbury Cocoa Partnership to

support farmers and their communities.

Prioritizing quality and safety.

Cutting carbon, packaging and reducing water use as part of Cadbury’s Purple Goes

Green campaign.

Nurturing and rewarding colleagues.

Investing in communities - Cadbury’s money, time and capability.

As well as being the right thing to do, they also create value and competitive advantage, which

help to strength their business, build their reputation, and motivate their people.

Disciplined Investment:

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Cadbury has the aim to improve the returns from the capital invested in its business while at the

same time ensuring that they invest correctly in the business for the longer-term.

The focus on fewer and bigger projects requires them to be more disciplined in how they allocate

resources over brands, markets and projects - choosing where to invest and where not to invest,

or deciding when we should invest on our own and when it would be better to invest with a

partner.

They are also ongoing to focus insistently on how they manage their functioning capital. Over

the last four years, they have reduced their working capital days by over 10%, effectively

releasing over £200 million of cash. During the next few years, the reduction in their factories,

the rationalization of the portfolio and external partnerships will allow Cadbury to reduce its

working capital further.

Delivering Superior Returns:

To bring superior returns to the stockholders, and to ensure continued investment in new plant

and equipment or in buying new businesses, they must generate returns considerably above the

cost of capital. Thus their financial scorecard calls for the combination of:

Strong dividend growth;

An efficient balance sheet; and

Consistent improvements in ROIC.

Aligning Management Incentives:

Cadbury’s new management incentives for 2008–2011 are closely aligned with the success of the

financial performance. Their annual incentive plans need a reasonable delivery of top-line

growth and margins, and the Long Term Incentive Plan requires a balanced delivery of earnings

growth and development in ROIC.

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Findings

Setting up operation all over the world is very difficult, the company like Cadbury has

done it successfully with the help of it’s very talented employees. We also found that the brand

name of the Cadbury is very well known across the world as compare to the other brand name

such a nestle etc.

Also, we found that Cadbury Company has strong corporate governance, as well as their

contribution of Social responsibility is very high as compare to other company. Here is some

example of the Cadbury corporate social responsibility which is major focus on following

factors:

Marketing, food and consumer issues

Ethical sourcing and procurement

Environment, health and safety

Human Rights and Employment Standards

Community investment

We also found that Cadbury purchase their main raw material COCOA for chocolate bar from

Ghana. The companies buy COCOA from the Ghanaian government cocoa board

(COCOABOD), which controls the cocoa trade in Ghana. If, the company does not maintain

long term relation with government of Ghana it may be possible the company cannot survive

long time in future.

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One of the many things which we found is that Cadbury is very strong in terms of brand name

and market share across the world. As well as Cadbury is maintaining relations very hearty with

customer, supplier, stakeholder and employee.

We also found that Cadbury never negotiate with quality of product because of the philosophy

to serve high-quality product to the customer. As well as not only in quality but also very ethical

in the pricing of the product which are focus & considered on country wise peoples incomes.

Recommendations

1. Largest Confectionary Company:

With over 70000 people in their workforce, huge financial strength experience of almost

200 years Cadbury is still World’s second largest chocolate manufacturing company.

They should set their objectives to be the no. 1 in the world. They can achieve it by

creating new product line and entering new markets.

2. Entering New Market:

Cadbury is global with leadership positions in over 20 of the world’s top 50

confectionery markets. Most of these countries are in Europe and Asia. They should

concentrate more on their operations in Africa to be a true global company.

3. Health and safety Issues:

In recent years Cadbury faced some health and safety issues with their product. In 2006

Cadbury had to recall more than a million chocolate bar which cost them £30m. Cadbury

withdrew all of its 11 chocolate products made in its three Beijing factories, on suspicion

of contamination with melamine. The recall affected the mainland China markets,

Taiwan, Hong Kong and Australia. They are not only facing financial loss here but also

they are hampering their brand image. They should take necessary steps to avoid this

kind of situation in future.

4. Global economic Condition:

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Today’s global economic condition surely had a negative impact on their revenue and

profit. They can avoid these situation bay taking some initiative like -

Adapt sales and marketing strategies including innovation to respond to changing

consumer and customer behavior.

Focus on effective route-to-market and customer service.

Be diligent about costs and efficiencies.

Conclusion:

With the entry of many new multinational companies, the confectionary market is booming. Till

the eighties, the chocolate market was small and the product category itself was fuzzy. In the

eighties, Cadbury was the only chocolate company who has a distinct category of products with

an identity of its own. But now situation has changed. Cadbury is facing tremendous competition

from other companies like Mars-Wrigley, Nestle etc. They have to come up with innovative

ideas to compete with these companies. Cadbury already have a strong brand image they just

have to concentrate on their product quality and the marketing of their product, which will ensure

their dominance. The entire report mainly dealt with company itself, management issues, SWOT

analysis and the objective of the company. After the establishment this company achieved a great

brand image and Cadbury still maintained its image almost 200 years later.

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