Section 1

Management concerns

Manufacturing director

The concern of the manufacturing director when choosing between the "conventional" conch and the new technology process is that in his opinion they will not be able to meet the forecast growth in demand for the forthcoming period if they delay in the purchase of another "conventional" conch machine. Therefore the company will be forced to cut back on all of their expansion plans. He is concerned that the new technology conch could take 12-15 months to make and install compared to the "conventional" conch, which could be installed, and working in under six months and therefore have considerable flexibility because they have four identical existing machines. Furthermore he looks at the "conventional" conch as a solution to the current capacity problems. Also he is concerned that the new technology conch would require different skills, and would be too disruptive at a time when they need to focus on output and new product development.

Marketing director

The concern of the marketing director when choosing between the two machines is that the new technology conch would not be into production until at least six months later compared to the "conventional" conch. He is also concerned that there is no guarantee that a full scale new technology conch would produce the same results as the small trial machine even though the tasting panel cannot distinguish from the standard product. He feels it is a far greater risk to the unique 'Cadbury Dairy Milk' (CDM) flavour and texture.

Engineering development director

The concern of the engineering director when choosing between the two machines is that he feels the new technology conch offers too many advantages over the "conventional" conch. This is mainly expressed in financial terms, as the new technology conch would make considerable savings to annual cost. He is also concerned that competitors such as Mars, Rowntree-Nestle are investing heavily in new technologies in their factories and Cadbury could be left behind, which could leave them less competitive.

Chairman

The concern of the chairman when choosing between the two machines is that will the new technology conch help them be more competitive.

Section 2

Market environment

The UK chocolate confectionery market is lead by three companies, Cadbury, the market leader, closely followed by Rowntree-Nestle and Mars. Cadbury has competed for sales for its various chocolate products by relying on its unique "Cadbury Dairy Milk" flavour and texture. Also they have competed by exporting and selling brands in volume such as CDM and Roses.
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The way Cadbury has competed for sales is expected to change in the 1990's as consumers are demanding more varieties and experimenting with new tastes. There is also the threat from European manufacturers making attack on the domestic market. Cadbury's will have to defend existing volume brands while at the same time launch new high quality products to satisfy the niche opportunities provided by changing consumer and retailer demand.

Section 3

Flexibility

Flexibility is the ability to change between products or customers with minimal costs and delays. Flexible operations enable organisations to quickly and ...

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