By 1878 their workforce expanded and they needed more space, so they moved to Bournville.
The site came with a few advantages one of which was that the Worcester and Birmingham canal were joined so that large loads of cocoa beans could reach the factory directly from Bristol docks. The Bournville site was bordered by the Birmingham West and Suburban Railway. Within 10 years of moving to Bournville, the number of employees had risen from 230 to 1,200: by 1899 the number was 2,700 and it had risen to 7,500 by 1919.
Trade unions were encouraged but had limited appeal because of the excellent working conditions at Bournville. As the business became larger, a formal management structure was introduced and a work committee was established to discuss all matters.
By 1918 they had elected democratic Work Councils, one for men and another for women. In 1965 the two councils merged. In 1969 due to the move towards unionism in employees, the council was unionized.
Cadbury and J.S. Fry & Sons Ltd had merged financially in the year 1919, which was after the First World War By 1969 Cadbury had merged with Schweppes to become Cadbury Schweppes Limited. Schweppes was a drinks company dating from 1792.
Richard Cadbury died at the age of 63 in 1899, the Cadbury business became a private limited company: Cadbury Brothers Limited. George Cadbury became chairman of the board; his directors were Barrow and William A Cadbury who were sons of Richard and his own sons, Edward and George Cadbury Junior.
Cadbury uses batch production which enables them to produce a number of similar or identical items in batches or sets. Cadbury also uses continuous flow production which means that the company can produce large numbers of goods continuously. However Cadbury’s prefers batch production because it is more flexible.
They have introduced a training programme called ‘Deal with it’ which has been devised by a company called SOG group.
Cadbury’s uses batch production to make chocolate bars such as Cadbury Dairy Milk. Flow production is used to make Creme eggs. 1.5 million Creme eggs are made every day.
Cadburys employs over 50 000 people and has manufacturing plants in over 35 countries.
Cadbury uses more than 60,000 tonnes of cocoa in the UK each year.
As of 1 January 2006 Cadbury had a total of 101 manufacturing plants and bottling facilities, of which 41 were located in Europe, Middle East and Africa. 11 in Americas confectionery; 11 in Americas Beverages; 25 in Asia Pacific; and 13 in Europe beverages. These 67 are involved in the manufacturing of Cadbury confectionery products and the other 34 are engaged in the manufacturing and bottling of beverages.
The Marlbrook factory generates 97 000 tonnes of milk chocolate crumb every year.
It processes 180 million litres of milk, 56 000 tonnes of sugar and 13 000 tonnes of cocoa liquor annually in the production process.
Cadbury uses TQM. All the employees involved the Cadbury production process is responsible for quality and has the power to take the corrective action, even stop the production line. An advantage is that products are regularly checked so as a result there will be lower costs and satisfied customers. The disadvantages are that TQM only works if every employee is motivated to play their part and also it takes time and money to put into practice.
Cadbury uses lean production to reduce waste of resources during production, which in turn improves efficiency. By using lean production Cadbury will aim to reduce the time it takes for the product to progress from the development stage to the shop shelves.
Just In Time (JIT) is where a company receives materials and components immediately prior to production beginning, and no earlier. JIT systems try to keep the stock to a minimum by having replacement stock arrive at the point when it is required. This reduces wastage of time, storage and money.
Cadbury uses JIT for its packaging from Scotland but its cocoa beans from Ghana and Fruit and Nut from South America cannot guarantee to arrive at precise times so reserved stock is kept.
Cadbury uses computer aided design (CAD) to design and test much of their products. Testing through the use of computer simulation can be a lot safer and cheaper. Computer aided manufacture (CAM) is also use to manufacture the products.
Cadbury uses flow rap machines which wraps 800 bars a minute.
Cadbury’s employs 8,000 people in the UK. In the UK chocolate is manufactured at the Bournville site in Birmingham.
Cadbury has a few advantages of being a big company which result in lower average costs. Cadbury uses computers and technology to replace employees on the production line. They are able to transport bulk materials. Bulk buying results in lower unit prices. Cadbury’s can employ specialist buyers who negotiate for better prices. This means that advertising costs can be spread.
Being a large firm Cadbury’s will find it easier to raise capital. Administration costs can be spread. Better lending terms and lower interests rates make it easier to borrow. There is a larger risk over products.
Cadbury can employ more specialised managers this saves money and is more efficient. Top managers can be employed because they will be attracted by top salaries.
The firm can afford to take risks with new products because other products or parts if the business are still profitable.
By having skilled labour in the area, local colleges my run specialist courses. By being close to other similar businesses that can work with each other is also an advantage. As the area that the business is located develops so will the roads and rail network which results in better communication. If a town becomes known for a particular industry it will build up a reputation.
The disadvantages if Cadbury’s being big will result in higher average costs. Decision making takes longer because there are more people involved in the process this will mean that the business can be slow to respond to changes. Communication between employees becomes poor because once again there are more people involved which means there are too many layers in the organisation hierarchy.
Lines of communication can become blurred or broken. There will be too much paperwork and bureaucracy. The business might try to do too many things at once and going in too many directions for anyone to have an overall grasp of what is going on.
As a result there will be staff problems, employees may not feel part of the business, leading to lower morale and motivation. Employees do not feel that they belong to the company because the day to day contact might have been lost. Also industrial relations might not be good, leading to disputes over pay or conditions.
The production function at Cadbury’s is responsible for providing
sufficient goods to meet customers demand.
The method of production is an important aspect in determining the
amount of added value for Cadbury’s.
Cadbury’s uses the following factors to achieve a high level of
added value for the chocolate they produce:
- Maintaining and improving quality.
- Maintenance and control machinery and equipment
- Meeting the specific needs of customers
- Controlling costs and working efficiently.
Controlling costs and working efficiently means that Cadbury employ
specialist staff that would ensure that the end result of the product
is of an excellent condition and the quality is also high. During
seasonal times such as Easter and Christmas Cadbury need to produce
for chocolate, and due to this Cadbury employ temporary staff so that
Cadbury maintains sufficient work, the extra staff are needed due to
the demands of chocolate increasing during the seasonal times and to
achieve this more staff are needed so that the chocolate produced
meets the customers demands both in numbers (the chocolate stays in
stock) and quality.
Cadbury’s raw materials are supplied from about 40,000 suppliers around the world. Cocoa beans are imported from West Africa and the far East.
Cadbury chocolate bars are made from raw materials which would be the cocoa beans, sugar, Milk powder, etc.
The beans are heated in steel pin mills until the heat and friction turns it
into chocolate. Then the appropriate ingredients are added (milk,
sugar caramel etc) depending which chocolate is been made. It is then
left to dry and then moulded into the correct shape by the machines.
Cadbury staff manually taste the chocolate to ensure each chocolate has the same quality each time it is produced.
The production process of Cadbury’s involves both manual labour and machine operated work. Cadbury uses robotics which means machines replace people.
In the Cadbury’s production process there are five people involved.
There are five people involved in the Cadbury production process.
Chocolatiers come up with the recipes and new recipe ideas. They also make samples of new products before they are put onto the produtction line.
Computer operators are there to monitor the production line. They check stocks and monitor conveyor belts. Cadbury uses metal detectors to ensure that there are no bits of metal that could of fallen of machines into the chocolate mixers. This could cause injury to the consumers of Cadbury products.
Assembly line workers visually check that everything is ok in the production line.
Sensory evaluators taste the chocolate and ensure that the finished products are of quality and standard. When the chocolate is produced it is monitored accurately to ensure that nothing is wrong with it and it tastes as it should and that it does not have any side effects on customers such as feeling sick after eating the chocolate.
Micro biologists check the chocolates for any bacteria that should not be present.
Cadbury uses IT within the business for financial reporting and control, and ensures high quality external reporting which complies with all applicable laws and regulations. The use of IT allows Cadbury to set annual contracts, for developing long term strategies and strategy platforms and for managing acquisitions and disposals.
Cadbury monitors the production process by using Total Quality management (TQM) to ensure that their products are produced to a high standard.
Cadbury’s method of stock control is first in first out (FIFO).
Cadbury has a strategy for Growing community value around the world is intended to provide a framework for local businesses to use and adapt in developing their own approach, responding to local needs and reflecting their business’ unique culture.
The strategy builds on their core purpose and values and explains the part Cadbury’s play in supporting communities. The strategy contains guidelines as well as ideas and suggestions for action to help their businesses to measure and manage their community investment.
In 2004 Cadbury started a 12 Point Action Plan which responds to consumer health concerns. This included a Global Marketing Code of Practice, which was referenced to children. The Global Marketing Code of Practice aims to contribute to finding sustainable solutions to obesity and poor lifestyles, together with the global consumer research studies they undertook in 2005 into food, health, diet, nutrition and obesity.
Cadbury aims to offer alternative product choices including reduced fat, sugar and salt, for their core brands.
In each market in which Cadbury’s operate, they listen to their consumers. Cadbury is renovating many of their products to meet changing needs. Over the past 3 years Cadbury’s have increased the low calorie and fat choices in our portfolio by 50% through innovation and acquisition. Cadbury’s have a programme to produce Trans- fatty acids in their products. Over 70% of their gum is now sugar-free; Cadbury’s continue to expand their range of sugar free mints. Cadbury’s chocolate range now includes calorie marked packs, smaller sizes, sugar free, organic, and low carbohydrate options. 30% of Cadbury’s candy is now sugar free or natural in colours and flavours.
Cadbury’s supports education projects. They raise standards and develop skills. They build links with individual pupils, teachers and schools, in order to transform aspirations, support learning and help prepare young people for the world of work.
Cadbury’s has a strong interest in health and welfare with activities covering a wide range of causes which include specific medical conditions such as cancer, muscular dystrophy or HIV/Aids. They also help out with wider social issues such as care of the elderly, homelessness, drug abuse or physical fitness initiatives that promote the benefits of a balanced lifestyle and physical activity.
Cadbury’s has an extended interest in the local environment and also the protection of the ecosystems that support their raw materials. As a part of their environmental commitment they invest in community projects with ecological aims such as providing access to clean water in Ghana and India, public education programmes promoting environmental awareness and local environmental ‘clean up’ challenges.
Cadbury’s makes financial contributions such as giving money in special appeals, investing funds in products tackling social priorities. Cadbury’s financially supports charities and community organisations. Cadbury sponsors community focused events or activities. They donate a percentage from sales of products linked to a cause. Cadbury’s directly employ people and resources to manage community programmes.
In 2005 Cadbury invested £9.8 million to non profit making causes. This was over 1% of their pre tax profit.
Cadbury has had a very positive effect on the local community and is reputed to be one of the most popular employers and offers a wide variety of career opportunities. It is well known for its pioneering work in the 19th Century, providing housing, education, welfare and recreational facilities for the local community. Cadbury’s has grown as a business and now offers a wide variety of jobs at all levels from senior management position to apprenticeship opportunities for graduates.
Cadbury’s has developed a community programme to ensure they continue to create the value in the local communities. This investment is based on team partnership with the community organisations, sharing time skills and expertise with their employees. Their community contribution takes many forms, from cash grants and sponsorship to ‘gift’s in kind’ which include donations of other business resources.
Cadbury Schweppes is a founder member of the business in the Communiy Per Cent Club in the UK. In 2003 Cadbury’s invested over £6 million to non profit making causes, also in 2005 their employees hepled children to grow vegetables in the local community and has donated £3,000 from the Cadbury Schweppes foundation to the local ‘We want our pool’ appeal. Cadbury has an international project which helps to provide safe drinking water in Ghana. Ghana is the UK’s main source of cocoa beans.
Cadbury is also involved in the area of homelessness. They provide cash donations to specific homeless organistions, employee fundraising, providing strategic support to the wider homeless agenda, giving gifts in kind to homeless organisations, undertaking team challenges at homeless hostels and most importantly providing access to employment through Business Action on Homelessness, the Ready for work and Job Coaching programmes.
Cadbury participates in an Young Enterprise Primary Programme. This is designed to help young people learn and succed through enterprise. The primary programme provides the youngest members of society with an innovative education experience.
Cadbury works to minimise their environmental impacts in energy use and carbon dioxide emissions. They also focus on the need to treat water as a precious resource and are working to reduce their waste usage.
Cadbury’s has developed additional programmes to improve their safety performance and are reviewing and monitor our performance and reviewing and monitoring their performance more closely than ever before.
By 2010 Cadbury intend to develop reliance on renewable energy, reduce carbon based fuels and use 10% recoverable or biodegradable packaging. Cadbury aims to reduce their carbon dioxide emissions, their energy use, their water use, the amount of solid waste they produce and the amount of waste water by 2010.
Cadbury has already reduced their carbon emissions by nearly 15% between 2000 and 2005.
On July 2nd 2007 Cadbury Schweppes pledged a 50% reduction of net absolute carbon emissions by 2020 with a minimum of 30% from in-company actions and by aiming to reduce not just the relative energy intensity of its global operations but also its absolute carbon emissions through a balanced programme of saving, switching and off setting.
Cadburys uses a range of different technology to help them reduce their carbon intensity. This includes energy efficient steam boilers, energy efficient lighting, variable frquency inverter speed controllers, better thermal insulation, building management systems and Combined Heat and Power (CHP) or co generation plant.
Cadbury Schweppes waste management programme aims to minimise the amount of waste we produce through their operations, which in turn maximises their production yield and improves the company’s profitability.
The programme also ensures we dispose of the highest possible proportion of their waste usefully, either through re – use or recycling, and that they keep the proportion they send to landfill to a minimum. Cadbury produce very little hazardous waste – less than 0.5% of their total solid waste.
Key performance indicators are set up as part of their waste management programme show a trend in reduction of the level of solid waste produced by our businesses. Cadbury have an inspirational group wide target of reducing their solid watste (per tonne finished product) by 10% from 2006 to 2010.
I am doing a questionnaire on Cadbury’s. Please could you take the time to fill it out.
Please tick the box that apply’s.
Q1) How old are you ?
10 – 15 □□□□□□□□□□
16 – 21 □□□□□□□□□□
22 – 26 □□□□□□□□□□
27 – 32 □□□□□□□□□□
33 – 38 □□□□□□□□□□
39 – 44 □□□□□□□□□□
Other………………………………………………
Q2) Are you male or female?
Male □□□□□□□□□□
Female □□□□□□□□□□
Q3) Which Cadbury chocolate did you prefer..(tick all that apply)
Cadbury Dairy Milk □□□□□□□□□□
Flake □□□□□□□□□□
Cadbury Creme egg □□□□□□□□□□
Snaps □□□□□□□□□□
Crunchie □□□□□□□□□□
Cadbury Hot Chocolate □□□□□□□□□□
Double Decker □□□□□□□□□□
Picnic □□□□□□□□□□
Heroes □□□□□□□□□□
Milk Tray □□□□□□□□□□
Cadbury Dairy Milk melts□□□□□□□□□□
Bournville Deeply Dark □□□□□□□□□□
Other please state………………………………………………………………
Q4) How often do you eat chocolate?
Once a week □□□□□□□□□□
Once a month □□□□□□□□□□
Once or twice a year □□□□□□□□□□
Never □□□□□□□□□□
Other please state……………………………………………
Q5) Which type of chocolate do you prefer?
Milk Chocolate □□□□□□□□□□
Dark Chocolate □□□□□□□□□□
White chocolate □□□□□□□□□□
Q6) Which of the following Cadbury fillings do you prefer?
Caramel □□□□□□□□□□
Biscuit □□□□□□□□□□
Wafer □□□□□□□□□□
Turkish delight □□□□□□□□□□
Fruit and nut □□□□□□□□□□
Whole nut □□□□□□□□□□
Plain □□□□□□□□□□
Other ……………………………………………………………………………………
Q7) Do you think that Cadbury’s packaging is very appealing to you?
Yes □□□□□□□□□□
No □□□□□□□□□□
Q8) Which of these chocolate brands do you prefer?
Master foods (e.g. Twix) □□□□□□□□□□
Nestle (e.g. Maltesers) □□□□□□□□□□
Cadbury’s (e.g. Cadbury Dairy Milk) □□□□□□□□□□
Lindt □□□□□□□□□□
Other………………………………………
Q9) Would you recommend Cadbury gift boxes to a family or friend?
Yes □□□□□□□□□□
No □□□□□□□□□□
Q10) on a scale of 1 to 10 (1 being poor and 10 being excellent) how would you rate Cadbury’s products?
1□□□□□□□□□□
2□□□□□□□□□□
3□□□□□□□□□□
4□□□□□□□□□□
5□□□□□□□□□□
6□□□□□□□□□□
7□□□□□□□□□□
8□□□□□□□□□□
9□□□□□□□□□□
10□□□□□□□□□□
My questionnaire was taken by five males and five females. They were each of different ages which are shown in the graph above. The graph shows how many people of each age took part with my questionnaire.
I chose five people of each gender so that I could get fair results.
This pie chart shows the percentage of people that chose each chocolate bar. Although 10 people took part the results add up to more than 10 this is because each person was allowed to pick more than one preferred item.
This pie chart shows how often people ate chocolate. Majority of people ate chocolate once a week. There were a few others such as twice a week or every day.
This bar chart shows the amount of people that preferred each type of chocolate. Majority of the people who participated with my questionnaire liked milk chocolate.
By 2011 Cadbury’s is hoping to cut the amount of employees working at their factories by 15%. These employees will be replaced by specialist machines. There will be around 7,500 jobs around the world and 10 confectionary sites will close. The home of Cadbury’s at the Bournville site will remain unaffected.
The Schweppes drinks company will no longer be joined with Cadbury’s. Drinks such as Dr Pepper and 7up will be sold off at a private auction. This sale could raise more than £7bn. Cadbury will sell the soft drinks business for £1.3billion. The drinks business will be bought out by private equity firms Blackstone’s and Lions capital.
Around 85% of the Cadbury Schweppes sales come from France, Germany and Spain with a small amount of business in the UK.
The firm has been under pressure because of the salmonella scare in the UK. This lead to a million chocolate bars being recalled. The salmonella recall cost Cadbury’s £20 million, the company saw profits fall and a loss of market share by 1%.
Cadbury has been charged with three offences under food and hygiene laws. The bars were the likely cause of an outbreak affecting 30 people. The company has been taken to court at Birmingham Magistrates on June 15th. Cadbury will also be taken to court at Hertford Magistrates on Tuesday 24th July.
The company is to be prosecuted in relation to three alleged offences, each carrying a maximum penalty of an unlimited fine and or two years imprisonment.
Cadbury was accused of placing unsafe chocolate products on the market.
Seven brands were affected by the salmonella outbreak, these include the 250g Dairy Milk Turkish, Dairy Milk Caramel and Dairy Milk Mint bars, the Dairy Milk 8 chunk and the 1kg Dairy Milk Bar as well as the 105g Dairy Milk Buttons Easter Egg and Freddo Bar.
As a result of this incident Cadbury has decided to improve their methods of testing. The firm will only release products onto the market once tests for salmonella are negative. According to experts advising the government the firm’s contamination testing was out of date.
On Easter 2007 Cadburys had to recall Easter eggs because they had the wrong labelling. This was just two months after the company announced last years salmonella scare which cost the company £30 million.