Cadbury Schweppes plc is a confectionery and beverage company with its headquarters in London. However, it does not manufacture Schweppes beverages for Ireland or the United Kingdom, having sold its trademarks there to The Coca-Cola Company
Introduction
Cadbury Schweppes plc is a confectionery and beverage company with its headquarters in London. However, it does not manufacture Schweppes beverages for Ireland or the United Kingdom, having sold its trademarks there to The Coca-Cola Company. The company came under minor criticism for failing to have any Fairtrade products and so Cadbury Schweppes bought out organic chocolate maker Green & Black's in 2005 from their original 5% stake (it is also notable that none of its major competitors (Nestlé, Mars et al.) have Fairtrade branded chocolate either).
The first Cadbury factory was built in the country; it was built in the green fields of Kings Norton, outside the city of Birmingham, between 1899.
This place was named "Bournville", which was named by George Cadbury where he built the factory. This took place because George Cadbury had an image, with a saying,
"If the country is a good place to live in, why not work in it?"
So he took his workers to live and work in (the country) Bournville. Further on the years Cadbury invited new recipes, so new chocolate were been created, for instance in 1915 Cadbury's Milk Tray, in 1920, Cadbury's Flake, in 1938 Roses were created.
In 1969 Cadbury and Schweppes that is a beverage business merged together as a business. This business grew worldwide over centuries, it manufactured, marketed and distributed products in over 200 countries and new chocolates and drinks were been created. While confectionery and soft drinks remained the core of the business, the group also expanded into related food categories such as hot beverages and biscuits and also into health and hygiene
The main activities of Cadbury after it merged with Schweppes are to produces confectionery such as crunchie, twirl, roses, mini egg, whole nut, Cadbury's Milk Tray and beverages such as Dr Pepper and Seven up. Cadbury and Schweppes have 180 brands.
Now these days Cadbury and Schweppes the business is functional it is owned by many shareholders (some of whom are members of staff). The company employs around 38,000 people worldwide but in Britain 12,000 employees. The company owns 7,500 vehicles that are used for the business (delivery) in Britain. In Britain there are 17 Cadbury and Schweppes sites.
Aims and purposes
Public limited companies like Cadbury will have objectives such as
* Maximise profit
* To be the number one product in a given market
* To maximise sales
* To grow
* To operate in a wide range of markets
* To give satisfaction to customers
* Have a good reputation
* To provide the freedom for workers to express them selves and suggest ideas to help the business
* Achieve best possible financial return on capital
* Boost or maintain share market values
These objectives will ensure Cadburys success as a business. From the statistics I have, it shows that Cadbury is a very successful business.
Mission Statement
A mission statement is an attempt to identify the purpose of the business in a few sentences. It is the vision and direction the firm intends to take and outlines the following:
o What business the organisation is in
o Who the business serves
o What benefits do they provide
o How are consumers satisfied
This is Cadbury's mission statement:
"We are passionate about working together to create brands that people love. Brands that bring the world moments of delight and a splash of colour on a grey day."
This lets the customers know if they are getting value for money. Also, that the business has reliability, quality and speed of services.
This lets the shareholders know that Cadburys are going to create a good quality chocolate, which mean that Cadburys should be able to sell a large amount and make a profit. It also shows that they are trying to reach their objectives.
It tells the employees that Cadburys want to work together, to achieve a high quality chocolate.
Cadbury's objectives would be as follows:
Every company or business has its set of objectives, below are a small list of Cadbury's objectives and aims
Public limited companies like Cadbury will have objectives such as:
* Maximise profit, this is done by cutting down on faulty goods and products also by producing products efficiently
* To be the number one product in a given market, this is done by the promotion of the product
* To maximise sales, make sure that your product is widely known to the customer and is better than their rivals
* To grow, expand their product range merge with or take over other companies
* To operate in a wide range of markets
* To give satisfaction to customers, good reputation and good customer services
* Have a good reputation
* To provide the freedom for workers to express them selves and suggest ideas to help the business
* Achieve best possible financial return on capital
* Boost or maintain share market values
These objectives will ensure Cadburys success as a business. The following statistics shows that Cadbury is a very successful business.
Company structure
Organisational structure
This is Cadbury's brief organisational structure.
The layers of Line Managers and the layer Clerical Support assistants are broken on further there are more. There is just not enough space. This structure is hierarchical.
Cadbury has more than one management style. This is so it has the best management. This is in terms of efficiency, training, and knowledge and to focus more on the loyalty of the workers in Cadbury. Cadbury has three management styles, which are:
Cadbury who initiate a quality improvement process must incorporate several basic principles into their management style:
> A firm commitment to and support for quality
> A concern for the satisfaction of staff and users of health services
> A focus on problem solving to improve quality
> Respect for staff and their abilities
> A willingness to collect and use data to determine the nature and size of problems and to improve processes
This is a diagram of the downward flow of communication in line organisation.
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Cadbury who initiate a quality improvement process must incorporate several basic principles into their management style:
> A firm commitment to and support for quality
> A concern for the satisfaction of staff and users of health services
> A focus on problem solving to improve quality
> Respect for staff and their abilities
> A willingness to collect and use data to determine the nature and size of problems and to improve processes
This is a diagram of the downward flow of communication in line organisation.
Cadburys type of organisational structure is in a tall hierarchical
Flat structure does not have many layers, which means information is sent quickly; with less complication or misunderstanding; therefore it produces the correct result. Due to having a Flat structure communication is easier {clear information, understanding} between each layer, therefore when decisions are made, they will be specific to advice/order instructions. Tall structure has many layers, which information can take a long time to reach other departments, which can lead to misinformation being sent to other departments. Having a tall structure can make communication harder between each layer.
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. Such organisational are usually based on clearly defined procedures and roles.
Cadbury organisation is based on more democratic. Decisions are made as a result of a consultation process involving various members of the organisation (Cadbury). Ideas would be discussed and thought through collectively.
Within Cadbury organisation we can find a Democratic structure, Because Cadbury tends to be found in situation were it is felt to be important for all members of the organisation to understand what they are doing, were decisions require individual initiative, and where member of staff need to work as a team
Different department roles
Human resources
Human resource is concerned with the whole range of activities to do with looking after the people that work within an organisation and those with whom the organisation comes into contact. In Cadbury, staff members are one of a business's most expensive and valuable assets. Human resource department plans the manpower needs of the business, recruits not just the people who work but for their qualifications, talent and well motivated; it is also responsible for Health and safety, training of staff and making staff record. Cadbury would use human resources because it is a very big organisation. Human resources would help them meet their objective of developing staff skills. By giving staff subsidised training, staff for Cadbury will be able to improve their skill like gain a degree (mature student) Cadbury does this all and employees the right people for a smooth running of the organisation.
Administration
Cadbury does not really have a main administration department. Each department has its own administration. Each department is responsible for its inputs of information, processing information and out put of information; does its own filing, photocopying, correspondence, mail and telephone calls.
Marketing
The charted institute of marketing defines marketing as:
"The management process responsible for identifying anticipating and satisfying customer requirements profitably."
The marketing department is responsible for,
> Carrying out MARKET RESEARCH
> Developing the right MARKET MIX
Businesses (Cadbury) carrying out market research to identify customers needs. This can be done by,
> Primary research: asking customers ( new research)
> Secondary research: using existing information
The marketing department is also responsible for developing the businesses,
Marketing Mix. This means that they must get the right:
* PRODUCTS-what features does the product have that make it suitable for the target market? Cadbury adds its logo to the package, and adds a certain quality to the chocolate that the other competitors don't (recipe) sometimes, this brings satisfaction to the customers.
* PRICE- should the products be priced higher or lower than those of competitors? In local areas, most corner shops sell Cadbury chocolate at the same price as competitor e.g. Cadbury whole nut costs 35 pence, while a Mars bar and Galaxy bar cost 35 pence as well.
* PLACE- where will customers want to buy the products? Cadbury sells its products to shops (business) that deal with beverages and confectionery e.g. corners shops, super stores (Iceland, Sainsbury, Kwick Save, Tesco, Asda, Safeway), petrol station etc. these business are usually visited by customers on a daily bases.
* PROMOTION- where should the products be advertised, to suit the needs of the business's target market? Cadbury advertises its products on television, Internet, billposter, in beverages and confectionery business by hanging posters.
This would help Cadbury to achieve ones of its objectives, which is "to be the Number one product in a given market". By achieving this objective it would lead them to achieve the other objective, such as "maximising profit etc. (refer to objective on page 4).
Research and development
The research and development department is the department that researches new products and develops the old products. To remain successful, business must constantly work to create new and better products and processes.
Research-this involves carrying out investigation to come up with new idea, e.g. by carrying out brainstorming, examining competitors products or carrying out research in laboratory.
Development- this involves turning the findings of the research into useful products or processes.
If Cadbury had a mishap with a chocolate, the research and
development department would try to correct the mishap. The research and development department must work closely with the marketing and production departments in particular this is because marketing and production are the beginning and end of producing a product.
As you can see from the table above this is the life cycle of the product while being produced.
> The input would be from the Marketing department.
> The process would be from the production department
> The output would be the product or waste
Therefore because there is a mishap from the output, this has to be due to a fault in the input (The marketing department) or the process (the production department)
In production there has to be an input, which is transformed to an output. The transformation is taken through by processes, these add value to the output such as materials and Labour so that the finished product can meet customer needs. The output could either be a service or a product (in Cadbury's case). The business will need to have a system to ensure that the production process and the product itself are of constant high quality production. For example Cadbury reduces the amount of food wasted:
The example of Curly Wurly
An example of this is, while Cadbury was producing Curly Wurly (the chocolate bar). A great amount of waste was created. When the chocolate Curly Wurly was cut to size there were little pieces of chocolate that were cut off and thrown away (waste). A member of staff (floor manager) that was cleaning the waste of the product (the little left over of Curly Wurly that were cut off), went to the production department and told them that these little pieces of chocolate that are wasted could be used as another brand of chocolate. This chocolate (waste of Curly Wurly) was then further known as Squiggles.
When Cadbury produces a chocolate it produces it in a Flow Production, which is a continuous process of parts passing on from one stage to another until completion. Units of production are worked on in each operation and then passed straight on to the next work stage. In order to make the production line work smoothly, Cadbury insures each operation must be of equal length and there should no movements or leakages from the line. E.g. hold ups to work in process. Because there is a continual demand for chocolate this process (flow production) is successful.
Ict and Communication
Communication- involves sending a message between a "sender" and a "receiver".
The communication channel is the route by which a message is sent between the sender and the receiver. The communication channel can involve a range of communication media. A communication medium is the written, oral or technological method used to communicate a message. For example a manager wishes to notify an employees of a pay rise:
Types of communication:
Communication can be
* Internal or external
* Formal or informal
* Downward, upwards or horizontal
* Ristricted or open
The type of communication that Cadbury uses are e-mail,fax,telephone, mobile communication(text messges),laser,vidoe confrencing (allows the business to have virtual meetings), confrence calls,file trasfer,
Website internet
Intranet (internal communication
The advantages of Ict upon communication internal and external communication at Cadbury are:
* Fast (compared to other methods such as writing a letter)
* Can be more accurate (easier to correct errors)
* Allows people to use the information quickly and efficient
* Can get access to a wide range of information easily
* Easy and cheap to store information
* Can access information where ever you are in the world (and can communicate with people where ever they are)
* Often cheap to access
* Quality of information can be better
Disadvantages:
* Messages can be misunderstood
* Can take time to clarify misunderstanding
* Chance that messages can be sent to the wrong people
* People can be unfamiliar with the system
* Employees may need training (costly)
* Employees may feel de-motivated/ stressed by new technology
* Messages can be held up due to technical problems
* Lack of visual communication can hinder the quality of communication
* Employees can suffer from information over load
Ways to avoid some of these disadvantages are by
* Training staff
* Use face to face communication (maybe through the performance management system)
* Make sure employees feel they can get to see their manager
* Have technical support
* Help employees, by satisfying their social needs e.g. through social club
* Make sure employees are only given training that will be useful.
ICT affected Cadbury's workplace international as a company because it has made communication much simpler and easier; Jobs that took a lot of time, effort and money are a lot simpler now with technology, like the Internet.
Cadbury uses ict as a mean of external communication, when it wants to cummunicate between the organistion and the outside world. Cadbury has a public image and this conveys a message which affects everyone who has dealings with it e.g. cutomers, shareholders, suppliers, compitetors, government, communities, international agencies, enviromental groups. Cadbury being able to provide a positive image through external communication creates a better external environment. Successful manipulation of public relations convinces others that Cadbury is worth dealing with ,buying its products (and might provide it with a considerable strategic and competitive advantage). Cadbury has open information for example it has a website that gives members of the public formal (none sensetivte ) information about the business.
On Cadbury's website you are able to find information on cadbury. The information are set out in topics then isues for example one topic is Cadbury today it has market information,information it has for schools and third party links which give you more information that you might need. It also has topics such as cadbury's learning Zone , this is where you learn about cadbury and now more aboout its history, your able to contact them asking them any questions relating with cadbury.
Cadbury uses ict as a mean of internal communication, when it wants to communicate between members of the organistaion. The reason why cadbury uses internal communication is to transfer information or intiate some action. Cadbury uses a software package called Lotus smart suite internally, this software package is like a personal organiser that allows the majority of staff to book in all important dates and information. Using this lotus program makes arrangement of meeting simpler and easier, to see if other members of staff are free. Cadbury as an internal business can uses this program to find out any information worldwide, for example if a member of staff that works for Cadbury in Britain wants to find information about another member of staff that works for Cadbury somewhere else in the world, they can.
In cadbury internal communication may flow:
Downward- from higher to lower levels. Say for example the managing director wanted to speak to Clerical support assistance to change the style of work.
Upwards- from lower to higher levels. E.g. Clerical support assistance gives suggestions to senior manger. (Refer to the incident of the Curly Wurly and squiggles).
Horizontal-between people and department ate the same level
Multi directionally- in all directions (quality circle).
They also use internal communication so that they can communicate restricted information that is sensitive to Cadbury (the business) for example regarding a new chocolate bar that Cadbury is creating. This is so that member of the public and competitors are restricted to the informal information.
Quality
Businesses change inputs into outputs in order to produce goods and services that meet the needs of their customers. The company need to be able track the production process in order to understand the physical transformations and activities that lead to the finished product or delivery of a service.
Quality refers to features of a product that allow it to meet customer's expectations. A product is often refereed to as a good quality if it is "fit for purpose".
To ensure good quality, Cadbury requires:
Quality raw materials
Quality production process
Quality design
Cadbury uses many processes to achieve quality. It uses quality assurance, control and total quality management to make sure that its quality standards are met. All of these quality processes tie in together.
Quality assurance places great emphasis upon the seller to deliver goods of appropriate quality, so that the receiving organisation is saved the time and trouble resulting from defects.
Quality control is inspecting or testing the quality of the product at various points in the manufacture of a product or delivery of service.
Total quality management is a method of establishing production faults through a philosophy of continuous improvements in every process of planning, production and service.
The advantages of TQM are as follows:
Every manager and employee is made responsible for the quality of the goods and services that are produced and for the quality of the systems that are used to deliver them to the customer.
The empowerment of the workforce improves the motivation of the employees and creates a better team spirit.
The advantages of TQA are as follows:
TQA looks beyond the production process and encompasses all aspects of the process (i.e. purchasing, administration etc) that is required to deliver the goods to the customer.
The category of this answer is; as/a2 business studies, marketing and production, quality
In order for Cadbury to achieve quality assurance, it must achieve:
Product perfection, It does this by taking samples from various batches of chocolate and analyses them, to find out if they meet quality standards. If they do not, the whole batch is brought back and not sold, it is further on analysed, in order to find the fault.
Process quality, it does these by regularly checking that all the production processes (machines) are working efficiently.
In this stage Cadbury uses quality control by inspecting or testing the quality of the product at various points in the manufacture of a product or delivery of service.
Human resource quality, Cadbury insures that it trains its entire staff to be aware of quality issues and to work towards quality improvements, (to give any suggestions for improvement, e.g. Curly Wurly example)
Consumer satisfaction, Cadbury does this by get results from primary and secondary research. Before releasing a new chocolate to the market, Cadbury further on analyses its chocolate by getting numerical members of the public to set a process called testing, which is putting these members of the public in a room to eat the new chocolate. Then specialists analyse the members of the public's reaction to the chocolate and also the members of the public fill in a form, analysing the chocolate. Then these information's gathered are apart to sum a result, if the new chocolate will satisfy the consumers.
Cadbury using quality assurance and control covers the total management quality. Total, as involving everyone (members of staff) and all activities in Cadbury. Quality, as in meeting customer's requirements. Management, as in quality is always managed continuously.
Every step that Cadbury takes for quality adds value top the product. If Cadbury never used any of these quality processes faults in the product will occur and will give the company
All people work in processes.
People
Get processes "in control"
Work with other employees and managers to identify process problems and eliminate them
Managers and/or Supervisors Work on Processes
> Provide training and tool resources
> Measure and review process performance (metrics)
> Improve process performance with the help of those who use the process
The effects that that's these strategies will have on processes must be managed and improved! This involves:
> Defining the process
> Measuring process performance (metrics)
> Reviewing process performance
> Identifying process shortcomings
> Analysing process problems
> Making a process change
> Measuring the effects of the process change
Communicating both ways between supervisor and user
Benchmarking involves Cadbury to carry out research to discover the best methods of production and adopting them.
There are five main steps involved in the benchmarking process:
. Identify the aspect of the production that are most important
2. Choose a business that is really good at it
3. Carry out research in to their practices
4. Work out how their practices can be used in Cadbury
5. Implement them
Cadbury manages to improve quality by benchmarking. Cadburys benchmarked walkers for the packaging. Cadbury used to package there chocolate in two layers, foil then paper. Now they package it in airtight foil packing. This is an advantage because it keeps the chocolate fresh, protects it dust and it keeps the flavour for a longer period of time. Plus using only one layer it is more money efficient and it means they are environmentally friendly because they don't use paper for packaging only cardboard boxes which the use to transport the products to customers (stores).
Quality circle is a group of employees who met together regularly to identify quality problems and come up with solutions.
Quality circle is workers who are involved in carrying day-to-day jobs. In Cadburys case, in chocolate manufacturing, employees working on the production line could be members of a quality circle
TQM Compared to ISO 9001
ISO 9000 is a Quality System Management Standard. TQM is a philosophy of perpetual improvement. The ISO Quality Standard sets in place a system to deploy policy and verifiable objectives. An ISO implementation is a basis for a Total Quality Management implementation. Where there is an ISO system, about 75 percent of the steps are in place for TQM. The requirements for TQM can be considered ISO plus. Another aspect relating to the ISO Standard is that the proposed changes for the next revision (1999) will contain customer satisfaction and measurement requirements. In short, implementing TQM is being proactive concerning quality rather than reactive.
What I would suggest the key to improving quality in Cadbury is to improve processes that define, produce and support products.
All people work in processes.
People
> Get processes "in control"
> Work with other employees and managers to identify process problems and eliminate them
Managers and/or Supervisors Work on Processes
> Provide training and tool resources
> Measure and review process performance (metrics)
> Improve process performance with the help of those who use the process
The effects that that's these strategies will have on processes must be managed and improved! This involves:
> Defining the process
> Measuring process performance (metrics)
> Reviewing process performance
> Identifying process shortcomings
> Analysing process problems
> Making a process change
> Measuring the effects of the process change
> Communicating both ways between supervisor and user
Amandeep Jawanda 12AEW
Centre number 30135
Candidate number 0102
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