Last year Cadbury’s introduced a very successful range of new flavoured Dairy Milk bars which were a boost t5o sales. They need to continue releasing just as good products successfully to help them on their way to high sales and profit.
Main Obligation
Cadburys main obligation is whilst being committed to creating value for shareholders make it known that they do not work in isolation. This has to be done to ensure that they are providing for their share holders and also the general public. Failing to do so would cause suspicion and conflict in the press.
The Main Activities
Goods
Cadbury’s main activity interest is in the manufacturing of chocolate and related products. See appendix . One of the main sites of manufacture is the Bournville site in Birmingham. This is the biggest Cadbury site mainly because they have homes for a lot of the people who work there which makes it one of the only manufacturing companies to actually home its workers and employers.
Cadburys manufacture lots of products such as Cadburys High Lights Drinking Chocolate, Cadburys new multi flavoured Snaps and the most famous of all, Cadburys Dairy Milk. See appendixes
. Cadburys is also joined to Cadbury Schweppes which do a lot more of both companies products together under the one name. See appendix .They are more famous worldwide than just Cadbury itself because Schweppes are very popular for they’re popular drink products such as Britvic 55 and others.
Cadbury’s primary sector is the obtaining of raw materials which are neede to produce their chocolate brands. This comes from all over the world, such as cocoa beans from Africa, and helps their local economy. An important factor about Cadbury’s production of raw materials is that they are not involved in child labour where as Nestle supposedly is and has not changed even after the truth seeped out.
Services
Cadburys also deliver all of their own products to different places all around the world. They also package all of the products that they manufacture.
Another good point that the Bournville site has against other competitors is that the public can come and visit for a fee, has a lot of entertainment and play things for younger children, information and detailed board explanations for adults and is also open to school visits and trips. With visitors coming to the site they have also set up a very big souvenir shop in the factory that is encouraging people to spend money at the factory, and is the biggest Cadbury shop there is. See appendix
Other services might include the activities which Cadburys set up to involve the public and to help raise money for lots of different charities of community interests.
Location
Cadbury is a popular brand throughout Britain, but the main Factory is the Bournville site, Birmingham, in the West Midlands. See appendix .However there are many other factories across Britain but this is the main one for entertainment and manufacture. Some of the main influences for this location are the many motorways surrounding the area.See appendixes . These include the M5, M6 and the M42 and they all conveniently cross over surrounding the Bournville site. There is also the Bournville train station situated right next to Bournville with trains running from Birmingham New Street Station every fifteen minutes making it very convenient.
Public Limited Company
You only need two people to set up a PLC and there is no upper limit. The business has a number of shares that are available for anyone to buy. Most of these are bought through the stock exchange. You can find some share prices printed in national newspapers so that people can keep a check on their stock.
Advantages
- The shareholder has limited liability (only liable to be charged so much money invested in shares and does not involve their possessions).
- Easy to raise your capital if you purchase more shares therefore helping the company to expand.
Disadvantages
- It is very expensive to start up a Public Limited Company
- Another expenditure is that the company also has to produce a lot of information about them.
Business Ownership
Cadbury has no owners as the shareholders own them so there is no single boss. Shareholders only invest money though, they take no personal part in running it, this is decided by a vote by a board of directors. If you own 51% of the shares then you will always have the final say in decisions. An advantage for Cadbury are that it is easy to get a loan from the bank because they think that there is less chance of failure
Extra
Last December Cadbury Schweppes won an MTA (Management Today Awards) for the most admired company. This gives them a chance to do more advertising as they are allowed to use it to promote for the next twelve months. This is a very good opportunity to boast about their quality.
Aims and Objectives
Aims
Formbends objective is to continue to deliver good quality goods to existing customers and to customers in the future. They also want to win many more awards for good quality in the future and create a friendly and happy environment for the employees.
Objectives
- Ensure that all facilities (e.g. lavatories and café bar) are in good condition for the employees
- Ensure that the clients are kept up to date with current information
- This will help to win awards in the future also because of good client services
- Deliver all orders on time in good condition
For Formbend to achieve all of these aims and objectives the main thing that they need to do is to keep up the good condition of all of the facilities involving them. This is the key thing that will start off everything else to lead Formbend to its future. In order to please the workers they will have to plan and research what needs to be changed or improved and then set about the task.
One of the other key aims for the company is to win more awards for good quality and other related things. To achieve this they need to work hard and try their best whatever problems occur.
Main Obligation
Formbend’s main obligation is to make sure that they provide a good service and quality to their workers because the business is dependant on their work force.
The Main Activities
Goods
Formbend’s main activity is bending, welding, forming and brazing metal tubes and other material tubing. See appendix . They have an extremely large stock of specialised tools to achieve exactly the right bend. They do a lot of different bends though such as right hand bends, left hand bends, Multi stack bending and have a variable bending radius. See appendix . Although it might not sound very interesting it is a very important part of industry and you find examples of what they do everywhere like gas and water pipes, radiators and even school chairs.
Services
Formbend deliver all of the products that they produce.
Location
Formbend is situated in West Bromwich in the West Midlands. They are two units on an industrial site that have been merged. The main influences for this location are the major motorways being close by giving them access to all over Britain.
Criterion 1C
Cadbury
Main Activities
With Cadburys main activity being the manufacturing of their own products it has both good and bad points that help the business to achieve its aims and objectives. The good things are that they work mainly at the Bournville site which keeps them in the public interest because of the living space and the entertainment and this also gives them a over competitor manufacturers such as Nestle. Being in the public eye and homing some of their employers that will complete their first objective. 2003 saw the release of the four new varieties if Cadbury Dairy Milk and all of them proved to be a massive hit. It was so successful that they introduced a mint crisp flavour and later in the year the Dairy Milk Wafer. With increasing sales these points cover objectives two and four. They also spend a lot of time fixing up events to fund and help people all over the world. Recently (November) their employers pulled together to fill a shoebox with items such as toiletries, toys and gifts to be donated to the children in East Europe and South Africa. Over 600 shoeboxes were sent away and it was a great success. This yet again proves what a caring environment the stuff must work in to give so much. That has covered objective number three. I am sorry to say that on the website I could not find any information produced on the sales of their chocolates other that the newly released brands so unfortunately I can not justify how well they are doing in their role as a manufacturer. Some of the bad points are that with Cadbury being so well presented in the public eye if they have a bad period it will be known by all and would really jeopardise their reputation, but I don’t think they need to worry! Other problems could face Cadbury as well such as if one of the main motorways which they use for deliveries it would be bad for both Cadburys and all businesses selling Cadburys.
Ownership
A PLC Company is easily controlled because of its board of directors. This makes it a lot easier for Cadbury to achieve its aims and objectives because each director has a specialist role and has good communication with everyone else involved. At first it could cause some conflict agreeing with each other, but without conflict all the relevant points would not be made there fore making an unjust choice.
Location
The Bournville site is around the centre of Britain with many different accessible forms of transport surrounding it influencing more visitors to go. This would help keep the people in touch and visitors could be asked to fill out questionnaires or given leaflets to help with objective number four. Also with the great transportation choices Cadburys has a very good schedule to work by for deliveries, which please the hungry public.
Formbend
Main Activities
Formbends main activities are the bending and brazing of metal tubes. There are not many types of this business around which makes Formbend very Important to customers and clients who use their products and skilled manufacturing to help develop theirs. They also deliver all of their products making the business very reliable and this helps the fourth objective. The most important thing that Formbend deals with are its employees because out them there would be no business. It is in Formbends interest to keep the employers happy and have many facilities that help make the job easier and more enjoyable. If the employees are happy then the customers will be happy by the good quality service provided. That covers objective number one. In the past Formbend has won many awards for lots of different aspects of the company. One of the things which helped make this possible was by keeping their customers informed about every little detail. This is completed by good communications and prompt calls or emails about any delays or problems. With good client services and the trust of their clients Formbend will be able to complete the remaining objectives and finally accomplish their aims.
Ownership
Formbend is owned by their share holders. They also have a board of directors like Cadbury’s but they also have a main person who finalises the decisions called Mark Hately, the biggest share holder.
Location
Criterion 1A
Cadbury’s
Cadbury’s is a very successful, very well known and popular brand. It is thriving in both chocolate manufacturing and being one of the best imployers in Britain. A lot of beneficial factors help make this happen for Cadbury such as a good location, reliable staff and achieveable aims so that their future is bright.
If I had the most amount of shares in the Cadbury business or was a director for the company there are a few suggestions I would make. Forstly I would make more promotional offers. I think that Cadbury should do this because when a new brand is released at the same price of a chocolate I know I enjoy I would choose the one I already like because there is nothing there to appeal to me, the customer. There fore I 6think that there should be a starting price lower than the normal one to encourage people to buy the brand. Another point I would make is that the inside of the factory isn’t at all what I expected to see. When I was looking at the brochures the factory looked so colourful, warm and inviting that I couldn’t wait to go. However when I arrived the paint work wasn’t alluring, the people weren’t being very polite and the whole place was a bit of a dissapointment. I don’t think that it would hurt for a nice lick of paint and a few smiles on faces and the whole place would be like new.
Even though I was dissatisfied with the factory and promotion, I still think that Cadburys is a highly respectful company and that these problems are only really minor and if a little effort is made I would have no reason to complain.