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Investigation into Cadbury's Plc.

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To: MS Sweet From: Michael Pidding Reference: Unit 1 Date: December 2002 Title: Investigation into Cadbury's Plc 1.0 Introduction: This report will show the types of business ownership, by classifying the business according to the type of business. It will explain the benefits and the constraints of the type of ownership. This report will also show a clear description of Cadbury's, and will show their reasons for their choice of objectives. In addition to this report it will show the types of functional areas that exist in my chosen business. This will include a description of production, finance, human resources, marketing, administration and research and development. Also included in this report will be a cover the types of management style the company has. This report will also explain the organisational structure and how it has affected its performance and how it helps to meet its objectives. This report will also show a clear explanation of how the production process and quality control helps the business to add value to its product and it will describe the types of communication the business uses. The person, who created the Cadbury business, is John Cadbury in 1824. The business started as a shop in a fashionable place in Birmingham. It sold things such as tea and coffee, mustard and a new sideline - cocoa and drinking chocolate, which John Cadbury prepared himself using a mortar and pestle. 2.0 Information: 2.1a Introduction to types of business: Private sector: Private Sector are privately owned businesses, this can includes public limited companies and private limited companies. A private limited company is usually smaller than a public limited. A public limited company sells its shares on the stock exchange while a private limited company is restricted to selling shares to family and friends. A public limited usually has many more owners (shareholders) than a private limited company and has more rules, regulations and laws concerning the operation of a public company. ...read more.


Managers see these targets and compare them with other past targets to find how successful the business is. The targets help the finance department to make plans for the future that will help the business to achieve its objectives. For an example the finance department gives research and development, a budget of �50,000. The research and development department will use this money within one financial year and not over drawing (not taking more money). But under circumstances if research and development department required more money to develop a new chocolate, the finance department will analyse research and development's plans for producing a new chocolate and if they think it will be successful finance will give the money needed. Through this the departments would have achieved their objectives (e.g. making a profit, good reputation, achieve best possible financial return on capital). They way that Cadbury deals with exchanging of money is by SAP, which is an electronic payment system. For example if Tesco purchases a quantity of chocolate from Cadbury. Cadbury can bill Tesco straight away. This process is time efficient and is a straightforward process. Cadbury Schweppes plc reports on financial performance for the 24 weeks ended 16 June 2002: 2002 2001 Change �M �M % Sales� 2,354 2,200 + 7 Underlying Operating Profit* 429 400 + 7 Underlying Profit Before Tax* 386 351 +10 Underlying EPS* - pence 12.9 11.5 +12 Dividends per share - pence 3.5 3.35 + 4.5 Production: The production director of a company is responsible for making sure raw materials are processed into goods effectively. He or she must make sure the work is carried out to an appropriate standard, and must supervise procedures for enabling work to be carried out smoothly. In a manufacturing company, the production function may be split into five main sub functions: 1) The production and planning department will set standards and targets for each section of the production process. ...read more.


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 ...read more.

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