Objectives of Cadbury Schweppes plc

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Objectives of Cadbury Schweppes plc

Cadbury Schweppes (CS) objectives:

It is important to understand how CS objectives fit in with their aims and strategies.

* The aim states what you want

* The objectives set out what you need to have achieved to get what you want

* The strategies are courses of action, which enable you to meet your objectives.

In order for smart objectives to be effective, CS must:

* Provide detail about what specifically needs to be achieved e.g. often in a quantitative form

* Have a time limit by when they need to have been achieved e.g. deadline for achieving something on March 2nd

* Need to state the necessary resources that they require in order that objectives can be met.

Cadbury Schweppes main objective is to expand the company:

"Cadbury Schweppes' governing objective is growth of shareowner value."

CS pursues this objective of growth by:

* 'Focussing on the core businesses of beverages and confectionery' -this means that CS are totally committed to expand and provide the world with chocolates, drinks, etc, which the world will enjoy and be delighted with.

* 'Developing robust and sustainable positions in regional markets' - this means that CS make sure that they are in a strong position in the market. An example for 'developing robust' would be that when CS launched 'wispa' a chocolate bar, which was tested in the North East of England to see if the chocolate bar was a 'hit' to people. If 'wispa' was good up in the North East, then it would be suitable for being launched nationally.

* 'Growing organically and by acquisition' - growing organically means is to expand the company e.g. more factories produced, more employees recruited from outside of the company and etc. Acquisition is when a company merges with another company to be stronger and to achieve the company's objectives for growth e.g. Cadburys limited merged with Schweppes to become a more stronger company.

Setting clearly defined and realistic objectives will enable many employees for CS to understand exactly what their job entails and achieving clearly stated objectives might be linked to bonus payments which can easily act as a motivation to employees.

As you can see, CS main objective is strategic objective because a primary objective is an ultimate long-term goal for their business. I personally think that the growth of any business is what CS or other companies use to survive as a business. If CS don't keep expanding their company, they then will find it hard to compete with their competition e.g. Nestle. If CS doesn't keep up with their main rivals, they then can decline in demand, which can ruin the company. If CS do grow and dominate the market, they then can experiment more with different brands and enjoy controlling power. If CS do experiment with more new brands and doesn't do well in the market, CS then can rely on their other brands e.g. if the new brand 'Boost' doesn't do so well with people, CS then can always rely on other brands 'Dairy Milk.' This is known as risk-bearing economy of scale.

CS objective can also be placed into a secondary objective also because without the primary objective, CS primary growth strategy can be minimised without setting a day-to-day objective, which makes a direct contribution to meeting the primary objectives e.g. increase sales by 5% each year, keep labour turnover at less than 4%. If secondary objectives are accomplished within CS, they then can develop their company.

The growth objective is mainly a long term objective but I also think that the growth objective of CS can be a short term because short-term objectives will often differ from long-term objectives, especially if CS is experiencing poor financial performance at present. A short-term objective may be to consolidate, or even simply to survive the difficult trading conditions that it is experiencing. Once this has been achieved and the business has stabilised its performance, then it may well look to achieve its long-term objective of diversification into new products and new markets, or growth through joining up with other firms.

CS objective for expanding is in the private sector because private sector objectives will often differ considerably from objectives set in the public sector. Profit maximisation is often quoted as the over-riding objective for CS in the private sector. This will involve trying to produce at the point where there is the maximum difference between the firm's total revenue and its total cost, which results in large dividend payments for the shareholders. However, it is far more likely that CS will aim to profit satisfy rather than profit maximise (that is, they will aim to earn a satisfactory level of profits to keep shareholders content, and then use the remaining resources to pursue other objectives such as diversification and growth).
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CS set objectives to improve their image and to appear more socially responsible and environmentally friendly, which is often achieved through strategies of recycling materials; sponsoring local events and strictly adhering to all employee legislation e.g. pay levels, Health & Safety, discrimination, etc. One of the best-known publicity that CS has is advertising and sponsoring Coronation Street, which is a well-known soap program in the UK.

I personally think that CS is growing and will increase in the future. One of the reasons that CS is increasing very fast in the market is because of the ...

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