The type of ownership Cadbury Schweppes PLC.

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The type of ownership Cadbury Schweppes PLC

Introduction

Cadbury Schweppes plc operates in the Food, Beverage and Tobacco sector of the market.  Specific industry operation is in the Beverage- Soft Drinks category.  This quickly expanding company holds licenses too many of the world’s favourite drinks including: Dr. Pepper, 7-UP, Mott’s, Snapple, Canada Dry and Hawaiian Punch.  In addition to beverages, the company also produces confections including chocolates and gums, many under the Cadbury name e.g. perhaps the best known in the United States is the Cadbury Crème Egg.  Cadbury Schweppes products are enjoyed in almost 200 countries across the world.  The company employs over 36,000 people, is the third largest soft drink company, and the fourth largest confectionary company in the world. Competitors include Coca-Cola, Pepsi-Cola and Mars.  Confection production in the United States is licensed to Hershey.

Ownership Change

The third-largest soft drink maker has an interesting history spanning over 200 years.   Cadbury Schweppes plc was actually founded in 1969 when Schweppes Ltd. merged with Cadbury Group Ltd.  

Sole Trader:

The Cadbury family was the start of the business.  John Cadbury started the beginning of the company in 1824. John Cadbury started the business alone, working as a one man business. He mainly was trading tea and coffee at this time; this was the form of Cadburys as a sole trader. This was at the stage when the company was run by one person and had help form family members. Later on, the company formed to a fully committed family business. John Cadbury had many opportunities at this time, being a sole trader company because it meant that he could:

  • controls, manages and owns the business
  • is personally entitled to all profits  
  • is personally liable for all business taxes and debts.

John Cadbury had complete independence over how the business was to be run and have no statutory compliance issues to contend with. Remaining as a sole trader, John  had many advantages, mainly being that he was able to give a more personal service to your customers and he was able to make changes within the business very quickly due to there was little or no bureaucracy there being only one person to make the final decision. Other advantages to John include having complete control over the business and its profits; John was able to use any money the business brings as you deem fit without having to justify his spending.

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Advantages for John being a sole trader:

  • The companies are usually small, and easy to set up – John got help from his father who owned his own company also, which gave John the boost to start his company as a one man business. At the start of Cadbury, the company was very small and it was easy to set up the company because of the help he received form his family.  
  • Generally, only a small amount of capital needs to be invested, which reduces the initial start-up cost.
  • The wage bill will usually ...

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