• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The type of ownership Cadbury Schweppes PLC.

Extracts from this document...

Introduction

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 Cr�me 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. ...read more.

Middle

* Cadburys depended and is determined by one person. If that one person looses interest or dies then the business will come to a close. Cadbury Limited: While the company wasn't making much growth, John Cadbury needed a more help. He received that help from changing Cadbury sole trader in to a limited company but he still didn't employ anyone. John was receiving the help that he needed form his family and the Quaker family. The Cadbury family and the Quaker family were both fully committed to the growth of the business. This type of ownership was working very well for Cadbury Limited because the company was expanding fast. The Cadbury family now could afford a rented factory to manufacture and a few shops to sell their products. However, at this point they still didn't employ because of the shortage of money but they were still working as a committed family business. Also to increase the businesses growth, John Cadbury had an advertisement: "John Cadbury is desirous of introducing to particular notice 'Cocoa Nibs,' prepared by himself, an article affording a most nutritious beverage for breakfast." This advertisement was placed in a plate glass window which attracted many people and increased his company's growth. Another reason that John Cadbury chosen to change his company into a limited company because it allows the Cadbury family to accept limited ...read more.

Conclusion

Their owners are not personally liable for the firm's debts (limited liability). Cadbury Schweppes plc is divided up into equal parts called shares. Whoever owns one or more of these is called a shareholder. Cadbury Schweppes plc can sell its shares on the Stock Market, while a Private Limited Company (LTD) cannot. This is another reason why Cadbury joined Schweppes to become a public limited company. Advantages for Cadbury Schweppes PLC: * Raise large amount of capital from share issue. * Benefit from economies of scale, e.g. bulk buying, cheaper borrowing. * Produce goods at lower unit cost. * The size of Cadbury Schweppes plc can sometimes control the market. Disadvantages for Cadbury Schweppes PLC: * Become too large resulting in poor labour relations. * Conflict of interest between shareholders and the Board of Directors. * Possibility of takeover or merger because shares can be bought by anyone. * Setting up the business is very expensive. * The size of the company doesn't let them deal with their customers at a personal level. * Cadbury Schweppes plc competitors can use their accounts to their advantage. The public can also use this information. Cadbury Schweppes plc now: Today, Cadbury Schweppes employs over 40,000 people and its products are available in almost 200 countries across the world. Cadbury Schweppes plc is proud to be the world's third largest soft drinks company and the fourth largest confectionery company. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. In this section I will explain every one the different types of business ownership. ...

    Tesco brought products from suppliers the more money the suppliers will charge, so Tesco will need to negotiate with suppliers on a regular basis, or else they will have to find different suppliers who charges low amounts. I will now explain how Tesco could be run as a Private Limited

  2. A Brief History of John Lewis.

    The low figure may have been due to people spending less. It was not just John Lewis that was affected, the whole country would have been, and this is because the country is in a ression stage of the economy.

  1. English for business

    Some phrases you might need to use: ? I want to fly to Miami on the 10 of the next month, returning on the 20. ? I'd like to reserve a seat on Flight number ... ? I'd like to change my reservation on Flight no.. ? I need to get to the airport / railway station / as quickly as possible.

  2. Business Studies

    to sustain market share against competitors * The role of marketing in the firm and in society > Marketing is used primarily as a method of enhancing business revenue streams and increasing the markets awareness of its products > Marketing also serves the interests of society Role of marketing Choice

  1. Business studies - Business Plan

    the interest rate to be set at 15% over 3 years so I will be paying: 3200 x 1.15 = 3680 3680 / 12 = 102.2 The bank will round all figures up so I will be paying �102.30 every month for 3 years.

  2. Business Ownership

    Working in the business would become more enjoyable and provide greater job satisfaction. Increased motivation among the workforce would provide better goods and services. As local people are involved in the business, the co-operative would have closer links with the local community.

  1. Business Plan. After putting a lot of thought into what kind of business we ...

    Suppliers Suppliers get given regular contracts as the business is always ordering new stock which therefore increases the supplier's profits which benefits their business. They also get prompt payments which mean that they will want to keep supplying goods for the business.

  2. Business Studies- Unit 1- Business Ownership

    Once the business has changed ownership, this means that if the business fails, the shareholders only lose the money invested in the business; their own personal assets, such as their home, are not at risk. This makes people more willing to invest their money in the business as the risk

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work