Contents

1.1 Introduction                                                          page          2

1.2 Useful information for a manager                             page     2-3

1.3 Activity based costing                                                 page     3-5

1.4 Budgeting                                                                     page    5-7

1.5 Payback                                                                        page    7

1.6 Pricing                                                                          page    8

1.7 Bibliography                                                                page    9

1.1 Introduction

Cadbury Schweppes is the world largest confectionary business selling brands around the world they have a strong regional presence in beverages in the Americas and Australia with a lot of loyal customers. The business started in 1783 and over years has become more successful; as the business has expanded they have developed a whole range of new products and brands some of which being Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple, and Trebor, Dentyne, Bubblicious, and Bassett. Cadburys products fulfil a wide range of needs, tries to diversify its products from those already on the market to give their consumers something new. Cadburys tries to make its products widely available to ensure that their within arms reach whether as an impulse or as a considered buy, to this they work with their customers in different trade channels and employing over 70,000 staff.

Cadbury Schweppes have expanded their business throughout the world by a programme of organic (growing from within) and acquisition (buying other companies) led growth. The business expanding from acquisition shows that the business is flourishing because they can buy out their rivals. Cadbury’s confectionery business is organised into four different segments (regions) and six global functions, each region is focused on commercial operations in its geographical and product area. The four regions are: Britain Ireland, Middle East and Africa (BIMA); Europe; Americas and Asia pacific. The functions are global supply chain, global commercial, science & technology, human resources, finance and information technology. This structure allows Cadburys to centre their attention on each area and if there is a problem in one area they can sort it out without having to sort it out over all areas. Another advantage for Cadburys to set up regions is that they can easily distinguish what product is booming in what region.

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1.2 Useful information for a manager

A manager of Cadbury Schweppes may consider the following information a important requirement which could aid them in their day to day running of the business; he/she would like to know what is their most profitable product and which product has the highest demand knowing this will allow them to increase the amount of volume produced and also they can charge a higher price. Which region is making the most profit?  They would like to understand the behaviour of overhead costs and what particular product is consuming most overheads. A sales forecast ...

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