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

Cadbury Schweppes: Competitive Advantage and Business Level Choice.

Extracts from this document...

Introduction

Cadbury Schweppes: Competitive Advantage and Business Level Choice. Corporate purpose and aspirations Ownership: The Board of Directors made up of internal and external directors to provide a balance of experience. J F Brock and I D Johnston are both directors and also the Managing Director of the Beverages and Confectionery streams respectively.0000 Mission statement: Cadbury Schweppes' objective is growth in shareholder value. Managing for value is the process that supports the achievement of the strategy by providing the overall strategic direction. Scope and Diversity: Cadbury Schweppes competes in confectionery and soft drinks markets, the logic behind this is so that it can develop specialist skills and remain one of the key players in these markets. This position is enhanced by its strategy to acquire companies who have products closely related to those produced by the Groups own SBU's, and also by the Managing For Value Programme. Cadbury Schweppes product ranges are not diverse. All products, including acquisitions, are closely related in order to maintain the Groups skills base and competitive advantage. Global dimension: Cadbury Schweppes is a global player, leading the market in the UK, Poland and China in its field. ...read more.

Middle

(See resources, capabilities and sources of advantage.) The corporate governance strategy followed by the Group is such that it provides strategic direction for the SBU's through managing a smaller number of related businesses. This is of great benefit to the shareholders, as is shown by an underlying earnings per share increase of 16% and a 6% increase in sales to £2 billion in 1999. Bases of SBU strategy. "Competitive strategy is the basis on which a SBU might achieve competitive advantage in its market." (Johnson and Scholes, 1999:269). In beverages the Groups' strategy is to develop and expand markets for its various brands by using the most efficient and value creating route to market. In chocolate and sugar confectionery the Groups' strategy is to build strong positions in prioritised markets through internal growth and value enhancing acquisitions, in addition to identifying best practices within its operations and implementing them across the stream to realise efficiencies and enhance competitiveness. Synergy is created through the SBU's not being radically different and building on similar technologies, offering cost savings to the Group. ...read more.

Conclusion

Alternative Directions for Strategy Development. Appendix 5 shows a matrix of competence development, which has had a positive effect on the Groups global position. Cadbury Schweppes has also benefited from Internal Development of highly innovative products for example Tango Crunchie, and are examples of fit-led competence strategies. They could also be achieved at a cost benefit to the Group. Acquisitions have been a major strategic force for Cadbury Schweppes recently. This has been prominent in both the soft drinks and confectionery segments and has given competitive advantage by enabling Cadbury Schweppes to enter new markets successfully without the lengthy process of research and development. This strategy may have been heavily influenced by PepsiCo and also by the fact that that both markets in which it competes are relatively static and all competitors benefit from relatively stable market shares. During the past five years the Group has spent a total of £1849 million on acquisitions and £997 million on capital expenditure, including investments to expand in new markets such as Poland, China and Russia. Russia has proved difficult and will be discussed further in the section on Strategic recommendations. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing 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 University Degree Marketing essays

  1. History and current position of Cadbury.

    The UK has joined efforts to fight child labour and poverty on West African cocoa plantations. (BBC, 2001) BBC (2001) explains that government hopes West African states to sign a treaty establishing a legal framework for combating slavery and forced labour.

  2. EasyJet. Within this essay there is going to be an approach on easyJets strategy ...

    Political ? The increase in fuel price drives up costs of flying a plane. ? Euro may result in a decline in the number of leisure time travellers wishing to travel to the United States. ? The threat of war in the Middle East.

  1. Dell Competitive Advantage.

    become the number two vendor of PCs in the United States by 1997. Fueled by its coup in the PC market, Dell extended its direct, online model to its enterprise-systems business, which includes servers, workstations and storage products. Skeptics argued that server products, in particular, were too complex to sell direct, but Dell, obviously, "disagreed" and it paid off.

  2. Cadburys has many famous chocolate products which it has a variety of advertising campaigns ...

    SWOT Analysis of Cadbury Definition A SWOT analysis is a strategic plan used to evaluate the Strengths, Weaknesses, Opportunities and Threats of a businesses marketing plan. It is used because it helps business to evaluate external and internal factors affecting them.

  1. The Strategic Competence of Small Businesses.

    > Decentralization; fewer hierarchical levels. > Entrepreneurs change and innovate quickly - they ask "why not?" > Intuition's role in creativity, innovation, and change is indispensable, > Small firms are dynamic as they o act to seize opportunities, o react to threats, and o proact to create opportunities.

  2. Improving customer relations through relationship marketing - How can Greenheart Plants improve its relationships ...

    literature there is a lack of clarity in the concept of trust (Blois 1999): however it can be described as "the willingness to rely on an exchange partner in whom one has confidence" (Moorman, Deshpande and Zaltman 1993). Morgan and Hunt (1994)

  1. marketing Coca Cola

    Primary research - is the gathering of fresh information specifically tailored to the business's own requirements. For the information on primary research, I designed and distributed questionnaires to existing and potential customers. This allowed us to find and identify the target market they needed.

  2. What business level strategy (ies) is Marriot pursuing?

    Focus Strategy Based on Differentiation Marriott Vacation Club International (MVCI) It's providing a vacation, leisure experience, quality management and unique flexibility. Options include priority exchange over other Vacation clubs. Horizons by Marriott Vacation club Provides vacation ownership with affordable prices.

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