Through this the departments would have achieved their objectives (e.g. making a profit, good reputation, achieve best possible financial return on capital), because of funding from the finance department they can improve their contributions to the organisation and make it better. For example, if the production department get more funding they will we able to improve their machinery and raw materials so they can produce the best.
Production
The production department produces the products; any activities associated with production are wealth creation. A simple example of wealth creation would be the production of a chocolate bar. The difference between all of the costs of the production and the price of the finished chocolate represents the wealth that has been created. The contribution of all those involved in its development have added value to this process and helped to create that wealth.
In production there has to be an input, which is transformed to an output. The transformation is taken through by processes, these add value to the output such as materials and Labour so that the finished product can meet customer needs. The output could either be a service or a product. The business will need to have a system to ensure that the production process and the product itself are of constant high quality production.
The production department in Cadbury is concerned with the following issues:
- Costs of production
- The condition of the means of production (machinery, etc.)
- Keeping production going
- Health and safety
- Keeping employees motivated
- Keeping up to date with technology
- Satisfying the requirements of customers
- Maximising the use of plant
- Minimising the waste of materials
When Cadbury produces a chocolate it produces it in a Flow Production, which is a continuous process of parts passing on from one stage to another until completion. Units of production are worked on in each operation and then passed straight on to the next work stage. In order to make the production line work smoothly, Cadbury insures each operation must be of equal length and there should no movements or leakages from the line. E.g. hold ups to work in process. Because there is a continual demand for chocolate this process (flow production) is successful.
This is diagram shows a flow of production:
Stage 1 Stage 2 Stage 3
Machine A’s machine B’s Machine C’s
Before production takes place, a brief is done, to find out what to produce? Then it is backed up by primary and secondary research. This will help Cadbury to achieve their objective to give satisfaction to customers through selling them a certain product for certain price, will also help them operate in a wide range of markets and Help Cadbury to be noticed through Promotion.
Human resources
Human resource is concerned with the whole range of activities to do with looking after the people that work within an organisation and those with whom the organisation comes into contact. In Cadbury, staff members are one of a business’s most expensive and valuable assets. Human resource department plans the manpower needs of the business, recruits not just the people who work but for their qualifications, talent and well motivated; it is also responsible for Health and safety, training of staff and making staff record. Cadbury would use human resources because it is a very big organisation.
Human resources would help them meet their objective of developing staff skills also their other objective to provide the freedom for workers to express them self’s and suggest ideas to help the business. By giving staff subsidised training, staff for Cadbury will be able to improve their skill like gain a degree (mature student) Cadbury does this all and employees the right people for a smooth running of the organisation.
Marketing
The marketing department is responsible for,
- Carrying out MARKET RESEARCH
- Developing the right MARKET MIX
Businesses (Cadbury) carrying out market research to identify customers needs. This can be done by,
- Primary research: asking customers ( new research)
- Secondary research: using existing information
The marketing department is also responsible for developing the businesses,
Marketing Mix. This means that they must get the right:
- PRODUCTS- Cadbury adds its logo to the package, and adds a certain quality to the chocolate that the other competitors don’t (recipe) sometimes, this brings satisfaction to the customers.
- PRICE- in local areas, most corner shops sell Cadbury chocolate at the same price as competitor e.g. Cadbury whole nut costs 35 pence, while a Mars bar and Galaxy bar cost 35 pence as well.
- PLACE- Cadbury sells its products to shops (business) that deal with beverages and confectionery e.g. corners shops, super stores (Iceland, Sainsbury, Kwick Save, Tesco, Asda, Safeway), petrol station etc. these business are usually visited by customers on a daily bases.
- PROMOTION- Cadbury advertises its products on television, Internet, billposter, in beverages and confectionery business by hanging posters.
This would help Cadbury to achieve ones of its objectives, which is “to be the Number one product in a given market”. They are achieving this objective by marketing their products to the right markets and by achieving this objective it would lead them to achieve the other objective, such as maximising profit.
Research and development
The research and development department is the department that researches new products and develops the old products. To remain successful, business must constantly work to create new and better products and processes.
Research-this involves carrying out investigation to come up with new idea, e.g. by carrying out brainstorming, examining competitor’s products or carrying out research in laboratory.
Development- this involves turning the findings of the research into useful products or processes. If Cadbury had a mishap with a chocolate, the research and development department would try to correct the mishap. The research and development department must work closely with the marketing and production departments in particular this is because marketing and production are the beginning and end of producing a product.
By research and development Cadbury can achieve their objectives, one of their objectives being ‘to grow’, and ‘to be the number one product in a given market’. By research and development Cadbury is growing by the department researching and developing ideas they can achieve their objectives. Also their other objective which is to be the number one product, the research and development are helping Cadbury to achieve their aim by researching new recipes and new raw materials.
Organisation Structure
Organisational charts are charts that show the structure of an enterprise and the relationships between the various members of the organisation and what their key responsibilities are. A clear chart will show:
- How the organisation is structured
- The level of responsibility of each organisational member and whom each reports
- Lines of communication
- Possible lines of promotion
Cadburys type of organisational structure is a tall structure because they have a narrow span of control and more levels of authority. Under the chief officers there are going to be the non - executives who will have people working for them. As you can see from above Mr. Sunderland controls the chief officers and he gets feed back from all four of the chief officers, then he is most likely to report back to the chairman. There are three lines of management there could be many more if the executives and the managers of each department are included.
Tall structures are based on distinct chain of commands from Managing director to Clerical Support assistants (according to Cadbury). Decisions are made at the top and pass down. Such organisational are usually based on clearly defined procedures and roles.
Flat structures do not have many layers, which it means that information is sent quickly; with less complication or misunderstanding; therefore it produces the correct result. Due to having a Flat structure communication is easier (clear information, understanding) between each layer, therefore when decisions are made, they will be specific to advice/order instructions.
