Objectives
Public limited companies like Cadbury will have objectives such as:
- Maximise profit
- To be the number one product in a given market
- To maximise sales
- To grow
- To operate in a wide range of markets
- To give satisfaction to customers
- Have a good reputation
- To provide the freedom for workers to express them selves and suggest ideas to help the business
- Achieve best possible financial return on capital
- Boost or maintain share market values
These objectives will ensure Cadburys success as a business. From the statistics I have, it shows that Cadbury is a very successful business.
Statistics
The statistics from the financial overview show the finance has just been increasing positively.
They have satisfied shareholders because their share increased by 6%.
There has been a boost in the share market value, earning 37.2 pence from 1994 and 39.4 pence in 1998, which was a 6 % increase with in four years.
Cadbury has been having an increase in profit from 1994 to 1998. From 1994 to 1998 the profit has increased from ?575 million to ?609 million, an increase of 6 %.
These are recent statistics (1999-2000) for Cadbury and Schweppes, which still show that Cadbury and Schweppes is an ongoing successful business.
Cadburys Management by objectives
Management by objectives is a process of management that emphasises the role of leadership and communications in the organisation and control of the business. It is a method of managing managers rather than the workforce at large. This is how Cadbury is managed.
There are three basic elements in Management that Cadbury uses by objectives:
- The identification of agreed goals by a manager an a subordinate
- The definition of the subordinate's responsibilities in terms of agreed results
- The use of agreed goals and responsibilities to control the progress of the business
Advantages of Cadburys Management by objectives
1. People work better when they have a clear understanding of what they are expected to achieve and how their activities will contribute to the overall objectives of the business.
2. The process of deciding on objectives and responsibilities improves communication between manager and subordinate. By improving feedback it helps with future decision making.
3. It improves training by making managers aware of their own needs and the training needs of subordinates.
4. It provides opportunities for growth and development.
5. By setting identifiable, short-term targets it increase an individual's sense of achievement and provides opportunities for recognition
In Cadburys case, members of staff are the building blocks of organisations (Cadbury). They can be organised into working groups and given structures to operate within, but unless they have the motivation to work within those structures they will, either consciously or unconsciously, adapt to their own needs. It has been pointed out that business exists for, by and because of people (staff members). A person is more complex than the most sophisticated techniques and technology employed in the business world. Therefore Cadbury has to insure that its members of staff are motivated to work to their maximum ability, have a clear understanding of what they are expected to achieve and how their activities will contribute to the overall objectives of the business. Cadburys management style helps it to achieve its basic principles into their management style.
Organisational structure
Cadburys type of organisational structure is between hierarchical and flat structure.
Flat structure does not have many layers, which means 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.
Hierarchical structure is 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.
Cadbury organisation is based on more democratic. Decisions are made as a result of a consultation process involving various members of the organisation (Cadbury). Ideas would be discussed and thought through collectively.
Within Cadbury organisation we can find a Democratic structure, Because Cadbury tends to be found in situation were it is felt to be important for all members of the organisation to understand what they are doing, were decisions require individual initiative, and where member of staff need to work as a team
How management style, Culture and Organisational structure interrelate
Management style, culture and organisational structure interrelate together in Cadbury because they all work together to help the business to achieve its objectives; in order to lead a successful business.
Cadbury has strategies for the organisation, continually to motivate members of staff to support this process, and market change within the organisation.
Management style, culture and organisational structure interrelate together in Cadbury because they all work together to:
Quality
Quality refers to features of a product that allow it to meet customers expectations. A product is often refereed to as a good quality if it is "fit for purpose".
To ensure good quality, Cadbury requires:
ؠQuality raw materials
ؠQuality production process
ؠQuality design
Through these stages Cadbury adds value.
Cadbury uses many processes to achieve quality. It uses quality assurance, control and total quality management to make sure that its quality standards are met. All of these quality processes tie in together.
Quality assurance places great emphasis upon the seller to deliver goods of appropriate quality, so that the receiving organisation is saved the time and trouble resulting from defects.
Quality control is inspecting or testing the quality of the product at various points in the manufacture of a product or delivery of service.
Total quality management is a method of establishing production faults through a philosophy of continuos improvements in every process of planing, production and service.
In order for Cadbury to achieve quality assurance, it must achieve:
T Product perfection, It does this by taking samples from various batches of chocolate and analyses them, to find out if they meet quality standards. If they do not, the whole batch is brought back and not sold, it is further on analysed, in order to find the fault.
T Process quality, it does these by regularly checking that all the production processes (machines) are working efficiently.
In this stage Cadbury uses quality control by inspecting or testing the quality of the product at various points in the manufacture of a product or delivery of service.
T Human resource quality, Cadbury insures that it trains all of its staff to be aware of quality issues and to work towards quality improvements, (to give any suggestions for improvement, e.g. Curly Wurly example)
T Consumer satisfaction, Cadbury does this by get results from primary and secondary research. Before releasing a new chocolate to the market, Cadbury further on analyses its chocolate by getting numerical members of the public to set a process called testing, which is putting these members of the public in a room to eat the new chocolate. Then specialists analyse the members of the public's reaction to the chocolate and also the members of the public fill in a form, analysing the chocolate. Then these information's gathered are apart to sum a result, if the new chocolate will satisfy the consumers.
Cadbury using quality assurance and control covers the total management quality. Total, as involving everyone (members of staff) and all activities in Cadbury. Quality, as in meeting customers requirements. Management, as in quality is always managed continuously.
Every step that Cadbury takes for quality adds value top the product. If Cadbury never used any of these quality processes faults in the product will occur and will give the company
Benchmarking involves Cadbury to carry out research to discover the best methods of production and adopting them.
There are five main steps involved in the benchmarking process:
1. Identify the aspect of the production that are most important
2. Choose a business that is really good at it
3. Carry out research in to their practices
4. Work out how their practices can be used in Cadbury
5. Implement them
Cadbury manages to improve quality by benchmarking. Cadburys benchmarked walkers for the packaging. Cadbury used to package there chocolate in two layers, foil then paper. Now they package it in air tight foil packing. This is an advantage because it keeps the chocolate fresh, protects it dust and it keeps the flavour for a longer period of time. Plus using only one layer it is more money efficient and it means they are environmentally friendly because they don't use paper for packaging only cardboard boxes which the use to transport the products to customers (stores).
Quality circle is a group of employees who met together regularly to identify quality problems and come up with solutions.
Quality circle is workers who are involved in carrying day to day jobs. In Cadburys case, in chocolate manufacturing, employees working on the production line could be members of a quality circle
I would suggest the key to improving quality in Cadbury is to improve processes that define, produce and support products.
All people work in processes.
People
- Get processes "in control"
- Work with other employees and managers to identify process problems and eliminate them
- Managers and/or Supervisors Work on Processes
- Provide training and tool resources
- Measure and review process performance (metrics)
- Improve process performance with the help of those who use the process
The effects that that's these strategies will have on processes must be managed and improved! This involves:
- Defining the process
- Measuring process performance (metrics)
- Reviewing process performance
- Identifying process shortcomings
- Analysing process problems
- Making a process change
- Measuring the effects of the process change
- Communicating both ways between supervisor and user
TQM (Total Quality Management) Compared to ISO 9001
ISO 9000 is a Quality System Management Standard. TQM is a philosophy of perpetual improvement. The ISO Quality Standard sets in place a system to deploy policy and verifiable objectives. An ISO implementation is a basis for a Total Quality Management implementation. Where there is an ISO system, about 75 % of the steps are in place for TQM. The requirements for TQM can be considered ISO plus. Another aspect relating to the ISO Standard is that the proposed changes for the next revision will contain customer satisfaction and measurement requirements. In short, implementing TQM is being proactive concerning quality rather than reactive.
