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ACKNOWLEDGEMENT
Presentation, inspiration and motivation have always played a key role in the success
of any venture.

The success and final outcome of this project required a lot of guidance and
assistance from the whole team and we are extremely privileged to have got this all
along the completion of our project. All that we have done is only due to such
supervision and assistance and we would not forget to thank our professor.
We respect and thank Dr. Doel Mukherjee[Strategic Management], for providing us
an opportunity to do the project work on Functions of Management and giving us all
support and guidance which made us complete the project duly. We are extremely
thankful to him for providing such a nice support and guidance, although he had busy
schedule managing several classes.

We owe our deep gratitude to our mentor Prof. Ribhu Ray for his encouragement and
more over for his timely support and guidance till the completion of our project work.

We are thankful to and fortunate enough to get constant encouragement, support and
guidance from all Teaching staffs of BBA Department which helped us in
successfully completing our project work.

Lastly, we would like to thank each other for being kind, co-operative and
understanding throughout. Not to forget mentioning our parents who pledged to
provide us the best life and support. Therefore, we express our gratitude to them.

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 INDEX

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 CADBURY

Organizational Structure of Cadbury

In 1866 when the brothers introduced the process of pressing the cocoa butter out of
the cocoa beans. The benefits for the Cadbury brothers was that they could use the
butter to make different types of eating chocolate the first of which was the Cadburys
dairy milk.
A description of Cadbury’s and their aims and objectives Cadbury is an international
company that makes market and sells unique brands chocolate. Cadbury have done
this successfully for over 200 years. The reason they are so successful is because they
have a clear understanding of the needs of their consumers, customers and other
stakeholders. Dunedin is a major centre for Cadbury Schweppes in the region, with
the site playing host to ‘Cadbury World’ and being a major production and
distribution centre.

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 Internal Environment:

Financial analysis-

Cadbury has invested NZ$69 million to turn Dunedin into a specialist factory and
secure manufacturing and jobs in New Zealand. Cadbury Confectionery today
confirmed that the restructuring of its New Zealand and Australian manufacturing
operations into specialized Centers of Manufacturing Excellence is in its final stage.
The project, originally announced back in September 2007 (with a further
communication in August 2008) has already seen investment of $NZ69 million to
improve the productivity, and secure the long-term future, of its New Zealand
manufacturing operations.

Internal organization and structure

Cadbury organization is based on a democratic. Management style decisions are

made as a result of a consultation process involving various members of the
organization (Cadbury). Cadbury Schweppes also have two different structures. The
structure that they use for their board of directors has been re-designed to “clarify
accountability and enable swifter diction-making.” Looking at the improved
organization structure it is clear to see who is in charge of which departments within
the business.

Departments

Inside a business there are many different functional departments all created to help
the company in its organizational methods. There are many different departments
involved with Cadbury’s, as there are in any business all used for different functions.
These are:
• Marketing and Sales
• Finance
• Administration and IT support
• Operations
• Research and Development
• Production
• Customer Services
• Human Resources

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Many of these all blend in together on the area of their focus but still all play an
important part in the running of the business. The three departments that I will be
focusing on are marketing and Sales, Operations and Administration and IT support.

Human Resource

Each of Cadbury factories have a HR department, which deal with the factories
demand for:
1. New staff with a good skill level or possible past factory experience.
2. Train new/current staff to be able to use new equipment correctly and efficiently.
3. Help current employees with any problems they may have in their work place.

Management

Cadbury’s management style is democratic. This is when all members of staff work
together as a team. The managers listen to the other employee’s ideas and suggestions
before they go ahead with decisions. If ideas are found to be achievable and
successful by the senior group, then it is taken forward. Then as a team they reach a
decision. The approach of this style is that they care and listen to everyone in the
teams view and what they think not just their own. This style can be used in both
large and small groups. It would work well in large motivated groups because they
can come to a decision a lot quicker, but in a smaller group they can fail with coming
up with a decision amongst themselves and will need real guidance and direction. If a
decision cannot be made then a vote will take place and the outcome will be the one
with the most votes. This management style is good for Cadbury because it motivates
workers; with having power and decision-making and through this it allows them to
be involved in the business.

Research and Development

The Science & Product Development teams significantly influence the development
of strategic plans and initiatives, leading cross functional teams to resolve technical
and business challenges. They are relentless champions of continuous improvement,
identifying new programs and insights to benefit the business, significantly
contributing and influencing the direction of strategic initiatives to leverage us to a
sustainable competitive advantage.

Marketing Function

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Cadbury believes that parents and guardians are the most important influence in the
development of children. They do not advertise where children under the age of eight
years are likely to be the majority of the audience. They also do not believe that it’s
appropriate to sell our confectionery products through vending machines in primary
schools and we will not do so. Cadbury will only provide vending machines in
secondary schools when we’re asked to do so by the education or school authority,
and when the products meet nutritional guidelines set by the authority. Cadbury
organization is proud of its brands. They provide fun and enjoyment as treats or
refreshment, and are valued for their functional benefits. They can be enjoyed as part
of a balanced diet and lifestyle. They provide choice by offering variety and through
innovation and encourage responsible consumption, as this is central to consumers
continuing to enjoy our brands.

Location

Cadbury is a brand with a long history in New Zealand. Cadbury is a confectionery

company owned by Kraft Foods and is the industry’s second-largest globally after
Mars, Incorporated. Headquartered London, United Kingdom, the company operates
in more than 50 countries worldwide. It has main branches in Australia, England,
New Zealand and South Africa. In New Zealand the main factory is in Dunedin.

External Environment:

Demography

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Demography is the main thing if someone is selling the products. Cadbury, from his
very beginning, has a same focus on his demography factors. Cadbury focuses on all
the people whether it’s a child, youngsters, teenagers or oldies. The story starts with
“Once upon a time in 1948” when Cadbury entered the Indian market. It originated
from a town in the United Kingdom, Bourneville in 1905.
As the Cadbury’s official web site suggests, its journey in India has been an eventful
one. In the early 1990s, it tried to cater to the sweet tooth of the children. Those days
they steered the market and took control over the company’s major market share.
However, the strategy changed by letting out the secret that “Everyone has a child
inside “and thus everyone craves for the taste of chocolate. Cadbury strategies went
through a considerable change. It now catered from children to adults. There is some
differentiation targeting as a variety of Cadbury products are available to cater for the
individual needs of different groups of customers. But nowadays the people are
suffering with diabetes. So the diabetic segment people started use of less chocolate
or sugar free thing.
Diabetes: Diabetes occurs when there is too much glucose (sugar) in the blood. Over
time, this can cause damage too many parts of the body. Diabetes is common – about
170,000 people in New Zealand have diabetes and rising rapidly as more of us are
getting fatter.
Based on the ‘most likely’ future scenario, the diabetes epidemic is forecast to grow
rapidly over the 15 years from 1996 to 2011.

Economics

Cadbury Dairy Milk chocolate is the leader chocolate in overall New Zealand. It will
now include Fair trade Certified products in its range. Cadbury Dairy Milk chocolate
products becoming Fair trade Certified will increase Fair trade chocolate sales 20
fold, and double last year’s total sales of Fair trade Certified products in New Zealand
and Australia. The scale of Cadbury Dairy Milk chocolate going Fair trade is massive
with more than 5.7 million Fair trade Certified Cadbury Dairy Milk chocolate blocks
in New Zealand and estimated 350 million Fair trade Certified Cadbury Dairy Milk
chocolate blocks globally in 2010. The move is the result of nearly two years of work
with Cadbury’s Fair trade partners globally. It follows more than 100 years of
pioneering ethical chocolate production, including the ground-breaking Cadbury
Cocoa Partnership where Cadbury is providing NZ$120 million over 10 years to
improve the lives of cocoa farmers. Cadbury has invested NZ$69 million to turn
Dunedin into a specialist factory and secure manufacturing and jobs in New Zealand.
In the wake of rising operating and ingredient costs, Cadbury is reducing
manufacturing costs so its products remain affordable at the checkout. The Dunedin
upgrade into a world class specialist manufacturing facility is almost complete and it
will make iconic products such as Cadbury Jaffas, Pascall Pineapple Lumps, Cadbury
Chocolate Fish, Cadbury Pinky, and boxed chocolates for Australia and New Zealand
as well as chocolate crumb, the base ingredient in Cadbury Dairy Milk chocolate.
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Cadbury Confectionery today confirmed that the restructuring of its New Zealand and
Australian manufacturing operations into specialized Centers of Manufacturing
Excellence is in its final stage. The project, originally announced back in September
2007 (with a further communication in August 2008) has already seen investment of
$NZ69 million to improve the productivity, and secure the long-term future, of its
New Zealand manufacturing operations.

Political and legal

Cadbury food labelling laws are very precise about what can and cannot be called
chocolate.
Chocolate is any product made from cocoa nibs, cocoa mass, cocoa, fat-reduced
cocoa or any combination of two or more of these ingredients, with or without
extracted cocoa butter and sucrose.
Dark Chocolate must not contain less than 35% total dry cocoa solids, of which at
least 14% must be dry non-fat cocoa solids.
Milk chocolate must either be 20:20, with a minimum of 20% dry cocoa solids (of
which 2.5% non-fat cocoa solids) and a minimum of 20% milk solids (minimum 5%
milk fat). Dairy Milk is this type of milk chocolate.14:25, with a minimum of 25%
dry cocoa solids (of which 2.5% non-fat cocoa solids) and a minimum of 14% milk
solids (minimum 3.5% milk fat). This type of milk chocolate can be called “European
or coating chocolate”.
The Food Standards Agency is responsible for checking that the law is upheld on the
safety of materials that come into contact with food (e.g. food processing machinery
and packaging) and food labelling. Labels must contain certain information, e.g. the
product’s name, the company’s name, a list of ingredients, special storage
instructions). Companies have to make sure they know what the law is and that they
conform to it. Two important laws are:
Food Safety Act, 1990 Sale and Supply of Goods Act, 1994
Covers four main areas: Goods must:
1. Labelling 1. Be of a satisfactory quality
2. Additives 2. Fit the description given
3. Composition (or content). Be fit for their purpose as made known to the seller.
4. Public health and hygiene.

Social and culture

The culture of Cadburys started out being paternalistic as the company was devoted
to making its employees feel welcome and valued within the company. Cadburys
relied on its staff very heavily as without a vast employee base the company would
not be the big corporation it is today. Cadburys built their famous Bourneville site
along with accommodation for gaining the attractions of an employee so the
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workforce would be close to their place of business. Along with this the factory was
built in the middle of a garden so when employees had finished work or were on a
break they had somewhere to relax as well as socialize with other colleges on a
Sunday as the factory was closed.
Today Cadburys have become a company who has a culture, which is interested in
keeping its stakeholders happy. Along with this and the advancement in technology
Cadburys have now lost its broad employee range and replaced it with machines and
now only employ enough staff to keep the machines going. By being stakeholder
driven the company has now become controlled by shareholders who are mainly
interested in the company making a profit.

Technology

The special taste and texture of Cadbury chocolate is based on long traditions of
expertise in chocolate recipe and processing methods unique to Cadbury. In this
competitive era and due to advancement in science, technologies are improving and
getting more reliable for the people and new technology enables the process to be
highly tuned to consumer’s evolving tastes and preferences. Chocolate production is
a highly sophisticated, computer controlled process, with much of the new specialist
technology and machinery being produced to Cadbury’s own design and
specification.
The Dunedin facility employs over 700 personnel and produces in excess of 5,000t of
chocolate crumb every year as well as finished products. (Cadbury, 2012). The
factory is the largest chocolate manufacturing plant in New Zealand. It supplies
finished products for the domestic markets in New Zealand and Australia and, in
addition, exports chocolate crumb to Cadbury finishing plants in Australia, Pakistan
and China. Dunedin in New Zealand was chosen by Cadbury because of its excellent
infrastructure and a plentiful supply of rich milk for chocolate production. Chocolate
crumb is a commodity that is in demand globally as the consumption of chocolate per
capita worldwide increases to record levels.

Economy

In December 2006 Cadbury Schweppes, the well-known confectionery manufacturer,

announced the expansion of its operation in New Zealand on the South Island in the
city of Dunedin. The expansion project required a total investment of NZ$69m. In
August 2008, an additional investment was announced taking the total amount of
investment in the project to NZ$69m. Part of the investment was contributed through
the Investment New Zealand Strategic Investment Fund. This amount was around
NZ$2m and was granted ostensibly for Cadbury to establish an international
chocolate crumb research and product development center at the Dunedin site.
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Cadbury contributed a further NZ$17.5m for new buildings, plant and environmental
work. The company provided a further NZ$500,000 for the R&D center. Contractors
working for Cadbury Schweppes included Production Logistics NZ for control
system integration and software development for the manufacturing control systems.
Streak Automation has also worked on the Pack100 Wrapper Automation upgrade
that involved the redesign and upgrade of the PLC and servo controls and mechanics
for the high-speed wrapping machine, which wraps all of the small-size chocolate at
the site. Finally, the manufacturing areas (surfaces, pipes, machinery and ceilings) at
Dunedin use a special paint with low volatiles to avoid tainting the products.

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 BALANCE SHEET OF CADBURY as on….
Particulars 2021 2020 2019 2018 2017

Total
30,635.5 20,383.8 15,174.0 14,029.1 14,240.3
Current
Assets 8 6 4 2 6

43,688.2 33,210.6 28,801.9 27,528.0 28,423.1

Total Assets
9 8 4 4 2

Total
22,024.7 14,474.6 10,085.4 12,529.5
Current 9,901.39
Liabilities 1 9 0 9

Total 30,051.9 19,661.1 15,235.7 14,851.8 16,680.3

Liabilities 4 6 0 9 3

13,636.3 13,549.5 13,566.2 12,676.1 11,742.7

Total Equity
5 2 4 5 9

Total
Liabilities & 43,688.2 33,210.6 28,801.9 27,528.0 28,423.1
Shareholder 9 8 4 4 2
s' Equity

Total
Common
Shares
1,878.20 1,878.20 1,878.20 1,878.20 1,878.20
Outstanding

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 The resource-based view of the firm
The resource-based view [RBV] is a strategic management tool and
framework that is used by companies and organizations to identify and exploit
the resources available strategically so as to create a sustainable competitive
advantage for the organization in the long run. The RBV framework is based
on assessing and identifying resources that will prove to add competitiveness
to an organization, and aligning them strategically.

The RBV Model of Cadbury is as follows:-

Land
The land is a tangible resource for Cadbury Schweppes Capturing
Confectionery C Spanish Version which includes all spaces owned and
rented by the company for purposes of hosting production units as well as for
warehousing purposes. Additionally, all units owned or rented by the
company for purposes of packaging are also included to be tangible
resources under the land.

Equipment
For Cadbury Schweppes Capturing Confectionery C Spanish Version,
equipment is also a tangible resource that includes all the equipment owned
by the company for purposes of production and packaging, as well as other
operational purposes. In this manner, all technological advancements, and
technological integration for improving processes and operations may also be
seen as an extension of equipment that the company employs to enhance its
product line, and incorporate economies of scale.

Materials
Materials include all the raw materials and other packaging materials that
Cadbury Schweppes Capturing Confectionery C Spanish Version uses for the
successful production and packaging of its products. The materials are
tangible in nature, and may also easily be accessed by the competitor players
for their own production processes and other purposes.

Supplies
Cadbury Schweppes Capturing Confectionery C Spanish Version, supplies is
also a tangible resource and include all materials and products that are used
and needed for supporting the packaging and production functions of the
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company. Supplies also include all products and supporting materials that are
needed by other functions in the Cadbury Schweppes Capturing
Confectionery C Spanish Version for the successful attainment of business
goals and targets.

Facilities
Facilities are also a tangible resource that is visibly identifiable by competing
players with respect to Cadbury Schweppes Capturing Confectionery C
Spanish Version. The facilities include all the production units, warehouses,
offices and supporting buildings and functions for the company which help it
in streamlining its processes and operations, and also lead to successful
performance. Facilities also include the interior design and interiors of
buildings at Cadbury Schweppes Capturing Confectionery C Spanish Version
– designed for optimising performance and maintaining brand image.
Infrastructure
This includes all the land and facilities in terms of technology, buildings, office
materials and maintenance, and allocation of power resources such as
electricity to its plants by Cadbury Schweppes Capturing Confectionery C
Spanish Version. The infrastructural buildup is an important resource for the
company for ensuring high performance, and ease of operations for the
company. However, like other tangible resources, it may be accessed easily
by competing players – who may develop similar resources for their own
products and functions in the future. 

Intangible resources
Intangible resources refer to those resources that have no physical value but
are still owned and possessed by organizations such as Cadbury Schweppes
Capturing Confectionery C Spanish Version. Competing players are more
than often unable to purchase, or acquire the intangible resources available
to Cadbury Schweppes Capturing Confectionery C Spanish Version because
of associated factors and aspects of historical uniqueness, causal ambiguity,
and social complexity. Intangible resources are largely inimitable and likely to
stay within the organization over the long run as well, and thus form the basis
of competitive advantage for Cadbury Schweppes Capturing Confectionery C
Spanish Version. The intangible resources for Cadbury Schweppes Capturing
Confectionery C Spanish Version are also seen to be a 9source of the firm’s
success because they are not easily replicated in factor markets by
competing players. For Cadbury Schweppes Capturing Confectionery C
Spanish Version, some intangible resources include, for example: 

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Brand reputation
Brand reputation for Cadbury Schweppes Capturing Confectionery C Spanish
Version is built over historical uniqueness where the brand has worked hard
to provide high-quality products and earn consumer trust over decades. The
company’s brand reputation – based on its organizational culture and unique
relation with customers –can not be imitated by the competitors, and may
become a source of competitive advantage.

Intellectual property
Cadbury Schweppes Capturing Confectionery C Spanish Version’s
production processes and its product uniqueness is safeguarded by
intellectual property rights which prevent other competing players from
copying or having access to its unique product blend, and product ingredients
and inputs. This ensures novelty to Cadbury Schweppes Capturing
Confectionery C Spanish Version and makes its products inimitable for
competing players.

Patents and Copyright

Cadbury Schweppes Capturing Confectionery C Spanish Version enjoys
patents and copyrights not only for its production processes and product
composition but also for research and development activities that it
undertakes for product improvement and enhancement. These patents and
copyrights protect Cadbury Schweppes Capturing Confectionery C Spanish
Version against potential encroachments or imitation.

Goodwill
The goodwill for Cadbury Schweppes Capturing Confectionery C Spanish
Version is again developed through historical uniqueness where the brand’s
reputation and customer experience have allowed the development of long-
standing goodwill for the company. This, In turn, has enhanced the overall
brand equity for Cadbury Schweppes Capturing Confectionery C Spanish
Version. The goodwill for the company has developed over a long period of
time through continuous hard work by the Cadbury Schweppes Capturing
Confectionery C Spanish Version brand, and cannot be copied by the
competing players.

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Trade names
The trade name is also an intangible resource for the company as other
players cannot adopt or imitate this name. The trade name is recognizable by
the customers, and provide instant recognition for the company across
borders. The trade name also communicates the brand promise and values to
customers globally and is a source of competitive advantage for the
company.

PESTEL analysis
PESTLE Analysis of Cadbury analyses the brand on its business tactics.
Cadbury PESTLE Analysis examines the various external factors like political,

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economic, social, technological (PEST) which impacts its business along with
legal & environmental factors. The PESTLE Analysis highlights the different
extrinsic scenarios which impact the business of the brand.

Political Factors:
The political factors in the Cadbury PESTLE Analysis can be explained as
follows:
Cadbury being an international company has wide-scale operations across
the country. Approximately 75% of its business is outside of the United States
with a strong presence in emerging markets, which come up to approximately
37% of their entire sales. As a result of such a wide scale of operations,
various compliances outside of the US for Cadbury also affect the company
such as the Foreign Corrupt Practices act. A recent example is the trade war
between China and the US that has affected the sale of the commodity in the
Chinese markets. With changes in tax regulations and policies in India,
Mondelez expects to increase sales and profitability. But the changes in taxes
may not be favourable always, they may have negative effects also. With no
Brexit in place, Cadbury had increased its resources and warehousing
facilities in the first quarter of the year, owing to the deadline of March 2019.
These increased sourcing plans are now seen as a negative, which may
affect the further pricing and sourcing of the company. The exact effect on the
Cadbury’s supply chain is yet not exact, but will surely have a major impact.
Compliance with the various Labour laws is another factor that needs to be
weighed in for smooth operations. The new law proposed by the President in
the United States called the United States /Mexico /Canada Trade Agreement
(USMCA), Is further expected to create a period of tension for the company.

Economic Factors:
Below are the economic factors in the PESTLE Analysis of Cadbury:
Any event that causes a currency devaluation or fluctuation in the currency
values, especially in the developing markets such as, Argentina, Brazil,
Mexico, Russia, South Africa, etc. affect the sales and revenue generated by
the company. The events that cause these fluctuations may be a period of
inflation, as in Argentina 2018, and can affect Cadbury’s business. Further a
change in the capital controls, government currency policies such as
demonetisation in India, or others, increase the restrictions to the trade of raw
materials or finished products to and from different countries. With the
disposable incomes decreasing and the cost of consumer goods increasing,
the sales might see a dip if the product's value is not synonymous with the

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needs of the consumer. This cost-conscious environment has led Mondelez &
Cadbury to focus on newer recipes, and smaller products to address rising
production and ingredient costs

Social Factors:
Following are the social factors impacting Cadbury PESTLE Analysis:
As Mondelez says ‘it begins with the consumer’ for them. With the world
moving towards a well-balanced and healthy life, people across the world
have become conscious about what they eat. The preferences have been
evolving at a much faster rate, with consumers demanding a more holistic
meal than just fast food or a snacking item. With this thought in mind,
Mondelez, the parent company of Cadbury has launched the concept of well-
being foods. The underlying idea is to help people enjoy their snacks &
Cadbury chocolates without guilt, and help them stay healthy. The future
targets set by the company to help people stay healthy to include expanding
the 10 existing well-being brands in their portfolio and achieve the goal of
doubling the growth as compared to the base rate. They also wish to
renovate and improve the nutrition and ingredients in their biggest-selling
brands and continue to inspire consumers to snack mindfully. Growing health
concerns have also prompted Cadbury to produce smaller bars and also
reduce the amount of sugar. By undertaking these steps, Cadbury has
ensured to reduce the cost of future lawsuits that may happen as a result of
producing health food items.

Technological Factors:
The technological factors in the PESTLE Analysis of Cadbury are mentioned
below:
The continuous improvement in technologies employed has enhanced the
quality of the product served by Cadbury. These developments like the
orange twirl launched in the UK, are a result of a continuous research and
development process. The new technology implemented in the manufacturing
of the goods has helped reduce the cost production and maintain the prices
by canceling out the effect of the rising cost of raw materials. Cadbury uses
social media, such as Facebook, as a form of connecting and communicating
with its customers. This helps reinstate the relationship between the
organisation and its customers by increasing the awareness of its products.
With increasing craze for AI, the company has a good prospect of venturing in
this segment. This would help enhance its brand value, and also provide it
with a competitive edge over the others in the market. The use of AI will also
help it to increase its interaction with the customer, thus increasing its brand
value.
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Legal Factors:
Following are the legal factors in the Cadbury PESTLE Analysis:
With many small local brands trying to use the logos and symbols of the
company to sell their local products illegally, it becomes very important for
Cadbury’s to maintain stringent and agile regulations for infringement of
copyright and intellectual property rights. The legal laws across various
countries require the producer to display contents on the package of the
product. These rules keep changing and are different across the various
regions. They are considered more serious issues in European countries as
compared to countries like India or Africa. Keeping a tab on these changing
regulations is a must for the company to function smoothly and efficiently.
Concerns regarding obesity may further increase the stringency of the laws
relating to sugar tax, especially in the UK. While Cadbury wishes to further
expand into newer regions, it needs to keep a tab of all the patents and laws
that already exist in that particular region. When a new plant is to be
established the various environmental, employment and manufacturing laws
need to be complied with by the company. The one advantage that Cadbury
has, is the brand name that makes it easier for the country to accept it.

Environmental Factors:
In the Cadbury PESTLE Analysis, the environmental elements affecting its
business are as below:
Cadbury believes in staying at the forefront to fight against the changing
climate. With regulations set by the UN enforcing laws for companies around
the world to reduce the carbon footprint, Cadbury has a good opportunity to
work towards reducing the CO2 emitted through its operations, and also to
plan out their sustainability activities accordingly to achieve their global
targets on time. This can be done through upgrading its sourcing to a more
sustainable one and educating the farmers and its other raw material
suppliers about the climate changes and encouraging them to become more
productive in an environment-friendly manner. Through its cocoa life program,
Cadbury is working towards helping the farmers across the world gain a
better perspective at environmental friendly cocoa farming. With its harmony
wheat project working towards reducing the pesticides by 20%, the company
wishes to source 100% of its wheat from such fields by 2025. The company
has also undertaken to maintain 100% RSPO palm oil, traceable to mill from
suppliers. Procurement of 100% cage-free eggs by 2025 is another goal that
has been set by the company. Ahead of times, Cadbury is trying to make a
difference to the environment through its various activities.

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To conclude, the above Cadbury PESTLE Analysis highlights the various
elements which impact its business performance.

PORTER’S FIVE FORCE MODEL FOR CADBURY

Five Forces model of Porter is a strategy tool that is used to make an analysis of the
attractiveness of an industry structure. The Competitive Forces analysis is made by the
identification of 5 fundamental competitive forces:

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Entry of competitors
The entry of competitors will be difficult because there are already well established
companies within this market these include, mars, nestle, Ferrero, Kraft, Hershey’s and
Lindt. These companies dominate the confectionary market with their own particular types
of chocolates. This makes the barrier for entry very hard for another new company to start
Cadbury’s competitors have the power to attract and influence the customers by more
attractive substitute, prices and marketing techniques.

Threat of substitutes
The main threat of substitutes which Cadbury’s and any other confectionary brand is the
supermarket own brands this is because they tend to copycat popular chocolates for
example nestle Kit Kat and provide their own brand on the shelves at a cheaper price.
Moreover, the only hindrance that might affect the production of Cadbury is to find a good
location and gather the requirements for the smooth entry and the foreign policy that might
affect its operation.

Bargaining power of buyers

For Cadbury’s they have a large buying power being one of the largest confectionary
producers in the world, but this may be threatened due to the June 2006 recall of
chocolate bars which contained salmonella this has been said to affect Cadbury’s and
should lose some of their buying power. However Cadbury’s buyers are scattered all
around the world and they are in billions. The price subjectivity of the products is not a
question for the people but the increasing number of competitors that offers the same type
of products at a lower cost might be the cause of customer loyalty alteration. Thus
Cadbury has to be very precautious in deciding about prices and keep the customers
satisfied.

Bargaining power of suppliers

Cadbury prides itself on creating and maintaining positive relationships with its suppliers all
over the world. It has a large purchasing power and the suppliers of agricultural
commodities offer a product that is far from unique and hence Cadbury has higher
bargaining power than its suppliers as the industry relies heavily on a complex agro
business supply chain. Although there is an existing competition, raw materials like nuts,
milk, cocoa or special ingredients are sufficient enough to satisfy Cadbury’s production.
Cadbury’s have the main power over its suppliers because they are so large companies
supplying them need their business so Cadbury’s  can use economies of scale and buy
there raw materials for cheaper and more in bulk than a medium sized business could.

Rivalry among the existing players

Many businesses are competing against Cadbury and planning to take over the
supremacy the company has for several years. Several competitors are continuously
developing their products and innovating ideas to make competing even harder.
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Companies such as Nestle, Hershey’s, Ferrero etc. are Cadbury’s main rivals because
they are also long established confectionary brands and like Cadbury are developing new
ranges of products new promotions. Rivalry will always be strong among these companies
because they sell from the same types of stores and their products are similar in some
respects.

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 CONCLUSION

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