Name: CATTLEYA T.

PEÑALOSA
Subject: PA 205/211 ORGANIZATION AND MANAGEMENT

Case Study 1
1. What are the facts of the case?
In 2001, the Food and Drug Administration created a standard for chocolate manufacturers who can prove that their
products were produced without child labor to label their chocolates with “slave-labor free”. The FDA gave the industry
four years to comply. However, the deadline was repeatedly extended. Cadbury, a renowned chocolate company, was
significantly affected being highly associated with the chocolate industry.

2. What are the issues?

The main issue of the case study is the child slave labor that is being used in the production process of the chocolate.
To eradicate this problem, the following underlying issues arises for the chocolate industry: (1) It is difficult and
impractical to track farms where child slave labor is being used; (2) Farm rate should be increased to hire appropriate
employees for the job; and (3) Child slave labor helps farms generate more profit.

3. As a manager, what are your recommendations to resolve the issues?

The fast and easy way to resolve the issue is to secure supplies from farms certified by organizations such as Fairtrade
International which prohibits child labor. To support this action, I can also recommend for Cadbury to collaborate closely
with vendors and the government to ensure no slavery or child labor is used during production process. The Cadbury
can also form an independent group that will monitor and verify the supply chain.

4. Give your conclusions applying theories, concepts and principles of Organization and Management.
The problem in the Cadbury crisis stemmed with poor leadership and communication and the management’s resistance
to change. For any organization to thrive, it is important to keep up with the trend. The public is evolving towards a
freer society where child slave labor or any kind of slavery is negatively viewed upon. Image is highly important today
since the social media and various online platforms play a huge role in the marketing sphere and can make or break a
company.
To deal with this generation, the contingency or situational approach to management which embodies the concept of
continuous change where there is no textbook rule to manage an organization and where managers tend to be flexible
when choosing strategies and adapting to new demands is the best approach.