Lau Hiu Fung
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Cadbury Schweppes– Understanding Organization ‐ Assignment Teesside University of UK Hong Kong Institute of Technology MAR1036-N Understanding Organizations Assessment Report LAU HIU FUNG Donald Lau 11830049 V8188813 MAR1036-N Understanding Organizations 1 Cadbury Schweppes– Understanding Organization ‐ Assignment Assessment Report TABLE OF CONTENTS INTRODUCTION ..................................................................................................................... 3 CHAPTER 1. ORGANIZATION ANALYSIS ....................................................................................... 4 Condensed Environment .............................................................................................. 4 Political ......................................................................................................................... 5 Economic ...................................................................................................................... 6 Social ............................................................................................................................ 7 Technological ................................................................................................................ 7 Legal ............................................................................................................................. 8 Ecological ..................................................................................................................... 9 2. CULTURAL DIFFERENCES IN MANAGEMENT ....................................................... 10 Implications of cultural change on Cadbury and Kraft ................................................ 11 Comparison of Kraft’s and Cadbury’s culture ............................................................. 12 Benefit of management in new organization .............................................................. 12 3. THE FACTORS HOW TO IMPLEMENT AND CULTURAL CHANGE ....................... 13 Strategy Plan and Implementation of change ....................................................... 13-14 Organizational structure ........................................................................................ 15-18 Strategic as practice ................................................................................................... 19 CONCLUSION AND RECOMMEDATIONS .......................................................................... 20 REFERENCE ........................................................................................................................ 21 APPENDIX ............................................................................................................................ 22 2 Cadbury Schweppes– Understanding Organization ‐ Assignment Introduction: Early history of Cadbury’s Quaker origins to Cadbury’s KraftHeinz since 1650. The company of Cadbury was founded by pacifist George Fox in 1650. In the past of Cadbury, formerly Cadbury's and Cadbury Schweppes, is a British multinational chocolate company. Since 2010, The Company of Kraft Foods Group, Inc. had purchased to Cadbury’s KraftHeinz. According to the original company of Kraft Foods Group which in turn was renamed Mondelez International. It is the second-largest chocolate brand in the world after Mars. Cadbury is Multinational Corporation in Uxbridge, West London, and operates in more than 50 countries worldwide. In the famous of product, its Dairy Milk chocolate, the Cream Egg and Roses selection box, and many other Chocolate products. One of the famous of British brands, in 2013 The Daily News named Cadbury among Britain's most successful exports. In the previous name of Quaker, this pioneers believed ‘your soul lived or perished according to its use of the gift of life. They inspired the ‘men of America’ such as Hershey and Mars. Quakers were banned from Oxford and Cambridge. Quakers were not allowed to join the armed services or to stand as members of Parliament. They turned to the world of business but within the Society of Friends strict guidelines. Quakers viewed themselves as principled capitalists in the society. Cadbury was developed in Birmingham of British in 1824, in this period of sold tea, coffee and drinking chocolate that is developed by John. His brother of Benjamin and his sons Richard and George they were developed in the business. One of his son, George developed the garden and village designed to provide the company's workers improved living conditions. Since 1905, they are designed the Daily Milk Chocolate and used a higher proportion of milk within the cuisine compared with competitor of products. Approached to1914, the chocolate was the corporation of excellent for selling in the product. Cadbury, combine with Rowntree's and Fry, were the Great three British chocolate manufacturers which were from beginning to end of the nineteenth and twentieth century. The Cadbury family built 300 houses for its workforce away from the Birmingham ‘slums’. They are Philanthropists which have the sense of civic duty. Philanthropists were guided by a sense of civic duty. Cadbury’s aimed to build a pleasant peaceful estate with a sense of belonging. They were provided the schools & leisure facilities. Also, they provide the class in the evening for men and women. Cadbury’s family which employed doctors and dentists to look after their families. They provided the external activity for country and 3 Cadbury Schweppes– Understanding Organization ‐ Assignment summer camp. They are made in the first of pension provision in the UK for employees. Recently, employees are still allowed the time of rest for community work and 80% of the workforces are active. Cha pter 1 Organization Analysis in Condensed Environment: We are analysis of organization in Cadbury Schweppes which divide into six criteria of concept to describe the business environment and process. The six criteria as shown below: There are differences to have political, economic, social, technological, legal, and ecological. A PESTLE analysis is a strategic business tool used by organizations to discover, evaluate, organize, and track macro-economic factors which can impact on their business now and in the future. The framework examines opportunities and threats due to Political, Economic, Social, and Technological, Ecological and Legal forces. Outputs from the analysis inform strategic planning processes and contribute to market research. It provides an overview of all the crucial external influences on the organization. 4 Cadbury Schweppes– Understanding Organization ‐ Assignment Political in the organization analysis: This is according to the political problem in the marketing of Cadbury Schweppes since 1915. Cadbury's Milk Tray was first produced in 1915 and continued in production throughout the remainder of the First World War. Within the period of the First World War, there have more than 2,000 of Cadbury's male employees joined the British Armed Forces, and to support the British war effort, Cadbury provided chocolate, books and clothing to the military troops. George Cadbury built up two company-owned buildings for use as hospitals – "The Beeches" and "Fircroft", and the management of both hospitals earned the War Office's highest award. Factory girls, dubbed 'The Cadbury Angels', volunteered to do the laundry of injured soldiers recovering in the hospitals. After the war, the Bournville factory was redeveloped and mass production began in earnest. In 1918, Cadbury opened their first overseas factory in Hobart, Tasmania. The parts of the Bournville factory were turned over to war work, producing milling machines and seats for British fighter aircraft. Workers ploughed football fields to plant crops. As chocolate was regarded as an essential food, it was placed under government supervision for the entire war. During the War, rationing of articles for daily use was enforced and raw materials were in short supply. Cadbury Dairy Milk came off the shelves in 1941 when the government banned manufacturers from using fresh milk. Instead there was Ration Chocolate, made with dried skimmed milk Post war product launches 1947 – Milk Tray bar is launched 1948 – Cadbury Fudge is launched 1955 – First TV ad is aired 1960 – Skippy is launched 1967 – Aztec Bar is launched 1967 – Toffee Buttons is launched 1969 – Cadbury merged with Swcheppes 1970 – Curly Wurly is launched 1971 – Old Jamaica is launched 1971 – Cadbury’s Crème Egg is launched 5 Cadbury Schweppes– Understanding Organization ‐ Assignment Economic in the organization analysis: The external environment of economic in which is being the factors of the marketing change in environment. The factors that influence the consumers buying power and marketing strategies. This can consider and monitor by four criteria which can influence the economic. The four criteria consist of inflation, deflation, unemployment and income. There are more important reasons affecting the economic, such as discretionary income and resource availability. Since 2010, it had greater expansion of business after the purchased of Cadbury by Kraft co. The growth of business in economic is influenced by external environment of condensed conditions. When there have no geographical boundaries in business development, it cans growth and expansion of differences cultural in involving that multinational management. There are stages of business cycle which can influence the marketing of Cadbury. A business cycle is a cycle of fluctuation in the Gross Domestic Product (GDP)