Cadbury Schweppes

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Cadbury Schweppes

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Abstract

Cadbury Schweppes is one of the world's largest beverage and confectionery company, with over 50 different brands, manufacturing plants in 25 countries, sales in a further 165 and a market extension that covers countries all over the world, such as Australia, New Zealand, Canada, Malaysia, India, Indonesia, Japan, several countries in Africa and the USA. The company is a result of a successful merger in 1969 of two big British household names.
Historical background has been an important basic element for the development of the enterprise and has influenced significantly the strategic management philosophy and the company's values after the merger. Indeed Cadbury itself claims "we are proud of our heritage, whose origins go back more than 200 years and... our purpose and values capture the heritage of our past recognizing at the same time the demands of the future". Therefore the first part of our case study will be an analysis of the company's history, focusing particularly on the comparison between "Cadbury" (before 1969) and "Cadbury Schweppes".

Introduction.
Historical background: The Impact of values, management strategies and governmental regulations on business success.
1. The values: The past and today.
2. From 'Scientific Management' to 'Management for Values'.
3. The role of national and European Governments in the company's development.
The current business environment of Cadbury Schweppes.
1. The suppliers of Cadbury Schweppes.
2. The consumers of Cadbury Schweppes.
3. The fast-moving and highly competitive environment of the consumer goods industry.
4. Low threat of new entrants but certain risk factor in the evolution of the business.
The expansion options opened to Cadbury Schweppes.
1. Market penetration.
2. Product development.
3. Market development.
4. Diversification.
Which strategy Cadbury Schweppes should choose?
1. Market penetration.
2. Product development.
3. Market development.
4. Diversification.
Conclusion.
Appendix.
Bibliography.

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[...] The first one is Wrigley (36 and the second one is Cadbury Schweppes (26 The reason explaining this significant position of Cadbury Schweppes is its strong market shares in the Americas, some parts of continental Europe, Japan and Thailand. Logically, it seems necessary not to forget to deal with the soft drinks industry, in which Cadbury Schweppes operates. It includes certain brand owners acting as licensors of branded product. This is for example Dr Pepper and Seven up, which made the company the third largest carbonate soft drinks group by sales volume in the United States. [...]

[...] First, a desk-based review allows Cadbury Schweppes to decide which site would benefit from a visit and what aspects of ethical trading to concentrate on. Second, a site-based assessment is a kind of expertise of suppliers as regards country understanding, experience and auditing process in human rights and ethical trading. Third, there is a verification of their supplier assessment procedure made by an independent verifier. Besides, Cadbury Schweppes categorises its suppliers into three levels according to country risk and the importance of the product concerned. [...]

[...] Furthermore, confectionery and beverages are fields in which novelty is a key feature for a company to develop its brand image, as well as to appeal competitors' customers and thus to remain competitive.[35] As a result, product development may be the main strategy Cadbury Schweppes should follow to augment its market shares, all the more as the firm has recently decided to refocus its activities on its core business, confectionery.[36] Market Development One the one hand, market development can consist in targeting new market segments, which for Cadbury Schweppes mainly means finding new categories of consumers that would buy its products, or developing new ways to use its products. [...]

[...] Now, Cadbury Schweppes has a specific S&T (Science and Technology) division, the science and innovation agendas and short and long term globally applicable development programs for each business region. The company's global science centre is organized in three big technology platforms representing the primary research fields: ingredients and taste, process and product forms, and nutritional science. Especially the last one could be critical for the company's future business. Indeed, during the latest years Cadbury Schweppes has been seen to increase significantly its investments into development of new healthier products, or renovating the existing ones with an increasing use of natural ingredients, lower calories and new sweetener options, in order to meet in time consumers' changing needs. [...]

[...] Planners of Cadbury Schweppes could thus try to find what is going to happen in the environment of the company in order to use these forecasts to benefit from the environment evolutions and/or find a solution before they affect the firm. There are two kinds of events: the foreseeable events and the unforeseeable ones. Some businessmen do not consider the second group of events, because for them it is not “worthwhile”.[30] Then, there are three different ways of diversification that Cadbury Schweppes could use: vertical, horizontal and lateral. [...]

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