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Cadbury Schweppes Company’s Management Practices Essay

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Updated: Jan 24th, 2022

Introduction

Initially, Cadbury and Schweppes were two independent companies. The latter was a dairy products’ manufacturer while the former specialized in beverages. Each of them was a large company with a major influence in its country’s economy. Wiggins adds “Cadbury was number three in the global soft drinks market” (n. p). The giant company offers job opportunities to the immediate community.

Amalgamation between Cadbury and Schweppes

The two companies decided to form a cartel in the wake of 1969. The managements from the two companies believed that the merger would secure a larger market share. Schweppes’ Watkinson become the head while Cadbury’s Adrian became the deputy head. The amalgamation opened a new chapter in the existence of the two companies. The merger grew rapidly to become a multi-national corporation in the major world economies such the United States of America and England. However, they had to cut off their links with close partners.

The merger expanded and nine years later; it purchased Peter Paul; one of the biggest chocolate producers in the United States of America. Additionally, it bought Snapple drinks (Hays, n. p). The expansion is attributed to its strong purchasing power. In the early 1981, the company entered the consumer market in England and expanded to all its regions within three years. The company reaped significantly in Britain as compared to United Kingdom. In the first quarter of 1995, Cadbury Schweppes purchased Dr Pepper/Seven Up, Inc. The move propelled it to become a large beverage producer, second of Cola.

Cadbury Schweppes Management Practices

Cadbury Schweppes believes in a cohesive management system. First, it conforms to all the legal requirements. It prepares financial statements such as the balance sheet, profit and loss account. The statements provide a rough picture of the company’s status and other datum that interests financial analysts and shareholders. The company values proper communication. Communication is an important aspect of management because it helps a firm acquire information regarding the company’s image in the public. Moreover, it allows the customers reach the company to order products or make suggestions. Therefore, Cadbury Schweppes values communication owing to its accessible communication channels.

Monetary Goals

Every company has a set of goals it aims to achieve by the end of a trading period and Cadbury Schweppes is no exception. It engages employees to help them understand the company’s goals. It aims at increasing its returns on investment through increasing the sales volume. Other methods that may help it attain its financial goals include increasing its market share through aggressive marketing campaigns.

Manner of Operations

Cadbury Schweppes has a pronounced manner of operations. It seeks the opinion of the potential customers, employees and other stakeholders before making a major investment. Additionally, it carries out a market survey in the target area to assess the product’s acceptability. It stages exclusive campaigns to manage competition from other firms. In addition, it consults employees and allows them to air their complaints to the management. The company believes in conflict resolution through arbitration. Moreover, it responds to employee and customer concerns in time.

Challenges

Although Cadbury Schweppes is a successful company, it faces criticism over its objectives. Critics believe that its acquisition of Dr. Pepper/ Seven-Up was a blind initiative because it did not consider the opportunities. Financial analysts believe that it does not access a company’s worth before purchasing it.

Conclusion

Cadbury adopts an all rounded business model to ensure that it remains the choice of many consumers. It intermingles with consumers to garner their opinions. Such information helps the management improve its products to satisfy the consumer needs. Its development is attributed to its swift response to consumer demands. The most outstanding traits of Cadbury Schweppes include its status as a reliable employer and its products’ quality. Complaints from employees and customers are quite rare.

Works Cited

Hays, Constance. “Cadbury Schweppes to Buy Snapple Drinks Line.” The New York Times 2000: Print.

Wiggins, Jenny. “The Inside Story of the Cadbury Takeover.” FT Magazine 2010: Print.

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