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Cadbury as One of the Worlds Leading Confectionery Companies - Case Study Example

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The aim of this paper "Cadbury as One of the World’s Leading Confectionery Companies" is to look into the operation of the company from a resource view perspective to evaluate as well as identify the manner that it obtains a sustainable competitive advantage as a result of its capabilities…
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Download file to see previous pages The highly competitive nature of today’s business world means that companies need to understand their competitors, the environment they operate in as well as their own strengths and weaknesses relative to the preceding as a means to either maintain their advantages or take stock of what they need to do to progress forward (Barney, 1991, Pp. 658-659). The foundation of the present view of the concept of resource-based theory, which is also termed as resource-based view, is founded on the precept of economic rent (Foss, 1997, P. 17). Economic rent is also termed as Economic Value Added and represents a broadly utilized tool to measure company efficiency in its use of resources (Ray, 2001, P. 231). The preceding represents one facet of the resources and capabilities of a firm that is the foundation for the development and execution of its strategy and thus returns (Peterlaf, 1993, P. 181). Resources in the context of this study represent the production process of a company that comprises equipment, capital, employee skills, finance, patents, and the expertise of its managers (Knight and Cavusgil, 2004, P. 57). The individual resources may not necessarily become larger, however, increased effectiveness and efficiency represent a paradigm that drives resource improvements in most cases thus helping to fuel competitive advantages via synergistic outcomes (Lewin and Massini, 2003, Pp. 123-124). In delving into a resource-based analysis, a number of tools as well as frameworks are utilized for identification as well as evaluative purposes. Porter’s value chain represents such a tool. It, the value chain, represents a series of activities in the chain whereby each activity adds value (Levy, 1995, P. 78). As a result, the added activities of each segment of the chain create an end product that has more value than the individual activities thus resulting in a synergistic result (Levy, 1995, P. 78). Another tool that shall be used herein is a SWOT Analysis (Bloodgood and Bauerschmidt, 2002, P. 56). It entails looking into the Strengths, Weaknesses, Opportunities as well as Threats facing a company and or project through looking at the external and internal factors that are positive and or negative aspects impacting the firm and or project (Bloodgood and Bauerschmidt, 2002, P. 56). In conducting this examination, the Balanced Scorecard shall also be used. It is a tool used by business in strategic planning as a management system that seeks to result in an alignment of its business activities to the strategy as well as the vision to gain improvements in internal as well as external communications (McLean, 2006, P. 56). In addition to the foregoing, the balanced scorecard looks to check the performance of a company with its strategic goals and objectives in a performance measurement framework that takes into account the following perspectives, financial, customer, internal process, along with innovation and learning (McLean, 2006, P. 56). Benchmarking is another tool that shall be used in this study. It takes business processes along with performance metrics as represented by costs, productivity, cycle time and in some instances quality to standards that are commonly recognized as representing the standard(s) for the industry (Ammons, 1999, P. 43). Another method by which to undertake a resource-based review of a company is through ratio analysis. It is a tool that is used to undertake a quantitative analysis of the financial statements of a company (Giacomino and Mielke, 1993, P. 32). Ratio analysis is utilized for the company in question as well as to the industry and competitors as a means to compare the performance of a firm against others in their operational sector and can differing forms (Giacomino and Mielke, 1993, P. 32).  ...Download file to see next pagesRead More
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