Business Analysis of Cadbury Schweppes - Case Study Example

Cadbury Analysis Name Institution Affiliation Cadbury Analysis Executive summary This paper gives an analysis of Cadbury Schweppes by looking at different components within the organization. It looks at external environment of the organization which includes the various competition, market, and political situations of the area. It also looks at the internal environment of the organization where it looks at the organizational structures, different managements, the production, and the competitive advantages of the organization. Finally the paper gives the SWOT analysis of the organization through consideration of the factors within the internal and external environment. External analysis The environment that surrounds Cadbury is both conducive and unfavorable for its business activities. The company is set up in a political system which favors its business operation. The locality is characterized by peace and security as well as with well-established procedure for registration of the companies. The company is surrounded by different firms which take part in almost the same business activities. These firms include; Coke, Pepsi and Nestles and Mars. These companies offers strong competition to Cadbury hence it must always fight to ensure success in its business (Collis, Stuart & Smith, 2011). The company is surrounded by different types of customers who have different tastes and preference for the products. This action has brought to constant changes in the business production to fit the need of customers. Effects from the needs of the stakeholders of the company create a lot of pressure in the management of the organization and the operations within the business (Collis, Stuart & Smith, 2011). This involves effects like cultural beliefs as well as the expectations from the stakeholders. This external pressure is posted by the stakeholders who never want to see abrupt and frequent changes in the organization. These factors have gone beyond the control of the company, but with good planning and strategies of management they form the strength, weakness, and opportunities for the organization. Internal analysis These are factors that are within the organization and they are directly controlled by the manner in which the organization is operating. Some of the internal factors in Cadbury include; first, the company has the potential to acquire credit and use it for the enlargement of its business which is shown when they acquired credit and purchased Adams (Collis, Stuart & Smith, 2011). The company stock count increased and they were able to serve a larger market than they used to do before acquiring Adams. Secondly, the business has the best managers who have been hired by the organization to ensure that the business is operating smoothly. The business has the capacity and ability that has been presented in the manner in which changes take place within the organization to adapt to the new conditions in the market. The purchase of Adams gave the organization larger economies of scales which make it more comfortable and capable to compete in the entire world business. The business has different training sessions and various ways through which they motivate and controls the behavior of the employees enabling it to positively increase the productivity of the workers within the organization at different department of the organization. Also the company has wide range of employees which are well managed with regard to their diversity as this is confirmed by the Adams’ employees who loved the organization on their first days at work (Collis, Stuart & Smith, 2011). The organization is managed on the basis of change and is always ready to accept change in the manner of doing its businesses. The management in the organization has formed different organizational structures which ensures change within the department and finally in the entire business premises. The business has good communication system which has helped it in developing the organization. The communication system has helped it to receive complaints from the clients as well as from the stakeholders. This good communication system practice is recognized in the organization when the firm organized road show to respond to the complaints from the stakeholders in regard to the changes in the organization. SWOT analysis This analysis involves looking at different aspects within the organization that makes the organization to be stronger in its field of business operation (Jay & Williams, n.d). It looks at the strength, weaknesses, opportunities and the threats of the organization in carrying out daily operations in the business. Strengths of Cadbury In order for the business to remain relevant, they have to ensure that their business capitalize on their strengths. Some of the strengths of Cadbury include; first, the company has a wide market share that enables it to supply large volume of goods. The supply ensures that the business make profit through sales making it to remain active in the market. The companies through the sale of products and the large market share have a won the customers’ loyalty for its products and services. This action has ensured that the demand for the products increase with the already established customers having no intention of quitting from using Cadbury products (Jay & Williams, n.d). The company also gains its strength from the good management practices which are being inflicted by the actions of the good CEO. The CEOs being appointed for the business have skills and are well equipped with good management and organizational strategies which make them to develop the company. The strength of management has enabled the company top coordinate its employees well making the entire work of the organization to be organized in a pleasing manner. Also the company gets it strength from the communication system that has been shown through different ways that the organization develops and responds to the stakeholders in case any doubt is realized within the organization. The business also receives its strength from the security and the political atmosphere that is presented in the areas of operation. The atmosphere enables the business to operate without fear of destabilization in the business. The business also gains its strength from large economies of scale which allows it to win the operation activities which even allowed it to buy Adams to increase the stock volume. The strength enables the company to suppress the competitors. Lastly, Cadbury has the ability to acquire large volume of credits which has helped it to expand in its operation. Weaknesses The following are some of the weaknesses of Cadbury in the market. The company is not quick to adopting changes in the market needs. These actions at some point may make the organization to loose part of the customer loyalty in the market. The company is insensitive in evaluating the cultural ideas and believes in the market and assumes the behavior of the customers in the line of production. This weakness is majorly realized since the company has been blinded by the large consumer loyalty for its products. Opportunities Cadbury has the opportunities to use its customer loyalty to engage in other kind of business other than to complement its current production. Also it has the opportunity to drive a way the competitors in the market with its economies of scale. Lastly, the company has the opportunity to implement instant changes which will ensure they remain relevant in the business and attract new customers to be loyal to their products. Threats The following are some of the threats to Cadbury. The company faces stiff competition from other organizations like Coke which might through it out of the market in case it losses ground on customer loyalty. Secondly, the business is operating on credits which might make it collapse in case the revenue generated will not be able to pay for the credits. Lastly, change in the consumers taste and preference might through Cadbury out of the business in case it fails to change with the changes in the consumers’ needs. Conclusion From the discussion, the paper has provided different elements of Cadbury environment both internally and externally. The analysis has used the sets that are found within the environments to establish different SWOT aspects within the organization. Cadbury therefore should use its weakness as the opportunities to develop and remain relevant in the organization. The strength of the organization should only be used to maximize on its opportunities and do away with the threats that it faces. References Collis, D., Stuart, T., & Smith, T. (2011). Cadburt Schweppess: Capturing Confectionery (C). Case Study pp 1-6 Jay, B., & Williams, S. (n.d). Strategic Management and Competitive Advantage: Concepts and Cases. Global edition 5th edition: Pearson. Read More