Management and Decision Making at Cadbury - Essay Example

Management and decision making at Cadbury Cadbury does not really have a main administration department. Each department has its own administration. Each department is responsible for its inputs οf information, processing information and out put οf information; does its own filing, photocopying, correspondence, mail and telephone calls. Marketing The charted institute οf marketing defines marketing as: "The management process responsible for identifying anticipating and satisfying customer requirements profitably." The marketing department is responsible for, Carrying out MARKET RESEARCH Developing the right MARKET MIX Businesses (Cadbury) carrying out market research to identify customers needs. This can be done by, Primary research: asking customers (new research) Secondary research: using existing information The marketing department is also responsible for developing the businesses, Marketing Mix. This means that they must get the right: PRODUCTS-what features does the product have that make it suitable for the target market? Cadbury adds its logo to the package, and adds a certain quality to the chocolate that the other competitors dont (recipe) sometimes, this brings satisfaction to the customers. PRICE- should the products be priced higher or lower than those οf competitors? In local areas, most corner shops sell Cadbury chocolate at the same price as competitor e.g. Cadbury whole nut costs 35 pence, while a Mars bar and Galaxy bar cost 35 pence as well. PLACE- where will customers want to buy the products? Cadbury sells its products to shops (business) that deal with beverages and confectionery e.g. corners shops, super stores (Iceland, Sainsbury, Kwick Save, Tesco, Asda, Safeway), petrol station etc. these business are usually visited by customers on a daily bases. PROMOTION- where should the products be advertised, to suit the needs οf the businesss target market? Cadbury advertises its products on television, Internet, billposter, in beverages and confectionery business by hanging posters. This would help Cadbury to achieve ones οf its objectives, which is "to be the Number one product in a given market". By achieving this objective it would lead them to achieve the other objective, such as "maximising profit etc. (refer to objective on page 4). Research and development The research and development department is the department that researches new products and develops the old products. To remain successful, business must constantly work to create new and better products and processes. Research-this involves carrying out investigation to come up with new idea, e.g. by carrying out brainstorming, examining competitors products or carrying out research in laboratory. Development- this involves turning the findings οf the research into useful products or processes. If Cadbury had a mishap with a chocolate, the research and development department would try to correct the mishap. The research and development department must work closely with the marketing and production departments in particular this is because marketing and production are the beginning and end οf producing a product. As you can see from the table above this is the life cycle οf the product while being produced. The input would be from the Marketing department. The process would be from the production department The output would be the product or waste Therefore because there is a mishap from the output, this has to be due to a fault in the input (The marketing department) or the process (the production department) Management Style Cadbury who initiate a quality improvement process must incorporate several basic principles into their management style: A firm commitment to and support for quality A concern for the satisfaction οf staff and users οf health services A focus on problem solving to improve quality Respect for staff and their abilities A willingness to collect and use data to determine the nature and size οf problems and to improve processes Cadbury has more than one management style. This is so it has the best management. This is in terms οf efficiency, training, and knowledge and to focus more on the loyalty οf the workers in Cadbury. Cadbury has three management styles, which are: Autocratic: is the decision-making, made by an individual or a group, without the help or advice οf other members οf staff. Democratic management: This is when all members οf staff work together as a team. They listen to each others inputs οf ideas and suggestions. Then as a team they reach a decision. This management style is good for Cadbury because it motivates workers; with having power and decision making and through this it allows them to be involved in the business. For example refer to the Curly Wurly (Refer to the production section, page 8). Consultative management: This is when all the ideas are received and then analysed. If ideas are found to be achievable and successful by the senior group, then it is taken forward. Since Cadbury is a flat structure, mangers working find that they can consult the level or layers οf the organisation before making the decision. However power is still centralised by senior groups, who are at the top οf the tall hierarchy (structure). (Refer to Curly Wurly example; Decision was given by a floor manager to senior group, the idea was analysed, they found it efficient and successful so the idea was taken forward). Paternalistic management: It treats all its employees as a family. It makes them feel that they belong to a big family. It provides it employees; with their needs e.g. free health care, sport activities, and social club. In order for Cadbury to make its employees as part οf the business (family) it advises them to have a share οf the company. Cadbury uses all these management style in order to achieve the best οf its business (workers, Equipment). Autocratic is used in Cadbury by the managing director (refer to the organisational structure). It uses democratic to motivate the workers to perform good quality work. Through motivating the staff members (workers), this makes them feel valued and part οf the organisation. Members οf staff work willingly. Cadburys Management by objectives The role οf leadership is very important in the management οf any organization and management by objectives is a process emphasising the role οf leadership and communications in the organisation and control οf the business. This is how Cadbury is managed. There are three basic elements in Management that Cadbury uses by objectives: The identification οf agreed goals by a manager an a subordinate The definition οf the subordinates responsibilities in terms οf agreed results The use οf agreed goals and responsibilities to control the progress οf the business Advantages οf Cadburys Management by objectives 1. People work better when they have a clear understanding οf what they are expected to achieve and how their activities will contribute to the overall objectives οf the business. 2. The process οf deciding on objectives and responsibilities improves communication between manager and subordinate. By improving feedback it helps with future decision making. 3. It improves training by making managers aware οf their own needs and the training needs οf subordinates. 4. It provides opportunities for growth and development. 5. By setting identifiable, short-term targets it increase an individuals sense οf achievement and provides opportunities for recognition Disadvantages οf Cadburys Management by objectives 1. The assessment οf objectives can appear judgmental and threatening if senior management lack the necessary interpersonal communication skills. 2. When unrealistic objectives are set the resulting failures can be demotivating 3. Management οf all levels must be convinced οf the value οf the exercise otherwise it will become a meaningless routine In Cadburys case, members οf staff are the building blocks οf organisations (Cadbury). They can be organised into working groups and given structures to operate within, but unless they have the motivation to work within those structures they will, either consciously or unconsciously, adapt to their own needs. It has been pointed out that business exists for, by and because οf people (staff members). A person is more complex than the most sophisticated techniques and technology employed in the business world. Therefore Cadbury has to insure that its members οf staff are motivated to work to their maximum ability, have a clear understanding οf what they are expected to achieve and how their activities will contribute to the overall objectives οf the business (refer to advantages οf Cadbury management by objectives). Cadburys management style helps it to achieve its basic principles into their management style (refer to management style) Culture Cadbury is a mixture οf Cultures such as: Role culture is doing a job that is very important to the organisation, it is having power over a group (refer to the organisational structure which indicates that Cadbury has role culture because it has many management directors that have power over many groups). This job is an internal job οf the organisation it is controlled by having procedures and rules that member οf staff should not break or they will lose their position in the organisation. Relating this to Cadbury, marketing directors, who are in charge οf market research for new product such as a chocolate, this information (research) has to be confidential. Power culture is a business being dominated by an individual. The Management director dominates Cadbury, (refer to the organisational structure) Task culture focus on getting the job done. Groups or teams within this cultural are not fixed but are made up οf individuals brought together to achieve a specific task. Cadburys production department has a task culture. It works as a team to package the chocolate. Packaging the chocolates is done as a team. A member οf the production team packages the chocolate in foiled rapping, and then the chocolate is passed by machinery to another member οf the production team who packages the foil chocolate in boxes. These boxes are then stacked in many counties on a machine. These stacks are the rapped with cellophane, so boxes dont fall off. Finally these stacks are taken by another member οf the production team using machinery to the storage. Person culture places the emphasis on the individual rather than the organisation and its objectives. For example if any member οf staff has any suggestions for improvement, their suggestions are taken to account and if successful they will be used (refer to the Curly Wurly example on page 8). Cadburys Culture arises from the traditions, beliefs and values οf the Quaker family. This is how Cadbury adopted the paternalistic management. It includes religious beliefs, attitudes towards alcohol, the food we eat and the importance we attach to family life. The Quakers cultural values are very strong and can impose important constraints on the business activity. For example, Cadbury finds, it would be unwise to try to sell products that are seen to insult religions or people, and it would be foolish to try to make people adopt working practices that are disapproved οf by the cultural grouping (Quaker). The reason why Cadbury is successful is because it makes best use οf its opportunities, which therefore allows decision making understood. Organisational structure Cadburys type οf organisational structure is between hierarchical and flat structure. Flat structure does not have many layers, which means information is sent quickly; with less complication or misunderstanding; therefore it produces the correct result. Due to having a Flat structure communication is easier {clear information, understanding} between each layer, therefore when decisions are made, they will be specific to advice/order instructions. Hierarchical structure is based on distinct chain οf commands from Managing director to Clerical Support assistants (according to Cadbury). Decisions are made at the top and pass down. Such organisational are usually based on clearly defined procedures and roles. Cadbury organisation is based on more democratic. Decisions are made as a result οf a consultation process involving various members οf the organisation (Cadbury). Ideas would be discussed and thought through collectively. Within Cadbury organisation we can find a Democratic structure, Because Cadbury tends to be found in situation were it is felt to be important for all members οf the organisation to understand what they are doing, were decisions require individual initiative, and where member οf staff need to work as a team How management style, Culture and Organisational structure interrelate Cadbury has strategies for the organisation, continually to motivate members οf staff to support this process, and market change within the organisation. Management style, culture and organisational structure interrelate together in Cadbury because they all work together to: Develop Strategies: Cadburys good management involves long-term or sometimes strategic planning. Without members οf staff (employees) at Cadbury having a clear idea οf Cadburys goals, employees dont know where the Cadbury is going, or the best means to achieve the goals. An institution needs to define where its going (the vision), why its going there (the mission), and how to get there (the strategies). It will then be easier to use this process to work cohesively towards organisational goals. Tools in this section for helping you develop a coherent strategy for your organisation include the affinity technique, force field analysis, SWOT analysis, and strategic analysis. Due to this employees at Cadbury would feel they are part οf the organisation. Communication Communication involves sending a message between a "sender" and a "receiver". The communication channel is the route by which a message is sent between the sender and the receiver. The communication channel can involve a range οf communication media. A communication medium is the written, oral or technological method used to communicate a message. For example a manager wishes to notify an employees οf a pay rise: Types οf communication: Communication can be Internal or external Formal or informal Downward, upwards or horizontal Ristricted or open The type οf communication that Cadbury uses are e-mail,fax,telephone, mobile communication (text messges),laser,vidoe conferencing (allows the business to have virtual meetings), conference calls, file transfer, Websiteinternet Cadbury uses ICT as a mean οf external communication, when it wants to communicate between the organisation and the outside world. Cadbury has a public image and this conveys a message which affects everyone who has dealings with it e.g. customers, shareholders, suppliers, competitors, government, communities, international agencies, environmental groups. Cadbury being able to provide a positive image through external communication creates a better external environment. Successful manipulation οf public relations convinces others that Cadbury is worth dealing with, buying its products (and might provide it with a considerable strategic and competitive advantage). Cadbury has open information for example it has a website that gives members οf the public formal (none sensitive) information about the business. On Cadburys website you are able to find information on Cadbury. The information are set out in topics then issues for example one topic is Cadbury today it has market information, information it has for schools and third party links which give you more information that you might need. It also has topics such as Cadbury’s learning Zone , this is where you learn about Cadbury and now more about its history, your able to contact them asking them any questions relating with Cadbury. Cadbury uses ICT as a mean οf internal communication, when it wants to communicate between members οf the organisation. The reason why Cadbury uses internal communication is to transfer information or initiate some action. Cadbury uses a software package called Lotus smart suite internally, this software package is like a personal organiser that allows the majority οf staff to book in all important dates and information. Using this lotus program makes arrangement οf meeting simpler and easier, to see if other members οf staff are free. Cadbury as an internal business can uses this program to find out any information worldwide, for example if a member οf staff that works for Cadbury in Britain wants to find information about another member οf staff that works for Cadbury somewhere else in the world, they can. In Cadbury internal communication may flow: Downward- from higher to lower levels. Say for example the managing director wanted to speak to Clerical support assistance to change the style οf work. Upwards- from lower to higher levels. E.g. Clerical support assistance gives suggestions to senior manger. (Refer to the incident οf the Curly Wurly and squiggles). Horizontal-between people and department ate the same level Multi directionally- in all directions (quality circle). They also use internal communication so that they can communicate restricted information that is sensitive to Cadbury (the business) for example regarding a new chocolate bar that Cadbury is creating. This is so that member οf the public and competitors are restricted to the informal information. The production process Production involves converting inputs in outputs using a production system. This is a table showing how Cadbury uses the production system. In detail this is what Cadbury does to produce chocolates. The inside οf a chocolate factories such as Cadbury, they are quite an extraordinary sight. The beans are moved and processed using very large industrial machines. Costs οf production The condition οf the means οf production (machinery, etc.) Keeping production going Health and safety Keeping employees motivated Keeping up to date with technology Satisfying the requirements οf customers Maximising the use οf plant Minimising the waste οf materials When Cadbury produces a chocolate it produces it in a Flow Production, which is a continues process οf parts passing on from one stage to another until completion. Units οf production are worked on in each operation and then passed straight on to the next work stage. In order to make the production line work smoothly, Cadbury insures each operation must be οf equal length and there should no movements or leakages from the line. E.g. hold ups to work in process. Because there is a continual demand for chocolate this process (flow production) is successful. This is diagram shows a flow οf production: Stage 1stage 2stage 3 Machine Asmachine BsMachine Cs/people Before production takes place, a brief is done, to find out what to produce? Then it is backed up by primary and secondary research. Then Marketing department basically takes place, "what product should be produced, for what price, where to locate it, "place" and how to promote it", (Read Marketing). This will help Cadbury to achieve their objective to give satisfaction to customers through selling them a certain product for certain price, will also help them operate in a wide range οf markets and Help Cadbury to be noticed through Promotion. The system that Cadbury produces its products is (Refer to page 26 and onwards for more specific production.) Human resources In Cadbury, staff members are one οf a businesss most expensive and valuable assets. Human resource department plans the manpower needs οf the business, recruits not just the people who work but for their qualifications, talent and well motivated; it is also responsible for Health and safety, training οf staff and making staff record. Cadbury would use human resources because it is a very big organisation. Human resources would help them meet their objective οf developing staff skills. By giving staff subsidised training, staff for Cadbury will be able to improve their skill like gain a degree (mature student) Cadbury does this all and employees the right people for a smooth running οf the organisation. Works Cited Brassinton, F. Pettitt, S. (2003) Principles οf Marketing (3rd Edition) Pearson Education Edinburgh Gate Harlow Essex Cadburys information leaflets (1997 - 1998) The Story οf Cadbury Limited (1997) Bournville Birmingham Child, John; Smith, Chris., The Context and Process οf Organizational Transformation - Cadbury Limited in its Sector. 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