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Cadbury World Consultant’s Report
This report was written with the purpose of analysing the Cadbury World case study, identifying the main issues that prevent Cadbury World’s operating model from realising its true potential and giving suggestions and recommendations on how to achieve this goal.
The main problems that are holding this product back are related to time management, capacity management, corporate social responsibility, presence of bottlenecks, supply of visitors and general poor organisation. All of these aspects affect the overall quality of the experience – reason why the report recommends establishing clearly timed schedules for the tour, better control and guidance of visitors, reengineering of the restaurant, providing full access for all visitors, providing mobility tools for people with mobility problems, implementing cost-reducing changes, and restructuring supply of customers to make the business more cost-efficient.
Table of Contents
1 – introduction.
Cadbury considers Cadbury World to be a success. However, recent developments have indicated that Cadbury World is not offering everything it could offer. In order to improve the overall quality of the exhibition, Cadbury is relying on consultants to examine how things are being processed, spot the challenges that the product is facing and recommend solutions to these.
2 – Discussion 2.1 – The service concept
Cadbury World is an exhibition tour created in 1990 that aims to give visitors a warm, candid experience in which they can learn about the history of chocolate and how Cadbury chocolates are produced. This exhibition was created with the purpose of boosting Cadbury’s reputation in order to potentially sell more of their chocolates and increase profits.
However, there are problems that prevent this family-friendly tour from providing quality, and therefore not helping in boosting Cadbury’s reputation as much as one would want.
Cadbury have always proud themselves of being a good neighbour. This is the image that it is intended to be projected and it plays an important role when it comes to corporate social responsibility. As expedients, they need to show to stakeholders that they care about them in order to boost their reputation, which helps the company to sell their products.
Some of the procedures that take place at the operational level, however, may have the opposite effect. Visitors arriving by train and barge need to walk for ten minutes before they reach the exhibition (people with mobility problems are no exception). The packaging area has no access for people who cannot use the stairs, it is not available to visit every day and it is sometimes not well indicated when it will be open or closed, which causes disappointment and frustration in customers. Children getting sick and dirty with chocolate samples is commonplace. The presence of bottleneck effects in most parts of the exhibition also prevents people from having an enjoyable experience that would positively influence visitors’ perception of the company.
2.2 – Cadbury World’s processing of visitors.
Appendix 7 is a flowchart that shows how Cadbury World processes visitors throughout the exhibition. The biggest issue with the current process is the creation of bottlenecks from the very beginning of the tour, which are generated due to the way in which variations of customer flow are dealt with. A lack of proper time management and capacity management is the cause of most of the problems that Cadbury World is currently suffering from. Currently, the exhibition is at times empty, and at other times, crowded.
Appendix 8 is a flowchart that shows how visitors could potentially be processed. It shows a considerable improvement in the way in which staff members deal with groups (notice how bottlenecks have disappeared). Starting from appendix 1, it is shown area by area how the influx and process of visitors should be dealt with to accomplish a smooth rotation of groups throughout.
The process has been redesigned adopting a lean supply model for a fast, responsive and timed flow.
These changes will positively contribute to the overall quality of the experience, allowing for a process that truly goes over customers’ expectations and boosts Cadbury’s perception by stakeholders.
2.3 – Exposing the issues.
Appendix 9 shows a chart with the potential capacity of Cadbury World, showing that the number of visitors that are being currently processed is quite poor in comparison to what it could be. By implementing proper capacity management and proper timing of rotation of groups, the exhibition could be processing record numbers of customers.
As it stands, the exhibition does not really follow the schedules established. Coaches arriving late, people getting amused and entertained by the attractions at the entrance and visitors going in the shop and restaurant first – it all contributes to this problem. Customers do not enter the exhibition at the time they are supposed to (see appendix 1).
Too many TV sets installed all over the exhibition means that visitors stop and watch while other groups approach from behind, leading to important bottleneck effects.
Lack of control of the chocolate samples being given to children may make these sick and dirty, potentially spoiling the experience for the whole family, not to mention the obvious health and safety issues that this could arise.
The Marie Cadbury room sometimes gathers way too many people and leaves most of the visitors standing on their feet while they are watching the show.
The next section separates families when going through a gender-divisive entrance and the elderly stop to explain children how the clock-in works (See appendix 2).
The most important issues at the packaging area are the lack of information on whether this section is available or not, lack of access for people with mobility problems, and yet another set of TVs in the exhibition itself, leading to complaints, more group overlaps and very important bottlenecks (See appendix 3).
In the demonstration area, despite of the pact that there are eight tour guides, the bottlenecks get worse as some groups take too long to finish this section and some other groups basically skip it by moving too quickly towards the exit (See appendix 4).
At the exit, visitors are left on their own with, again, a whole section dedicated to watching videos, making them spend too much time here before they reach the shop. This area in particular may be much more fun for children that it is for adults.
There is a pilferage problem in the shop caused by a lack of visibility. The cashier is clearly visually isolated from most of the parts of the shop, making it difficult for the staff to know what is happening. Also, customers who have not visited the exhibition yet come in through the main entrance, increasing the number of people in the shop and making everything harder for shop keepers (See appendix 5).
The restaurant needs to be completely restructured in order to deliver quality service and prevent customers from getting confused. This section is particularly inefficient and requires special attention (See appendix 6).
Despite of the fact that only 6 complaint letters are sent to Cadbury for every 10,000 visitors, and the fact that Cadbury World is believed to be a success, one would easily see that it is indeed an exhibition that has huge potential. However, this potential is being held back by the way in which things are carried out at the operational level.
Appendices 9 and 10 show the financial potential and capacity potential of the exhibition. If the recommendations that this report suggests were applied, it would lead to Cadbury World becoming considerably more efficient, profitable and successful.
The level of risk in relation to the reward that Cadbury may obtain by implementing these recommended changes is relatively low. With a small extra investment, Cadbury World can receive a much higher influx or revenue, which in turn would also increase profit.
3 – Conclusions.
After thoroughly studying the way in which Cadbury World processes visitors throughout the exhibition, it is clear that there is currently a lack of quality in the way in which this business is operated. There are serious organisational issues that prevent the company from providing customers with quality service. Constant overlap of groups generates a bottleneck effect in many of the different areas considerably reducing the overall quality of the tour and preventing the company from working at full capacity and yielding substantial revenue.
It is advised that Cadbury rethinks the overall concept of the product as restructuring the supply of customers into the facilities and implementing quality capacity management using a lean system to rotate groups throughout the tour are key goals to achieve overall efficient management of Cadbury World and to comply with their corporate social responsibility.
4 – Recommendations.
In order to accomplish what has been mentioned above, we recommend the following:
A shuttle to take visitors from the rear of the factory to the entrance of the exhibition.
Giving coaches arrival times of 15 minutes before they are actually expected.
Clearly marking the entrance to the exhibition and blocking the entrance to the shop and restaurant at the start of the tour.
Do not set attractions at the beginning of the tour – move them at the end of the tour, outside the restaurant.
Scanning tickets at the entrance of the jungle for fast and effective recording of visitors going in the exhibition and forming groups of up to 20 people.
Full guidance throughout the tour, remove TV sets.
Only one small sample of liquid chocolate per person.
Limit the number people in the Marie Cadbury room to 20. Install 4 more seats so all guests can sit.
Do not use the gender-divisive entrance to enter the demonstration area. Use a different entrance.
Clock-in clock will be explained by staff as they guide groups.
The packaging area will be available to visit all visiting days. A lift will be installed so all customers can access it.
Only two members of staff in the demonstration area needed.
Guidance will be provided all way to the shop. At the end of the tour, tickets will be scanned again and kept by members of staff in order to keep a record of the visitors that have left the exhibition through the shop.
There will be an extra charge for the alternative exhibition.
In the shop, tills will be relocated where staff have proper visibility of all parts and stands.
Restaurant fully reengineered – two queues, both accessing the same food. Menus visible from the entrance, self-service. Six tills, three for each side of the queue.
Close two days a week (Mondays and Tuesdays) to save costs and carry out maintenance work in the packaging area. Increase number of visitors throughout the rest of the week by implementing an appropriate market strategy and use yield management to set ticket prices in accordance with levels of demand and sales targets.
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“insight6 were very pro-active and provided some great advice on how to recognise and motivate the Cadbury team. One initiative was using the data from the customer experience reviews to award an “employee of the day”; a team member who was recognised and rewarded for stand out customer service.” Debbie Bisseker, Head of Visitor Services
Cadbury World - Case Study
Whilst touring Cadbury World, visitors will discover the history and heritage of the company and learn how it developed from a small Birmingham based business into a global company. With the information provided through visuals and exhibitions, Cadbury hopes that it will give customers, particularly the younger population, a good understanding of business which will be useful in their working lives.
Cadbury was already using a customer feedback company; however, they found them to be slow in delivering their reports. One of the Cadbury team met Jonathan Winchester, CE of insight6, at an exhibition and was immediately impressed with the proposed detail and quality of the insight6 feedback. So much so that they decided to switch.
Fundamentally, Cadbury World wanted to ensure their brand standards were upheld with a provider who could guarantee quality reports in good time, without delay.
A thorough and detailed customer journey was mapped out to include all 14 zones within Cadbury World. Then a bespoke report was developed to reflect the complete customer experience. The Customer Experience Reviews focused on the interaction between team members and the visitors, as well as ensuring there was a rigorous assessment of the standards throughout.
A programme of 2-3 customer experience reviews per month was initially planned. To underpin this, and to ensure team members could deliver the desired level of customer service, several training sessions on customer service and selling skills training were devised. This took both long-term and new team members through the key areas of delivering memorable service. The key themes that resonated with the team in all training were that they were always “on show” and “part of the exhibition”.
More questions have been added into the customer experience reports over time as they are constantly reviewed to ensure they are measuring the key focus areas. This guarantees the reports provide relevant data which can be used to measure the progress of the team.
Debbie Bisseker, Head of Visitor Services, has developed targets stretching to 92% to encourage the whole team to excel.
“The team enjoy the quick and ‘in the moment’ feedback from the shoppers,” Debbie says. “We work together with insight6 to ensure that the programme is up to date with changes in the attraction with the aim of delivering a great customer experience.”
The following graph compares the 2013 results to the averages over the 5 years of the programme developed with insight6.
There has been a big focus on sales skills in the insight6 training courses and these have contributed to a 5% improvement in selling performance since the programme inception which has contributed to strong year on year performance at Cadbury World.
4 out of 5 KPIs have seen improvement since the start of the programme.
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Simcon- simsree consulting club, cadbury : case study analysis.
Introduction to Case
Cadbury is a brand which almost everyone knows. Even after completion of more than 100 years, the brand is into hearts of many people & it also leaves a significant mark amidst all the competition. Cadbury stands tall in food product sector. Cadbury is world’s leader in chocolates and it is also one of the topmost FMCG brands in India. Cadbury decided to enter Indian market in 1948. Cadbury India began its operations in India by importing chocolates. On 19 th July 1948 Cadbury was incorporated in India. Cadbury has a share of over 67% in the market, which is the highest Cadbury brand share globally. Cadbury now has 5 manufacturing units all over India. Cadbury operates in India with following categories of products: Chocolate, Confectionery, Beverages, Biscuits and Candy.Cadbury was performing very well since its incorporation in India But, suddenly in 2003 Cadbury came across a problem of worms.
In 2003, just a month before Diwali few instances of worms in its Dairy Milk Bars were reported in Maharashtra. In eight outlets across Maharashtra worms were found. In October 2003, customers in Mumbai complained about finding worms in Cadbury Dairy Milk Bars.
Problems Faced by Cadbury:
When these worms were found in some of the dairy milk bars, Maharashtra Food and Drugs Administration responded quickly to this case and it seized the stocks of chocolate bars which were manufactured in Cadbury’s Pune Plant.
Cadbury in defense issued a statement where it mentioned that problem of worms was not at the manufacturing stage but the problem arose due to poor storage facility by the retailers.
FDA denied the statement made by Cadbury. FDA Commissioner Uttam Khobragade came up with a statement saying “It was presumed that worms got into it at the storage level, but then what about the packing – packaging was not proper or airtight, either ways it’s a manufacturing defect with unhygienic conditions or improper packaging.”
Then there were many allegations and counter allegations between Cadbury and FDA. Due to this event reputation of Cadbury was hampered. Cadbury sales went down by 30% which they had expected to increase by 15% due to negative publicity.
For the first time, Cadbury’s Advertisements went off air for one and a half months after the Diwali due to this controversy
Cadbury was losing on its sales and also reputation was being hampered. So, recovering from this type of situation was a challenge for Cadbury. In the month of October only Cadbury launched Public Relations (PR) campaign ‘Vishwas’ which was an education initiative covering 190,000 retailers in key states.
Project Vishwas , a three-pronged program that addressed the trade, consumers, media and employees. The project incorporated the following measures:
- A retail monitoring and education program was launched in which quality checks at over 50,000 retail outlets and educated 190,000 wholesalers and retailers was done regarding storage requirements.
- A press ad regarding ‘Facts about Cadbury’ was also published by Cadbury nationally in 55 trade publications which were about channel members taking remedial measures in the company.
- Posters and leaflets on the issue were also distributed to retailers, encouraging them to share them with consumers.
- Cadbury also linked the trade with response cell through a toll-free number and an email id to let them contact the company directly.
- The point-of-view of a company was explained to media, media was also given updates about actions initiated by the company, and encouraged to share them with consumers.
- The company instituted a media desk and diligently answered every media query, friendly or not. The company’s managing director urged media to assure consumers that Cadbury was safe to eat, but that consumers exercise the usual care in purchasing a chocolate that they exercise in purchasing a food item.
- Furthermore, it also promised to implement packaging changes within two months to ensure against poor storage. Cadbury’s MD and key spokespersons had one-to-one sessions with 31 media editors as part of an ‘Outreach’ program initiated in November 2003.
- Employees were also briefed about actions taken through meetings with senior managers and email updates from the MD.
Change in Packaging:
January 2004, the company launched a new double packaging that was able to wrap even the smallest 13 gm chocolate in an aluminum foil, heat-sealed for complete protection from all sides and further encased in a poly flow pack. The over-engineered pack, the first of its kind in India, cost a lot to a company, but fulfilled the company’s promise to consumers and media. By investing up to Rs 15 crore (Rs 150 million) on imported machinery, Cadbury’s revamped the packaging of Dairy Milk. The metallic poly-flow was costlier by 10-15 per cent, but Cadbury didn’t hike the pack price.
The new packaging was launched in a media conference. In a conference comparison kits were distributed. These kits were useful in comparing old packs and new packs. A video with packaging and factory shots for television coverage was also launched.
Just after changing packaging Cadbury roped in Amitabh Bachchan as a brand ambassador. From the month January to March 2004, Cadbury came up with a strong Ad campaign which helped them to get back the consumer confidence. During this period Advertising expenses went up by 15% but it really helped Cadbury to get back its reputation.
After that Incident Cadbury now takes great care of all the products they have. Cadbury is currently leading the market in chocolates segment. Market share of the Cadbury Dairy Milk is around 35% in India. Cadbury has not faced any controversy related to products after that incident.
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Cadbury Case Study
Spots v stripes campaign.
Cadbury, the world's 2nd largest confectionary company, sponsored and was the official treat provider to the London 2012 Olympics. To activate its sponsorship Cadbury launched the Spots v Stripes campaign. At the heart of the integrated two-year campaign was Race Season - a core campaign to supercharge consumer engagement - Cadbury wanted to encourage the public to enter to the spirit of the Games by competing online, in person and at home.
Guinness World Records based its solution on Cadbury’s innovative concept of bringing the spirit of the London2012 Games to the public through records. The solution aimed to use record-breaking to create everyday heroes from everyday tasks . With the help of Guinness World Records, Cadbury asked the British public to claim their place in history as the Fastest tea maker or Fastest doodler. The unique campaign was fully integrated across TV, outdoor, print, online and social media. It was supported by nationwide experiential events where the public could go head-to-head with celebrities to secure a world record.
The ‘Spots v Stripes’ campaign has helped the Cadbury brand hit a five-year market-share high. — Daryl Fielding, Vice-President Marketing at Cadbury, Kraft Foods
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Question & Answer
THIS PAPER IS FOR GUIDANCE ONLY, IF YOU NEED A PLAGIARISM FREE COPY OF THIS OR ANY OTHER PAPER KINDLY GO TO ORDER NOW PAGE AND PLACE AN ORDER.
Assume that you are a management consultant. Although Cadbury World is a success, Cadbury’s are aware that it could be improved. They have invited you, in your capacity as a consultant, to review their operation and make appropriate recommendations. You have visited Cadbury World and your findings from the visit are contained within the case study 'Cadbury World'. Based on the information in the case study, you should write a management report for senior management at Cadbury World, analysing the current situation and making appropriate recommendations for future improvements. In making your analysis and recommendations you should draw on the lecture and seminar material, such as identification of operations, transformation processes, volume/variety mix, products and services, inventory management, capacity management, supply chain management, resource planning, layout (mentioned in a seminar) and quality (mentioned in a seminar).
Implementing the changes at Cadbury World will be a job for themselves, so how this is achieved is not your responsibility. You need to recommend what is required, rather than how it will be achieved. In particular, technical specifications are not necessary. Your recommendations should be general so, for example, detailed instructions for the content of a website are not appropriate. Bear in mind your report should be written from an operations management perspective. Please also note the marking criteria, available on Canvas. Revision: 1 Page 2 of 3 Structure of your report Whilst you may include other information, your report should contain at least four basic sections: Introduction: Explain what the report is about and any information required to understand the problem. Analysis: This is an examination of the current situation and identification of any problems. Conclusions: These should summarise the issues found in the analysis and identify any links or patterns in the information. Recommendations: Based on what you have found, write your recommendations for the benefit of the senior management at Cadbury World.
Also see the Marking Criteria. A good reference book, available in the Robinson Library as an electronic download, is: Slack, S. and Brandon-Jones, A. 2019. Operations Management. 9th ed. Harlow: Pearson Earlier editions by either Slack, Brandon-Jones and Johnston or Slack, Chambers and Johnston are also suitable. Other books on Operations Management are also appropriate. Notes
1) Whilst it is perfectly acceptable to consult (and reference) other sources for information on operations management theory, information regarding Cadbury World should only be taken from the case study. No other sources regarding Cadbury World should be consulted.
2) Whilst you obviously need to refer to the case study to provide justification of your findings, simply repeating large portions of the case study as ‘background’ will not gain you many marks. Therefore repeating the case study in your report should be done sparingly, and be justifiable in the context of your report.
3) The important aspects of your work will be both the analysis of the situation, and your recommendations. Both of these will be a reflection of the quality of your thinking.
4) References, if necessary, should be used where appropriate, but mostly this is about your analysis, understanding and evidence of your thinking.
5) If you have any questions, please email. Submission details: File type: Microsoft Word .doc or .docx (do NOT submit an Adobe Reader .pdf file) Length: 2000 words ±10% Submission date: Monday 18 January 2021 Method of submission: Electronically, through Turnitin on Canvas. Structure: Structured as a MANAGEMENT REPORT and NOT an essay (see below). Formatting: Line spacing: 1.5 or 2 times line spacing Font: Times Roman 12 point or Arial 11 point Revision: 1 Page 3 of 3 Management reports Information about writing management reports is given on Canvas. Writing management reports and analysing case studies will also be covered in a lecture and a seminar.
However, an excellent video is: http://www.youtube.com/watch?v=AFGNKJruxdg After watching this video, please note the following points: 1. Your report is an ‘Inductive’ report; 2. Avoid bullet points; 3. Recommendations are required; 4. For references use the Harvard system, not the APA system; 5. You should only have a reference list (if required) and not a bibliography; 6. Skip irrelevant stages in writing e.g. research (the case study is your research); 7. Use third person impersonal i.e. write ‘It may be thought that…’and not ‘I think that…’
THIS PAPER IS FOR GUIDANCE ONLY, IF YOU NEED A PLAGIARISM FREE COPY OF THIS OR ANY OTHER PAPER KINDLY GO TO ORDER NOW PAGE AND PLACE AN ORDER.
Table of Contents
Introduction . 2
Current Situation Report 3
Problem Report 3
Conclusion . 5
Recommendations . 6
References . 9
The report is an intensive look at Cadburys current operation in the production of chocolate. The report will enhance knowledge on current operations and market mix to enhance understanding of how returns on investments are attained. Further, the report will discuss the problems experienced at Cadburys and how they affect the production and sales of chocolate. This approach will ensure the identification of new measures that can be adapted on both a short- and long-term basis to increase the profit margin. It is no secret that corporations are always seeking alternatives that will guarantee reduction in cost structures and enhancement of profit margins through increased sales. After being in operation for more than 100 years, according to the research, there is an increased call for change since new competitors are cropping up with the aim of taking a chunk of the market share. Through its mission statement, Cadbury has laid out its strategic approach to business which encompasses social responsibility and the idea of employee concern which is rarely a factor for consideration in todays’ corporates. This has enabled them to stay on top of things in terms of sales with consumer knowledge of their market approach. The report will detail the different analytical points that are currently contributing to growth or limiting the growth curve. A conclusion of the current analysis will highlight the findings of the report and the significant problems which may lead to reduction of returns on investments if not handled professionally. A further insight into the problems will create the urge to generate new ideas that can be recommended to the management for implementation either on a short- or long-term basis with the sole purpose of ensuring stability and growth is attained.
Current Situation Report
Due to its continued presence in the market, the company has been forced to reintroduce the Cadburys outings which were famous in the 1920s with children. This approach enhances knowledge and builds on consumer loyalty from an early age which Cadburys has done to perfection. It is quite surprising and raises a lot of question when the research exploits hygiene as among the main reasons why the market approach was avoided before reintroduction in the 1980s due to increase public demand.
The current marketing method depicts an old school approach to sales which does not necessarily reach out to every potential consumer. Leaflets can be market friendly in a specific target market which is not the case for chocolates which are universally accepted. Therefore, the marketing approach should be embraced in a way to capture the global interests and not just a specific target area due to low costs of the approach.
Apart from the layout which is not designed for access by many individuals, be it visitors or employees, the different shops structures do not offer adequate space for large groups. This is very inefficient considering the large groups of visitors that come to the plant on a weekly basis. From the coffee and ice-cream parlour to the alternative exhibition center and the restaurant section, it is very obvious that spacing and layout hinders operational efficiency.
The advancement in technology will mean Cadburys has to be steadfast in adaptation if they are to survive market competition. Apparently, the current situation at the ticketing desk does not suggest any improvement or concern on the poor state of operations. Although there is no direct influence on production, it tells a lot about the current operational situation in the company which reads lack of efficiency. Computers in companies are normally integrated to give the same output at all areas of operations which is not the case for Cadburys World.
The lack of operational efficiency has created judgmental problem which may lead to accidents and failure in accountability. The employee manning the entrance to the firm operations section has no significant guiding principles on the amount of people who are supposed to enter at one specific time. This creates room for trial and error in an operation hub where any incident is likely to happen thus calling for accountability of all individuals, be it visitors or even employees and management therein.
Packaging is always very essential since it’s the last step in production before the products reach the intended market. However, strategic allocation for packaging site is a problem for Cadburys. The packaging store is on the second floor, which raise question on operational style and access to distribution. There is no electronic lift and the presence of stairs stipulate that the employees have to carry bulk packaged products to the distributing vans. This is a big risk to products safety before reaching the market which encompasses operational failures which may lead to the incurrence of additional costs. This approach will also guarantee challenges in the distribution section since inventory management will be inefficient. The bulk products packaged are likely to reach distributors in a bad condition thus a challenge in accounting for them. Additionally, visitors to the site with physical disability will have it difficult in accessing the packaging plant due to the lack of ramps that will enable easy access. The lack of technology has hindered access to the packaging plant for prospective clients who may have physical disabilities but still have the desire to enhance knowledge on chocolate production and consumption.
The problem of marketing has created a big gap in profit margins thus creating the need for new structural methods that will increase the desire from customers and prospective clients.
There is also the problem of denial of requests for visits by prospective consumers due to the large number of requests which cannot be matched by the existing facilities and structural layout of the company.
The analysis depicts a company with a lot of inefficiencies in information and operational flaws. This has hindered prospective growth in the market which is always attributed to how fast the product can reach the market and how efficient the information is to the consumers. Developing an understanding for the product will require consumer knowledge of the same thus the increase in request for visits on a weekly basis. The visits offer a perfect marketing approach which will enhance knowledge of the product on a very low cost in terms of the marketing approach. However, the perception created on a visit to the firm is equally important. The moment prospective consumers realize the inefficiencies in production department, they begin to have questions on whether the product being generated fits the current market demands. This approach gives rise to the option of substitutes which in the current economy you are likely to find quite a number.
Developing a perfect marketing mix also enhances knowledge on different market demands (Bahador, 2019. P. 1-5). The current approach that entails distribution of leaflets does not provide additional market growth since the approach can only be limited to a certain number of people. This approach limits growth in an extensive way since different economies cannot obtain the same information yet they are consumers of Cadburys branded chocolates.
Growth can be termed as both internal and external and as the market demand for chocolate grows, so is the internal structures and plants supposed to develop. Cadburys have been very reluctant in the widening of their plant to be able to accommodate a large number of visitors and increase production. The large number of visitors and requests for visits explicitly shows how the demand for the product is rising. Expectations for additional budgetary allocations (Fischer et al. 2012. P. 50-59) should be on the horizon since the growth rate is way above the current expectations and operational style.
Technology has been a key factor in the growth of industrialization and aided in the access to new markets (Bruland, 2004. P. 117-146) thus enhancing returns on investments. Cadburys World is a world leader in the production of chocolate and other related products. The consistent visits from children and prospective consumers should be a wake-up call to enhance customer relation. Through technological changes in operations there will be effective transition from one area of operation to the other. The technological changes should include the integration of all company departments into one efficient system through which information can be send on a parallel level for effective implementation. A case example of the entrance level and ticketing information. If this information can be computerized and all departments get to know immediately of the visitor’s preparations will be underway at all sections that enhancing flow of work and appealing to prospective consumers and children which can improve loyalty.
Developing internal structures and departmentalization of all production levels. This will always enhance accountability in all levels and the case for quality input will be attained. The current situation limits operations to significant levels due to the various mini structures which are not functional. With changing times, production is all about quality products reaching the intended market. Thus, cutting irrelevant structures for production such as moving already packaged products from the second floor to the distributing channels in the ground floor through the stairs can be done away with. In addition, the alternative exhibition store can be transformed into stores for physical storage awaiting distribution in the market.
Marketing will always enhance sales or rather ensure an increase in knowledge of the product in the different economies. Marketing has taken a new approach since the development of globalization (Janosova et al. 2020. P. 1-2) since companies are keen on ensuring information reaches out to the current consumers and the prospective clients in a bid to widen sales and improve profit margins. The use of leaflets is limited to a very small target group therefore Cadburys should think of implementing alternative marketing styles. These marketing approach can be through print media, radio and tv on an international scale and offering additional roadshows and promotions on a monthly basis. It is important for the advertisements to be on a frequent basis since the current crop of consumers will always enhance market research before purchasing a product. A good advertisement that is convincing to the clients is likely to attract more sales thus a growth margin that competitors cannot match.
The structural layout of any company will always play a very essential role in enhancing production to market and sales time. A good layout will ensure swift production, quick packaging and distribution thus no questions of demand that are not met with adequate supply. At Cadburys, this layout is lacking and thus a contributing factor to the lack of maximization of returns on investments. Different departments have their functionalities cut out but the most essential approaches must be attributed to the products completion. Packaging is pretty much the last stage before distribution and it beats logic how the plant can be stationed in the second floor. This increases operational costs and time since after packaging an additional time and human resource will be wasted in transporting them to the ground floor. Considering the building structure of the firm is not modern and only stairs can be seen, it is essential for the packaging plant to be transferred to the ground floor and a different structure of production to be adapted. A more significant production approach of top to bottom can be adapted to enhance quantity whereby the first stage of production is in the top most floor of the production building with the end product being obtained on the ground floor.
Increase in product variety has always kept companies in business thus enhancing sustainability (Thonemann et al. 2002. P. 548-569). Market forces are changing and with it are consumers who are keen on preference to influence their purchasing behaviour. Through additional market research and feedbacks from consumers, Cadburys can ascertain the current market preference and adapt to it on specific quantity basis. The market is wide and the preference are in many varieties, thus the significant role market research plays in advancement of a company’s idea. It is very obvious that all market needs cannot be solved by one product but getting an idea of what the majority in the market want, will create a significant influence on production decision. Cadburys should therefore set a side a team of marketing professionals that are well versed with different economies and ensure they get feedbacks from the different consumers regarding demand and preferences. The team is to be distributed across the globe in order to generate varied demands from different economies and help management in decision making on market entry or how to regulate operations in the specific markets. It will enhance knowledge on product and determine future existence or the going concern of the company.
Bahador, Muhammad Hasbullah. (2019). THE EFFECT OF MARKETING MIX ON
ORGANIZATIONS PERFORMANCE. Vol. 1 pp 1-5
Bruland, Kristine. (2004). Industrialization and technological change. The Cambridge Economic
History of Modern Britain Volume 1: Industrialization, 1700-1860. 117-146.
Fischer, Marc & Albers, Sönke & Wagner, Nils & Frie, Monika. (2012). Dynamically Allocating
the Marketing Budget. How to Leverage Profits across Markets, Products and Marketing
Activities. GfK Marketing Intelligence Review. 4. Pp 50-59 10.2478/gfkmir-2014-0041.
Jánošová, Denisa & Labudová, Lenka. (2020). The impact of globalization on regional
marketing. SHS Web of Conferences. 74. Pp1-2 01009. 10.1051/shsconf/20207401009.
Thonemann, Ulrich & Bradley, James. (2002). The Effect of Product Variety on Supply-Chain
Performance. European Journal of Operational Research. 143. 548-569. 10.1016/S0377
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- Harvard Case Studies
Harvard Business Case Studies Solutions – Assignment Help
In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.
To make a detailed case analysis, student should follow these steps:
STEP 1: Reading Up Harvard Case Study Method Guide:
Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.
Harvard Case Study Solutions
STEP 2: Reading The Cadbury Company Harvard Case Study:
To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.
When having a fast reading, following points should be noted:
- Nature of organization
- Nature if industry in which organization operates.
- External environment that is effecting organization
- Problems being faced by management
- Identification of communication strategies.
- Any relevant strategy that can be added.
- Control and out-of-control situations.
When reading the case for second time, following points should be considered:
- Decisions needed to be made and the responsible Person to make decision.
- Objectives of the organization and key players in this case.
- The compatibility of objectives. if not, their reconciliations and necessary redefinition.
- Sources and constraints of organization from meeting its objectives.
After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.
STEP 3: Doing The Case Analysis Of Cadbury Company:
To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.
Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Cadbury Company and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.
After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.
STEP 4: SWOT Analysis of the Cadbury Company HBR Case Solution:
SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Cadbury Company is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.
This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.
In the strengths, management should identify the following points exists in the organization:
- Advantages of the organization
- Activities of the company better than competitors.
- Unique resources and low cost resources company have.
- Activities and resources market sees as the company’s strength.
- Unique selling proposition of the company.
- Improvement that could be done.
- Activities that can be avoided for Cadbury Company.
- Activities that can be determined as your weakness in the market.
- Factors that can reduce the sales.
- Competitor’s activities that can be seen as your weakness.
- Good opportunities that can be spotted.
- Interesting trends of industry.
- Change in technology and market strategies
- Government policy changes that is related to the company’s field
- Changes in social patterns and lifestyles.
- Local events.
Following points can be identified as a threat to company:
- Company’s facing obstacles.
- Activities of competitors.
- Product and services quality standards
- Threat from changing technologies
- Financial/cash flow problems
- Weakness that threaten the business.
Following points should be considered when applying SWOT to the analysis:
- Precise and verifiable phrases should be sued.
- Prioritize the points under each head, so that management can identify which step has to be taken first.
- Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
- Make sure that points identified should carry itself with strategy formulation process.
- Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.
STEP 5: PESTEL/ PEST Analysis of Cadbury Company Case Solution:
Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.
Pest analysis is very important and informative. It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.
To analyze the business objective and its opportunities and threats, following steps should be followed:
- Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
- Analyze the opportunities that would be happen due to the change.
- Analyze the threats and issues that would be caused due to change.
- Perform cost benefit analyses and take the appropriate action.
- Next political elections and changes that will happen in the country due to these elections
- Strong and powerful political person, his point of view on business policies and their effect on the organization.
- Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
- Change in Legislation and taxation effects on the company
- Trend of regulations and deregulations. Effects of change in business regulations
- Timescale of legislative change.
- Other political factors likely to change for Cadbury Company.
- Position and current economy trend i.e. growing, stagnant or declining.
- Exchange rates fluctuations and its relation with company.
- Change in Level of customer’s disposable income and its effect.
- Fluctuation in unemployment rate and its effect on hiring of skilled employees
- Access to credit and loans. And its effects on company
- Effect of globalization on economic environment
- Considerations on other economic factors
- Change in population growth rate and age factors, and its impacts on organization.
- Effect on organization due to Change in attitudes and generational shifts.
- Standards of health, education and social mobility levels. Its changes and effects on company.
- Employment patterns, job market trend and attitude towards work according to different age groups.
case study solutions
- Social attitudes and social trends, change in socio culture an dits effects.
- Religious believers and life styles and its effects on organization
- Other socio culture factors and its impacts.
- Any new technology that company is using
- Any new technology in market that could affect the work, organization or industry
- Access of competitors to the new technologies and its impact on their product development/better services.
- Research areas of government and education institutes in which the company can make any efforts
- Changes in infra-structure and its effects on work flow
- Existing technology that can facilitate the company
- Other technological factors and their impacts on company and industry
These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.
STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Cadbury Company Case Study:
To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.
porter’s five forces model
These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:
- THREAT OF NEW ENTRANTS:
- as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
- Barriers to entry that includes copy rights and patents.
- High capital requirement
- Government restricted policies
- Switching cost
- Access to suppliers and distributions
- Customer loyalty to established brands.
- THREAT OF SUBSTITUTES:
- this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
- Price performance of substitute
- Switching costs of buyer
- Products substitute available in the market
- Reduction of quality
- Close substitution are available
- DEGREE OF INDUSTRY RIVALRY:
- the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
- Competitive advantage
- Continuous innovation
- Sustainable position in competitive advantage
- Level of advertising
- Competitive strategy
- BARGAINING POWER OF BUYERS:
- it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
- Bargaining leverage
- Switching cost of a buyer
- Buyer price sensitivity
- Competitive advantage of company’s product
- BARGAINING POWER OF SUPPLIERS:
- this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
- Input differentiation
- Impact of cost on differentiation
- Strength of distribution centers
- Input substitute’s availability.
STEP 7: VRIO Analysis of Cadbury Company:
Vrio analysis for Cadbury Company case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Cadbury Company company’s activities and resources values. RARE: the resources of the Cadbury Company company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. ORGANIZED TO CAPTURE VALUE: resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Cadbury Company) must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.
STEP 8: Generating Alternatives For Cadbury Company Case Solution:
After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:
- Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
- as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
- it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
- Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.
Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.
STEP 9: Selection Of Alternatives For Cadbury Company Case Solution:
It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:
- Improve profitability
- Increase sales, market shares, return on investments
- Customer satisfaction
- Brand image
- Corporate mission, vision and strategy
- Resources and capabilities
Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.
STEP 10: Evaluation Of Alternatives For Cadbury Company Case Solution:
If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Best alternative should be selected must be the best when evaluating it on the decision criteria. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.
STEP 11: Recommendations For Cadbury Company Case Study (Solution):
There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. The decision that is being taken should be justified and viable for solving the problems.