Cadbury plc Business Objectives
“To what extent does practice match theory?”
The origin of Cadbury Schweppes goes back over 200 years to Jacob Schweppe, who perfected a process for manufacturing mineral water in Geneva, Switzerland in 1783, and also to John Cadbury, who first started selling tea and coffee in 1824 in Birmingham, UK. In 1969, the two enterprises merged to form a company that was to become one of the three top global companies in the confectionery, beverage and gum industry.
Cadbury Schweppes plc operates in the global confectionery market. The market is large, growing and has attractive dynamics. The global confectionery market is the world’s fourth largest packaged food market and in 2004, it represented 10% of that market.
(a) Identify from company sources (and elsewhere if necessary) what is its primary objective.
During the past few years, significant efforts have been made to strengthen management and improve business processes as part of a heightened focus on value delivery.
But their governing objective remains growth in value for its shareowners. Since the introduction of Managing Value in 1996, average 10%+ earnings per share targets have been achieved until 2008.
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Source: CADBURY SCHWEPPES PLC, Share Price.
These results suggest that the company has achieved its objectives of delivering superior returns to its shareholders until 2008.
Cadbury Schweppes remains committed to beverages, confectionery and gum. The group aims to develop regional business where its positions are robust and sustainable. Growth will continue to be generated through momentum from existing major brands, from innovation and from acquisition where appropriate.
Market Share in the global Confectionery Market (US dollar Share)
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